RE 310 Principles of Real Estate Real Property Rights 1 What is Real Estate a What are some examples of real estate that you might own or you might rent or you might work with b Definitions Real estate Land Ownership of real estate can include Surface Rights Subsurface Rights Mineral rights Air rights Solar and view rights 2 2 Water Rights If you own the land do you have unlimited use of the water that is on or crosses the land a The riparian rights doctrine is used in most states east of the Mississippi where water is plentiful Riparian Rights are common law rights granted to owners of land along the course of a non navigable river stream or similar body of water Equality of rights Reasonable use Ownership typically extends to the of the stream or river b The prior appropriation doctrine usually applies in Western states because water is so scarce Under the prior appropriation doctrine the first landowner to use a body of water for some beneficial economic purpose has a right to use A is typically used to keep track of water rights which can be sold http www ksda gov appropriation 3 c Littoral rights apply to owners whose land is adjacent to a navigable body of water Ownership of the land usually extends to the high water mark of lakes and navigable rivers d Underground water rights 4 3 Real Property vs Personal Property a Real property Appurtenances b Personal property c A fixture is that has become a part of the because it is permanently attached to the land or an improvement Fixtures generally transfer with the real estate unless they are specifically excluded d A trade fixture is an article owned by a tenant and attached to a rented space or building or used in conducting a business Trade fixtures must be removed before the last day of the lease and the cost of repairing damage is the responsibility of the tenant Any trade fixtures not removed become 5 e When conflicts arise as to whether an item of personal property is a fixture the courts apply several tests to determine if an item is a fixture Intent of the parties Test of attachment Test of adaptability 4 Ownership Rights in Real Estate a Fee simple absolute estate Most common form of title Fee relates to ownership of land simple suggests that the ownership is without restrictions A fee simple interest provides all of the fundamental legal rights associated with real estate unabridged and unaltered 6 b Qualified fee estates In a qualified fee estate the owner s rights can be based on the occurrence or nonoccurrence of some specified event Each qualified fee interest has an accompanying future reversion interest that may never be realized c Life estates In an ordinary life estate the grantee is called a life tenant and enjoys full ownership for the duration of his or her life The interest upon the grantee s death The person who will receive the property upon the death of the grantee is called the remainderman and has a remainder interest If the life estate is based on the lifetime of a person other than the life tenant it is known as an estate pur autre vie for the life of another 7 5 Leasehold Interests a When a lease is created the rights are separated into A leasehold interest less than freehold for the tenant or lessee and A leased fee interest with a right of reentry for the lessor or landlord 6 Jointly Ownership of Real Estate a Tenancy in common b Joint tenancy with right of survivorship Unity of Unity of Unity of Unity of 8 7 Condominiums and Coops a Condominium Ownership Fee simple ownership of units and tenants in common for common grounds b Cooperatives Residents purchase shares in a nonprofit corporation in proportion to the value of their units 8 Time Shares A form of ownership that splits the interest further by time 9