© 2012 cengage learning. rights and interests in land chapter 3


Rights and Interests in Land

Chapter 3


In This Chapter

General and legal information concerning rights and interests in land.


Right to Use of Land

Feudal System Allodial System


• The right of government to tax private property.

• Provides money for schools, fire protection, parks,

libraries and is the major source of income for

government revenue.

Property Taxes

Government Rights in Land


The right of government to take private propertyfor public use upon payment of just compensation.

Eminent Domain


Condemnation proceedingsSeverance damages


• The right of government to regulate private property for the protection of the general public’s health, morals, and welfare.

• Examples include building & fire codes, zoning, and

planning laws.

Police Power



• means “fall back”

• Ownership of property passes to the government if there is no will and no heirs.

Escheat



Fee Simple Estate refers to one’s legal interest or rights

in land. Fee Simple is the largest estate one can hold

in real estate. Title refers to the ownership.


Encumbrances Any claim, right, lien, estate, or liability

that limits the fee simple title to property.


• Property rights are what gives value to the real estate.

• Private property rights are subject to limitations imposed by government. Thus, this can limit the value of the investment.

Real Estate as a Bundle of Property Rights


Real estate ownership is, in actuality, the ownership of rights to land.The largest bundle available for private ownership is called “fee simple”.

The Fee Simple Bundle of Rights


Note that the fee simple bundleshrinks as an owner voluntarilyremoves rights from it.

Removing Sticks from the Fee

Simple Bundle


Right or Benefit Stick in Bundle

Control MortgageLeaseImpose covenants or conditionsGrant easementGrant licenseBuild or remove structures

Use & Enjoy Occupy as residenceUse as place of businessFarmMine/drill for oil, etc.Place of recreation

Exclusion Maintain privacyNon-trespass

Disposition Sell or refuse to sellGiveWillAbandon

Real Estate as a Bundle ofProperty Rights


Easements Right or privilege one has to use the land of

another. Grant is a written document. Implication is the right to cross over another’s

property to get to your land. Prescription is a right created by use of

another’s property as easement for a period of time.


Easement Types Easement appurtenant is the right to cross over

a property in front in order to get to your property in the back. Servient estate- back lot Dominant estate- front lot

Easement in Gross is given to person owning land.

Party Wall Easement exist when a single wall straddles the lot line that separates two parcels of land.


Easement Termination When the purpose for the easement no

longer Exists. When the dominant and servient estates are

combined with the intent of extinguishing the easement.

By release from the owner of the dominant estate to the servient estate, or by lack of use.


Commonly Found Easements


Encroachments

The unauthorized intrusion of a building or other improvement onto another person’s land.


Commonly Found Encroachments


Deed Restrictions

Private agreements that govern the use of land are known as deed restrictions or deed covenants.


Liens Property tax lien Mechanic’s lien Judgment lien Mortgage lien Voluntary & Involuntary liens Specific & General liens


Qualified Fee Estate

Subject to certain limitations imposed by the person creating the estate

Determinable Condition subsequent Condition precedent.


Life Estate Conveys an estate for the duration of

someone’s life. The duration of the estate can be tied to the

land of the life tenant (the person holding the life estate) or to a third party.

Someone must be named to acquire the estate upon its termination.


Community Property Texas is a community property state along

with nine others. A right that arises on marriage and

terminates upon divorce or death. A legal theory that that during marriage each

spouse has an equal interest in all property acquired by their joint effort.


Texas Homestead A constitutional right that is an exemption of your

homestead from forced sale by creditors. Protection is automatic. Exemptions:

Purchase money mortgage Taxes Mechanics’ & materialmen’s liens Federal tax liens Refinancing homestead liens Home equity liens Reverse mortgages


Homestead Limitations Urban homestead is a lot or lots of not more

than 10 acres together with any improvements.

Rural homestead for a married couple is up to 200 acres and for a single person up to 100 acres.


Banned for 150 years Available since January 1, 1998

Home Equity Loans


Other Estates Freehold Estates Leasehold Estates

Estate for years Periodic estate Estate at will Tenancy at sufferance


Subsurface Rights This is the dominant estate in Texas! Owner of mineral rights can reasonably enter

upon the property to extract the minerals. Minerals are real property until they are

removed from the ground and become personality.


Cross section of Estates & Rights in Land


Rights and Interests in Land Overview


Key Terms Fee simple Homestead

protection Lien Title

Chattel Easement Eminent domain Encroachment Encumbrance

© 2012 cengage learning. rights and interests in land chapter 3

Documents

cengage learning slide

land slide

cengage learning right

private property rights

cengage learning note

cengage learning easements

cengage learning encumbrances

right of government