1 Welcome to the International Right of Way Association’s Course 800 Principles of Real Estate Law 800-PT – Revision 3 – USA

2 Introductions Who we are… What we do… Where we do it… How long we’ve been doing it… Our goals for the course...

3 Objectives (1) At the end of the two days, you will be able to... Recognize the differences between contract law and tort law. Identify several different specific real estate contracts and be able to discuss the major contract terms.

4 Objectives (2) At the end of the two days, you will be able to... Identify different land use planning methods and describe how each impacts real estate development. Define a condominium and recognize the rights and obligations of condominium associations and the unit owners.

5 Housekeeping

6 Schedule (1) Day One 8:00 - 8:30 Introductions, Etc. 8: :00 Contract Law 1:00 - 4:45 Specific Real Estate Contracts 4:45 - 5:00 Recap

7 Schedule (2) Day Two 8:00 - 8:30 Recap Day One and Introduce Day Two 8: :45 Tort Law 12:45 - 2:30 Land Use Planning 2:45 - 3:30 Condominiums 3:30 - 4:00 Summary and Review 4:00 - 5:00 Examination

8 Contract A contract is an agreement between two or more parties that creates in each party a duty to do or not to do something and a right to performance of the other's duty or a remedy for the breach of the other's duty.

9 Contract Types Oral Written Unilateral Bilateral

10 Contract Elements Mutual Assent Consideration Competent Parties Definite and Certain Terms Legal Purpose

11 Is Kevin entitled…? Brenda lost her pocketbook, which contained about $200, all her identification and family pictures. She placed an ad in the newspaper offering a $50 reward for its return. Kevin finds the pocketbook, but has no knowledge of the reward offer. He returns the pocketbook to Brenda. Is Kevin entitled to the $50 reward?

12 Susan and Eric Susan sent Eric a letter offering to sell him a car for $5,000. Eric accepts by return letter. Before Susan receives Eric’s letter, she mails him a second letter revoking the original offer. Has Susan revoked the offer?

13 Did Michelle accept…? Michelle received an offer in the mail, which stated that acceptance could only be made by mail. She wrote a letter of acceptance, addressed and stamped the envelope, and put the letter on her kitchen table with the intent to mail it on her way to work in the morning. Michelle forgot to mail the letter. Two days later she receives a second letter withdrawing the offer. She immediately posts, by certified mail, her acceptance letter. Has Michelle accepted the offer?

14 Bill, the swimmer Ever since Bill was a boy, he wanted to be the first person to swim across Lake Lago and win the $1,000 prize offered by the homeowners’ association. On his eighteenth birthday and in front of about ten witnesses, he succeeded. He called Brian Reis, the president of the Lake Lago Homeowners’ Association, and asked for the $1,000 prize money. Mr. Reis refused to pay Bill stating that no “official” saw Bill swim across the lake nor had Bill told the Association before hand that he intended to swim the lake. Had Bill accepted the offer and is he entitled to the money?

15 Contract Elements (2) Mutual Assent Consideration Competent Parties Legal Purpose Definite and Certain Terms

16 An Urban Legend PORSCHE Boxster S Two years old, prime condition. $250 cash

17 Contract Elements (3) Mutual Assent Consideration Competent Parties Legal Purpose Definite and Certain Terms

18 Defenses Mistake Duress Undue Influence Fraud/Misrepresentation Unconscionability Supervening Illegality/Frustration of Purpose Lack of Capacity Statute of Fraud Violation

19 Termination and Discharge Specific Duration Rescission Discharge by Performance Breach of Contract

20 Specific Real Estate Contracts Agreement of Purchase and Sale Commercial Lease Easement Agreement Agency Agreement

21 Agreement of Purchase and Sale PartiesLegal Description Purchase PriceOffer Irrevocability Closing DateRepresentations and Warranties Marketable TitleRisk Other Conditions

22 Commercial Lease PartiesLegal Description TermPurpose Leasehold Rental Improvements Other PaymentsRepairs AssignmentDamage, Risk, and Insurance HoldoverLessor Covenants Lessee Covenants

23 Easement Agreement PartiesDescription DurationConsideration PurposeTerms and Conditions

24 Easement

25 Agency Agreement Express Words of Appointment Implication Ratification

26 Recap Day One (1) Looked at contract law. We examined contract types, contract elements, defenses in their formation, how they are terminated and discharged, and contract construction. We looked at specific real estate contracts; namely, purchase agreements, commercial leases, easements, and agency agreements.

27 Recap Day One (2) At various times throughout the day, we did some exercises.

28 Day Two (1) Look at tort law, general and specific torts relating to real estate. Look at land use planning, specifically, planning legislation, comprehensive plans, zoning ordinances, subdivision regulations, and environmental regulations. We will also look and various aspects related to condominiums.

29 Day Two (2) We will do a few more exercises. Finally, we’ll do a course review and take the exam.

30 Tort A tort is an injury to one person for which the person who caused the injury is legally responsible.

31 Tort Law Components Compensation for HarmStrict Liability Consequential DamagesCausation NegligenceContributory Negligence Joint and Several Liability

32 Real Estate Torts Occupier Liability Attractive Nuisance Nuisance Trespass Hazardous Activities Misrepresentation/Fraud

33 Land Use Planning (1) Common LawLegislation Nuisance Contract Covenants Planning Environmental PlanZoning Subdivision

34 Land Use Planning (2) Common LawLegislation Nuisance Contract Covenants Planning Environmental PlanZoning Subdivision

35 Land Use Planning (3) Common LawLegislation Nuisance Contract Covenants Planning Environmental PlanZoning Subdivision

36 Land Use Planning (4) Common LawLegislation Nuisance Contract Covenants Planning Environmental PlanZoning Subdivision

37 Planning District Map

38 Land Use Planning (5) Common LawLegislation Nuisance Contract Covenants Planning Environmental PlanZoning Subdivision

39 Zoning Map

40 Zoning Trends Planned Unit Development Flexible Zoning Conditional Zoning Transferable Development Rights

41 Land Use Planning (6) Common LawLegislation Nuisance Contract Covenants Planning Environmental PlanZoning Subdivision

42 Land Use Planning (7) Common LawLegislation Nuisance Contract Covenants Planning Environmental PlanZoning Subdivision

43 Land Use Planning (8) Common LawLegislation Nuisance Contract Covenants Planning Environmental PlanZoning Subdivision

44 Condominium (1) A condominium is a real property ownership interest that is characterized by ownership of portions of the property (i.e., the ownership of a unit plus the joint ownership of the complex’s common areas) with an administrative framework to manage the entire property.

45 Condominium (2)

46 Objectives (1) Right now, you should be able to... Recognize the differences between contract law and tort law. Identify several different specific real estate contracts and be able to discuss the major contract terms.

47 Objectives (2) Right now, you should be able to... Identify different land use planning methods and describe how each impacts real estate development. Define a condominium and recognize the rights and obligations of condominium associations and the unit owners.

48 Thank you! 800-PT – Revision 3 – USA