Chapter 18
Ownership and Leasing
of Real Property
18-1 Ownership and Transfer of Real
Property
18-2 Leasing Real Property
Law for Business and Personal Use
Chapter 18
© South-Western, a part of Cengage Learning
Slide 1
18-1 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
Law for Business and Personal Use
Chapter 18
© South-Western, a part of Cengage Learning
Slide 2
RIGHTS AND LIMITATIONS OF
REAL PROPERTY OWNERSHIP
 Real property rights




Surface rights
Rights to the air space above the land
Mineral rights
Water rights
Continued on the next slide
Law for Business and Personal Use
Chapter 18
© South-Western, a part of Cengage Learning
Slide 3
RIGHTS AND LIMITATIONS OF
REAL PROPERTY OWNERSHIP
 Limitations on ownership




Easements
Restrictive covenants
Zoning ordinances
Duties owed to entrants on land
Law for Business and Personal Use
Chapter 18
© South-Western, a part of Cengage Learning
Slide 4
List four potential limitations on
the ownership rights of real
property.
Law for Business and Personal Use
Chapter 18
© South-Western, a part of Cengage Learning
Slide 5
OWNERSHIP FORMS AND THEIR
TRANSFER
 Forms of real property ownership




Fee simple absolute
Conditional estate
Life estate
Non-freehold estate
Continued on the next slide
Law for Business and Personal Use
Chapter 18
© South-Western, a part of Cengage Learning
Slide 6
OWNERSHIP FORMS AND THEIR
TRANSFER
 Transfer of ownership




Deed
Gift, sale, or inheritance
Adverse possession
Dedication or eminent domain
Law for Business and Personal Use
Chapter 18
© South-Western, a part of Cengage Learning
Slide 7
Name the four major types of
estates in real property.
Law for Business and Personal Use
Chapter 18
© South-Western, a part of Cengage Learning
Slide 8
18-2 Leasing Real Property
GOALS
 Compare the various types of leases
 Explain the rights and duties of landlords and
tenants
Law for Business and Personal Use
Chapter 18
© South-Western, a part of Cengage Learning
Slide 9
WHAT ARE THE TYPES OF
LEASES?




Periodic tenancy
Tenancy for years
Tenancy at sufferance
Tenancy at will
Law for Business and Personal Use
Chapter 18
© South-Western, a part of Cengage Learning
Slide 10
Name the four types of
leaseholds.
Law for Business and Personal Use
Chapter 18
© South-Western, a part of Cengage Learning
Slide 11
RIGHTS AND DUTIES
OF THE TENANT
 Tenant’s rights
 Right of possession
 Right to use the property
 Right to assign the lease or to sublet the
premises
 Tenant’s duties
 Duty to pay rent
 Duty to take care of the property
 Responsibility for torts
Law for Business and Personal Use
Chapter 18
© South-Western, a part of Cengage Learning
Slide 12
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
Law for Business and Personal Use
Chapter 18
© South-Western, a part of Cengage Learning
Slide 13
Name three rights a tenant has.
Law for Business and Personal Use
Chapter 18
© South-Western, a part of Cengage Learning
Slide 14
PREVENT LEGAL DIFFICULTIES
In dealing with real property . . .
 If your personal property is to be attached to real
property in any transaction, agree who will retain or
receive ownership of it. Put the agreement in writing,
whether the contract involved is a sale, lease, or
mortgage.
Continued on the next slide
Law for Business and Personal Use
Chapter 18
© South-Western, a part of Cengage Learning
Slide 15
PREVENT LEGAL DIFFICULTIES
 When purchasing real property, protect your interest by
 having the property properly surveyed, particularly if it is
irregularly shaped or has uncertain borders
 requiring a deed containing all possible warranties
 securing title insurance if it is available
 being represented by a professional. If there is anything
distinctive about the transaction, use a lawyer who specializes
in real estate
 Be sure that any deed to land you have purchased is
recorded promptly.
Continued on the next slide
Law for Business and Personal Use
Chapter 18
© South-Western, a part of Cengage Learning
Slide 16
PREVENT LEGAL DIFFICULTIES
 To prevent losing your land through adverse
possession check it periodically to be sure no one is
occupying it without your consent.
 If you are asked to convey property and want to be free
of possible future obligations, use a quitclaim instead of
a warranty deed.
Continued on the next slide
Law for Business and Personal Use
Chapter 18
© South-Western, a part of Cengage Learning
Slide 17
PREVENT LEGAL DIFFICULTIES
 If the government seeks to take your land by
condemnation under its right of eminent domain,
consult a lawyer. You have a right to a trial by jury to
determine the fair price that must be paid.
 Written residential leases generally are prepared by
the landlord or the landlord’s attorney. Thus, such
leases often contain many clauses that protect the
landlord’s interests. Read with understanding before
you sign. If the terms are unacceptable to you,
request a change. If you are refused, go elsewhere.
Continued on the next slide
Law for Business and Personal Use
Chapter 18
© South-Western, a part of Cengage Learning
Slide 18
PREVENT LEGAL DIFFICULTIES
 Do not remodel or significantly change premises of a
leasehold without the consent of your landlord.
 You may be held liable if someone is injured
because of the faulty condition of premises you have
rented if such condition was caused by your
negligence. Normally you, as a tenant, have the duty
to make necessary minor repairs and to notify your
landlord of the need for major repairs. Protect
yourself with careful maintenance and with adequate
liability insurance.
Continued on the next slide
Law for Business and Personal Use
Chapter 18
© South-Western, a part of Cengage Learning
Slide 19
PREVENT LEGAL DIFFICULTIES
 When you move, give your landlord proper notice.
Such notice is required in periodic tenancies. Failure
to give adequate notice may obligate you to pay
additional rent even after you vacate the premises.
Law for Business and Personal Use
Chapter 18
© South-Western, a part of Cengage Learning
Slide 20