1. CHAPTER 17 Ownership and Leasing of Real Property
4/17/2017
CHAPTER 17 Ownership and Leasing of Real Property
17-1 Ownership and Transfer of Real Property
17-2 Leasing Real Property

2. 17-1 Ownership and Transfer of Real Property
Chapter 17
4/17/2017
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
Real property- land, buildings, and fixtures.
Any piece of personal property that becomes permanently attached to land or a building is called a fixture
Chapter 17

3. RIGHTS OF REAL PROPERTY OWNERSHIP
Chapter 17
4/17/2017
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
Ownership of real property entails having claim to a number of rights in three physical items.
with land, the buyer usually inherits the surface rights, rights to the air space above the land, and in most states the rights to the earth beneath the land.
The air and space above the surface of the land are also part of the realty. Ownership of that space is called the right to air space.
Realty also includes the earth beneath the surface.
Real property: Land, house, office building, in-ground swimming pool, water well, built-in household appliances, plumbing, wiring, fruit tree orchard that is not harvested annually. Personal property: small, easily moved structures that are not attached, freestanding household appliances and other household items, fruit tree orchard that is harvested annually.
Chapter 17

4. LIMITATIONS OF REAL PROPERTY OWNERSHIP
Chapter 17
4/17/2017
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- adopted by cities or countries to regulate the location of residential, business, and industrial districts.
Duties owed to entrants on land
Easements may be granted to allow a neighbor to drive across your land, for a utility company to bury new sewer pipe or to hang power lines.
Appurtenant, gross, necessity, prescription
Appurtenant- attached to the land, thus an easement to drive farm equipment
Chapter 17

5. Chapter 17
4/17/2017
List four potential limitations on the ownership rights of real property.
Zoning, restrictive covenants, easements, duties owed to entrants on the realty
Chapter 17

6. FORMS OF REAL PROPERTY OWNERSHIP
Chapter 17
4/17/2017
FORMS OF REAL PROPERTY OWNERSHIP
Fee simple absolute- the state with all the ownership rights.
Owner exercises all the power allowed by law.
Conditional estate- makes the ownership conditional on some act or event.
Life estate- ownership only for the length of a specified person’s life.
Non-freehold estate- (tenancy), involves ownership for a limited period of time.
Ownership of realty is usually acquired by the passage of rights via purchase, gift, or inheritance. The number of rights received in the transfer is determined by the estate in land that the new owner receives. Each estate is comprised of a certain set of ownership rights. The party who transfers the power is called the grantor. The party who receives ownership is called the grantee. When an estate is transferred from a grantor to a grantee by deed, the transaction is called a conveyance.
The major types of estates in real property are fee simple absolute, conditional estate, life estate, and non freehold estate.
Chapter 17

7. TRANSFER OF REAL PROPERTY OWNERSHIP
Chapter 17
4/17/2017
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.
The most common way to transfer ownership of real property is a deed.
Chapter 17

8. TRANSFER OF REAL PROPERTY OWNERSHIP
Chapter 17
4/17/2017
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
Dedication- involves giving real property to the government
Explain the power of the government under eminent domain.
Eminent domain is the power of the government to take private property for public use in exchange for the fair market value of the property. If the owner is unwilling to sell at a price that the government thinks is fair, the government initiates a condemnation proceeding, which is a hearing to determine fair compensation for the owners and acquire ownership for the government. If the owner is not satisfied with the price offered by the government he or she may demand a trial by jury to set a just price. Property taken under eminent domain must be for a public use, such as for highways, airports, parks, or schools. Publicly owned railroads and utilities may exercise this power for such essentials as land for train tracks, and telephone and electric lines. Eminent domain may not be used for other private purposes even though the public may benefit and a fair price is offered.
Chapter 17

9. Name the four major types of estates in real property.
Chapter 17
4/17/2017
Name the four major types of estates in real property.
Chapter 17

10. 17-2 Leasing Real Property
Chapter 17
4/17/2017
17-2 Leasing Real Property
GOALS
Compare the various types of leases
Explain the rights and duties of landlords and tenants
Chapter 17

11. FOCUS Tenant Landlord Rights Duties
Chapter 17
4/17/2017
FOCUS
Tenant
Landlord
Rights
Duties
Do you know anyone who is either a tenant or a landlord?
Chapter 17

12. Chapter 17
4/17/2017
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

13. WHAT ARE THE TYPES OF LEASES?
Chapter 17
4/17/2017
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

14. Name the four types of leaseholds.
Chapter 17
4/17/2017
Name the four types of leaseholds.
Periodic tenancy, the tenancy for years, tenancy at sufferance, tenancy at will
Chapter 17

15. RIGHTS AND DUTIES OF THE TENANT
Chapter 17
4/17/2017
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

16. RIGHTS AND DUTIES OF THE LANDLORD
Chapter 17
4/17/2017
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

17. Name three rights a tenant has.
Chapter 17
4/17/2017
Name three rights a tenant has.
The right to possession and to the use of the premisis and the right to assign the lease or sublet the premisis
Chapter 17