• Save
BUS 116 Chap030   real property and landlord tenant
Upcoming SlideShare
Loading in...5
×

Like this? Share it with your network

Share
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads

Views

Total Views
653
On Slideshare
628
From Embeds
25
Number of Embeds
1

Actions

Shares
Downloads
0
Comments
0
Likes
0

Embeds 25

https://gcvlc.blackboard.com 25

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. 1 Chapter 30 Real Property and Landlord/Tenant
  • 2. 2 Learning Objectives 1. Explain what constitutes real property. 2. Differentiate between freehold and leasehold estates. 3. Describe the different types of co-ownership of real property. 4. Identify the methods of acquiring title to real property. 5. Explain eminent domain.
  • 3. 3 Learning Objectives (cont.) 6. List the five elements necessary to create a landlord–tenant relationship. 7. Identify the essential requirements of a lease. 8. Clarify rent control and security deposits. 9. Make clear the duties of landlords and tenants. 10. Discuss tort liability as it applies to landlords and tenants.
  • 4. 4 The Nature of Real Property • Real estate – the ground and everything permanently attached to it – building, fences, and trees on the surface – earth, rocks, and minerals under the surface – the airspace above the surface • Real property – refers to the ownership rights that go along with the real estate
  • 5. 5 Trees and Vegetation • Fructus naturales (fruit of nature) – Grow each year without replanting (perennials) – Treated as real property • Fructus industriales (fruit of industry) – Crops or garden plantings that produce flowers, vegetables, or other harvest only for the year in which they are planted (annuals) – Treated as personal property
  • 6. 6 Trees and Vegetation • Tree belongs to person on whose land the trunk is located. • Neighbors can trim trespassing branches and roots, but owner of the trunk has right to use the branches/fruit/etc.
  • 7. 7 Air Rights • Modern court decisions have held that landowners own the airspace above their land to as high as they can effectively possess or reasonably control. • This height usually extends as high as the highest tree or structure on their property • Trump Tower • Cheape v. Chapel Hill – court rules that cities are allowed to sell air rights above public property
  • 8. 8 Air Rights • Navigable airspace – Airspace at and above the minimum safe flight level, including airspace needed for safe takeoff and landing. – In general, 1,000 feet over populated areas and above 500 feet over water and unpopulated areas – Subject to FAA regulations – Public has the right of freedom of transit
  • 9. 9 Subterranean Rights • The owner of land has exclusive title to material below the surface of the land unless excluded in the deed • The right extends to the point determined to be the exact center of the earth • If you excavate close to a boundary line, you must support the land to keep adjacent land from collapsing
  • 10. 10 Water Rights • Riparian owners – People who own land along the bank of a river or stream • Owners of land through which a stream flows own the soil beneath the water, but not the water
  • 11. 11 Water Rights • If a non-navigable stream is a boundary line between two parcels of land, the owner on each side owns to the center of the stream • If the water is navigable, the owner owns up to the bank of the stream, and the state owns the waterbed • Water rights in NC • Public lands in NC
  • 12. 12 Fixtures • Fixture – When personal property is attached to real property, becomes part of the real property • If a dispute arises, courts ask: – Has there been a permanent or temporary installation of the personal property? – Can the property be removed without damaging the real property? – Has the property been adapted to the intended use of the real property? – What was the intent of the party at the time of installation?
  • 13. 13 Fixtures • Trade fixtures – Items of personal property brought upon the premises by the tenant that are necessary to carry on the trade or business to which the premises will be devoted – Remain personal property and can be removed by original owner at end of occupancy term – NC guidelines on fixtures
  • 14. 14 Easements • Easement (right of way) – the right to use another’s land for a particular purpose • Pass over someone’s land • Run wires through their land or in their airspace • Drain water onto their land • Run pipes underneath the ground Easements in NC
  • 15. 15 Easements • Dominant tenement – The one who enjoys the easement and to whom it attaches • Servient tenement – The one on whom the easement is imposed
  • 16. 16 Easements An easement may be created in three ways: • by grant – Owner of land signs a deed, giving the easement to the dominant tenement, keeping the remainder of the land • by reservation – Owner of land grants entire parcel of land except for the easement they keep • by prescription – I openly and continuously (hostile and notorious) pass over a person’s land for a certain period of time (20 years)
  • 17. 17 Profit à Prendre • “Right of Taking” • Special type of easement with the added privilege of removing something of value from the servient property (soil, sand, gravel, minerals, timber, wild game).
  • 18. 18 Estates in Real Property • An estate – the interest or right a person has in real property • Freehold estate – the holder owns the land for life or forever • Estate in fee simple • Life estate
  • 19. 19 Estates in Real Property • Estate in fee simple – Anyone owning real property outright – forever – Estate passes to owner’s heirs upon death – Right to use or dispose of land as desired, as long as it doesn’t interfere with others’ rights
  • 20. 20 Estates in Real Property • Life estate – Owning real property for life or for the life of another – Remainder estate – Reversion estate
  • 21. 21 Estates in Real Property • Remainder estate – Property is to pass at the end of a life estate to someone other than the grantor or the grantor’s heirs • Reversion estate – Property is to return to the grantor or the grantor’s heirs at the expiration of a life estate
  • 22. 22 Co-Ownership of Real Property • Tenants in common –Each person owns an undivided share of the whole property –Each cotenant entitled to possession of entire premises –Share in property passes to cotenant’s heirs upon death –Cotenant can sell or deed their share without permission of other cotenants
  • 23. 23 Co-Ownership of Real Property • Joint tenants – The estate created is a single estate with multiple ownership, each tenant owning the entire estate, subject to equal rights of other joint tenants – When one tenant dies, ownership remains with remaining joint tenants • Four unities must be present : – time, title, interest, and possession • Joint tenancy v. tenancy in common
  • 24. 24 Community Property • Community property – Property (except a gift or inheritance) that is acquired by the personal efforts of either spouse during marriage and that, by law, belongs to both spouses equally – Each spouse can make a will leaving their half of the property to whomever they choose
  • 25. 25 Tenancy by the Entirety • Tenancy by the entirety – May be held only by a husband and wife and is based upon the common law doctrine known as unity of person – Each spouse owns the entire estate, and neither could destroy it by any separate act
  • 26. 26 Title to Real Property • Title by Sale or Gift – Done by transferring a written instrument called a deed • Grantor – The person transferring title • Grantee – The person to whom the title is transferred
  • 27. 27 Title by Sale or Gift • General warranty deed – Contains express warranties under which the grantor guarantees the property to be free of encumbrances created by the grantor or by others who had title previously
  • 28. 28 Title by Sale or Gift • Special warranty deed – Contains express warranties under which the grantor guarantees that no title defect arose during the time that the grantor owned the property, but not otherwise – Use when seller unfamiliar with chain of ownership (inherited property, sheriff/trustee sales, etc.)
  • 29. 29 Title by Sale or Gift • Bargain-and-sale deed – Transfers title to property but contains no warranties – Not valid without consideration • Quitclaim deed – One that transfers to the buyer only the interest that the seller may have in a property – Contains no warranties
  • 30. 30 Title by Adverse Possession • Title by Adverse Possession – Title obtained by taking actual possession of the property openly, notoriously, exclusively, under a claim of right, and continuously for a period of time set by state statute • With the owner’s knowledge • Without the owner’s permission • Without the owner’s objection/interruption • For a continuous period of time (~20yrs)
  • 31. 31 Zoning Laws • Zoning laws – Regulate the uses that may be made of properties within specified geographical areas or districts. • Variance – An exemption or exception that permits a use that differs from those allowed under the existing ordinance
  • 32. 32 Eminent Domain • Eminent domain – The right of federal, state, and local governments, or other public bodies, to take private lands, with compensation to their owners, for a public purpose – Also called condemnation – Kelo v. City of New London – Eminent Domain in NC
  • 33. 33 The Landlord–Tenant Relationship • A contractual arrangement in which the owner of real property allows another to have temporary possession and control of the premises in exchange for consideration.
  • 34. 34 The Landlord–Tenant Relationship • Lease – The agreement that gives rise to the landlord–tenant relationship • Lessor (landlord) – The property owner who gives the lease • Lessee (tenant) – person to whom the lease is given
  • 35. 35 Leasing vs Licensing • Lease – gives an interest in real property and transfers possession • License – gives no property right or ownership interest in the property but merely allows the licensee to do certain acts that would otherwise be a trespass.
  • 36. 36 Leasing vs Lodging • A lodger is one who has the use of property without actual or exclusive possession of it. • A type of licensee • No right to bring suit for trespass or to eject an intruder
  • 37. 37 Types of Leasehold Interests • Leasehold estate or tenancy – The interest conveyed by a lease • Four kinds of leasehold estates: 1. Tenancy at will 2. Tenancy for years 3. Periodic tenancy 4. Tenancy at sufferance
  • 38. 38 Types of Leasehold Interests • Tenancy at will – an ownership interest (estate) in real property for an indefinite period of time. – no writing is required to create – may be terminated at the will of either party by giving proper notice
  • 39. 39 Types of Leasehold Interests • Tenancy for years – An ownership interest (estate) in real property for a definite or fixed period of time – A tenancy for 100 years or more creates an estate in fee simple
  • 40. 40 Types of Leasehold Interests • Periodic tenancy, or tenancy from year to year (month to month, week to week) – a fixed-period tenancy that continues for successive periods until one of the parties terminates it by giving notice to the other party
  • 41. 41 In NC (§42-14) • “A tenancy from year to year may be terminated by – a notice to quit given one month or more before the end of the current year of the tenancy; – a tenancy from month to month by a like notice of seven days; – a tenancy from week to week, of two days. • Provided, however, where the tenancy involves only the rental of a space for a manufactured home as defined in G.S. 143-143.9(6), a notice to quit must be given at least 60 days before the end of the current rental period, regardless of the term of the tenancy.”
  • 42. 42 Types of Leasehold Interests • Tenancy at sufferance – When tenants wrongfully remain in possession of the premises after their tenancy has expired – Often comes about at the expiration of the term of a tenancy for years – Tenant at sufferance not entitled to notice to vacate – Liable to pay rent for period of occupancy
  • 43. 43 The Lease Agreement The essential requirements of a lease: 1. a definite agreement as to the extent and bounds of the leased property 2. a definite and agreed term 3. a definite and agreed price of rental and manner of payment An oral agreement can establish a landlord/tenant relationship if it is for a period of less than 3 years. Statute of Frauds for Leases NC
  • 44. 44 Rent Control • Some large communities have passed rent control laws to keep rents within an affordable range. • These laws limit what landlords can charge for rental property and often contain procedures that must be followed before tenants may be evicted.
  • 45. 45 Rent Control in NC (§42-14.1) • “No county or city as defined by G.S. 160A-1 may enact, maintain, or enforce any ordinance or resolution which regulates the amount of rent to be charged for privately owned, single-family or multiple unit residential or commercial rental property.”
  • 46. 46 Security Deposits • Landlords often require either a security deposit or the last month’s rent, or both, to be paid at the beginning of a tenancy. • The deposit protects landlords against damages to their property as well as nonpayment of rent
  • 47. 47 Security Deposits in NC • § 42-51 The security deposit shall not exceed an amount equal to two weeks' rent if a tenancy is week to week, one and one-half months' rent if a tenancy is month to month, and two months' rent for terms greater than month to month. • § 42-50 Security deposits from the tenant in residential dwelling units shall be deposited in a trust account with a licensed and insured bank or savings institution located in the State NC General Statutes - Chapter 42 29 of North Carolina or the landlord may, at his option, furnish a bond from an insurance company licensed to do business in North Carolina.
  • 48. 48 Option to Renew or to Purchase • An option to renew gives the lessee the right, at the end of the lease, to a new lease for an additional period. • The new lease is on the same terms as the old one, with the possible exception of an increase in the rent.
  • 49. 49 Assignment and Subletting • Assignment of a lease – occurs when the interest in the leased premises is transferred by the lessee to another person for the balance of the term of the lease • Sublease or underlease – the transfer is for a part of the term but not for the remainder of it
  • 50. 50 Landlord’s Duties • A landlord may not discriminate in selecting tenants on the grounds of race, creed, color, or sex • In most states (not NC though), a landlord may restrict rentals to persons without children – But cannot restrict right to bear children NC Fair Housing Act (Chapter 41A)
  • 51. 51 Duty to Maintain the Premises • Warranty of habitability – Implied warranty that the premises are fit for human habitation. – There are no defects vital to the use of the premises for residential purposes. NC landlord duty to provide fit premises (§ 42-42)
  • 52. 52 Duty to Deliver Peaceful Possession • Quiet enjoyment – the right of a tenant to the undisturbed possession of the property. • The landlord may not interfere with the tenant’s rights of possession as long as the tenant abides by the conditions of the lease and those imposed by law.
  • 53. 53 Duty to Deliver Peaceful Possession • Actual eviction – when the tenant is physically deprived of the leasehold • Constructive eviction – when the tenant is deprived of something of a substantial nature that was called for under the lease
  • 54. 54 Tenant’s Duties The tenant has the duty to: • Pay rent to the landlord. • Observe the valid restrictions contained in the lease. • Avoid committing waste – Substantial damage that reduces the value of the property
  • 55. 55 Resources • NC DOJ landlord/tenant handbook • Legal Aid NC landlord/tenant brochure
  • 56. 56 Tort Liability • When a person is injured on leased property, the one who is in control of the part of the premises where the injury occurs usually is responsible if the injury was caused by that person’s negligence.
  • 57. 57 Eviction Proceedings • Ejectment – the common law name given to the lawsuit brought by the landlord to have the tenant evicted from the premises
  • 58. 58 Eviction Proceedings • Unlawful detainer – a legal proceeding that provides landlords with a quick method of evicting a tenant – Also called summary process, summary ejectment, forcible entry and detainer, and dispossessory warrant proceedings • Eviction: notice to vacate • If the sheriff comes to evict
  • 59. 59
  • 60. 60
  • 61. 61 Question? What is property that is acquired by the personal efforts of either spouse during marriage? A. Eminent property B. Joint property C. Imminent property D. Community property
  • 62. 62 Question? A _________ is a person to whom the title is transferred. A. Grantee B. Grantor C. Consignee D. Consignor
  • 63. 63 Question? Which type of deed contains express warranties under which the grantor guarantees the property to be free of encumbrances created by the grantor? A. General warranty deed B. Special warranty deed C. Bargain-and-sale deed D. Quitclaim deed
  • 64. 64 Question? The agreement that gives rise to the landlord– tenant relationship is called a ________. A. Contract B. Pact C. Indenture D. Lease
  • 65. 65 Question? Which type of deed transfers title to property but contains no warranties? A. General warranty deed B. Special warranty deed C. Bargain-and-sale deed D. Quitclaim deed
  • 66. 66 Question? Who has the use of property without actual or exclusive possession of it? A. Lodger B. Tenant C. Tenement D. Hotelier
  • 67. 67 Question? Which laws regulate the uses that may be made of properties within specified geographical areas? A. Covenants B. Zoning laws C. Zone defense D. Deed restrictions
  • 68. 68 Question? What type of leasehold is an ownership interest (estate) in real property for an indefinite period of time? A. Tenancy at will B. Tenancy for years C. Periodic tenancy D. Tenancy at sufferance
  • 69. 69 Question? What is the right of a tenant to the undisturbed possession of the property? A. Personal space B. Leased solitude C. Quiet enjoyment D. Leased enjoyment
  • 70. 70 Question? What is the right of governments to take private lands, with compensation to their owners, for a public purpose? A. Imminent domain B. Eminent domain C. Public deed assumption D. Emissary domain
  • 71. 71 Question? When a tenant is deprived of something of a substantial nature that was called for under the lease it is called _________. A. Actual eviction B. Constructive eviction C. Destructive eviction D. Constructive ejectment
  • 72. 72 Question? What is the common law name given to the lawsuit brought by the landlord to have the tenant evicted from the premises? A. Banishment B. Eviction C. Ejectment D. Deportation