Chapter 3

Rights and Interests in Land

Exclusive Right to Use of Land

Feudal system:                          owns and uses the land
Allodial system allow for                               ownership of land.

Bundle of Rights

Real estate ownership is the ownership of  ____________ to land. The largest bundle available for private ownership is called “_________________”

Fee Simple Ownership
The _______________________ of interest in real estate
	___________ duration
	Freely ______________
	May also appear as “Fee Simple _____________”
Bundle of Rights:
	Right of _______________
	Right of _______________
	Quiet                                   
	Right of ________________

The Bundle of Rights “Unbundled”

The right of _____________ includes the right to mortgage, lease, impose covenants and conditions, grant easements and licenses, build and improve the property.

The right to _______ and ___________ gives the holder the right to occupy the property for various purposes.

The right of ______________ gives the owner the right determine who can and cannot come on the property.

The right to                                       the property gives the owner the right to sell, retain, devise, abandon, escheat.

Real Estate as a Bundle of Property Rights

Property rights are what gives ________________ to the real estate.
Conveying any right affects the desirability of the real estate and affects the value.

Private property rights are subject to _________________ imposed by government.  Thus, this can _____________ the value of the investment.

Government Limitations: PETE

Government retains right of “P                                               ” to regulate private property for the protection of the general public’s health, morals, and welfare.

Government may take provate property by the right of “E                                                “ This right is not unrestricted and must award just compensation.

1.   Political subdivisions (the State, City or other) may acquire land for p                  u                       including for streets, parks, sewers.
2.  Recently, a United States Supreme Court decision ruled that economic                                   was a public use that satisfied the Fifth Amendment. (“Nor shall private property be taken for public use, without just compensation”)

3.  Public use does not necessarily mean that the condemned land actually be used by the                              as long as there is some benefit or advantage to the public.  The term “public use” does not have a fixed meaning and is somewhat flexible.

4.                                        is the process of taking private property for public use.  Severance                            may be awarded when part of the land is severed from the parcel, in addition to being compensated for the part so taken, there may be an award for reducing the value of the real estate as a whole.  I                       condemnation occurs when government action reduces the value of the land to the point that a “taking” has occurred.  However, when the value of the land is not totally taken, the owner may be entitled to only c                                 damages.

Government may T                                      the real estate to fund its operation.   Property taxes create a L      on the real estate which have P                         over other liens, including mortgages.

The Government retains the right of E                         which means that the land                          to the government if at the death of an owner there are no heirs and no will designating a devisee to the land.

Removing Sticks from the Fee Simple Bundle 

Removing a stick from the Fee Simple Bundle of Rights creates an E                                        .  That is any claim, right, lien, estate or liability held by another person that   L                                 the fee.  Examples include, mortgages, leases,  easements, encroachments, restrictions and liens. Removing any stick from the bundle reduces the value of the bundle.

Easements

Easement are encumbrances that do not create a (monetary) lien against the property.
1. Easement by N                            occurs to serve a landlocked property.
Easement by P                                  happens through constant use of land by another when the use has been open, obvious, and without P                             of the property owner.

2. An Easement A                          always concerns two properties, a S                        estate and a D                      estate.  These easements are said to                                             because they automatically transfer with the land when title transfers. 

3. An Easement in G               only has a servient estate.  Most often these easements are personal to the owner of the easement and only run with the land when so drafted or are commercial as in the case of a utility easement.

4. Restriction and C                                  govern the use of the land and give rights to others to require that you follow the restrictions placed in title.  These are sometimes called CC&R.

5. Easements are created by: necessity and I                                    or by court order, condemnation, grant and A                       or by reservation.

6. Termination may occur by A                            of the owners of all affected tracts of land, by abandonment or R                           of the use by the dominant landowner, merger with the title, destruction or change of character of the land.

Encroachments

Unauthorized I                                onto the land of another, usually unintended overhangs are mistaken lot lines are encroachments.

Liens

Liens are claims one person has on the property of another.

1. Parties:                     the one holding the lien and the                     the one upon whose land the lien creates a claim. 

2. Types of Liens: S                   liens affect only the property listed in the lien. G                     liens affect all property owned by the lienee both personal property and real property, specially listed or not.

3. Liens are E                          creating a lien or C                     against the title to the property.  Liens do not create an immediate P                          interest in the property until the lien is foreclosed.

4. Liens may be created V                             , such as a mortgage lien, or involuntarily.  Involuntary liens are created by                            of law and may be statutory as in the case of property liens or e                              such as a judgment lien.

5. In order for a lien to be enforceable against the property it must be P                        . Depending on the type of lien dictates the process the lienor must follow.

Qualified Fee Estates

Qualified Fees may be created for special purposes to restrict limitations on the real estate.  They may be used similar to zoning and restrictions governing the type of uses.
Fee Simple Determinable (or Defeasible) may be used “so long as” the property is used for a particular purpose.
Fee Simple Subject to Condition Subsequent. If the condition occurs the grantor has the right to terminate the estate.
Fee Simple Upon Condition Precedent title vests in the grantee when the condition occurs.

Life Estates

Parties to the Life Estate are: G                        , 
the R                            or 
the R                            and 
the L                         Tenant.
The Life Tenant is obligated to:                                           the property and keep it in good                                              The Life tenant must pay the                                        and not W                                the property.  The Life Tenant may collect all the I                            from the property.
There are two types of life estates: Conventional and                                 
Although a life estate could in most jurisdictions be sold, it is mostly unmarketable.

Statutory Estates

Dower & Curtesy 
Merge and protect the rights of spouse in property
Community Property (Spanish origin)
	Spouses are like partners rather than one
	Property acquired during marriage is obtained by mutual efforts. 

	Upon death property automatically transfer to surviving spouse.
Homestead Protection 
Both parties must execute deeds

Freehold Estates
A                         ownership of the land
Without end (I                                term)
Use of terms, freehold and leasehold by legal system

Less than Freehold Estates

Leaseholds - Rental
Conveyance of right in real estate - possession and use.  Revert to the Owner at end of lease.
Categories
Estate for years, Periodic estate, Estate at Will, Tenancy at Sufferance
Parties
	Landlord - Lessor and the Tenant - Lessee
License is not a R                         or estate in land only a P                           to use the land.

Key Terms

Allodial system
Chattel
Easement
Eminent domain
Encroachment
Encumbrance
Estate
Fee simple
Lien
Title