Chapter 3 Part I Estates and Interests1 New York Real Estate for Salespersons, 5th e By Marcia...

Chapter 3 Part I Estates and Interests 1

New York Real Estate for Salespersons, 5th e

By Marcia Darvin Spada Cengage Learning

© 2013 All rights reserved.


Chapter 3

Legal IssuesPart I Estates and Interests



Chapter 3 Key Terms

Act of waste Air rights Beneficiary Board of directors Bundle of rights Chattel Common elements

Curtesy and dower

Fixture

Holdover tenant

Homestead

IIliquid

Joint venture

Littoral rights



Chapter 3 Key Terms (continued)

ParcelPartitionPersonal propertyReal estate/real

propertyRemainder interestRemaindermanReversionary

interest

Right of survivorship

Riparian rightsSeveraltySpecial purpose

real estateSubsurface rightsTrade fixtureTrustee/trustor



Chapter 3 Key Terms (continued)

Undivided interestUnity of interestUnity of possessionUnity of timeUnity of title



Real PropertyReal Property is real estate + legal rights, powers, and privileges

RealProperty

RealProperty

Land Land Improve-

mentsImprove-

mentsBundle of

rightsBundle of

rights



Real Estate Ownership as a Bundle of Rights

Ownership rights

are less as “sticks”

from the bundle are

given away or sold



Water Rights Riparian rightsBelong to the owner of

property bordering a flowing body of water

Littoral rightsProperty bordering a stationing body of water such as a lake or sea



FixturesItems become a fixture in one of three

ways:AttachmentAdaptationAgreement

Exception: Trade fixtures = business personal property



Economic Characteristics of Real Property

Scarcity(Limited availability)

Permanence of Investment

Location(Situs)

Modification by improvement



Physical Characteristics of Real Property

Immobility

Nonhomogeneity(Uniqueness)

Indestructibility(Permanence)



Estates in Property Nonfreehold or

leasehold = possession with a determinable end

Freehold = ownership for an undetermined length of time

Freehold = ownership

Leasehold = Rental



Fee Simple Estates Fee simple absolute-

Most complete form of ownership

Fee simple defeasible – two types:Fee simple on conditionQualified fee simple

May be destructible or defeated



Life Estates Ownership,

possession and control for someone’s lifetime

The life estate ends upon the death of the life tenant

Upon the end of the life estate, two outcomes possible:

Life estate in remainderLife estate in reversion



Real Estate Co-Ownership

Joint tenancy

Tenancy by the

entirety

TenancyIn

common

Co-ownership



Joint TenancyRight of Survivorship

Unity of Time

Unity of Possession

Unity of Interest

Unity of Title



Types of Business Organizations

Individual broker (sole

proprietor)

Limited partnership

Partnership

Corporation

Limited liability

company

Syndicates/Joint

Ventures

All business names for

brokerage firms must

be submitted in

writing for DOS

approval



Ownership Advantages and DisadvantagesAdvantages Disadvantages

Sole

proprietorship All profits to ownerTax advantage to owner

Lack of continuityUnlimited personal liability

Partnership Broader managementEase of formationLow start-up costs

Difficult to find partnersDivision of authority

Corporation Limited liabilityLegal entity

Charter restrictionsDouble tax except S


Chapter 3 Part I Estates and Interests1 New York Real Estate for Salespersons, 5th e By Marcia...

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