18.1Ownership and Leasing of Real Property

Real Property

Real property--Rights and interests in land, buildings, and fixtures

Fixtures—any piece of personal property permanently attached to a foundation set into the land

Trade fixtures—fixtures that retain identity as personal property, Example: oven screwed to floor in pizza

place

Real Property Rights

Surface Rights Rights to the air space above the

land Mineral rights Water rights

Surface rights—right to occupy the land, develop it with buildings, and fixtures, and even to lay waste to it by destroying its resources such as timber or water

Right to air space—the air space above the surface of the land is also part of the realty and you are granted ownership

Mineral rights-the right to dig or mine the earth beneath the surface Solid minerals—coal, iron, ore, nickel, and

uranium Fluid-oil, natural gas , vapor

Doctrine of capture—grants ownership of these fluid minerals to the party who extracts or captures them Example: if a person drilled an oil well on a

quarter acre lot and began pumping oil that extended 25 acres, all the oil could be removed under this doctrine

Water rights—control of the water on the surface or under the ground

Control of water rights is governed by individual states Regulations of water use

Riparian—someone who owns land abutting a body of water

Prior appropriation system—grants the first party to use the water source priority in subsequent years over other potential users

Limitations of Ownership

Easements Restrictive covenants Zoning ordinances Duties owned to entrants on land

Easements

Easement—irrevocable rights to some limited use of another’s land Easement Appurtenant—easement given to

neighboring landowner, benefits neighbor’s land Easements in Gross—benefit a person (non

neighbor) or business Easement by Necessity—when property owner

must cross another person’s land to access hir or her property

Easement by Prescription—when someone makes systematic use of your property for a long period of time, typically 15-21 years

Restrictive Covenants

Restrictive covenants—a promise usually made in writing by the buyer to the seller, limits use of the land in some way Ex. Buyer may contract that they will

not graze sheep, if the buyer who gave the covenant resells, the new owner is bound only if the covenant is the kind that runs with the land.

Zoning Ordinances

Zoning ordinances—regulate the location of residential, business, and industrial districts Nonconforming use Spot zoning—treatment of a single

property in a manner inconsistent with the treatment of similar properties in the area

Variance-allows owner to make use of land inconsistent with the general zoning ordinance

Duties Owed to Entrants on Land

Trespass—unauthorized invasion of the private property or premises of another

Licensee-a person whom the possessor of real property has permitted to be on the realty

Public Invitee—a member of the public invited by the land’s possessor to enter or remain on the land for a public purpose

Business Invitee—shopper or moviegoer Attractive Nuisance--if you create something

that attracts children to your property you are required to make precautions against their injury

Forms of Real Property Ownership

Estate—bundle of ownership rights in, and powers over, realty; also property of deceased

Conveyance—transfer of an estate from a grantor to a grantee by a deed Grantor—party who transfers ownership

powers Grantee—party who receives ownership

3 types of Estates Fee simple absolute—an estate that conveys

all ownership rights and interests “greatest possible bundle of rights and interests”

Conditional estate—makes the ownership conditional on some act or event “so long as…”

Life estate-ownership only for the length of the person’s life

Non-freehold estate—tenancy, involves the transfer of only certain rights, and interests (typically possession and use)

Transfer of Ownership

Ownership transferred by sale, gift, inheritance

Deed—legal document used to transfer ownership of real property Quitclaim deed—transfers only whatever

rights and interests the grantor may have in the real property

Warranty deed—protects the grantee by providing several enforceable grantor’s warranties enforceable against the grantor

Adverse Possession Occurs when you adversely and

exclusively possess in an open and notorious way the land of another private person Adverse—occupation is without the

consent of the owner Open and notorious—occupation must be

visible to the public, examples, fences, crops, barns

Continuously—occupation is uninterrupted

Dedication—act of giving real property to the government for use as a park or roadway

Eminent domain--Power of the government to take private property for public use in exchange for the fair market price Condemnation proceeding—a hearing to

determine fair compensation for the owner and acquire ownership for the government