2 11 15 Chapter 8 Real and Personal Property Contract Law Tort Law o Arrangements made regarding the use of property o To protect interest in property Real Property land or building on the land o Anything attached to the land or growing on the land is considered real property on the land o In the US rarely in other countries if you own real property you own and you can separate sell the rights to different aspects of your property 1 Surface rights 2 Air rights 3 Mineral rights in other countries often ALWAYS owned by the o Deed written document that tells you who owns the property most common way to transfer ownership of the property always recorded at the county recorder or register of deeds government 3 types Quit Claim Deed Seller of property sells buyer any interest they have risky way to take property don t know what you re getting no legal claim against seller Businesses almost never accept Warranty Deed I warrant that I have good clear title of the property and there are no leans or encumbrances on this property if not true the warranty deed created a contract Safest Deed to get on a property Special Warranty Deed Seller says that during the period of time that they owned the property there were no leans or encumbrances put on the property some risk Title States who owns right to exclusive ownership and use of the property prevents anyone else from coming on or using property without your permission When you get a deed do a title search at the county recorder or register of deeds to see all of the past owners to protect yourself Same place to look for any leans or encumbrances on a property o If any leans they re the first thing that needs to be settled Title Insurance To protect buyer if someone asserts a claim against the property once you bought it Indian tribes o Fee Simple you have the outright ownership of a property most common o If you want to own property with someone else ways to hold property ownership in the US jointly 2 11 15 Tenancy in common each owner has undivided interest in the company If someone dies their rights of the property go to their heirs not to the other owner s Joint Tenancy There is a right of survivorship if someone dies the other owner takes his or her interest Usually only done with friends relatives someone you want to inherit your interest You can re deed property to change it to a tenancy in common from the joint tenancy Tenancy by the entirety only in like 50 of states Has a right of survivorship Only can be entered into by married people quick and easy way to get ownership to surviving spouse One issue is that you cannot convert this to a tenancy in common by re deeding it can only convert it by getting a divorce this converts it to tenancy in common o Life Estate Right to use the property for the rest of their life Typically for elderly people from their children o Trust Arrangement A trust separates the legal and beneficial ownerships of the property Trust instrument the property is in trust for this amount of time for the benefit of whoever are the beneficiaries After amount of time the original owner is the sole owner again Trustee person who holds legal title for the real owner Makes sure that the property is maintained and taken care of Beneficiaries people who get to benefit from the trust Have equitable title they get to use the property o Business Trust Business takes parts of its assets and puts them in a designated business trust naming the beneficiaries Two advantages Assets of the businesses put in the business trust are protected from creditors Beneficiaries of the business trust receive a certificate of beneficial ownership they can provide liquidity to beneficiaries o Condominiums If you own a condominium you own the unit the walls in it The common areas halls outside etc are all owned and maintained by the condominium association Originally for older people who didn t want to deal with the maintenance of a whole property o Cooperative Like a condominium in that if you own a unit you own the walls in common areas maintained by the association Difference is that in a cooperative there is a board association that has to be approve anything that you want to do paint sell rent Much more controlled restrictive environment o Servitudes Limitations or requirements on the use of your property Easements gives someone the legal right to come onto or use your land for a specific purpose City county first few feet for sidewalks or sewer lines neighbor to drive to their house behind yours etc Stated in the Deed 2 11 15 Covenants Way that owners or developers put restrictions on the use of property On your deed transfers from owner to owner Historically put in by developers saying that part of a big portion has to be a park or something Can limit what kind of houses what colors or heights of houses etc Very hard to get out of deed only if all current owners under that covenant agree to remove it o Adverse Possession state law concept in most states If someone uses your property or a piece of it openly or notoriously and continuously for the period of time in the state statute they become the legal owner of your property Impose an obligation to periodically check your land to make sure someone s not using it against your wishes o Landlord tenant relationship Lease Landlord is the owner tenant uses the property and the lease separates the interests of the property Residential leases should contain Parties of the lease landlord tenant s Premises which unit is yours Term of the lease length of time landlords approval Rent amount and when where it s due Utilities who s responsible Security deposit o Right to sublease sublet it or not and if you need the Rights of landlords tenants Federal Act rights and obligations of tenants and landlords Tenant s o Right to use and enjoy the property o Implied warranty of habitability for residential if it isn t court says you ve been constructably evicted landlord broke the lease so you have no obligation to future rent get your security deposit back but do have the obligation to mitigate damages o If you move out in the middle of the lease for no reason the landlord ahs an obligation to find a new tenant Person not at fault has duty to mitigate damages o Duties of intent maintain and return property in the same condition that you got it o Obligation as a tenant not to conduct illegal activities on property o Obligation not to be a nuisance to neighbors o Most residential leases landlord has right