Term
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Definition
Right of Possession
Right of Use or Control
Right of Enjoyment
Right of Disposition |
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Term
Right of Possession
(Bundle of Rights) |
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Definition
| The right to occupy your property and to have ingress and egress (a way to get in and a way to get out) |
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Term
Right of Use or Control
(Bundle of Rights) |
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Definition
| This right includes making a profit from the land, removing objects from it, building on it, farming on it, mortgaging it, and granting an easement or license to others. |
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Term
Right of Enjoyment
(Bundle of Rights) |
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Definition
| Assures against interference from others or nuisances from neighbors. It includes some rights over adjoining land such as the right to light, air, water and lateral support. |
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Term
Right of Disposition
(Bundle of Rights) |
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Definition
| Right to sell, give it away, pass it on heirs, mortgage it, will it. |
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Term
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Definition
| Refers to the quality, quantity, nature and extent of the ownership (interest) that a person holds in real property, not the physical quantity of land one may own. In order for interests in property to be estates there must be a present or future right to possess(occupy) the property. |
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Term
Possessory Estate
(Estates in Land) |
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Definition
Current right to occupy/current possession
ex. renter. FREEHOLD ESTATE AND LEASEHOLD ESTATE |
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Term
Non Possessory Estate
(Estates in Land) |
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Definition
| Future right to occupy or possess.REMAINDER, REVERSIONARY, LEGAL LIFE ESTATE (DOWER, CURTESY, HOMESTEAD PROTECTION) |
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Term
Freehold Estate
(POSSESSORY)
(Estates in Land) |
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Definition
| Estates that will last for an indefinite period of time. Possessory. |
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Term
Fee Simple-
(Freehold Estate)
(POSSESSORY)
(Estates in Land) |
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Definition
FEE= INHERITABLE
FEE SIMPLE ABSOLUTE= 100% full ownership
FEE SIMPLE DETERMINABLE= "So Long As" and will automatically revert back to owner if terms not met (preferred by seller)
FEE SIMPLE ON CONDITION SUBSEQUENT= "On the condition that" MUST GO through court to regain possession. |
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Term
Conventional Life Estate-
(Freehold Estate)
(POSSESSORY)
(Estates in Land) |
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Definition
CREATED BY WILL. CANNOT BE INHERITED
ORDINARY LIFE ESTATE= Life of Tenant
LIFE ESTATE PUR AUTRE VIE= For the life of another |
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Term
Remainder
(Non Possessory Estate)
(Estates in Land) |
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Definition
| Designated third party who will receive the fee simple estate when the lesser estate ends. |
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Term
Reversionary
(Non Possessory Estate)
(Estates in Land) |
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Definition
| Original grantor and heirs. Lesser estate is conveyed but the future rights are reserved for the grantor or heirs of the grantor. |
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Term
Legal Life Estate
(Non Possessory Estate)
(Estates in Land) |
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Definition
Created by Law.
DOWER: wife's interest in husband's estate
NOT Recognized in GA
Curtesy: husbands interest in wifes estate
NOT recognized in GA
Homestead Protection: Set amount except from foreclosure. right that protects a primary residence from a forced sale to satisfy debts and judgements. |
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Term
Leasehold Estate
(POSSESSORY)
(Estates in Land) |
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Definition
NON FREEHOLD ESTATE therefore it has a definite duration. Rental/created by lease estate.
ESTATE FOR YEARS: stated period of time=lease start and end date (does not have to be years)
ESTATE FROM PERIOD TO PERIOD:auto renews with rent payment-stated period
ESTATE AT WILL: Month to Month
ESTATE AT SUFFERANCE: Staying beyond lease period- can become an estate from period to period if landlord accepts another rent payment. |
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Term
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Definition
| External limitations that restrict an owner's rights, use of the property or diminish its value. May be public (imposed byt gov.) or private (imposed by the general public) |
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Term
Public Encumbrances=Governmental Rights/Restrictions
(Encumbrances) |
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Definition
POLICE POWER: the right of local, state or national gov. to enact and enforce laws that regulate the use of private property in order to provide for the safety, health, morals and general well being.
ex. zoming, bldg. codes, environmental codes, taxation and planning codes.
EMINENT DOMAIN: Governments power to take property, with or without the owner's consent, when it is needed for a public purpose (parks, airports, public schools, hospitals, highways) through the process of condemnation. Public Purpose AND Just Compensation (moving cost and market rate) MUST be proven and paid.
ESCHEAT: Gov. right to gain property ownership if property is abandoned or owner dies without a will and without heirs. |
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Term
Private Encumbrances
(Encumbrances) |
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Definition
| Another person's rights which either grant person an interest in the property as security for debt (lien) or affect the use of the property (easements) |
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Term
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Definition
A monetary claim a creditor has on the property of a debtor and the debtor's property is security for payment of the debt. Categorized in the following ways:
-Voluntary(mortgage lien) OR Involuntary(tax lien)
-Statutory(mechanics lien) OR Equitable(Vendee's Lien)
-Specific(property lien) OR General(judgement lien) |
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Term
Specific Lien
(Liens)
(Encumbrances) |
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Definition
| Attached to only one property regardless of how many other parcels a debtor might own. |
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Term
General Liens
(Liens)
(Encumbrances) |
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Definition
Attached to all real and personal property
Everything you own |
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Term
Mechanics Lien
(Specific lien)
(Liens)
(Encumbrances) |
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Definition
| Lien placed by a general contractor attached to specific parcel. Priority is based on either the date when materials were delivered OR when work began, whichever occurred first |
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Term
Vendee's Lien
(Specific Lien)
(Liens)
(Encumbrances) |
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Definition
Created when a sales contract between buyer and seller is recorded. Ex. purchaser making a large earnest money deposit and incurring addt'l costs in searching the title might want protection in the event the seller refuses or is unable to complete the transaction. Once the contract is recorded, the buyer has a vendee's lien for the amount of the deposit and related expenses in the event of a seller default. This is a voluntary specific lien.
(in residential real estate, the sales contract between buyer and seller is usually not recorded) |
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Term
Property Tax Lien
(Specific Lien)
(Liens)
(Encumbrances) |
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Definition
Ad Valorem Tax: levied against each property owner according to the value of the property
Special Assessment Tax: levied for a local improvement such as a new sidewalk or street lighting. Specific to the owners in the neighborhood the improvement is being made in.
If taxes are not paid within time allowed, liens can be foreclosed and the properties sold to collect the owed taxes. Recorded Tax Liens have priority over ALL other liens. The mortgage lender often requires an owner to establish an escrow account for the monthly payment (called impounds) of property taxes. Tax Liens are involuntary, specific liens. |
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Term
Mortgage Liens
(Specific Lien)
(Liens)
(Encumbrances) |
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Definition
| Owner pledges one specific property to the lenders as a security for a loan. This is a voluntary, specific lien. |
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Term
Attachment Lien
(Specific Lien)
(Liens)
(Encumbrances) |
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Definition
| Occurs most commonly during divorce proceedings. Grants the court custody of a specific property to prevent the owner from conveying/transferring ownership while a suit for damages is being decided. This is an involuntary, specific lien. |
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Term
Judgement Liens
(General Liens)
(Liens)
(Encumbrances) |
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Definition
| Arises out of Lawsuit. Plaintiff sues defendant for damages and the plaintiff wins the suit, court awards a judgement in a specific dollar amount to establish the indebtedness. The judgement, when recorded in county records, becomes a general lien against any real or personal property owned by the defendant in that county.A lis pendens if filed to alert title searchers that a suit is pending |
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Term
Federal and State Income Tax Liens
(General Liens)
(Liens)
(Encumbrances) |
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Definition
| Any unpaid federal or state income taxes become general liens against taxpayers real or personal property without court intervention. |
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Term
Federal and state inheritance taxes
(General Liens)
(Liens)
(Encumbrances) |
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Definition
| Property owned by a descendent is subject to federal estate taxes after certain exemptions are allowed. Some states also assess inheritance taxes and the same rule applies. |
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Term
Descendents Debts
(General Liens)
(Liens)
(Encumbrances) |
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Definition
| When someone dies, existing liens on the descendents property must be satisfied before the property passes to the heirs. Outstanding debts that cannot be paid out of the descendents personal property create a lien against real property and the real property can be sold to satisfy the remaining debts. |
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Term
Easement
(Private Encumbrances) |
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Definition
| Right to use someone else's land. Generally bought and paid for because they have value. |
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Term
Easement Appurtenant
(Creation of Easements)
(Easements)
(Private Encumbrances) |
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Definition
| Must be 2 separate properties adjacent to one another(next to each other), Runs/transfers with the land when sold, must have 2 different owners. Owner granting this easement is burdened by it therefore they become the servient estate. The owner benefiting from this easement is the dominant estate. Ex. common driveways, party wall, right to use another owner property to egress and ingress, right to use water from another landowners well. Value of dominant estate increases while value of servient estate decreases |
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Term
Easement In Gross
(Creation of Easements)
(Easements)
(Private Encumbrances) |
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Definition
| Involves only 1 property, does not run with the land. ex. giving an individual or corporation permission to park or use the property. Ends with the death of a person or when land is sold. When granted to individual, it is irrevocable unless grantor dies or land is sold. Commercial easements in gross include utility easements/ Utility Lines (cell phone tower etc.), railroad rights of way, rights to erect a billboard on the property. |
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Term
Creation of Easements
(Creation of Easements)
(Easements)
(Private Encumbrances) |
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Definition
Grant: Giving permission
Reservation: Owner could reserve an easement in the deed itself (sell property but reserve the right to use a part of it like the lake)
Agreement: Contract between 2 parties-in order for it to be enforceable it must be in writing.
Necessity: No other option (easement to use the adjacent property driveway because its the only way to get in and out and is already developed)
Prescription: When easement has been continuously used for an extended period of time. In GA, if done for over 15 years, the can claim/own the property |
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Term
Implication
(Creation of Easements)
(Easements)
(Private Encumbrances) |
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Definition
| created by operation of law. ex. property sold but mineral rights kept implying the property would have to be used to obtain its minerals |
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Term
Condemnation
(Creation of Easements)
(Easements)
(Private Encumbrances) |
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Definition
| Created by eminent domain, must have just compensation and prove it is for public use |
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Term
Termination of Easements
(Easements)
(Private Encumbrances) |
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Definition
Release: written release from dominant estate
Merger: both properties come under 1 owner
Expiration of Purpose: Purpose no longer exists or no longer needed
Abandonment: Does NOT mean non use, dominant shows no intent to use it ex. moves to another state
Prescription: Servient holder prevents easement holder from openly and continuously using it (applies to easement by prescription only ex. placing no trespassing sign.
Necessity: easement by necessity only last as long as the necessity last. |
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Term
License
(Easements)
(Private Encumbrances) |
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Definition
DOES not create easement or estate
Verbal or written permission to use someone else's property ex. hunting, fishing
Not transferable or inheritable and can be terminated by owner at ANY time. Terminated with the death of either party or conveyance/transfer of property. |
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Term
Private Restrictions
(Private Encumbrances) |
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Definition
Limitations on the use of one's property in order to protect the rights of others.
Covenants or Conditions. Always comply with the most restrictive. Ex. zoning state 2 houses per acre but private restriction states 1 house per acre, comply with the private restriction |
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Term
Covenants
(Private Restrictions)
(Private Encumbrances) |
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Definition
| A promise made in a sales contract, lease, or deed that specifies the property will or will not be used in a certain way. Purpose is to preserve property value by establishing standards with which owner must comply. Put in by builder. Typically restrictions in a subdivision. Recorded with county. Enforcement=the court action required to stop a prohibited use is an INJUNCTION |
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Term
Conditions
(Private Restrictions)
(Private Encumbrances) |
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Definition
| Found in Deeds. Run with the land unless removed by court. Ex. grantor might specify in a deed that the property is to be used only for a hospital or that it may not be used for a chicken farm. |
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Term
Encroachment
(Private Encumbrances) |
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Definition
| Structures or property trespassing another person's property. You can only have it removed and request payment for the damages by the property responsible for the encroachment. Only revealed by a professional survey ex. fence or building that extends onto the neighbors land is basically trespassing. |
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