Transcript CHAPTER 17 Ownership and Leasing of Real Property
CHAPTER
17
Ownership and Leasing of Real Property
17-1 Ownership and Transfer of Real Property 17-2 Leasing Real Property
Law for Business and Personal Use © Thomson South-Western
17-1
Ownership and Transfer of Real Property
GOALS
Understand both the rights and limitations associated with ownership of real property Identify the forms of ownership and how they are transferred Chapter 17 Slide 2 Law for Business and Personal Use © Thomson South-Western
RIGHTS OF REAL PROPERTY OWNERSHIP Real property rights
Surface rights-
include the right to occupy the land, develop it with buildings and fixtures, and even to lay waste to it by destroying its resources such as timber or water. Rights to the air space above the land Mineral rights
Mineral right-
The right to dig or mine the earth Water rights Chapter 17 Slide 3 Law for Business and Personal Use © Thomson South-Western
LIMITATIONS OF REAL PROPERTY OWNERSHIP Limitations on ownership
Easements
- irrevocable rights to some limited use of another's land. Substantial periods of time, 5 years, 50 years or forever Appurtenant, gross, necessity, prescription (page 301)
Restrictive covenants-
A promise usually made in writing by the buyer to the seller. Usually limits the use of the land in some way
Zoning ordinances-
regulate the location of residential, business, and industrial districts. adopted by cities or countries to Duties owed to entrants on land Chapter 17 Slide 4 Law for Business and Personal Use © Thomson South-Western
List four potential limitations on the ownership rights of real property.
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FORMS OF REAL PROPERTY OWNERSHIP
Fee simple absolute-
ownership rights. the state with all the Owner exercises all the power allowed by law.
Life estate-
ownership only for the length of a specified person’s life.
Conditional estate-
makes the ownership conditional on some act or event.
Non-freehold estate-
(tenancy), involves ownership for a limited period of time. Chapter 17 Slide 6 Law for Business and Personal Use © Thomson South-Western
TRANSFER OF REAL PROPERTY OWNERSHIP
Deed
- the legal document used to transfer ownership of real property. Gift, sale, or inheritance
Adverse possession-
occurs when you adversely and exclusively possess in an open and notorious way the land of another private person. Must be continuous and for the statutory period of 5 to 21 years depending on state law. Chapter 17 Slide 7 Law for Business and Personal Use © Thomson South-Western
TRANSFER OF REAL PROPERTY OWNERSHIP Dedication or eminent domain eminent domain- the power of the government to take private property for public use in exchange for the fair market price. Property taken under eminent domain must be used for public use; Highways, airports, parks or schools Chapter 17 Slide 8 Law for Business and Personal Use © Thomson South-Western
Name the four major types of estates in real property.
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17-2
Leasing Real Property
GOALS
Compare the various types of leases Explain the rights and duties of landlords and tenants Chapter 17 Slide 10 Law for Business and Personal Use © Thomson South-Western
FOCUS
Rights Tenant Duties Landlord Do you know anyone who is either a tenant or a landlord?
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Leasing Real Property
Lease- an agreement in which one party receives temporary possession of another's real property in exchange for rent. Rent- the consideration given in return for temporary possession. Leasehold Estate- the ownership interest of the tenant Grants certain rights in the subject property to the tenant Chapter 17 Slide 12 Law for Business and Personal Use © Thomson South-Western
WHAT ARE THE TYPES OF LEASES?
Periodic tenancy- the leasehold is for a renewable period of time with rent due at stated intervals. Week to week, month to month or year to year Notice of termination is required Tenancy for years- a leasehold for a definite period of time Ex: six months, one year, or ninety years Identifies a date for ending the lease Tenancy at sufferance- If a tenant remains in possession after a lease has expired Tenancy at will- If a party possesses land with the owner’s permission but without an agreement as to the term of the lease or the amount of the rent Chapter 17 Slide 13 Law for Business and Personal Use © Thomson South-Western
Name the four types of leaseholds.
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RIGHTS AND DUTIES
OF THE TENANT
Tenant’s rights Right of possession Eviction- when the landlord blocks the tenant from possession of all the real property Right to use the property Right to assign the lease or to sublet the premises An
assignment of a lease
takes place when the tenant transfers his or her entire interest in the lease to a third person Tenant’s duties Duty to pay rent Duty to take care of the property Torts duty Chapter 17 Slide 15 Law for Business and Personal Use © Thomson South-Western
RIGHTS AND DUTIES OF THE LANDLORD
Landlord’s rights To receive agreed-upon rent To sue to evict tenant Landlord’s duties Duty to provide habitable premises Duty to conform to governmental requirements Chapter 17 Slide 16 Law for Business and Personal Use © Thomson South-Western
Name three rights a tenant has.
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