Chapter 1-Introduction to the Law of Real Property Summary of Key Issues

1. Chapter 1
Introduction to the Law of
Real Property

2. Objectives
• After reading this chapter, you should be able
to
– Distinguish between real and personal property.
– Understand the legal concept of property
ownership.
– Identify the modern estates of ownership for real
property.

3. Objectives
• After reading this chapter, you should be able
to
– Understand and be able to explain the legal
concept of adverse possession.
– Identify various ways of becoming an owner of
real property.

4. Real Property Law
• Laws that govern real property transactions
– Two systems of law in the United States
1. Federal law
2. State law
– Real property generally governed by state law

5. Real Property Law
• Real property versus personal property
– Real property
• Generally land and anything permanently attached to it
– Personal property
• Also known as “chattels” or “goods”
• Has a separate set of rules that govern ownership and
sale
• Includes living and inanimate objects

6. Real Property Law
• Tangible personal property
– Has physical substance
– Is movable
• Intangible personal property
– Represents rights that have no physical existence
but that do represent control or ownership of
something of value

7. Real Property Law
• Fixtures
– Personal property installed in or attached to land
or a building regarded by law as part of real
property
– Trade fixture
• Used by a tenant in its business
• Most states allow removal of trade fixtures

8. Real Property Law
• Fixtures
– Case
• Ex Parte Brown
– Wife cited for contempt of court after removing fixtures from
marital home in violation of divorce decree

9. Real Property Law
• Physical elements of real property
– Airspace
• Can be used for buildings (e.g., skyscrapers)
• Can be used to preserve a scenic view
– Mineral rights
• Owner can sell or lease
– Includes oil and gas

10. Real Property Law
• Physical elements of real property
– Water rights
• Groundwater
• Surface water
• Water that accumulates in a river, stream, or natural
lake
– Owned by state or federal government
– Owner of real property has right to the beneficial use of water
– Riparian rights
– Appropriation

11. Real Property Law
• Ownership of real property
– Chief rights
• Possession
• Use
• Disposition
– Ownership subject to federal and state safety,
taxing, and condemnation regulations

12. History of American Real
Property Law
• Modern-day estates in real property
– Fee simple or fee simple absolute
• Maximum legal ownership
– Fee simple determinable
• Owner retains future interest
• Also known as right of reverter

13. History of American Real
Property Law
• Modern-day estates in real property
– Fee simple on condition subsequent
• Breach of condition does not cause automatic
termination
– Life estate
• Duration is the life of the owner or some other
person(s)
– Future interests
• Generally reverters, reversions, or remainders

14. History of American Real
Property Law
• Modern-day estates in real property
– Estate for years
• Fixed term
– Estate at will
• No fixed term

15. Methods of Acquiring
Ownership to Real Property
• Inheritance and devise
– Take place on death of previous owner
• Gift
– Delivery of deed makes gift irrevocable
• Contract and sale

16. Methods of Acquiring
Ownership to Real Property
• Adverse possession
– Requires that (unlawful) possession be public,
continuous, peaceful, exclusive, and
uninterrupted
– Rules vary from state to state
– Generally, possession must exist for 7 to 20 years
to ripen into ownership

17. Transfer of Ownership
(Conveyances)
• Conveyance
– Transfers ownership of real property
– Generally accomplished by signing and delivery of
deed

18. Role of the Paralegal in Real Estate
Legal Practice
• Research materials for real property law
– Law of real estate usually governed by the state
where the property is located
• Statutes
• Judicial opinions
– Codes, cases, and statutes available at libraries
and on the Internet

19. Ethics: Introduction
• Attorneys governed by two sets of ethical
rules
1. ABA Model Rules of Professional Conduct
2. Rules of state bar associations
• Although paralegals not bound by rules,
violations by paralegals can be imputed to
attorneys

20. Ethics: Introduction
• Paralegal organizations
– National Association of Legal Assistants (NALA)
• www.nala.org
– National Federation of Paralegal Associations, Inc.
• www.paralegals.org

21. Summary
• Ability to possess depends on rules of
ownership
– Horizontal ownership
– Different estates ownership
• Determination of true ownership key to
transactions