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Chapter 15 - Real Property Interests and Leases.docx

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MKT 100
Jennifer Fraser

Chapter 15: Real Property: Interests and Leases • Real Property: includes land and anything attached to land Interests in Land • Interests in Land: a right that a person can enforce with respect to a particular piece of land • Two sets of rights and obligations when buying a piece of land: o Contract o Right of land ESTATES IN LAND • Estate: an exclusive right to possess a property for a period of time • Fee Simple o Fee Simple: the largest package of rights that a person can hold in land o Close but does not amount to absolute ownership o You can sell it, lease it, or give it away tomorrow or can keep it ‘til you die o Limitations in fee simple  Whenever you possess land, you must avoid committing torts such as occupiers’ liability, nuisance, and the rule in Rylands v Fletcher  Use of land is subject to various forms of regulation, ex. Govt regulation,  Property may be Expropriated: occurs when the govt takes property for a public purpose • Life Estate o Life Estate: entitles a person to exclusive possession of a property for the duration of a particular life o The life in question usually belongs to the person who holds the estate but it can also belong to someone else o You will lose control of the property once the relative life ends and I will regain control o Reversion: occurs when the property returns to the person who holds the fee simple o Remainder: occurs when the property goes to a third party who was selected by the person who holds the fee simple o A person with a fee simple is generally free to use or abuse the property o A person with a life estate is normally entitled to the profits that are generated from the land but cannot commit an act of waste o Waste: occurs when a property is changed in a way that significantly affects its value o A person with a life estate who commits an act of waste can be held liable to the person who holds the reversion to remainder o Life estates are often used in family situations • Leasehold Estate o Leasehold Estate: occurs when a person has exclusive rights to a property for a specific period of time o Carries the right of exclusive possession o A person with a lease can retain the property for only a specific block of time • Shared Ownership o Ownership can also be shared amongst several people o Joint Ownership: occurs when two or more people share exactly the same interest in a property o Joint ownership has right of survivorship o Right of Survivorship: means that upon death, a joint tenant’s interest automatically passes to the remaining joint tenants o Co-ownership: occurs when two or more people share an undivided interest in a property o Two important differences between co-ownership and joint ownership  Co-owners do not have to have exactly the same interests  More significantly, co-owners do not enjoy the right of survivorship o Losing right of survivorship:  Severance: occurs when a joint tenant deals with the property in a way that is inconsistent with joint ownership  Partition: occurs when there is a division of either the property or its sale proceeds • Condominiums o Condominium: exists when several people share ownership of some parts of a building, while individually owning other parts o Three sets of rights:  Individual ownership of particular unit; resemble fee simple except you don’t have the exclusive right to possess a piece of ground  Every individual owner share ownership of the common areas as tenants in common  Condos require decisions to be made and enforced; condominium corporation which is a non-profit organization that manages the complex  Corporation creates and enforces regulations regarding the individual units and communal areas NON-POSSESSORY INTERESTS IN LAND • Easements o Easement: a right to use a neighbour’s land o Dominant Tenement: a property that benefits from an easement o Servient Tenement: a property that accommodates an easement o Run with the Land: it can apply even if different people acquire possession of the affected properties o An easement can be created in several ways  Express – simplest methods is for parties to expressly agree  Implied – necessary implications; I might buy a section of your land without realizing that my new property is completely cut off from the highway; presumption that we silently agreed that I would be allowed to drive across  Prescription – created if land is used in a particular way, for a long time, without secrecy, without objection, and without permission  Statutory – statutes often give utility companies and similar organizations the right to bury TV cables, dig sewers, and so on o License: permission to act in a way that would otherwise be prohibited • Restrictive Covenants o Restrictive Covenants: a promise to use a piece of land in a way that benefits one property and burdens another o Like an easement because it requires a dominant tenement and a servient tenement o However, an easement can sometimes arise through prescription, a restrictive covenant can be created only by agreement o Also, a restrictive covenant never allows me to use your land; it merely limits how you can use your own property o Restrictive covenants raise difficult issues of enforcement (refer to pg 372) o Building Scheme Covenant: a collection of restrictive covenants that are used to control the development of an entire area • Mineral Leases o Minerals: consist of virtually ever substance contained in the ground o A mineral lease is different from other types of leases; most mineral leases are
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