Miller_BLTC12E_PPT_ch42.pptx

BUSINESS LAW TodaySTANDARD EDITION TEXT & SUMMARIZED CASES, 12e

Roger LeRoy Miller

Miller, Business Law Today, Comprehensive Edition: Text & Cases, 12th Edition. Â© 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Real Property and Landlord-Tenant Law

Chapter 42

Chapter Outline

42-1 The Nature of Real Property

42-2 Ownership Interests and Leases

42-3 Transfer of Ownership

42-4 Landlord-Tenant Relationships

Learning Objectives

What is a fixture, and how does it relate to real property rights?

What is the difference between a joint tenancy and a tenancy in common?

What are the requirements for acquiring property by adverse possession?

What are the duties of the landlord and the tenant with respect to the use and maintenance of leased property?

42-1 The Nature of Real Property (slide 1 of 2)

Real property consists of land and the buildings, plants, and trees that are on it.

42-1a Land

42-1b Airspace and Subsurface Rights

Property owners also have rights to the airspace above the land and the soil and minerals beneath it.

Airspace Rights

Subsurface Rights

42-1 The Nature of Real Property (slide 2 of 2)

42-1c Plant Life and Vegetation

Both natural and cultivated plant life is considered to be real property.

42-1d Fixtures

Fixture: An item attached to the real property in a permanent way

42-2 Ownership Interests and Leases (slide 1 of 2)

42-2a Ownership in Fee Simple

An owner in fee simple is entitled to use, possess, or dispose of the property as he or she chooses during his or her lifetime.

Duration

Limitations on Use

Spotlight Case Example 42.2 Biglane v. Under the Hill Corp. (2007)

42-2 Ownership Interests and Leases (slide 2 of 2)

42-2b Life Estates

Life estate: An interest in land that exists only for the duration of the life of a specified individual, usually the holder of the estate.

Conveyance: The transfer of title to real property from one person to another by deed or other document.

42-2c Concurrent Ownership (slide 1 of 2)

Concurrent ownership: Joint ownership

Tenancy in Common: Joint ownership of property; each party owns undivided interest that passes to his or her heirs.

Joint Tenancy: Joint ownership of property in which each co-owner owns an undivided portion of the property.

Right of Survivorship

Termination of a Joint Tenancy

42-2c Concurrent Ownership (slide 2 of 2)

Tenancy by the Entirety: Joint ownership of property by a married couple in which neither spouse can transfer his or her interest in the property without the consent of the other.

Community Property: A form of concurrent property ownership in which each spouse owns an undivided one-half interest in property acquired during the marriage.

42-2d Leasehold Estates (slide 1 of 2)

Leasehold estate: An interest in real property that gives a tenant a qualified right to possess and/or use the property for a limited time under a lease.

Fixed-Term Tenancy: A type of tenancy under which property is leased for a specified period of time, such as a month, a year, or a period of years.

42-2d Leasehold Estates (slide 2 of 2)

Periodic Tenancy: A lease interest in land for an indefinite period involving payment of rent at fixed intervals, such as week to week, month to month, or year to year.

Tenancy at Will: A type of tenancy that either the landlord or the tenant can terminate without notice.

Tenancy at Sufferance: A tenancy that arises when a tenant wrongfully continues to occupy leased property after the lease has terminated.

42-2e Nonpossessory Interestsâ€”Easements, Profits, and Licenses (slide 1 of 2)

Easement: The right of a person to make limited use of another personâ€™s real property without taking anything from the property.

Profit: In real property law, the right to enter onto anotherâ€™s property and remove something of value from that property.

Easement or Profit Appurtenant

Easement or Profit in Gross

Creation of an Easement or Profit

42-2e Nonpossessory Interestsâ€”Easements, Profits, and Licenses (slide 2 of 2)

Termination of an Easement or Profit

License: In the context of real property, a revocable right/privilege to enter another personâ€™s land.

Case Example 42.13 Orman v. Curtis (2017)

Exhibit 42â€“1 Interests in Real Property

Ownership Interests	1. Fee simpleâ€”The most complete form of ownership.2. Life estateâ€”An estate that lasts for the life of a specified individual.3. Concurrent ownershipâ€”Ownership by two or more persons who hold title to property together. Types of concurrent ownership are as follows:a. Tenancy in commonb. Joint tenancyc. Tenancy by the entiretyd. Community property
Leasehold Estates	1. Fixed-term tenancy (tenancy for years)2. Periodic tenancy3. Tenancy at will4. Tenancy at sufferance
NonpossessoryInterests	1. Easements2. Profits3. Licenses

Miller, Business Law Today, Standard Edition: Text & Summarized Cases, 12th Edition. Â© 2020 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

42-3 Transfer of Ownership

42-3a Real Estate Sales Contracts

Implied Warranties in the Sale of New Homes

Implied Warranty of Habitability: An implied promise by a seller of a new house that the house is fit for human habitation or the implied promise by a landlord that rented residential premises are habitable.

Sellerâ€™s Duty to Disclose Hidden Defects

Spotlight on Sales of Haunted Houses: Case 42.2

Stambovsky v. Ackley (1991)

Assuming that Ackleyâ€™s behavior was unethical, was it because she failed to tell Stambovsky something about the house that he did not know, or was it because of the nature of the information she omitted? Explain.

42-3b Deeds (slide 1 of 3)

Deed: A document by which title to real property is passed. A valid deed must contain:

The names of the grantor and grantee

Words evidencing the intent to convey the property

Legally sufficient description of the land

Grantorâ€™s signature

Delivery of the deed

42-3b Deeds (slide 2 of 3)

Warranty Deeds: A deed that provides the greatest amount of protection for the grantee. Warranty deeds common include the following covenants (promises):

Covenant that the grantor has title to, and the power to convey the property

Covenant of quiet enjoyment

Covenant that transfer is made without knowledge of adverse claims of third parties

42-3b Deeds (slide 3 of 3)

Special Warranty Deeds: A deed that warrants only that the grantor held good title during his or her ownership of the property and does not warrant that there were no defects of title when the property was held by previous owners.

Quitclaim Deeds: A deed that conveys only whatever interest the grantor had in the property and therefore offers the least amount of protection against defects of title.

Recording Statutes: A statute that allow deeds, mortgages, and other real property transactions to be recorded so as to provide notice to future purchasers or creditors of an existing claim on the property.

42-3c Will or Inheritance

Property that is transferred on an ownerâ€™s death is passed either by will or by state inheritance laws.

If the owner of land dies with a will, the land passes in accordance with the terms of the will.

If the owner dies without a will, state inheritance statutes prescribe how and to whom the property will pass.

42-3d Adverse Possession (slide 1 of 2)

Adverse possession: Obtaining title to land without delivery of a deed and without the consent ofâ€”or payment toâ€”the true owner.

Requirements for Adverse Possession

Possession must be actual and exclusive

Possession must be open, visible, and notorious

Possession must be continuous and peaceable for the required period of time

Possession must be hostile and adverse

42-3d Adverse Possession (slide 2 of 2)

Requirements for Adverse Possession

Case Example 42.15 Cline v. Rogers Farm Enterprises, LLC (2017)

Purpose of the Doctrine

42-3e Eminent Domain

Eminent domain: The power of a government to take land from private citizens for public use on the payment of just compensation.

42-3e Eminent Domain

The Taking: The taking of private property by government for public use through power of eminent domain.

The Compensation

The U.S. Constitution and state constitutions require that the government pay just compensation to the landowner when invoking its condemnation power.

42-4 Landlord-Tenant Relationships (slide 1 of 3)

Landlord-tenant relationships are established by a lease contract. In most states, statutes require leases for terms exceeding one year to be in writing.

42-4a Rights and Duties

Possession

Quiet Enjoyment

Eviction: A landlordâ€™s act of depriving a tenant of possession of the leased premises.

Use of the Premises

42-4 Landlord-Tenant Relationships (slide 2 of 3)

42-4a Rights and Duties

Maintenance of the Premises

Rent

Commercial Lease Terms

Case Example 42.20 Lynwood Place, LLC v. Sandy-Hook Hydro, LLC (2014)

42-4 Landlord-Tenant Relationships (slide 3 of 3)

42-4b Transferring Rights to Leased Property

Assignment

Subleases: A tenantâ€™s transfer of all or part of the leased premises to a third person for a period shorter than the lease term.

42-4c Termination of the Lease

A lease usually terminates when its term ends. Other ways to terminate a lease include tenant purchase of the leased property or tenant abandonment.

Miller_BLTC12E_PPT_ch42.pptx

image1.png

image2.png

image3.png

image4.png

image5.jpeg

Our Services

Our Advantages

Ready to Score Higher Grades?