Florida Real Estate Principles,
Practices & Law 38th Edition
Linda L. Crawford
Copyright © 2015 Kaplan, Inc.
All rights reserved.
Chapter 8
Property Rights:
Estates, Tenancies, and Multiple
Ownership Interests
Definition of Real Property, F.S. 475
• Real property or real estate means any
interest or estate in land and any interest in
business enterprises or business
opportunities
• Includes mineral rights
• Does not include cemetery lots nor the
renting of a mobile home lot or recreational
vehicle lot in a mobile home park or travel
park
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Land, Real Estate, and Real Property
• Land Surface and everything attached to it
by nature (earth’s center to infinity)
• Real estate Land and human-made
improvements
• Real property Real estate plus the legal
bundle of rights
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Physical Components of Land
1.
Surface rights include
land and water rights
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2.
3.
Riparian rights
Littoral rights
Subsurface rights
also referred to as
mineral rights
Air rights involve
space above
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Riparian vs Littoral Rights
• Riparian rights associated with land abutting
moving water
– Banks of a river or stream
• Littoral rights associated with land abutting
tidal bodies of water
– Oceans and seas
– Ponds and lakes
– Water is not flowing
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Definitions Associated with Water Rights
Accretion
Process of land buildup from
water-borne rock, sand, and soil
Alluvion
New deposits resulting from
accretion
Erosion
Loss in land due to natural forces
Reliction
Receding of water, uncovering
additional land
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Real vs Personal Property
• Two basic types of property
1. Real property (realty)
2. Personal property (chattel)
• Personalty indicates personal property
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Real property becomes personal property by
act of severance
Personal property becomes real property by
attachment
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Fixtures
• Fixture—was personal property, now
permanently attached to or made part of
the real property
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Intent of the parties
Relationship of the parties
Method or degree of attachment
Adaptation of the item
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Basic Property Rights
Bundle of
Legal Rights!
Disposition
Enjoyment
Exclusion
Possession
“C”ontrol
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Estates and Tenancies
The degree, quantity, nature, and
extent of the interest (ownership
rights)
Two general groups
1. Freehold – indefinite length (unknown) duration
2. Leasehold – (nonfreehold) fixed (known) duration
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Freehold Estates
• Ownership interest for an indefinite period
(unknown duration)
• Two types
1. Fee Simple – inherited
2. Life Estate – measured by a person’s life span
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Freehold Estate
Fee simple
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Most comprehensive
Absolute and complete ownership
Can be inherited
Also, fee or fee simple absolute
Power to use, dispose, descend to heirs
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Freehold Estate
• Life Estate - own property for the period of
a lifetime (the owner’s or other designated
person)
– Conventional life estate created by the person
who holds title
– Legal life estates created by law; homesteaded
property
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Freehold Estate
Life Estate
– Estate in reversion
Property reverts to the original grantor
– Remainder estate
Property goes to remainderman
• Vested (named)
• Contingent (name not specified)
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Homestead
• Right to homestead permanent (principal)
residence
• Protections and benefits
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Protection of the family (legal life estate)
Protection of homestead from forced sale
Tax exemption of up to $50,000
Size restriction of protected homestead is 160 acres
outside city or ½ acre within city
• Personal property protection ($1,000 value)
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Nonfreehold or Leasehold Estates
• Measured in calendar time (known duration)
• Not freehold because it does not exist for an
indefinite period
• Nonfreehold or less-than-freehold
• Not an ownership interest
– Transfer of use and possession rights for a
period of time
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Leasehold Estates
•
Estate for years
(tenancy for years)
– Specific starting and
ending date (designated
period)
– Created by written lease
agreement
– Establishes tenant
interest in property but
does not convey legal
title
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Leasehold Estates
• Tenancy at will
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Lease agreement with a beginning date but no
fixed termination date
Tenancy without specific term
Notice to terminate set in statute
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Week to week: 7 days notice
Month to month: 15 days notice
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Leasehold Estates
• Tenancy at sufferance
• Tenant stays in possession of property beyond
ending date and without landlord’s consent
• Tenant holds over
• If with written consent of landlord, then it becomes a
tenancy at will
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Sole and Concurrent Ownership
In Severalty
Property is held by
one person
Sole ownership
Concurrent Ownership
Concurrent ownership
Two or more persons
own property at the
same time
“Severed” ownership
Three types
– Tenancy in common
– Joint tenancy
– Tenancy by the
entireties
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Tenancy in Common
• Two or more people
• Acquire title at same or
different times
• Undivided interest
(interest in entire
property)
• Equal or unequal
shares of ownership
• Heirs inherit (no right
of survivorship)
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Joint Tenancy
• Right of survivorship—share of a co-owner who
has died goes to surviving co-owner(s), not to heirs
• Four unities
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Possession—undivided
Interest—equal ownership interest
Title—acquire title on same deed
Time—acquire interests at same time
• Specific wording in the deed must provide for
survivorship
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Tenancy by the Entireties
• Husband and wife only
– Co-owners must be
married to each other
when they take title
• Four unities of a joint
tenancy must exist
• When one spouse dies,
ownership interest
transfers to surviving
spouse by right of
survivorship
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Distribution Resulting from Divorce
• Nonmarital assets
– Separate property
– Property owned separately prior to marriage and
property acquired during marriage by inheritance
or gift
• Marital assets
– Divided equitably
– Property acquired during marriage
individually or together
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Cooperatives
F.S. 719
• Multi-family building owned by corporation
• Unit owners purchase shares of stock
• Stock ownership entitles purchaser to a
proprietary lease and right to occupy
• Property taxes assessed on each unit
– Owners can deduct real estate taxes and
mortgage interest
– Shareholders pay a pro rata share of property
taxes and the corporation pays the tax bill
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Cooperative Disclosures and Cancellation
• Disclosure in contract with developer
– Buyer has right to cancel within 15 calendar days of
signing contract and receipt of cooperative
documents
• Disclosure in resale contract, either
– Buyer has received documents at least 3 business
days before signing, or
– Buyer has right to cancel within 3 business days of
signing contract and receipt of cooperative
documents
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Condominiums
F.S. 718
• Consists of condo units
and common elements
– Own condo unit in fee
simple plus an undivided
fractional share of
common elements
– Deed conveys ownership
– Common elements
legally attached to each
unit and transfer with
unit
– Property taxes levied on
individual units
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Condominium Documents
• Declaration of condominium
– Condo is created by recording
• Articles of incorporation
• Bylaws of the association
– Operational requirements, rules and regulations
• FAQ
– Information regarding leasing units, assessments
• Estimated operating budget
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Disclosures and Cancellation Period
• Developers
– File condo documents with Division of Florida
Condominiums, Timeshares, and Mobile Homes
– 20+ units also file a prospectus
– Copy of prospectus and condo docs must be
given to prospective purchasers
– Purchaser has 15 calendar days to cancel
contract
• After signing contract and
• Receiving condo docs
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Disclosures and Cancellation Period
• Resale purchase disclosures
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Declaration
Articles of incorporation
Bylaws
Rules of association
FAQs
Most recent year-end financial information
Governance form
• 3 business days to cancel contract
• After signing contract and receiving docs
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Time-Sharing
F.S. 721
• Units are divided into time segments of
ownership, usually 52 weeks
• Deeds or other ownership evidences are
prepared for each ownership segment
• Developer disclosure—10 days to cancel
• Time-share ownership
– Interval ownership—fee simple ownership
– Right-to-use—leasehold interest
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