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Real Property Types. Real Property – A physical component – real property with ecological and spatial characteristics and a unique location The characteristics.

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Presentation on theme: "Real Property Types. Real Property – A physical component – real property with ecological and spatial characteristics and a unique location The characteristics."— Presentation transcript:

1 Real Property Types

2 Real Property – A physical component – real property with ecological and spatial characteristics and a unique location The characteristics give the “land” its utility and make it important for particular purposes Land surface – agriculture, forestry, urban, wetlands, parks, scientific and natural areas, highway rights-of-way Subsurface – minerals, iron ore, copper-nickel Supersurface (air) – building space, airspace, sunshine, wind, scenery, odor Wildlife – exotic, game, non-game, pests, endangered Surface water – navigable, non-navigable

3 Real Property – A behavioral component – legal entity and legal rights Entity Legal Rights to acquire and convey any or all rights to use and “quiet enjoyment" to exclude

4 Real Property Rights A legally defined entity possessing rights Legally defined rights - interests Legally defined real property Evidenced by legally defined documents Tenants in common Fee simple absolute Legal description Warranty deed

5 Property and Property Rights

6 Real Property and Real Property Rights Defined by law, both federal and state, all developed out of necessity In general states have exclusive jurisdiction over the land within their borders State law concerning the kind of real interests that can be held and how they are created is not subject to federal law Local government law is delegated from the state Federal law concerns legal characteristic of individual citizens and the production of particular goods and services that move from one state to another or that has significant consequences for the nation as a whole

7 A vast body of law has been developed to resolve and prevent conflicts between landowners exercising their real property rights Federal and State land use statutes that define, promote, enforce, and protect the production of certain goods and the provision of certain services Building codes Zoning and other regulations on use Subdivision controls Common (judicial) law doctrines affecting land use Easements - including easements by necessity Servitudes and restrictive covenants Nuisance

8 Personal Situation FederalFederal and State Law regarding finances, corporations and real property Minnesota LawMinnesota Law – definition of real property, joint tenancy, ownership in water surface Dakota County LawDakota County Law - zoning ordinances Sunfish Lake Law Sunfish Lake Law - ordinances regarding buildings What our abstract describes What our deed describes What our mortgage describes Dakota County Real Estate Inquiry Dakota County Standard Property Map Locator

9 Real Property Rights Have a temporal and spatial dimension Have a multilayered jurisdictional context that describe What rights in what real property can be possessed Who can possess them How they can be possessed How they may be acquired How they may be conveyed How they may be exercised How they may not be exercised How they may be taken by the jurisdiction

10 Basic Structure of Real Property Ownership Fee Title Owners – legal entity with legal rights to use property Encumbrances – legal entity with legal rights that affect the ownership rights Legal rights to the land – mortgage or another type of lien, a lease, an easement, or a restriction created by a covenant, or zoning ordinances Legal claims against the owner – mortgages, claims by other parties, court judgments, pending legal action, unpaid property and income taxes

11 “Rights to" or "Interests in" land held by owner comprises an estate These rights may be (a)Possessory Present – the holder has immediate possession Future – the holder may become possessory in the future, typically based upon the occurrence of a contingency, e.g. a death, rights pass according to a will or trust holder possess reversionary rights (b) Non-possessory – easements, liens, restrictive covenants, licenses, profits

12 Forms of Title – Present Rights Present rights (a)Freehold which continue indefinitely or until the occurrence of some event Fee simple absolute – holder owns possessory rights now and in the future for an infinite duration – no limitations on its inheritability, does not end if the holder conveys it or part of it during his/her/their lifetime or when the holder dies Fee simple determinable, a fee simple estate with a limitation, often on how the land can be used Defeasible Fee – estates are lost if a specified condition occurs or fails to occur in the future (b) Leasehold - Non-freehold which ends on a particular date

13 Leasehold A non-freehold estate that exists for a definite period of time – if longer than a year spelled out in a lease and signed by the parties - tenant has a present possessory interest in the property and the landlord has a future possessory interest Periodic Tenancy – continues for successive periods from year to year or fractions, no definite termination date continuing until terminated by either the landlord or tenant. by proper notice, which is usually statutorily prescribed, created by express agreement or by operation of law Tenancy at Will – landlord and tenant both have the right to terminate the lease, parties must have an agreement or understanding that either party can terminate at any time, tenancy has no stated duration and lasts as long as the landlord and tenant desire, in most states, the acceptance by the landlord of regular rent will cause the courts to consider the tenancy to be a periodic tenancy, commonly, no notice was required to terminate a tenancy at will but most states have enacted legislation requiring notice of termination to be given at least one month in advance Tenancy for Years – continues for a fixed period of time with certain beginning and termination dates, the term expires at the end of the period without notice required by either party Tenancy at Sufferance – a tenant who was rightfully in possession and remains at the end of the tenancy, lasts until the tenant is evicted by the landlord or until the landlord elects to hold the tenant to an additional term

14 Forms of Title – Future Rights Life Estate rights whose duration is measured by the life or lives of someone else, ending at the death of that person; Fee Tail, rights that can endure forever but can only be passed to lineal descendants - ends if and when the first fee tail tenant has no lineal descendants to succeed him or her in possession Primogeniture, rights that pass to the oldest son

15 Acquiring Rights (Title) Voluntary conveyance by a method – purchase, exchange, donation through a written instrument – deed, will, easement Involuntary conveyance by a method – divorce, escheat, adverse possession, condemnation, dedication, forfeiture through judgment of a court or the operation of a statute

16 Holding Title By one legal entity – called "severalty" By several entities

17 Tenancy in Common There is a presumption that a conveyance to two or more persons is a tenancy in common – where doubt court infer tenancy in common Each owner possesses an undivided right to the whole property Each owner has an equal right to possess and use the property Each owner can transfer all or any part of their rights Each tenant has a distinct proportionate interest in the property No survivorship rights

18 Joint Tenancy Each owner has an equal percentage of ownership Each joint tenant has an undivided right to the whole property Each owner has an equal right to use No owner can transfer a joint tenancy to another entity ( If A, B, & C, are joint tenants and C sells her interest to D, then A & B are joint tenants of a 2/3 interest and D is a tenant in common with a 1/3 interest) Joint tenancies carry full rights of survivorship If a joint tenant dies, the interest automatically is transferred to the surviving joint tenant Not all the states allow this form of property ownership

19 Community Property Special form of joint tenancy between husband and wife, each owning one-half Upon death, the decedent's interest passes in a manner similar to tenants in common

20 Trust A right in property (real or personal) which is held in a fiduciary relationship by one party (the trustee) for the benefit of another (the beneficiary) Many trusts are created as an alternative to or in conjunction with a will and other elements of estate planning State law establishes the framework for determining the validity and limits for both Inter vivo – established during the lifetime of the individual creating the trust Testamentary – established, at the death of the individual creating the trust, under the terms of a will

21 Easement right to use land held by some other legal entity than the fee owner, allowing the holder to do something (affirmative easement) or preventing the fee owner from doing something (negative easement) "runs with the land," meaning that it is enforceable against all succeeding owners of the property typically acquired and recorded in a formal document signed by the property owner and the easement holder - purchase, donation, condemned, dedicated can be obtained "by prescription," a form of adverse possession – e.g. when a neighbor openly and continuously drives his vehicle across your land without permission and you make no effort to stop the trespass - after a period of time fixed by state law, the neighbor could claim a legally enforceable right to drive across your land

22 Easements Can be held public or private entities (a)Private easement is limited to specific individuals or entities such as the owner of an adjoining land (b)Public easement is one that grants the right to a large group of individuals or to the public in general, such as the easement on public streets and highways or of the right to navigate a river (c)Hybrid – easement that can be held by specific public agencies or specific non- profit agencies – conservation easements

23 Easements Right to light Solar Wind Avigation easement Railroad Utility easements; storm drains, sanitary sewers, electrical power lines, telephone line, gas pipeline, oil pipelines, drainage, fiber optic cables Rights-of –way; driveway, side-walk, beach access, Views Historic preservation Conservation easements

24 Statutory Easements "Wind easement" means a right, whether or not stated in the form of a restriction, easement, covenant, or condition, in any deed, will, or other instrument executed by or on behalf of any owner of land or air space for the purpose of ensuring adequate exposure of a wind power system to the windsWind easement another lease and wind easement "Solar easement" means a right, whether or not stated in the form of a restriction, easement, covenant, or condition, in any deed, will, or other instrument executed by or on behalf of any owner of land or solar skyspace for the purpose of ensuring adequate exposure of a solar energy system as defined in section 216C.06, subdivision 17, to solar energy216C.06, subdivision 17

25 Common Interest Communities in Minnesota Minnesota Statutes, Chapter 515B Multi-family residences - separate housing units for residential inhabitants are contained within one building or several buildings within one complex Apartment – parcels leased to tenants Condominium Condominium – parcels owned by individuals a parcel of real property individually owned use of common facilities in the piece such as hallways, heating system, elevators, exterior areas is executed under legal rights associated with the individual ownership and controlled by the association of owners that jointly represent ownership of the whole pieceassociation of owners Legal descriptions of who owns what complex Owners of units do not own land Each unit not an independent unit Minneapolis Lofts and Condos

26 Common Interest Communities in Minnesota Minnesota Statutes, Chapter 515B Townhouse Townhouse – often refers to a construction style, similar looking houses sharing common walls Owner owns the portion of the structure defined by the walls Owns also land Units are legally independent of each other except for shared walls (perhaps roofs and foundations) Structure and exteriors maintained by a Home Owners Association Arbor Lakes West Bank Townhouses

27 Common Interest Communities in Minnesota Minnesota Statutes, Chapter 308A Housing Cooperative Housing Cooperative – structures owned by a corporation usually non-profit Each shareholder in the corporation possesses the right to occupy a specific portion of the structure (similar to a lease) Owners do not own the real property Frequently the cooperatives are aimed at specific population segments, such as persons age 55 or older, students, or are designed to provide affordable housingage 55 or olderstudentsaffordable housing Formed under Minnesota Statutes, Chapter 308A.Minnesota Statutes, Chapter 308A. Such housing cooperatives are also common interest communities under the Minnesota Common Interest Ownership Act, Minnesota Statutes, Chapter 515BMinnesota Statutes, Chapter 515B

28 Records


30 Public Land in Minnesota United States – Forest ServiceForest Service Minnesota - DNR State-owned landDNR State-owned land Metropolitan Council - ParksParks Dakota County - Leisure & Recreation, Foreclosure sales, Farmland and Natural Areas ProgramLeisure & Recreation Foreclosure salesFarmland and Natural Areas Program Minneapolis – Park and Recreation BoardPark and Recreation Board White Bear Township When acquired? How acquired? Who was involved in the acquisition? How financed? Why acquired? How used? Any restrictions on use? Any restrictions on sale?

31 Land Trust Land Conservancies A nonprofit organization that, as all or part of its mission, actively works to protect the ecological characteristics of land by acquiring or assisting in acquiring rights to land – fee title, conservation easement managing such land or easements Land Trust Alliance Trust for Public Land American Farmland Trust Minnesota Land Trust

32 Land Trust Community Land Trust (CLT) Residential land trusts emerged in the United States after calls among civil rights leaders in the 1950s and 1960s in the American South for economic reforms to reverse rampant poverty The goal of residential trusts is often to protect housing prices from speculation and gentrification while allowing residents to accrue equity. Community Land Trusts: An Introduction National Community Land Trust Network City of Lakes Community Land Trust Rondo Community Land Trust Northern Communities Land Trust

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