1. © OnCourse Learning Chapter 3 : Rights and Interests in Land

2. Exclusive Right to Use of Land Feudal System Allodial System © OnCourse Learning

3. Government Rights Property Tax The right of government to tax private property. © OnCourse Learning

4. Government Rights Eminent Domain The right of government to take private property for public use upon payment of just compensation. © OnCourse Learning

5. Government Rights The right of government to regulate private property for the protection of the general public’s health, morals, and welfare. Police Power © OnCourse Learning

6. Government Rights Escheat When a person dies and leaves no heirs and no instructions as to how to dispose of real and personal property. Ownership of property passes to the government © OnCourse Learning

7.  The largest, most complete bundle of rights one can hold in land; land ownership. © OnCourse Learning Fee Simple

8. The Fee Simple Bundle of Rights Real estate ownership is, in actuality, the ownership of rights to land. The largest bundle available for private ownership is called “fee simple.” © OnCourse Learning

9. Real Estate as a Bundle of Property Rights Property rights are what gives value to the real estate. Private property rights are subject to limitations imposed by government. Thus, this can limit the value of the investment. © OnCourse Learning

10. Removing Sticks from the Fee Simple Bundle Note that the fee simple bundle shrinks as an owner voluntarily removes rights. © OnCourse Learning

11. Control Mortgage Lease Impose covenants or conditions Grant easement Grant license Build or remove structures Use & Enjoy Occupy as residence Use as place of business Farm Mine/drill for oil, etc. Place of recreation Exclusion Maintain privacy Non-trespass Disposition Sell or refuse to sell Give Will Abandon Right or BenefitStick in Bundle Real Estate as a Bundle of Property Rights © OnCourse Learning

12. Commonly Found Easements © OnCourse Learning

13. Commonly Found Encroachments © OnCourse Learning

14. Other Estates Qualified Fee Estates Life Estates Statutory Estates Freehold Estates Leasehold Estates © OnCourse Learning

15. Rights and Interests in Land © OnCourse Learning

16. Cross Section of Estates and Rights in Land © OnCourse Learning

17. Cross Section of Estates and Rights in Land (continued) © OnCourse Learning

18. Checkpoint In the absence of any other factors, which bundle of rights has a higher value? © OnCourse Learning

19. Key Terms Chattel Easement Eminent domain Encroachment Encumbrance Estate Fee simple Lien Title © OnCourse Learning