Ownership and Rights


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Ownership and Rights

  1. 1. Property Rights Revisited <ul><li>Basic Legal Rights or Real Estate Ownership </li></ul><ul><ul><li>Right of Possession </li></ul></ul><ul><ul><li>Right of Control </li></ul></ul><ul><ul><li>Right of Quiet Enjoyment </li></ul></ul><ul><ul><li>Right of Disposition </li></ul></ul>Ownership and Rights
  2. 2. Water Rights <ul><li>Land that borders water allows for: </li></ul><ul><ul><li>Riparian Rights (Rivers) </li></ul></ul><ul><ul><li>Littoral Rights (Lakes) </li></ul></ul><ul><li>Land can be gained or lost over a period of time through: </li></ul><ul><li>Accretion </li></ul><ul><li>Reliction </li></ul><ul><li>Erosion </li></ul><ul><li>Flood </li></ul><ul><li>Avulsion </li></ul>Long Period Short Period
  3. 3. Estates In Land <ul><li>Titles and Ownership </li></ul><ul><li>Title - Right of ownership of the property </li></ul><ul><li>Deed – Written Document that conveys title to Real Estate </li></ul>
  4. 4. Estates In Land Cont. Future Interest Possible reversion to original grantor or heirs Present Interest Interest in Real Property Tenancies (manner of holding current estates) Freehold Estates (Ownership) Non-Freehold Estates (lease or rental interests) With right of inheritance Without right of inheritance Fee simple absolute Absolute Inheritance or Gift Defeasible fee (restricted) Legal life estate Dower (Wife) Curtesy (husband) Homestead right Life tenancy Tenancy for life of another (pour autre vie) Conventional life estate Remainderman Determinable (automatic termination) Conditional (not automatic)
  5. 5. Limitations on Property Rights <ul><li>Encumbrance - Claim against the title of the property which prevents the passing of full and complete title. </li></ul><ul><li>Easement – The right to use another persons property for a specific purpose. </li></ul><ul><ul><li>By Express Grant </li></ul></ul><ul><ul><li>By Necessity </li></ul></ul><ul><ul><li>By Reservation </li></ul></ul><ul><ul><li>Implied Easement </li></ul></ul><ul><ul><li>Easement by Prescription </li></ul></ul><ul><ul><ul><li>Adverse Possession </li></ul></ul></ul><ul><ul><li>Profit Easement </li></ul></ul><ul><ul><li>License Easement </li></ul></ul>
  6. 6. Limitations on Property Rights <ul><li>Lien – Charge or claim against a persons property, made to enforce the payment of money. </li></ul><ul><li>Does not prevent the transfer/sale of property. </li></ul><ul><ul><li>Mortgage Lien </li></ul></ul><ul><ul><li>Mechanics Lien </li></ul></ul><ul><ul><li>Judgment Lien </li></ul></ul><ul><ul><li>Tax Lien </li></ul></ul>Encroachments – Occur when a building or other improvement illegally intrudes into the property of another.
  7. 7. Govt. Limitations on Rights <ul><li>Ownership of land is subject to other interests. So that enjoyment of land does not interfere with others. </li></ul><ul><li>Government Regulations </li></ul><ul><ul><li>Police Powers </li></ul></ul><ul><ul><li>Eminent Domain </li></ul></ul><ul><ul><li>Taxation </li></ul></ul><ul><ul><li>Escheat </li></ul></ul>
  8. 8. Building Codes Why do they exist? To protect the safety of the public. Insurance Companies need them.
  9. 9. Zoning <ul><li>Local Zoning tells us what purpose the land can be used for, building and lot sizes, and appearance </li></ul><ul><li>Categories of Zoning </li></ul><ul><ul><li>Residential </li></ul></ul><ul><ul><li>Commercial </li></ul></ul><ul><ul><li>Agricultural </li></ul></ul><ul><li>Zoning Boards Dictate the following </li></ul><ul><ul><li>Lot Size </li></ul></ul><ul><ul><li>Square Feet </li></ul></ul><ul><ul><li>Parking </li></ul></ul><ul><ul><li>Set Backs from lot lines </li></ul></ul>
  10. 10. Forms of Ownership <ul><li>Sole Ownership </li></ul><ul><li>Co-Ownership </li></ul><ul><ul><li>Joint Tenancy </li></ul></ul><ul><ul><li>Tenancy in Common </li></ul></ul><ul><ul><li>Tenancy by the Entirety </li></ul></ul><ul><ul><li>Community Property </li></ul></ul><ul><li>Corporation </li></ul><ul><li>Personal Trusts </li></ul>
  11. 11. Home Ownership Considerations <ul><li>Single Family Homes </li></ul><ul><li>Condominiums </li></ul><ul><li>Cooperatives </li></ul><ul><li>Hybrid/Duplex </li></ul><ul><li>Time-Share </li></ul>
  12. 12. Trusts Personal Trust – Title to real land and personal property is transferred to a trustee (bank) to be managed for the benefit of some beneficiary Grantor – Owns property puts it in trust Trust Agreement – Actual Legal Document Trustee – Manager of the trust
  13. 13. Types of Trusts <ul><li>Living </li></ul><ul><li>Testamentary (After Death) </li></ul><ul><li>Land </li></ul><ul><ul><li>Only name of Trustee appears in public record </li></ul></ul><ul><ul><li>Judgments against beneficiaries cannot be attached to the trust. </li></ul></ul>
  14. 14. REITS <ul><li>Real Estate Investment Trusts </li></ul><ul><li>Similar to a corporation </li></ul><ul><li>Been around for 100 years </li></ul><ul><li>Indirect Investment </li></ul><ul><li>Diversify a portfolio </li></ul><ul><li>100 % Shareholders </li></ul><ul><li>90% of Profits must be returned as dividends </li></ul><ul><li>Tax form K-1 no double taxation </li></ul>
  15. 15. Real Estate Contracts <ul><li>Purchase of Sales Contract </li></ul><ul><li>Needs to be in writing </li></ul><ul><li>Commercial Contracts (usually done by attorney) </li></ul><ul><li>Legally Enforceable </li></ul>
  16. 16. Obligation of Seller <ul><li>Deliver clear title on specific date </li></ul><ul><li>Maintain property until closing </li></ul><ul><li>Make any agreed upon repairs </li></ul><ul><li>Allow buyer to inspect property </li></ul><ul><li>Reimburse buyers at closing for taxes </li></ul><ul><li>Pay brokerage commission </li></ul>
  17. 17. Obligation of Buyer <ul><li>Pay price agreed to in contract </li></ul><ul><li>Obtain mortgage financing </li></ul><ul><li>Change utilities over to buyers name </li></ul><ul><li>Reimburse seller for any pre-paid expenses </li></ul>
  18. 18. Requirements in Contract of Sale <ul><li>Competent Parties </li></ul><ul><li>Offer to sell </li></ul><ul><li>Acceptance of Offer (or counter offer) </li></ul><ul><li>Consideration Exchange </li></ul><ul><li>Legal Objectives </li></ul>
  19. 19. Types of Real Estate Contracts <ul><li>Listing Contract </li></ul><ul><li>Contingency Sale Contract </li></ul><ul><li>Back up Contract </li></ul><ul><li>Purchase Option </li></ul>