17
CHAPTER
Ownership and Leasing
of Real Property
17-1 Ownership and Transfer of
Real Property
17-2 Leasing Real Property
Law for Business and Personal Use
© Thomson South-Western
17-1 Ownership and Transfer
of Real Property
GOALS
 Understand both the rights and
limitations associated with ownership of
real property
 Identify the forms of ownership and how
they are transferred
Chapter 17
Slide 2
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RIGHTS OF REAL PROPERTY OWNERSHIP
 Real property rights
 Surface rights- include the right to occupy the land,
develop it with buildings and fixtures, and even to lay
waste to it by destroying its resources such as timber or
water.
 Rights to the air space above the land
 Mineral rights
 Mineral right- The right to dig or mine the earth
 Water rights
Chapter 17
Slide 3
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LIMITATIONS OF REAL PROPERTY
OWNERSHIP
 Limitations on ownership
 Easements- irrevocable rights to some limited use
of another's land.
 Substantial periods of time, 5 years, 50 years or forever
 Appurtenant, gross, necessity, prescription (page 301)
 Restrictive covenants- A promise usually made in
writing by the buyer to the seller. Usually limits the
use of the land in some way
 Zoning ordinances- adopted by cities or countries to
regulate the location of residential, business, and
industrial districts.
 Duties owed to entrants on land
Chapter 17
Slide 4
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List four potential limitations on
the ownership rights of real
property.
Chapter 17
Slide 5
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FORMS OF REAL PROPERTY OWNERSHIP
 Fee simple absolute- the state with all the
ownership rights.
 Owner exercises all the power allowed by
law.
 Conditional estate- makes the ownership
conditional on some act or event.
 Life estate- ownership only for the length
of a specified person’s life.
 Non-freehold estate- (tenancy), involves
ownership for a limited period of time.
Chapter 17
Slide 6
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TRANSFER OF REAL PROPERTY
OWNERSHIP
 Deed- the legal document used to transfer
ownership of real property.
 Gift, sale, or inheritance
 Adverse possession- occurs when you
adversely and exclusively possess in an
open and notorious way the land of another
private person.
 Must be continuous and for the statutory period
of 5 to 21 years depending on state law.
Chapter 17
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TRANSFER OF REAL PROPERTY
OWNERSHIP
 Dedication or eminent domain eminent domain- the power of the government
to take private property for public use in
exchange for the fair market price.
 Property taken under eminent domain must be
used for public use;
 Highways, airports, parks or schools
Chapter 17
Slide 8
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Name the four major types of
estates in real property.
Chapter 17
Slide 9
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17-2 Leasing Real Property
GOALS
 Compare the various types of leases
 Explain the rights and duties of
landlords and tenants
Chapter 17
Slide 10
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FOCUS
Tenant
Landlord
Rights
Duties
Do you know anyone who is either a tenant or
a landlord?
Chapter 17
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Leasing Real Property
 Lease- an agreement in which one party
receives temporary possession of
another's real property in exchange for
rent.
 Rent- the consideration given in return for
temporary possession.
 Leasehold Estate- the ownership interest
of the tenant
 Grants certain rights in the subject property
to the tenant
Chapter 17
Slide 12
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WHAT ARE THE TYPES OF LEASES?
 Periodic tenancy- the leasehold is for a renewable
period of time with rent due at stated intervals.
 Week to week, month to month or year to year
 Notice of termination is required
 Tenancy for years- a leasehold for a definite
period of time
 Ex: six months, one year, or ninety years
 Identifies a date for ending the lease
 Tenancy at sufferance- If a tenant remains in
possession after a lease has expired
 Tenancy at will- If a party possesses land with the
owner’s permission but without an agreement as
to the term of the lease or the amount of the rent
Chapter 17
Slide 13
Law for Business and Personal Use
© Thomson South-Western
Name the four types of
leaseholds.
Chapter 17
Slide 14
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RIGHTS AND DUTIES
OF THE TENANT
 Tenant’s rights
 Right of possession
 Eviction- when the landlord blocks the tenant from possession of
all the real property
 Right to use the property
 Right to assign the lease or to sublet the premises
 An assignment of a lease takes place when the tenant transfers
his or her entire interest in the lease to a third person
 Tenant’s duties
 Duty to pay rent
 Duty to take care of the property
 Torts duty
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RIGHTS AND DUTIES
OF THE LANDLORD
 Landlord’s rights
 To receive agreed-upon rent
 To sue to evict tenant
 Landlord’s duties
 Duty to provide habitable premises
 Duty to conform to governmental
requirements
Chapter 17
Slide 16
Law for Business and Personal Use
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Name three rights a tenant has.
Chapter 17
Slide 17
Law for Business and Personal Use
© Thomson South-Western