Chapter 50 Real Property

1. Chapter 50Real Property Twomey, Business Law and the Regulatory Environment (14th Ed.)

2. Easements[50-1] A Dominant Tenement B Servient Tenement Chapter 50

3. Creation of Easements[50-2] Express grant Express reservation 1. Deed 2. Implication 3. Necessity 4. Estoppel 5. Prescription Chapter 50

4. Definition and Classification of Deeds [50-3] Grantee (new owner) Grantor (current owner) Deed Instrument to transfer interest in land transfers whatever interest the grantor may have in the property without specifying that interest Quitclaim deed transfers a specified interest, and makes certain guarantees Warranty deed Common law deed sets forth the details of the transaction recites that a named person is making certain conveyance to a named grantee Statutory deed Chapter 50

5. Mortgage[50-4] Mortgagor (Borrower/Owner) Mortgagee (Lender) Assumption of Mortgage in Sale Mortgagee Personal Liability Property subject to foreclosure Original Mortgager Personal Liability Buyer Assumes Subject to Sale Mortgagee Personal Liability Property subject to foreclosure Original Mortgager Buyer Takes Subject to Chapter 50

6. Chapter 50 Summary Real property includes land, buildings and fixtures, and rights in the land of another. The interest held by a person in real property may be defined in terms of the period of time for which the person will remain the owner. Chapter 50

7. Chapter 50 Summary[2] The interest may be a fee simple estate, which lasts forever, or a life estate, which lasts for the life of a person. These estates are known as freehold estates. If the ownership interest exists for a specified number of days, months, or years, the interest is a leasehold estate. Chapter 50

8. Chapter 50 Summary[3] Personal property may be attached to or associated with real property in such a way that it becomes real property. In such a case, it is called a fixture. To determine whether property has in fact become a fixture, the courts look to the method of attachment, to how the property is adapted to the realty, and to the intent of the person originally owning the personal property. Chapter 50

9. Chapter 50 Summary[4] Under common law, the liability of an occupier of land for injury to third persons on the premises is dependent on the status of the third persons as trespassers, licensees, or invitees. Many jurisdictions, however, are ignoring these common law distinctions in favor of an ordinary negligence standard or are giving licensees the same protection as invitees. Chapter 50

10. Chapter 50 Summary[5] Recreational use statutes limit or eliminate a landowner’s liability for personal injuries to a person using the owner’s land for recreational purposes. Real property may be the subject of multiple ownership. The forms of multiple ownership are the same as those for personal property. In addition, there are special forms of co-ownership for real property, such as condominiums and cooperatives. Chapter 50

11. Chapter 50 Summary[6] A deed is an instrument by which a grantor transfers an interest in land to a grantee. A deed can be a quitclaim deed or a warranty deed. To be effective, a deed must be signed or sealed by the grantor and delivered to the grantee. Recording the deed is not required to make the deed effective to pass title, but recording provides notice to the public that the grantee is the present owner. Chapter 50

12. Chapter 50 Summary[7] The warranties of the grantor relate to the title transferred by the grantor and to the fitness of the property for use. In the absence of any express warranty in the deed, no warranty of fitness arises under the common law in the sale or the conveyance of real estate. Chapter 50

13. Chapter 50 Summary[8] Most states today hold that when a builder or real estate developer sells a new home to a buyer, an implied warranty of habitability arises. Eminent domain and adverse possession may also acquire title to real estate. Chapter 50

14. Chapter 50 Summary[9] An agreement that creates an interest in real property as security for an obligation and that ends upon the performance of the obligation is a mortgage. A mortgage must be in writing under the statute of frauds. If the mortgage is unrecorded, it is valid between the parties. The mortgage should be recorded to put good-faith purchasers on notice of the mortgage. Chapter 50

15. Chapter 50 Summary[10] A purchaser of the mortgaged property does not become liable for the mortgage debt unless the purchaser assumes the mortgage. The mortgagor still remains liable unless the mortgagee agrees to a substitution of parties. If the mortgagor defaults, the mortgagee may enforce the mortgage by foreclosure. Such foreclosure may be delayed because of undue hardship. Chapter 50