Fundamentals of Real Property Ownership

**FUNDAMENTALS OF REAL PROPERTY OWNERSHIP ** **Land** **· ** Includes *minerals beneath the earth's surface*, *water on or below the earth's surface,* and the *air above the surface* · Includes [all plants attached] to the ground or in the ground, such as trees and grass **Legal Concept of Land*...

**FUNDAMENTALS OF REAL PROPERTY OWNERSHIP ** **Land** **· ** Includes *minerals beneath the earth's surface*, *water on or below the earth's surface,* and the *air above the surface* · Includes [all plants attached] to the ground or in the ground, such as trees and grass **Legal Concept of Land** **·        ** Surface area of the earth ·         Everything beneath the surface of the earth extending downward to its center ·         All natural things permanently attached to the earth ·         The air above the surface of the earth extending outward to infinity **Physical Characteristics of Land ** **1.**      **Immobility** ·       Geographical location of a tract of land is fixed and cannot be changed **2.**   **Indestructibility** ·         Removes a segment of the planet all the way to the core in order to destroy it **3.**  **Heterogeneity** ·         *Non-homogenous*, since no two parcels of land are exactly the same **Real Estate** - Land and everything above and below the soil - Things that are not movable such as land and improvements permanently attached to the land - Includes the definition of land as well as natural and man-made improvements that are affixed (permanently attached) to the land **Real Estate Unique Characteristics** -  Unique Location -  Unique Composition -  Durable -  Finite in Supply -  Useful **Property -** A thing or things belonging to someone possessions collectively - The right to the possession, use, or disposal of something; ownership - A legal concept encompassing all the interests, rights, and benefits related to ownership (PVS 1ST Ed.) - Consists of the rights of ownership, which entitle the owner to a specific interest or interests that is owned (PVS 1ST Ed.) - All things which are or may be the object of appropriation are considered either (Art. 414, Civil Code): **Classifications in Property ** 1. **Real Property** ·         **Ownership of real estate** and the *[bundle of rights]* associated with owning the owning the real estate b. **Personal Property** ·         **Ownership of anything which is not real estate**, and the *[rights] [associated with owning the] [personal property items]* **Real Property** - Ownership of Real Estate - Entails the *[right of use]*, *[control]* and *[disposition]* of the land and its attached objects - The combination of rights associated with the *[ownership of real property]* **Immovable Property** **Sample of Immovable Property (Art. 415, Civil Code)** Land, building, roads, and constructions of all kind adhered to the soil Trees, plants, and growing fruits, while they are attached to the land or form an integral part of an immovable Everything attached to an immovable in a fixed manner, in such a way that it cannot be separated therefrom without breaking the material or deterioration of the object Statues, reliefs, paintings, or other objects for use or ornamentation, placed in buildings or on lands by the owner of the immovable in such a manner that it reveals the intention to attach them permanently to the tenements Machinery, receptacles, instruments or implements intended by the owner of the tenement for an industry or works which may be carried on in a building or on a piece of land, and which tend directly to the meet the needs of the industry or works Animal houses, pigeon-houses, beehives, fishpond or breeding places of similar nature, in case their owner has placed them or preserves them with the intention to have them permanently attached to the land, and forming a permanent part of it Fertilizers actually used on a piece of Land Mines, quarries, and slag dumps, while the matter thereof forms part of the bed, and waters either running or stagnant Docks and structures which, though floating are intended by their nature and object to remain at a fixed place on a river, lake, or coast Contracts for public works, and servitudes and other real rights over immovable property **Personal Property** **Bundle of Rights ** - Sell -  Lease -  Mortgage -  Build Improvements Thereon -  Sell or Lease Partial Interest -  Choose to exercise all or none of these rights **7 Rights of an Owner under Roman Law** 1. **Jus possidendi -** Right to possess 2. **Jus utendi -** The right to use 3. **Jus fruendi -** The right to the fruits 4. **Jus abutendi -** The right to consume 5. **Jus disponendi -** The right to dispose 6. **Jus vindicandi -** The right to recover 7. **Jus accessiones -** The right to accessories **Ownership under the Civil Law** **The owner has the right: *(Chapter 1, Title II, Civil code)*** - To enjoy and dispose of a thing, without their limitations than those established by law - Of action against the holder and possessor of the thing in order to recover it - To exclude any person from the enjoyment and disposal thereof -  He may use such force as may be reasonably necessary to repel or prevent an actual or threatened unlawful physical invasion or usurpation of his property - To enclose or fence his land or tenements - Cannot make use thereof in such manner as to injure the rights of a third person - No right to prohibit the interference of another with the same, if the interference is necessary to avert an imminent danger and the threatened damage - Owner may demand the person benefitted indemnity for the damage to him - No person shall be deprived of his property except by competent authority and for public use and always upon payment of just compensation - When any property is condemned or seized by competent authority in the interest of health, safety, or security, the owner thereof shall not be entitled to compensation, unless he can show that such condemnation or seizure is unjustified **The owner has the right: (Sec 1, Chater 3, Title III, Civil code)** - The ownership of property gives the right by accession to everything which is produced thereby, or which incorporated or attached thereto, either naturally or artificially - To owner belongs: - - - **Physical Rights of Ownership of Land (Corb & Giovangelo, 2014)** **Surface Rights** - The use of the surface of the land - Includes the crust and underlying soilwhich provide substance for vegetationand support for structures **Air Rights** - Rights of an owner to use and enjoy the air space above the land to infinity **Surface/Subsurface** - Describe the rights to natural resources below the surface of the land - "Mineral Rights" **Water Rights** **Forms of Legal Interest (Corb & Giovangelo, 2014)** **Fee Simple** - Absolute owner subject only to limitations imposed by the state - Most complete form of ownership **Partial Interest** - Rights created by legal divisions of the - ownership interest - Interest less than free simple interest **Air Rights** - Rights vested in the ownership of all the property at and above a certain horizontal plane - Rights of an owner to use and enjoy the air space above the land to infinity **Surface/Subsurface** - Rights in a parcel of real estate that are limited to the surface or to the subsurface - **Property Ownership Forms** - **Serveralty/Individual Ownership** - One person, natural/juridical, owns entire bundle of rights - Owner may exercise all incidents of ownership without the consent of any other person or entity - **Tenancy** - Bundle of right is divided - Lessee has the right to use and occupy,while lessor has the right to receive rent get the property back after contract expires - **Condominium** - Fee Simple interest in a unit such as the space between the interior walls, ceiling, and flooring - Has pro-rate share of the common area - **Cooperative** - One owns shares in a non-profit corporation or cooperative association, which in turn acquires and owns an apartment building as its principal asset - The shareholder acquires a proprietary lease to occupy one of the units - **Time Share** - Fee or leasehold interest in property whose owners or tenants agree to us the property on a periodic, non-overlapping basis - Partial ownership in which time shares owners purchase the right of use/occupancy for a specific period - **Undivided Interest/Tenancy in Common** - Refers to the interest in property owned by tenants whereby each tenant has an - equal right to enjoy the entire property - Owner may exercise all incidents of - ownership without the consent of any - other person or entity - - - - - **No Survivorship** - A deceased co-tenant's estate passes by probate to the decedent's heirs and devisees - **Identical Rights** - All have equal rights to possess and use the property subject to the rights of the other contenants - **Electable ownership shares** - Tenants in common determine among themselves what share of the estate - **No unity of time** - It is not necessary for tenants in common to acquire their interest at the same time **Limitations on Ownership** - Government Powers - Imposed by Law - Imposed by the owner himself - Imposed by the transferor of the property - Inherent Limitation **Government Powers** **a. Escheat** - The government has the right to take title to property of a deceased person who dies intestate (without will) and has no heirs **b. Taxation** - The government has the right to tax property to receive revenue to finance necessary public expenditures - The power of the State to impose charge or burden upon persons, property, or property rights, for the use and support of the government and to enable it to discharge its appropriate functions **c. Police Power** - The government has the inherent right to restrict the use of the land to preserve order and to protect the public health and safety - The right of the State to enact laws or regulations in relation to persons and property as may promote public health, public morals, public safety, and the general welfare and convenience of the people **d. Eminent Domain** - The government has the right to take property from an owner, upon just compensation, for public purposes. The procedure for taking property through eminent domain is called condemnation - The power of the State to take private property for public use upon payment of just compensation **General Limitation imposed by the State in the exercise of its inherent powers ** - Limitations imposed by specific provisions of law - Limitations imposed by the transferor of the property - Limitations imposed by the owner himself - Limitations inherent in the property **Imposed by Law** Legal Easement Zoning Regulations Building Code Rent Control Urban and Agrarian Reform Subdivision Regulations **Imposed by the Owner Himself** ▪ **Contractual/ Private Restrictions:** owners may enter into contracts or arrangements which restrict the use of the land and limit their bundle of Rights **h. Adverse Possession**: method of acquiring ownership through possession