Ownership and Transfer of Real Property

1. Ownership and Transfer of Real Property Chapter 17

2. Real Estate Lawyers: http://www.youtube.com/watch?v=9I959fn3xPc • Facilitate the exchange of real estate from one party to another • Litigate disagreements in real estate. • They are experts in deeds, mortgages, leases and all other paperwork pertaining to property. • Many Real Estate attorneys own their own law practice and bill out at about $250 to $600 per hour depending on experience, location and market demand. • Average Yearly Salary: $155,000

3. Hiring a Real Estate Lawyer Checklist • Must be Licensed • Must be Insured • Must specialize in Real Estate transactions in your State • What do they charge? • Per hour or Fixed rate

4. What is Real Property? • Land, buildings or fixtures (any personal property permanently attached to the land or building) • along with its natural resources such as crops, minerals, or water • immovable property

5. Limitations on Ownership • Zoning ordinances – regulates residential, business and industrial districts

6. Classification of Real Estate: • Commercial –buildings or land intended to generate a profit from capital gain • Must be declared (ZONED) “commercial” by the local township – labeled on the deed • Residential - Property which is zoned for single-family homes, multi-family apartments, townhouses, or condominiums • Only to reside in, not to enterprise in Commercial & Residential Properties can be Investment Properties- refers to buildings or land intended to generate a profit from rental income

7. Real Property Rights • Surface rights – right to occupy land and develop/build on it • Air space rights – right to air space above the land

8. Real Property Rights • Mineral rights – right to dig or mine earth beneath • Water rights – right to water on the surface or under the ground

9. Limitations on Ownership • Easements – irrevocable rights of the government to some limited use of another’s land/property • http://www.youtube.com/watch?v=Daj6tvzPnoE&feature=related • Ex. Building a road across your land, burying water/sewer lines, hang power lines

10. Can you stop the installation of a power line or sewer line? • NO! • A federal decision • If you have a problem, you must express your concern prior to federal approval. • Less than 10% of people win their cases versus Utility companies • Listen to these lawyers! http://www.youtube.com/watch?v=AB_rVe8Mq1o&feature=related

11. Ephrata Area School Dist. V. County of Lancaster, (2005): • The School District filed an action seeking a declaration that approval by County was not required for the School District to create a new access road to new public elementary school. The undeveloped land that the school district wanted to use was owned by the county. • The Lancaster County Court of Common Pleas granted judgment in favor of County. • School District appealed. • The Commonwealth Court reversed and held that: The County approval for use of land was not required at common law and County approval for us to the land to create a road was not required under Open Space Lands Act.

12. Limitations on Ownership • Restrictive covenants – a promise that limits use of the land in some way • Ex. Promise not to tear something down, build certain things, etc.

13. Rules of Restrictive Covenants • A document registered to the property • Sets up Rules • In Associations and Country Club Living • Sets what materials house must be made of: type and colors of siding, brick, stone, color of roof, type of garage doors, fence type • Sets how much space must be between your property and your neighbor’s property • If “Christmas” lights are allowed, lawn ornaments • Example of lawsuits: • http://www.youtube.com/watch?v=VosbOUqGqsU • http://www.youtube.com/watch?v=JejdPwR7bzE&feature=fvwrel • http://www.myfoxdc.com/dpp/news/offbeat/neighborhood-bans-colored-christmas-lights-112911

14. People’s Court • Trespassing! • http://www.youtube.com/watch?v=bSGgPo9M3LE

15. Limitations on Ownership • Duties owed to entrants on land • Trespassers – duty to refrain from intentional harm • Attractive nuisance – something of attraction; could be held strictly liable if not maintained correctly (ie. swimming pool)

16. Fans file class-action suit against Flyers: 5-07-2012 • A JENKINTOWN-based law firm filed a consumer fraud class-action suit against Comcast Spectacor, parent company of the Flyers, on behalf of all 2011-12 full season ticketholders on Monday. • The complaint alleges that Comcast Spectacor and the Flyers misled season ticketholders by excluding the 2012 Winter Classic game tickets - a regular-season game held at the Phillies' Citizens Bank Park - after the contractual ticketholder agreement stated that fans prepaid for 44 home games, three preseason contests and all 41 regular-season home games. • Comment by Season Ticket Holder: “My tickets for the classic were $1000. Bait and switch, count me in. • "We have been made aware of this frivolous claim, and we are confident that we acted appropriately in all respects," Comcast Spectacor Lawyer, Ike Richman said in a statement. http://www.philly.com/philly/business/breaking/20120508_Fans_file_class-action_suit_against_Flyers.html

17. Transfer of Ownership • Deed – legal document used to transfer ownership (like title to a car) • A new real estate deed is required any time you want to add or remove a person's name from your property title, gift your property to a loved one, or place your property in a living trust.

18. Ways to Transfer/Acquire Property • Gift, sale, or inheritance • Adverse Possession * Continuous possession/occupancy openly for such a length of time that it becomes yours • between 5 to 21 years, depending on state law (21 years in PA) • Most commonly, adverse possession does not involve a home or an entire piece of property. • It usually involves a small piece of land on the border of two properties. For example, if one property owner cuts the grass or otherwise maintains a piece of a neighbor's property for long enough, title can pass to the person taking care of the land.

19. Texas Man’s $16 Property Seizure Throws Obscure Law Into Spotlight • http://www.youtube.com/watch?v=w22EOq7IsTk • Squatters! • http://www.youtube.com/watch?v=s8igAB9dT_c&feature=related • http://www.youtube.com/watch?v=ys1XPnMyZWE&feature=related

20. Ways to Transfer/Acquire Property 3. Dedication – giving real property to the government 4. Eminent Domain – power of the government to take private property for public use • Owner must be given fair market value • Use for highways, airports, parks or schools

21. Domain Names – Intellectual Property • A domain name is the address of a website • Domain name disputes arise largely from the practice of cybersquatting, • registration of trademarks by third parties as domain names. • Cybersquatters exploit the first-come, first-served nature of the domain name registration system to register names of trademarks, famous people or businesses with which they have no connection.

22. What is Cybersquatting? • To have a case, the domain name must be used for COMMERICAL purposes • Must file a complaint in Federal Court • http://www.youtube.com/watch?v=Y0rbFA71Mkw • Case in Pittsburgh: • http://www.youtube.com/watch?v=3U1OJtJouOE

23. The Anticybersquatting Consumer Protection Act • enacted in 1999 • established a cause of action for registering, trafficking in, or using a domain name confusingly similar to a trademark or personal name and created in BAD FAITH • Law states that the plaintiff can seek punitive damages of up to $100,000 per domain name, plus the attorneys fees in

24. Cybersqautting Case • November 8th, 2011 • The Gap, Inc. has filed a cybersquatting case against TheGap.com under the • The complaint alleges that TheGap.com redirects visitors to websites that are designed to deceive consumers into believing the sites belong to The Gap, Inc.” or are affiliated with or sponsored by” The Gap, Inc. • “More specifically, the thegap.com domain name forwards visitors to sites that promise a substantial gift card to Gap’s stores in exhange for entry of personal information and completion of unidentified “sponsor offers.”“

25. Bosh Wins Some 600 Cybersquatted Domain Names • Miami Heat’s Chris Bosh hired an intellectual property attorney team to gain control of domain names containing his name and other professional basketball players’ names away from a serial cybersquatter. • Bosh donated the domains containing fellow professional basketball players’ names to the National Basketball Players Association for safekeeping and with instructions to give control of the domains to the rightful owners (those players whose names had been cybersquatted). • Bosh’s legal team was able to acquire approximately 600 domain names that had previously been unlawfully cybersquatted by a dishonest entrepreneur who was using the domains to generate revenue.

26. Because of tens of thousands of legal disputes, “WIPO” – World Intellectual Property Organization, was formed • The process of negotiating a new international treaty was considered too slow, and new national laws would most likely be too diverse. • What was needed were internationally uniform and mandatory procedures to deal with what are frequently cross-border disputes.

27. WIPO appoints an expert "neutral" panelist to review the dispute and issue a decision. • What factors guide the panelists' decisions? • Whether the domain name is identical or confusingly similar to a trademark or service mark in which the complainant has rights. • Whether the respondent has any rights or legitimate interests in the domain name (for example, the legitimate offering of goods and services under the same name). • Whether the domain name was registered and is being used in bad faith.

28. Federal Lawsuit against Norristown Builder and Norristown local government • http://abclocal.go.com/wpvi/video?id=8652305

29. Residential additions, private garages, fences & sheds $350.00 Roofing, siding, windows and doors: One item $75.00 Parades and outdoor gatherings, $20.00 Swimming pools: In-ground pools, $250.00 Aboveground pools $75.00 Fencing: First 100 linear feet $40.00 Change of Zoning Classification $2,500.00 Transfer of Liquor License, $1,500.00 Fees for Building Permits in Haverford Township: http://www.haverfordtownship.com/egov/docs/1298561256_894500.pdf

30. Activity Break: posted online • Real vs. Intellectual Property Cases • Property Law Webquest

31. Leasing Real Property Chapter 17-2

32. A lease is an agreement in which one party receives temporary possession of another’s real property in exchange for rent/consideration What can you lease? • Real Property • Equipment • Cars

33. Relationships in Real Property Leasing • Landlord – lessor (receives consideration) • Tenant – lessee (receives possession)

34. Rights controlled by STATUTES • Tenant Rights • http://www.youtube.com/watch?v=UA86KTDkNHw&feature=relmfu • Landlord Rights • http://www.youtube.com/watch?v=WMFtXn3_HkM

35. Periodic Tenancy - when lease is for renewable periods (rent is due at specific intervals) • Tenancy for Years – leasehold for a definite period of time

36. People’s Court • Rent Dispute • http://www.youtube.com/watch?v=qG1DyCUxULU

37. Tenancy at Sufferance – when a tenant remains in possession of property after the lease expires • Tenancy at Will – possession of property with permission but without formal agreement

38. Statute of Frauds • In most states, leases for greater than 12 months must be in writing to be enforceable • Just like any other contract, oral leases can be enforceable in court!

39. Tenant’s Rights • Right of Possession • Eviction occurs when the landlord strips the tenant of this right • Constructive Eviction can be claimed by the tenant if the landlord has failed to perform certain duties

40. How can eviction occur? • Non-payment of rent • Expiration of lease • Nuisance • Destruction or misuse of property

41. 2. Right to use property 3. Right to assign the lease or sublet (in some cases, landlord may choose to revoke this right) • Sublet- Lease all or part of property to 3rd party (original tenant remains liable) • Assign the lease – give up ALL rights to the lease and property

42. Tenant’s Duties • Duty to pay rent • Duty to take care of property • Tort’s duties (duty of care to those who enter property)

43. Landlord’s Duties 1. Duty to provide a habitable premises 2. Duty to inspect property • At reasonable times and • With prior notification

44. Landlord’s Duties 3. Duty to conform to governmental requirements Warranty of Habitability – required conditions of a property must be met (pg. 311) Fair Housing Act – illegal to discriminate against a possible tenant (pg. 312)