Welcome to the
International Right of Way Association’s
Course 800
Principles of
Real Estate Law
800-PT – Revision 3 – 08.25.06.USA
1
Introductions
Who we are…
What we do…
Where we do it…
How long we’ve been doing it…
Our goals for the course...
2
Objectives (1)
At the end of the two days,
you will be able to...
• Recognize the differences between
contract law and tort law.
• Identify several different specific real
estate contracts and be able to discuss
the major contract terms.
3
Objectives (2)
At the end of the two days,
you will be able to...
• Identify different land use planning
methods and describe how each
impacts real estate development.
• Define a condominium and recognize
the rights and obligations of
condominium associations and
the unit owners.
4
Housekeeping
5
Schedule (1)
Day One
8:00 - 8:30 Introductions, Etc.
8:30 - 12:00 Contract Law
1:00 - 4:45 Specific Real Estate Contracts
4:45 - 5:00 Recap
6
Schedule (2)
Day Two
8:00 - 8:30 Recap Day One and
Introduce Day Two
8:30 - 11:45 Tort Law
12:45 - 2:30 Land Use Planning
2:45 - 3:30 Condominiums
3:30 - 4:00 Summary and Review
4:00 - 5:00 Examination
7
Contract
A contract is an agreement between
two or more parties that creates in each
party a duty to do or not to do something
and a right to performance of the other's
duty or a remedy for the breach of the
other's duty.
8
Contract Types
Oral
Written
Unilateral
Bilateral
9
Contract Elements
Mutual
Assent
Competent
Parties
Consideration
Legal
Purpose
Definite
and Certain
Terms
10
Is Kevin entitled…?
Brenda lost her pocketbook, which contained
about $200, all her identification and family
pictures. She placed an ad in the newspaper
offering a $50 reward for its return. Kevin finds
the pocketbook, but has no knowledge of the
reward offer. He returns the pocketbook to
Brenda. Is Kevin entitled to the $50 reward?
11
Susan and Eric
Susan sent Eric a letter offering to sell him a car
for $5,000. Eric accepts by return letter. Before
Susan receives Eric’s letter, she mails him a
second letter revoking the original offer. Has
Susan revoked the offer?
12
Did Michelle accept…?
Michelle received an offer in the mail, which stated
that acceptance could only be made by mail. She wrote
a letter of acceptance, addressed and stamped the
envelope, and put the letter on her kitchen table with
the intent to mail it on her way to work in the morning.
Michelle forgot to mail the letter. Two days later she
receives a second letter withdrawing the offer. She
immediately posts, by certified mail, her acceptance
letter. Has Michelle accepted the offer?
13
Bill, the swimmer
Ever since Bill was a boy, he wanted to be the first person
to swim across Lake Lago and win the $1,000 prize
offered by the homeowners’ association. On his
eighteenth birthday and in front of about ten witnesses, he
succeeded. He called Brian Reis, the president of the
Lake Lago Homeowners’ Association, and asked for the
$1,000 prize money. Mr. Reis refused to pay Bill stating
that no “official” saw Bill swim across the lake nor had
Bill told the Association before hand that he intended to
swim the lake. Had Bill accepted the offer and is he
entitled to the money?
14
Contract Elements (2)
Mutual Assent
Consideration
Competent Parties
Legal Purpose
Definite and Certain Terms
15
An Urban Legend
PORSCHE Boxster S
Two years old, prime
condition. $250 cash.
613-555-9568
16
Contract Elements (3)
Mutual Assent
Consideration
Competent Parties
Legal Purpose
Definite and Certain Terms
17
Defenses
Mistake
Duress
Undue Influence
Fraud/Misrepresentation
Unconscionability
Supervening Illegality/Frustration of Purpose
Lack of Capacity
Statute of Fraud Violation
18
Termination and Discharge
Specific Duration
Rescission
Discharge by Performance
Breach of Contract
19
Specific Real Estate
Contracts
Agreement of Purchase and Sale
Commercial Lease
Easement Agreement
Agency Agreement
20
Agreement of
Purchase and Sale
Parties
Legal Description
Purchase Price
Offer Irrevocability
Closing Date
Representations
and Warranties
Marketable Title
Risk
Other Conditions
21
Commercial Lease
Parties
Legal Description
Term
Purpose
Leasehold
Improvements
Rental
Other Payments
Repairs
Assignment
Damage, Risk, and
Insurance
Holdover
Lessor Covenants
Lessee Covenants
22
Easement Agreement
Parties
Description
Duration
Consideration
Purpose
Terms and
Conditions
23
Easement
24
Agency Agreement
Express Words of Appointment
Implication
Ratification
25
Recap Day One (1)
Looked at contract law. We examined contract
types, contract elements, defenses in their
formation, how they are terminated and
discharged, and contract construction.
We looked at specific real estate contracts;
namely, purchase agreements, commercial
leases, easements, and agency agreements.
26
Recap Day One (2)
At various times throughout the day,
we did some exercises.
27
Day Two (1)
Look at tort law, general and specific
torts relating to real estate.
Look at land use planning, specifically,
planning legislation, comprehensive plans,
zoning ordinances, subdivision regulations,
and environmental regulations.
We will also look and various aspects
related to condominiums.
28
Day Two (2)
We will do a few more exercises.
Finally, we’ll do a course review
and take the exam.
29
Tort
A tort is an injury to one person for
which the person who caused the injury
is legally responsible.
30
Tort Law Components
Compensation for Harm
Strict Liability
Consequential Damages
Causation
Negligence
Contributory
Negligence
Joint and Several Liability
31
Real Estate Torts
Occupier Liability
Attractive Nuisance
Nuisance
Trespass
Hazardous Activities
Misrepresentation/Fraud
32
Land Use Planning (1)
Common Law
Nuisance
Legislation
Contract
Covenants
Planning
Plan
Zoning
Environmental
Subdivision
33
Land Use Planning (2)
Common Law
Nuisance
Legislation
Contract
Covenants
Planning
Plan
Zoning
Environmental
Subdivision
34
Land Use Planning (3)
Common Law
Nuisance
Legislation
Contract
Covenants
Planning
Plan
Zoning
Environmental
Subdivision
35
Land Use Planning (4)
Common Law
Nuisance
Legislation
Contract
Covenants
Planning
Plan
Zoning
Environmental
Subdivision
36
Planning District Map
37
Land Use Planning (5)
Common Law
Nuisance
Legislation
Contract
Covenants
Planning
Plan
Zoning
Environmental
Subdivision
38
Zoning Map
39
Zoning Trends
Planned Unit Development
Flexible Zoning
Conditional Zoning
Transferable Development Rights
40
Land Use Planning (6)
Common Law
Nuisance
Legislation
Contract
Covenants
Planning
Plan
Zoning
Environmental
Subdivision
41
Land Use Planning (7)
Common Law
Nuisance
Legislation
Contract
Covenants
Planning
Plan
Zoning
Environmental
Subdivision
42
Land Use Planning (8)
Common Law
Nuisance
Legislation
Contract
Covenants
Planning
Plan
Zoning
Environmental
Subdivision
43
Condominium (1)
A condominium is a real property
ownership interest that is characterized
by ownership of portions of the property
(i.e., the ownership of a unit plus the
joint ownership of the complex’s
common areas) with an administrative
framework to manage the entire
property.
44
Condominium (2)
45
Objectives (1)
Right now, you should be able to...
• Recognize the differences between
contract law and tort law.
• Identify several different specific
real estate contracts and be able
to discuss the major contract terms.
46
Objectives (2)
Right now, you should be able to...
• Identify different land use planning
methods and describe how each
impacts real estate development.
• Define a condominium and
recognize the rights and obligations
of condominium associations and
the unit owners.
47
Thank you!
800-PT – Revision 3 – 08.25.06.USA
48