Property Ownership and Intersts: ch 2 NC
Terms
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- Appurtenance
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Is the right or privilege that goes alond with the ownership of land.
Some of these rights include: surface, air, and water rights. Generally transferred alond with property to new owner. -
Surface Rights:
Subsurface rights -
The rights to use the surface of the earth.
However, real prop. ownership can also include subsurface or mineral rights. Which are the right to the natural resources lying below the earth's surface. - Air Rights:
- The rights to use the air above the land.
- Littoral (water right):
- Large: Owners who land borders large, Navigable lakes and oceans. Owners with littoral rights can enjoy unrestricted use of the navigable waters but the rule is : they only own the land to the mean high tide. All land below this mark is government property.
- Foreshore:
- The strip of land between high and low tide lines belongs to the state of NC
- Riparian (water rights):
- Non-navigable: Own to center. Are granted to owners of land located along a river, stream, or lake.
- *Appurtenant:
- Both riparian and littoral rights are *ATTATCHED to the land and can't be retained when propert is sold. This means the right to use the water belongs to the new owner.
- The Acronyme AREA refers to the quantity of land that can be aafected by natural action of water. What does each letter stand for?
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Accretion}First 2: how you
Reliction}gain prop.
Erosion}Last 2: how you lose
Avulsion} property -
Accretion:
* Gain Land - An increase in land resulting from the deposit of soil by the water.
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Reliction:
* Gain Land - New land is aquired if new water receeds or disapears/ drys up.
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Erosion:
* Loose Land -
The gradual wearing away of land caused by flowing water or other natural forces.
Happens over time!! -
Avulsion:
* Loose Land - When an act of nature such as floods or hurricanes come and remove soil. This is a sudden lose maybe caused in a storm.
- Mobile Home vs. Modulare Home.
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Manufactured housing: Bill of sale--> get receipt. Follows federal building guidelines and is not as strict as the actual state of NC.
Modular: Is a house build to NC standards and real prop. - Mobile home: When is it personal property and when does it become real property?
- The Mobile home is personal at the bill of sale b/c get reciept. Once a foundation is added, the mobile home becomes permanently attatched to land and will need a title and to change deed... therefore the mobile home is now real property.
- Plants/ Crops.. Real or personal?
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1. Fructus naturales: Fruits of nature: which include trees, perenial bushes, and grasses and don't need annual cultivation are considered real prop.
2. Fructus industriales-- fruits of the industry: include annual crops of wheat, corn, veggies, and fruit--> Known as emblements are considered personal Property. - Emblements:
- Specific crops. Can transfer as real prop.
- Fixtures:
- Items purchased as personal property but has been permanently attatched to land that now the law enturpites it to be part of real estate.
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Legal tests of a Fixture:
Clue: IRMA -
The Total Circumstance test:legal test applied by the courts to determine whether an item is a fixture(real prop.) or personal prop. All 4 parts must be applied but the most important part is INtention.
Intent
Relationship
Method os annexation
Adaption to Real estate -
Fixture test 1:
Intent: of annexor - Did the person who installed the item intend for it to remain permanently or be removable?
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Fixture Test 2:
Relationship of the parties -
Is the person making the attatchment an owner or tenant? Owner's prop= real prop
tenant prop= personal prop -
Fixture test 3:
Method of annexation - How permanently was the item attached? Can it be removed with out causing damages?
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Fixture test 4:
Adaption to real estate - Is the item being used as real property or personal property? How has is addapted to it's surrounding areas? Has it become part of the room?
- Trade Fixture: or chattel fixture-->
- Personal property for a trade business: attached to rented space or building for use of conducting a business.
- Agricultural Fixtures:
- Real Property. fixtures used in farmingoperation, even if put in by tenant while renting. wouldn't be allowed to take with because has now become a piece of the real estate.
- Unifor Commercial Code: UCC
- When a homeowner purchases something on credit, sells the house and stops paying. The store will file a lien on the house and can go in and take that item that is now part of a new owner's prop. Because not paid off item is still considered personal property
- Estate in Land-->
- The amount and kind of intrest a person has in real property.
- Estate:
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The degree, quantity, nature and extent of intrest one has in real property.
Divided into two classifications:
1--- nonfreehold estates
2--- freehald estates - Nonfreehold estate: or lease hold estates
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Includes and estate that is not a freehold estate. Including:
--> estate for years
--> " " from yr. to yr.
--> " " at will end
--> " " at sufferance - Freehold Estates:
- Lifetime or forever. Ownership own for life--- past death: There are different degrees of ownership included and they define what can and cant be done
- Freehold Estate: Types of estates
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* Fee simple
* Defeasible fee
* Ordinary Conventional life
* Pur autre vie - Fee simple Estate:
- Owner who is fee simple is entitled to all rights in the property. The highest degree of intrest in real estate recognized by law. It is a estate of inheritance and is always transferable, but not always free of encumbrances.
- Fee simple Absolute:
- a fee simple ownership where there are no limitations(other than gov't powers).
- Fee Simple Defeasible:
- Is qualified and may be lost or defeated on the occurance or non occurance of a specific event. "on the condition that"
- Condition Subsequesnt:
- dictated some action or activity that the new owner must not perform. If that condition is broken the former owner retains the right to re-enter and re take possession of that property.
- Fee Simple Determinable:
- Words Used: "so long as" "while" and "during" --(the condition or limitation is maintained )simular to subsequent in that a special condition is connected to the estate. If broken the former owner, or heirs have the right of reversion.
- Future InterestS:
- A persons present right to interest in real property that will not result in a possession or enjoyment until some time in the future. Such as a reversion or right of reentry
- Automatic Reversion:
- ALL SALES OF PROP. MUST ALWAYS FOLLOW DEEDS RESTRICTIONS/ LIMITATIONS if go against deed reverts back to person who originally sold real estate
- Life Estate:
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an estate in land that is limited in the duration to the life of the owner or to the life/ lives of some other designated person(s)
A= owner
b= life tenant
for b's life
Can not be inherited - Pur autre vie:
- An estate for the life of another adding a third party to the already grantor, life tenant, and now remainderman
- Remainder Interest
- Grantor choses someone other than self to recieve title of prop. after the life tenant terminates. This is a non possessory estate,--> a future interst and can be sold.
- Reversionary Interest:
- If grantor doesn't name a remainderman the ownership returns to the grantor when the life estate terminates.If grantor is dead prop. goes to heirs. This is calles reversion and is a future interst.
- Estovers:
- When use resources from prop. to benefit prop.
- Conventional Life Estate:
- is created by grant from the owner of fee simple estate. The owner retains a reversionary interst in the prop. or names a remainderman.
- Waste:
- An improper use or an abuse of a prop. by a possessor who holds less than fee ownership, such as a tenant, life tenant, mortgagor, or vendee. Usually impairs the value of the land
- Ownership in severalty:
- When title in real estate ispresently owned by one person or single entity- known as sole owner/ have sole ownership
- Co-ownership
- When parcel of real estate in vested in two or more persons/organizations. known as co-owners or concurrent owners
- The three forms of co-ownership recognized in NC:
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1. Tenancy in Common
2. Joint Tenancy
3. tenancy by the entirety - Tenancy In common:
- Owned by two or more people with equal or unequal shares: not stated! Each owner holds his/ her undivided interest in severalty and can sell, convey, mortgage,transfer. There is no right of survivorship. If engaged and buy property together --> by operation of law they aquire title as tenants in common
- Joint Tenancy:
- Ownership with two or more people, and the shares are ALWAYS equal. Unlike tenants in common joint, has the right of survivorship. The death of one tenant doesn't destroy the ownership unit but divides deceased shares between other owners.... untill one owner left.---who has rights as a sole ownership
- Tenancy BY Entirety:
- Special form in which the owners are husband and wife. Each spouse has an equal undivided interest in the prop. In the death of a spouse the full title transfers to the living
- Hybrid Forms Of Ownership:
- Forms of ownership that contain elements of both co-ownership and ownership by severalty
- Encumbrance:
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A claim, change, or liability that attaches to and is binding on real estate.
Anything that affects the title to real estate. It is the right or intrest held by a party who is not the fee owner of the prop. Encum- may affect the value or obstruct the use of the prop. but doen't neccess. effect transfer of title. - Liens:
- A charge against property that provided security for a debt or an obligation of the prop. owner. Does not constitute ownership, is a type of encumbrance. Where all liens are encumbrances, all encumbrances are not liens
- types of liens:
- They are eitherInvolintary, voluntary liens--->, general liens, specific liens, mechanics lien, judgement liens, personal prop. tax liens, state tax liens, federal tax liens etc.
- Specific Lien:
- Secured by specific parcal of prop. and affects only that particular prop. ex- mortgage
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involuntary
vs.
voluntary: -
in--- law make you put lien on prop.
vol-- create intentionally like a mortgage - Mortgage and deed of trust liens:
- a voluntary lien, on real estate given to a leander by a borrower as security for a real estate loan.
- Real prop. tax and special assessment liens:
- Involuntary: If owner fails to pay taxes on prop. the unpain tax becomes a specific invol. lien on that prop. Attaches to prop. on the date the prop. was listed jan 1 of each year and takes top priority over all other liens.
- Ad Valorem basis:
- According to value: the way real prop. is taxed--- valid for 10 yrs.
- Mechanics Lien:
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Purpose: to protect those who perform labor or furnish material in the improvement of real prop.
It is a specific, involuntary lien.
Filed when the owner has not paid the worker or when the general contractor has been paid but hasn't paid the sub contractors or suppliers.
In order to file:
Must have implied or expressed contract
Have to file within 120 of last day of work, have 180 to go to court - General Liens:
- Affect all the prop. of the debetor, both real and personal rather than a specific parcel of land
- Judgments:
- decree issued by court. If debetor owes money to creditor and court awards creditor money called money judg. good for 10 yrs.
- Personal Property tax Liens:
- Personal prop. tax is assessed on certain types of personal prop. If unpaid becomes, general, involuntary lien against all prop. owned by tax payer
- state tax liens:
- Both unpaid state inheritance and income taxes---general involintary liens against all prop. owned by individual tax payer. lasts 10 years.
- Federal Tax Liens:
- IRS tax liens in result of failure to pay any portion of federal income taxes. This is a general, involuntay lien on all pp and rp.
- Deed Restrictions:
- Type of encumbrance on real prop. They are private agreements placed in the public record the affect the use of land.Usually listed by developer or subdivider for maintaining specific standards in a subdivision.
- Lis Pending:
- time lag between filing a lawsuit and the rendering of judgement. it is not a lien rather a notice that there is an action or lawsuit pending that may affect title.
- Easements:
- A right to use the land of another for a particular purpose. Not a form of ownership, simply grant the use of the prop. Give up some of your land voluntarily or in voluntarily
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Type 1 of easement:
Appurtenant : -
for adjacent pieces of prop. side by side
Dominant tenant: needs an acess way
surviant tenant: is the one who gives up prop/ allows it to be used.... by verbal agreement -
Type 2 of easement:
In Gross: - Benefits the public. Ex- powerlines, sewerlines, water lines
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Creating an easement:
Express Grant: - Commonly created by a written agreement between the two parties. Often in a deed.
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Creating an easement:
Express Reservation: - Cab be created by the grantor in a deed of conveyance by reserving the easement when selling or sold land
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Creating an easement:
Necessity: - By implications of law. No land owner can be landlocked.
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Creating an easement:
Prescription: - When a claiment has made use of another's land for a certain period of time. The time period in Nc is 20 years
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Creating an easement:
Condemnation: - Is required for a public purpose, through the power of eminant demain. The gov't does have to pay land owner a compensation usually fare market value.
- Terminating: as easement
- When the purpose of why the easement was created no longer exists, abandonment of ease, by realse of right to owner, by non use of easement,
- encroachments:
- is when a building or some portion of it, a fence or a driveway illigally extends beyone the land of it's owner onto the land of the adjacent owner', a street, or an alley.
- Real estate taxes: two catagories
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1. ad valorem or general tax
2. special assessment tax or improvement taxes.
Both are levied against specific parcels of prop. and automatically become liens on the prop. - Gereral Tax/ Ad Valorem Tax:
- Called Ad. b/c the amount of tax varies in accordance with the value of the prop. being taxed.
- Machinery Act:
- Governs Ad Valorem. The act regulates real property taxation standards : standards for assessment, appraisal and requirements for tax-excempt status
- Taxation Time table:
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In January of each tax year, all taxable real prop. must be listed in the county where located.
Then all listed property is assesses at it's fair market value.
Each year's taxes are legally due and payable on sept. 1. most people pay in late dec. and based on calendar yr. - Octebbil reappraisal
- Real prop. appraised based on statuary shcedule and then reappraised every 8 yrs.
- Appraisal of Real Prop.:
- As a process or an opinion at to vaulue of prop. and how that value is communicated.
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Assessment:
Mass appraisal: - *is official valuation of prop. purpse is to establish an assessed value for tax purposes.
- Special Assessment:
- Are special taxes levied on real estate for public improvements to the real estate