Law for Business and Personal UseLaw for Business and Personal Use© Thomson South-Western

CHAPTER 17Ownership and Leasing of Real Property

17-1 Ownership and Transfer of Real Property

17-2 Leasing Real Property

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Chapter 17Slide 2

17-117-1 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

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Chapter 17Slide 3

RIGHTS OF REAL PROPERTY OWNERSHIP

Real property rights Surface rights- include the right to occupy the land,

develop it with buildings and fixtures, and even to lay waste to it by destroying its resources such as timber or water.

Rights to the air space above the land Mineral rights

Mineral right- The right to dig or mine the earth

Water rights

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Chapter 17Slide 4

LIMITATIONS OF REAL PROPERTY OWNERSHIP Limitations on ownership

Easements- irrevocable rights to some limited use of another's land. Substantial periods of time, 5 years, 50 years or forever Appurtenant, gross, necessity, prescription (page 301)

Restrictive covenants- A promise usually made in writing by the buyer to the seller. Usually limits the use of the land in some way

Zoning ordinances- adopted by cities or countries to regulate the location of residential, business, and industrial districts.

Duties owed to entrants on land

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Chapter 17Slide 5

List four potential limitations on the ownership rights of real property.

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Chapter 17Slide 6

FORMS OF REAL PROPERTY OWNERSHIP Fee simple absolute- the state with all the

ownership rights. Owner exercises all the power allowed by

law. Conditional estate- makes the ownership

conditional on some act or event. Life estate- ownership only for the length

of a specified person’s life. Non-freehold estate- (tenancy), involves

ownership for a limited period of time.

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Chapter 17Slide 7

TRANSFER OF REAL PROPERTY OWNERSHIP Deed- the legal document used to transfer

ownership of real property. Gift, sale, or inheritance Adverse possession- occurs when you

adversely and exclusively possess in an open and notorious way the land of another private person. Must be continuous and for the statutory period

of 5 to 21 years depending on state law.

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TRANSFER OF REAL PROPERTY OWNERSHIP

Dedication or eminent domain- eminent domain- the power of the government

to take private property for public use in exchange for the fair market price.

Property taken under eminent domain must be used for public use; Highways, airports, parks or schools

Chapter 17Slide 8

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Chapter 17Slide 9

Name the four major types of estates in real property.

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Chapter 17Slide 10

17-217-2 Leasing Real Property

GOALS Compare the various types of leases Explain the rights and duties of

landlords and tenants

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Chapter 17Slide 11

Do you know anyone who is either a tenant or a landlord?

Tenant Landlord

Rights

Duties

FOCUS

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Leasing Real Property Lease- an agreement in which one party

receives temporary possession of another's real property in exchange for rent. Rent- the consideration given in return for

temporary possession.

Leasehold Estate- the ownership interest of the tenant Grants certain rights in the subject property

to the tenantChapter 17

Slide 12

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Chapter 17Slide 13

WHAT ARE THE TYPES OF LEASES? Periodic tenancy- the leasehold is for a

renewable period of time with rent due at stated intervals. Week to week, month to month or year to year Notice of termination is required

Tenancy for years- a leasehold for a definite period of time Ex: six months, one year, or ninety years

Identifies a date for ending the lease Tenancy at sufferance- If a tenant remains in

possession after a lease has expired Tenancy at will- If a party possesses land with the

owner’s permission but without an agreement as to the term of the lease or the amount of the rent

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Chapter 17Slide 14

Name the four types of leaseholds.

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Chapter 17Slide 15

RIGHTS AND DUTIES OF THE TENANT

Tenant’s rights Right of possession

Eviction- when the landlord blocks the tenant from possession of all the real property

Right to use the property Right to assign the lease or to sublet the premises

An assignment of a lease takes place when the tenant transfers his or her entire interest in the lease to a third person

Tenant’s duties Duty to pay rent Duty to take care of the property Torts duty

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Chapter 17Slide 16

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

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Chapter 17Slide 17

Name three rights a tenant has.