48 Real Property.ppt

Chapter 48Real Property Business LawLegal, E-Commerce, Ethical, and International Environments Real Property Real property is immovable or attached to immovable land or buildings Land Buildings Subsurface Rights Plant Life and Vegetation Fixtures Land and Buildings Most common form of real property. Landowner usually purchases surface rights. Buildings constructed on land are real property. Subsurface Rights These are mineral rights to the earth located beneath surface. Are often sold separately from surface rights. Plant Life and Vegetation These are considered real property until they are harvested. Includes both natural and cultivated plants. Sold with land. Fixtures Personal property that is so closely associated with real property that it cannot be separated without damaging real property. Becomes part of the realty. Included in sale of building. Estates in Land Ownership rights in real property. Bundle of legal rights that the owner has to possess, use, and enjoy the property. The type of estate is determined from the deed, will, lease, or other document that transferred the ownership rights. Freehold Estate An estate where the owner has a present possessory interest in the real property. Estates in Fee Fee simple absolute Fee simple defeasible Life Estates Estates in Fee Fee Simple Absolute Highest form of owner-ship of real property. Ownership: Is infinite in duration Has no limitation on inheritability Does not end upon the occurrence or non-occurrence of an event Fee Simple Defeasible Grants owner all of the incidents of a fee simple absolute except that it may be taken away if a specified condition occurs or does not occur. Life Estate Interest in property that lasts for the life of a specified person. Called estate pour autre vie. A life estate terminates upon the death of a named person and reverts back to the grantor. Concurrent Ownership When two or more persons own a piece of real property. Also called co-ownership. Forms of Co-ownership Joint