Law 3220 Q3 Outline - Real Property PDF

# Law 3220 Q3 OUTLINE ## Real Property ### How does Real Property change Hands * **Deeds**: conveys (ownership) to a property from a grantor to a grantee. * **Warranty deeds**: seller is warranting a good title (survey reference or "Metes & bounds") - promising they actually own it free & clear o...

# Law 3220 Q3 OUTLINE ## Real Property ### How does Real Property change Hands * **Deeds**: conveys (ownership) to a property from a grantor to a grantee. * **Warranty deeds**: seller is warranting a good title (survey reference or "Metes & bounds") - promising they actually own it free & clear of any encumbrances. * **Quit-claim deeds**: seller is not making ANY warranties. ### How do buyers protect themselves * Property records are public. * **"Title search":** part of buying property. * **Can't just rely on deed warranty.** * **Look for**: * Proper chain of title * Unsatisfied mortgages and/or liens * "Encumbrances" #### What to do w/ Title Search * Industry of **"Title insurance"** * **L/O protects buyers from risks not revealed by title search** #### One-time payment - part of closing process (rate set by law) #### Other due diligence for Buyers: * **Due diligence period:** period where buyer can back out of the deal. * **Residential buyers**: home inspection. * **Commercial buyers**: survey, envi. report, property condition assessment. #### What rights did I buy? * **Bundle of Rights**: all legal rights associated with **ownership of property** * Possession * Dispose * Use * Encumber * Quiet enjoyment * **Life Estate < Fee Simple** * **Fee simple ownership**: most rights a property owner can possess. * **Joint tenancy**: each person owns the whole, auto goes to remaining owner. * **Tenancy in common**: can each own a different share, bequeathed your share by will. ### Who can own Property * Corporations (for profit/nonprofit) * LPS, LLC's * Individuals: by themselves, as TIC's, as JT's, as any registered entity. * Businesses should always own real estate in a separate entity. #### Trusts * Using a separate entity to own real estate. * Separate ownership protects business. * Avoid liabilities for real estate. * Separate risk for operating company from real estate. * Other advantages: * Tax aow. (lease from title to operating entity) * Bankruptcy protection ### How to Gain Someone's Property Rights 1. Buy it 2. Lease it 3. Obtain an easement 4. Covenants ### Leases * **Landlord**: (rent & right to regain property once lease is up) & **Tenant**: (right to possess & use property) * **Lease = contract bin T & LL** #### Residential Leases * **Residential IL's have duties than commercial** * IL general duties: comply w/ building codes & make repairs to keep unit in livable condition * T general duties: pay rent & not damage unit; LL can evict if T breaches * **Commercial Leases:** (S.C. RLaw doesn't apply to commercial leases) * **Leases control rules & are negotiated nearly for POWER;** starting pt. letter of intent. * **Gross lease**: Tenant pays rent only. * **Triple Net/NNN lease**: Tenant pays rent & "pass through expenses" (real estate tax, property insurance, common area expenses (CAM)) ### Easements * Right to enter someone else's land for particular use * **Easemen Agreement = contract** can be fixed term or forever * **All easements create a "burdened" property** #### Types of Easements * **Appurtenant easement**: in favor of another piece of land * **Easement in Gross**: favor for particular person/entity ### Covenants * **A way to control certain aspects of real property** * Created in deed or by declaration of covenants * **L/O create Home/Property owners Assoc (MOA & POA) to enforce** #### Most covenants upheld as long as not discriminatory (ex: segregation pre 1960's) * **Types of Restrictive Cov's in Real Estate:** * Architectural standards * Land-use * Building sizes/placement * Ownership Transfer restricts * Maintenance Rea's * Permitted 3, prohibited use * **Stand Alone Cov's** * **Establish permitted uses** * **People have to be on notice - recorded validly to be affective** #### Business w/ common Restrict cov's "sin" * Adult stores * Billard/Bingo/Dance, * Smokelvape, * Palm Reader/Psychic, * Nightclub, * Tattoo/Liquor, * Strip club - **hard to find space in center bc of these, many times these will be tog** ### Adverse Possession * **Legal theft of property** * **If a person meets criteria, they will declare owner** * **Why?** * Incentivise land owners to monitor property * To encourage productive use * **CFA buying property 3 says NO OTHER chicken place so Zaxbys can't rent out VERY COMMON** * **Easement by prescription**: hostile uses of another person's land. #### General conditions 1. **Actual uses or possesses** 2. **Open: so that the owner is on notice** 3. **Hostile: use or possesion is without permission of the owner** 4. **Exclusive: Only one using (no 3rd unrelated)** 5. **Continuous: w/o major interruption** * **Statute of limitations for # of years the adverse possesion must occur B4 it becomes a legally protected possesion** * **Trespassers use must be for an amt of time * Set by law in SC - 10 yrs** ### Nuisance (a tort) * **Anything could be a nuisance. ** * **Private vs. Public** - who is affected? * **A private nuisance is an activity that substantially & unreasonably interferes w/ use & enjoy of someone's land.** * encroachment * moodling bage etc. etc. * **Defenses** * **Prove interference is in substantial or reasonable** * **Prove plaintiff "came to the nuisance"** * **Usually, plaintiff gets a court order to stop nuisance/ damages if win.** * **Pollution/ storage of dangerous materials etc.** * **Buying house next to dog, mad about barks, etc.** * **A public nuisance**: an unreasonable interference w/ a right held in common by the general public * **Only limit is imagination** * **Gov. brings pub. nus. actions on behalf of the public. Remedy = court order to stop nus. activity** * **Kennel & barking** * **Health/ welfare** ### Premises Liability * **(When property owner is liable for accidents on their property)** * **Ex: slip/s fall, dog bite, Negligent security, dog bite, elevator accident** * **Depends on type of visitor**: Invitee, Licensee, Trespassers * Most common: customer * **Invitee**: people who come as guests or onto bus. property (plumber, handyman, etc.) * **Reasonable & ordinary care to keep premises safe & protect invitee from injury HIGHEST duty of care to invitee** * **Licensee**: a person allowed to enter property but who has NO contractual relationship w/ the owner. * **L/O lower duty than invitee**: duty to exercise reasonable care to WARN guest of dangerous conditions of which the prop. owner is aware. #### Trespassers * **L/O property owners don't owe any duty to trespassers EXCEPT the duty to not intentionally cause them harm** #### CHILDREN ARE EXCEPTIONS * **Children? Attractive Nuisance** * **Exception to trespasser liability** * **Property owner will be liable if ARE met** 1. **Owner knows kids might tresspass (swings? near school?) ** 2. **Possesses unreasonable risk of death/srs injury to kids** 3. **Burden of eliminating danger is slight compared w/ risk to kids involved** 4. **Owner fails reasonable care to eliminate danger or otherwise to protect kids** * **What are we looking for from L/O?** * Security measures (fence, lock, chain, remove ladders) * Safty measures (pool cover, trampoline walk) * **Insuvor HATE swings, pool, trampoline, treehouse**