1 Welcome to the International Right of Way Association’s Course 800 Principles of Real Estate Law 800-PT – Revision 3 – 08.25.06.USA

1

Welcome to the International Right of Way Association’s

Course 800Principles of

Real Estate Law

800-PT – Revision 3 – 08.25.06.USA

2

Introductions

Who we are…What we do…

Where we do it…

How long we’ve been doing it…

Our goals for the course...

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Objectives (1)

At the end of the two days,you will be able to...

• Recognize the differences between contract law and tort law.

• Identify several different specific real estate contracts and be able to discuss the major contract terms.

4

Objectives (2)

At the end of the two days,you will be able to...

• Identify different land use planning methods and describe how each impacts real estate development.

• Define a condominium and recognize the rights and obligations of condominium associations and the unit owners.

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Housekeeping

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Schedule (1)

Day One

8:00 - 8:30 Introductions, Etc.

8:30 - 12:00 Contract Law

1:00 - 4:45 Specific Real Estate Contracts

4:45 - 5:00 Recap

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Schedule (2)

Day Two

8:00 - 8:30 Recap Day One and Introduce Day Two

8:30 - 11:45 Tort Law

12:45 - 2:30 Land Use Planning

2:45 - 3:30 Condominiums

3:30 - 4:00 Summary and Review

4:00 - 5:00 Examination

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Contract

A contract is an agreement betweentwo or more parties that creates in each

party a duty to do or not to do something and a right to performance of

the other's duty or a remedy for the breach of the other's duty.

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Contract Types

Oral

Written

Unilateral

Bilateral

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Contract Elements

Mutual Assent Consideration

Competent Parties

Definite and Certain

Terms

Legal Purpose

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Is Kevin entitled…?

Brenda lost her pocketbook, which contained about $200, all her identification and family pictures. She placed an ad in the newspaper

offering a $50 reward for its return. Kevin finds the pocketbook, but has no knowledge of the reward offer. He returns the pocketbook to

Brenda. Is Kevin entitled to the $50 reward?

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Susan and Eric

Susan sent Eric a letter offering to sell him a car for $5,000. Eric accepts by return letter. Before

Susan receives Eric’s letter, she mails him a second letter revoking the original offer. Has

Susan revoked the offer?

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Did Michelle accept…?Michelle received an offer in the mail, which stated

that acceptance could only be made by mail. She wrote a letter of acceptance, addressed and stamped the

envelope, and put the letter on her kitchen table with the intent to mail it on her way to work in the morning. Michelle forgot to mail the letter. Two days later she

receives a second letter withdrawing the offer. She immediately posts, by certified mail, her acceptance

letter. Has Michelle accepted the offer?

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Bill, the swimmerEver since Bill was a boy, he wanted to be the first person

to swim across Lake Lago and win the $1,000 prize offered by the homeowners’ association. On his

eighteenth birthday and in front of about ten witnesses, he succeeded. He called Brian Reis, the president of the

Lake Lago Homeowners’ Association, and asked for the $1,000 prize money. Mr. Reis refused to pay Bill stating that no “official” saw Bill swim across the lake nor had Bill told the Association before hand that he intended to

swim the lake. Had Bill accepted the offer and is he entitled to the money?

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Contract Elements (2)

Mutual Assent

Consideration

Competent Parties

Legal Purpose

Definite and Certain Terms

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An Urban LegendPORSCHE Boxster S Two years old, prime condition. $250 cash.

613-555-9568

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Contract Elements (3)

Mutual Assent

Consideration

Competent Parties

Legal Purpose

Definite and Certain Terms

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DefensesMistake

Duress

Undue Influence

Fraud/Misrepresentation

Unconscionability

Supervening Illegality/Frustration of Purpose

Lack of Capacity

Statute of Fraud Violation

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Termination and Discharge

Specific Duration

Rescission

Discharge by Performance

Breach of Contract

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Specific Real Estate Contracts

Agreement of Purchase and Sale

Commercial Lease

Easement Agreement

Agency Agreement

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Agreement ofPurchase and Sale

Parties Legal Description

Purchase Price Offer Irrevocability

Closing Date Representations and Warranties

Marketable Title Risk

Other Conditions

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Commercial LeaseParties Legal Description

Term Purpose

Leasehold Rental Improvements

Other Payments Repairs

Assignment Damage, Risk, and Insurance

Holdover Lessor Covenants

Lessee Covenants

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Easement Agreement

Parties Description

Duration Consideration

Purpose Terms and Conditions

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Easement

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Agency Agreement

Express Words of Appointment

Implication

Ratification

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Recap Day One (1)

Looked at contract law. We examined contract types, contract elements, defenses in their formation, how they are terminated and discharged, and contract construction.

We looked at specific real estate contracts; namely, purchase agreements, commercial leases, easements, and agency agreements.

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Recap Day One (2)

At various times throughout the day,we did some exercises.

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Day Two (1)

Look at tort law, general and specifictorts relating to real estate.

Look at land use planning, specifically, planning legislation, comprehensive plans, zoning ordinances, subdivision regulations,

and environmental regulations.

We will also look and various aspectsrelated to condominiums.

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Day Two (2)

We will do a few more exercises.

Finally, we’ll do a course review and take the exam.

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Tort

A tort is an injury to one person for which the person who caused the injury

is legally responsible.

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Tort Law Components

Compensation for Harm Strict Liability

Consequential Damages Causation

Negligence Contributory Negligence

Joint and Several Liability

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Real Estate TortsOccupier Liability

Attractive Nuisance

Nuisance

Trespass

Hazardous Activities

Misrepresentation/Fraud

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Land Use Planning (1)

Common Law Legislation

NuisanceContract

CovenantsPlanning Environmental

Plan Zoning Subdivision

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NuisanceContract



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NuisanceContract



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NuisanceContract



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Planning District Map

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NuisanceContract



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Zoning Map

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Zoning Trends

Planned Unit Development

Flexible Zoning

Conditional Zoning

Transferable Development Rights

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NuisanceContract



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NuisanceContract



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NuisanceContract



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Condominium (1)

A condominium is a real property ownership interest that is characterized by ownership of portions of the property

(i.e., the ownership of a unit plus the joint ownership of the complex’s

common areas) with an administrative framework to manage the entire

property.

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Condominium (2)

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Objectives (1)

Right now, you should be able to...

• Recognize the differences between contract law and tort law.

• Identify several different specific real estate contracts and be able to discuss the major contract terms.

47

Objectives (2)

Right now, you should be able to...

• Identify different land use planning methods and describe how each impacts real estate development.

• Define a condominium and recognize the rights and obligations of condominium associations and the unit owners.

48

Thank you!

800-PT – Revision 3 – 08.25.06.USA

Documents

1 Welcome to the International Right of Way Association’s Course 800 Principles of Real Estate Law 800-PT – Revision 3 – 08.25.06.USA