• What can a person who holds property in fee simple absolute do with the property? • What are the requirements for acquiring property by adverse possession? • What limitations may be imposed on the rights of property owners? © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 2 • What is a leasehold estate? What types of leasehold estates, or tenancies, can be created when real property is leased? • What are the respective duties of the landlord and the tenant concerning the use and maintenance of leased property? © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 3 • Real property is immovable and includes: –Land: land includes the soil, and all natural and artificial structures on it (unless agreed otherwise). –Airspace and Subsurface Rights: subsurface rights can be titled and sold separately. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 4 • Real property is immovable and includes (cont’d): –Plant Life and Vegetation: crops can be sold separately. –Fixtures: personal property which is permanently attached to land. • CASE 44.1 APL Ltd. v. State of Washington Department of Revenue (2010). Why were the cranes fixtures? © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 5 • Ownership in Fee Simple absolute gives the owner the greatest aggregation of rights, powers and privileges possible under American law. –Owner has indefinite right to exclusive possession and use of property. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 6 • Life Estates. –Estate that lasts for the life of some specified individual. –During life tenant’s ownership, she can possess, use, and take the fruits of the estate, but not take from the property itself. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 7 • Nonpossessory Interests. –Easement: right of a person to make limited use of another person's real property without taking anything from the property. –Profit: right to go onto another’s land and take away some part of the land itself or some product of the land. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 8 • Nonpossessory Interests (cont’d). –Easement or Profit Appurtenant: owner of property (dominant) has right to go onto adjacent property (servient). Easement goes with the land at sale or transfer. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 9 • Nonpossessory Interests (cont’d). –Easement or Profit in Gross: right to go onto non-adjacent property by business or utility company. Easement goes with the land at sale or transfer. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 10 • Nonpossessory Interests (cont’d). –Creation of an Easement or Profit: • Must be in writing created by deed, contract, or will. • Can be created by implication. • Can be created by necessity. • Can be created by prescription. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 11 • Nonpossessory Interests (cont’d). –Termination of an Easement or Profit. –License: revocable right of a person to come onto other person’s land. Grants no interest in the land. • CASE 44.2 Roman Catholic Church of Our Lady of Sorrows v. Prince Realty Management, LLC (2008). How could the defendant have protected itself better? © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 12 • Deeds: written instrument setting forth the interests in real property being transferred. Necessary components: – Names of Grantor and Grantee. – Words evidencing intent to convey. – Legally sufficient description of the land (including metes and bounds). – Grantor’s Signature. – Delivery of the Deed. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 13 • Deeds: –Warranty Deeds. –Special Warranty Deed. –Quitclaim Deed. –Grant Deed. –Sheriff’s Deed. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 14 • Deeds (cont’d). –Recording Statutes. • Recording a deed (or any interest in real property) puts the public on notice of the new owner’s interest in the land and prevents the previous owner from fraudulently conveying the same interest to another buyer. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 15 • Will or Inheritance: property is transferred upon death by will or state statute. • Adverse Possession: when person possesses land of another for a certain statutory period of time, she automatically acquires title to the land, just as if there had been a conveyance by deed. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 16 • Adverse Possession: (cont’d). – Must be: • Actual and exclusive. • Open, visible and notorious. • Continuous and peaceable. • Hostile and adverse. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 17 • Eminent Domain. The Fifth Amendment gives the government the right to take (condemn) private land for “public use” with just compensation to owner. –CASE 44.3 Drake v. Walton County (2009). Was the government’s diversion of water a “taking” ? © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 18 • Created when owner or lessor conveys right to possess or use the property to a lessee (tenant) for certain period of time. • Fixed-Term Tenancy (or Tenancy for Years): express contact for specified period of time. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 19 • Periodic Tenancy: no definite duration, but rent paid at certain intervals. • Tenancy at Will: termination of lease without notice. • Tenancy at Sufferance: tenant wrongfully possesses property. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 20 • Lease Agreement can be oral or written (oral may not be enforceable). • Lease gives Tenant the temporary right to exclusively possess the property. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 21 • Rights and Duties. –Possession: tenant has “covenant of quiet enjoyment.” • Landlord has a duty to deliver actual (or right to) physical possession. • Eviction: landlord interferes with tenant’s right to possession. Constructive eviction : landlord fails to perform duties under the lease, making use of premises impossible. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 22 • Rights and Duties (cont’d). –Use and Maintenance of the Premises. • Tenant is responsible for damages to property, and cannot be a nuisance and interfere with others quiet use of property. • Landlord is responsible to maintain common areas such as stairs, pools, and elevators. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 23 • Rights and Duties (cont’d). –Implied Warranty of Habitability: premises are safe and habitable for humans to live in. Landlord is responsible to keep leased premises in good repair. –Rent: rent can be withheld but it must be put into escrow pending repairs. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 24 • Transferring Rights to Leased Property. –Assignment: lessee can transfer lease to assignee, if allowable under lease. Assignor is still liable for rent. –Subleases: tenant transfers all or part of premises for less than duration of lease. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 25