Chapter 28

Real Property

What Is Real Property

• Land- Includes not only that surface of the earth, but also the airspace above it and whatever is beneath it.

• Buildings- Structures that are permanently attached to the land

• Fixtures-Personal Property so closely associated with realty that it becomes part of the real estate.

Annexation-An item’s becoming annexed by permanent attachment to land or a building: it cannot be removed without material damages to the realty.

Adaptation-Things that are essential for the purpose for which the rea; estate is used.

Test of Intent- A test used by that law to determine whether an item associated with real property is personal or real: this test considers whether persons intended something to become part of the realty.

Trade Fixtures-Business appliances attached to rented real property used in a business.

4. Rights in the Real Property of Others

• License - Temporary right to be on another’s land because the consent.

• Easement - The right to a specific use of another’s real property even though the other party retains possession.

• Profit - The right to extract something from someone else’s land.

How is Real Property Acquired?

• By Deed as Evidence of a Sale of a Gift

• By Will of by Inheritance

• By Adverse Possession

• By Dedication or by Eminent Domain

Deed - Written document used when an individual transfers ownership and other rights to real property.

Grantor - Individual who conveys the ownership rights.

Grantee - Individual who receives the rights.

Quitclaim Deed - Transfers any interest the grantor may have in the real property.

Adverse Possession - Occurs when you “adversely” and exclusively possess in an “open and notorious” way the land of another

private person “continuously” for a state’s statutory period under claim of right.

Easement by Prescription - The acquisition of an easement to interest in land, through uninterrupted adverse use of another’s land without the owner’s consent for a statutory period.

Dedication - Giving of real property to the government.

Eminent Domain - The power of the government to take private property for public use if exchange for the fair market price.

Condemnation Proceeding - Hearing to determine fair compensation for the owner and acquire ownership for the government.

Surveying - Process of carefully measuring the exact boundaries of real property

Abstract of title - Condensed history of the ownership of a particular parcel of land.

Title insurance - A policy in which the insurance company guarantees, in exchange for a premium, that the title is good.

Mortgage - Written document made out by the mortgagor.

Mortgagor - The debtor who makes out the mortgage and allows the mortgagee the right of foreclosure.

Mortgagee - Lender who receives the right of foreclosure I the mortgage.

Right of Foreclosure - the right to have property that is subject to a mortgage sold to satisfy the debt.

Deed trust - handled by the trustee who has the power to cause the sale of the property at a public auction if the debt is not paid as promised.

Escrow Agent - A neutral third party in the business of conducting closing.

Escrow - Money or papers delivered to a third party to hold until certain conditions are fulfilled.

Recording - Makes a document available to the public at the county recorder’s office.

How Do We Buy Real Property?

• Negotiating the Contract of Sale

• Surveying the Property

• Protecting the Title

• Securing Financing

• Closing the Transaction

• Recording the Deed