Ch 19 Real Property.docx

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Department
Management and Organizational Studies
Course
Management and Organizational Studies 2275A/B
Professor
Frederick King
Semester
Fall

Description
Real Property 12/10/2012 3:12:00 PM Chapter 19 Ownership  Real property – land or real estate, including buildings, fixtures and the associated legal rights  Fixtures – tangible personal property that is attached to land, buildings or other fixtures  Governed by common law  Interests in land o Fee simple – the legal interest in real property that is closest to full ownership  Highest and most comprehensive level of ownership of land  Essentially owns the land and can dispose of it in any way they see fit  Ownership is easily divisible o Division of ownership  A piece of land can be owned by several people at once  Tenancy in common – co-ownership whereby each owner of an undivided interest can dispose of that interest  Undivided interest – a person can deal with their own interest in any way they see fit without having to consult the other owner  If one owner dies, their interest goes to the heirs  Joint tenancy – co-ownership whereby the survivor inherits the undivided interest of the deceased o Division of ownership in time – common example is a lease  Limits of ownership o Restrictions on land use imposed by common and statute law:  Municipal governments have the authority to control land use through planning and zoning  Environmental regulations limit or prohibit the discharge of harmful substances  The common law of nuisance limits any use of land that unduly interferes with other owners enjoyment of land  Family law may designate property as matrimonial – to be shared by both spouses  Many government agencies have the authority to expropriate land for particular purposes  Ownership of land in a foreign country can be limited by that countries government policies o Easement – the right to use the land of another for a particular purpose only o Restrictive covenant – a restriction on the use of land as specified in the title document  Registration of ownership o Registry system – the system of land registration where the records are available to be examined by interested parties  Known as searching the title, used to verify the sellers ownership by investigating the chain of title to confirm no one has a conflicting claim in the particular land  Originated in the eastern provinces  Administrators take no responsibility for the validity of the documents  Paralegals – performs legal work under the supervision of a lawyer, those who perform the title searches o Land titles system – the system of land registration where the administrators guarantee the title to land  Administrators evaluate each document presented for registration and maintain a record and are responsible for the accuracy of the records o The person who registers their interest first has first priority over the land when it comes to two people registered for the same piece of land Acquisition of Ownership  The purchasing transaction o Buying land is a buyer-beware situation, expressed as caveat emptor, its up to the buyer to investigate and evaluate the property o The seller must not mislead the buyer but is not required to disclose information about the property  Participants in the transaction o Usually involves a buyer and seller, whether they are individuals or corporations (where representatives from each corporation will be chosen) o There may be real estate agents, property appraisers, land surveyor, an engineer and a lawyer  Stages in transaction o Agreement of sale and purchase o The investigation – the buyer thoroughly investigates all aspects of the property during the search period allowed in the contract  Title search – investigation of the registered ownership of land in a registry system  Legal claims about the seller – searches can be done to establish what legal claims exist against the seller of the property in question  Verification of boundaries – make sure they are the same as what is specified in the contract  Physical examination – to confirm the property is in an appropriate state, as specified in the agreement  Environmental audit – must ensure there are no lingering or environmental hazards  Taxes – ensure all property taxes and other property charges are paid up to date  Local bylaws – verify the property can be used for its desired purpose, doesn’t conflict with bylaws o The closing – final stage of a real estate transaction when final documentation and payment are exchanged  Incomplete transaction o If there is a title problem that can’t be fixed or a buyer is unable to arrange financing, the buyer usually has a right to back out of the agreement o Refus
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