Understanding Real Property: Definitions, Rights, and Acquisitions

1. Chapter 28 Real Property

2. What Is Real Property • Land- Includes not only that surface of the earth, but also the airspace above it and whatever is beneath it. • Buildings- Structures that are permanently attached to the land • Fixtures-Personal Property so closely associated with realty that it becomes part of the real estate.

3. Annexation-An item’s becoming annexed by permanent attachment to land or a building: it cannot be removed without material damages to the realty. Adaptation-Things that are essential for the purpose for which the rea; estate is used. Test of Intent- A test used by that law to determine whether an item associated with real property is personal or real: this test considers whether persons intended something to become part of the realty. Trade Fixtures-Business appliances attached to rented real property used in a business.

4. 4. Rights in the Real Property of Others • License - Temporary right to be on another’s land because the consent. • Easement - The right to a specific use of another’s real property even though the other party retains possession. • Profit - The right to extract something from someone else’s land.

5. How is Real Property Acquired? • By Deed as Evidence of a Sale of a Gift • By Will of by Inheritance • By Adverse Possession • By Dedication or by Eminent Domain

6. Deed - Written document used when an individual transfers ownership and other rights to real property. Grantor - Individual who conveys the ownership rights. Grantee - Individual who receives the rights. Quitclaim Deed - Transfers any interest the grantor may have in the real property. Adverse Possession - Occurs when you “adversely” and exclusively possess in an “open and notorious” way the land of another private person “continuously” for a state’s statutory period under claim of right. Easement by Prescription - The acquisition of an easement to interest in land, through uninterrupted adverse use of another’s land without the owner’s consent for a statutory period.

7. Dedication - Giving of real property to the government. Eminent Domain - The power of the government to take private property for public use if exchange for the fair market price. Condemnation Proceeding - Hearing to determine fair compensation for the owner and acquire ownership for the government. Surveying - Process of carefully measuring the exact boundaries of real property Abstract of title - Condensed history of the ownership of a particular parcel of land. Title insurance - A policy in which the insurance company guarantees, in exchange for a premium, that the title is good.

8. Mortgage - Written document made out by the mortgagor. Mortgagor - The debtor who makes out the mortgage and allows the mortgagee the right of foreclosure. Mortgagee - Lender who receives the right of foreclosure I the mortgage. Right of Foreclosure - the right to have property that is subject to a mortgage sold to satisfy the debt. Deed trust - handled by the trustee who has the power to cause the sale of the property at a public auction if the debt is not paid as promised. Escrow Agent - A neutral third party in the business of conducting closing. Escrow - Money or papers delivered to a third party to hold until certain conditions are fulfilled. Recording - Makes a document available to the public at the county recorder’s office.

9. How Do We Buy Real Property? • Negotiating the Contract of Sale • Surveying the Property • Protecting the Title • Securing Financing • Closing the Transaction • Recording the Deed