Ch. 29: Real Property and Landlord-Tenant Relationships- No. 1
Clarkson et al.’s Business Law: Commercial Law for Accountants (1E)
as well as the produce of plant life and vegetation; and
(other than trade fixtures) attached to real property, as
lease some or all of the legal rights that normally adhere to
realty.
Ch. 29: Real Property and Landlord-Tenant Relationships- No. 2
Clarkson et al.’s Business Law: Commercial Law for Accountants (1E)
REAL PROPERTY OWNERSHIP
rights she has in the realty immediately prior to the sale
or gift; and
(3) potentially lasts forever, passing from each owner to
her buyer, donee, heir, or assignee.
Duty to Maintain Value: Because the life estate
terminates after the specified person’s death, the holder
must keep the realty in a good state of repair and may
have to pay property taxes during his tenancy.
Ch. 29: Real Property and Landlord-Tenant Relationships- No. 3
Clarkson et al.’s Business Law: Commercial Law for Accountants (1E)
CONCURRENT OWNERSHIP
Tenancy in Common: Co-ownership of property, in which
each party owns an undivided interest in the whole property.
When a tenant in common dies, her interest in the
property passes to her heirs.
tenant’s rights will pass to the surviving joint tenant(s) if
the joint tenancy is one with right of survivorship.
Effect of Sale or Gift: If a joint tenant sells or gives
someone her interest, the sale or gift will transform the
Community Property: Joint ownership of property by
husband and wife, in which each spouse owns an undivided
one-half interest in property acquired during marriage.
Ch. 29: Real Property and Landlord-Tenant Relationships- No. 4
Clarkson et al.’s Business Law: Commercial Law for Accountants (1E)
LEASEHOLD ESTATES
Lease: A contract by which the owner of real property (the
landlord or lessor) grants to a person (the tenant or lessee) an
exclusive right to use and possess the property, usually for a
specified period of time, in return for rent or some other form
of consideration.
Periodic Tenancy: A leasehold estate for an indefinite
period conditioned upon the receipt of rent at fixed
intervals.
leasehold estate expires.
Ch. 29: Real Property and Landlord-Tenant Relationships- No. 5
Clarkson et al.’s Business Law: Commercial Law for Accountants (1E)
NON-POSSESSORY INTERESTS
oil, topsoil) from the property of another.
Easement or Profit Appurtenant: An easement or
profit pertaining to a piece of land adjacent to that
owned by the holder of the easement or profit.
of another.
Ch. 29: Real Property and Landlord-Tenant Relationships- No. 6
Clarkson et al.’s Business Law: Commercial Law for Accountants (1E)
CREATING, TERMINATING, OR
implication, when the circumstances surrounding the
division of a parcel of land imply its creation,
necessity (e.g., an easement of access to a road), or
Termination: The beneficiary of an easement or profit can
terminate it deeding it back to the owner of the burdened land,
by abandoning it and relinquishing the right to use it, or by
purchasing the encumbered property (merger).
Ch. 29: Real Property and Landlord-Tenant Relationships- No. 7
Clarkson et al.’s Business Law: Commercial Law for Accountants (1E)
TRANSFER BY SALE
Offer: A prospective buyer will generally make a written
offer and deposit earnest money with an escrow agent. The
earnest money will apply toward the purchase price if the deal
closes, but will generally be returned only at the seller’s
discretion if the deal falls through.
closing date and time.
Closing/Settlement: The final step, in which all necessary
documents are signed, the mortgage loan (if any) is funded,
title insurance is obtained, and title passes and is recorded on
Ch. 29: Real Property and Landlord-Tenant Relationships- No. 8
Clarkson et al.’s Business Law: Commercial Law for Accountants (1E)
SELLER’S DUTIES
Implied Warranty of Habitability: In a majority of states,
the seller of a new house warrants that it will be fit for
human habitation, regardless of whether any such warranty
is included in the deed or contract of sale.
defect; rather, the buyer is only required to prove that
she has suffered some damage due to the house’s
defective design, construction, or condition.
Some states extend the protection of this implied
(2) that materially affects the value of the property,
(3) which the buyer could not reasonably discover.
Ch. 29: Real Property and Landlord-Tenant Relationships- No. 9
Clarkson et al.’s Business Law: Commercial Law for Accountants (1E)
DEEDS
Deed: A document that conveys legal title to real property. A
valid deed must contain
(1) the names of the buyer (grantee) and seller (grantor),
(2) words evidencing the grantor’s intent to convey the
property,
Warranty Deed: A deed in which the grantor assures the
grantee that
(1) the grantor has title to the subject property,
(2) the grantor has the power to convey said property,
Ch. 29: Real Property and Landlord-Tenant Relationships- No. 10
Clarkson et al.’s Business Law: Commercial Law for Accountants (1E)
SPECIAL DEEDS
warranting that the grantor’s title, interest, or claim is valid or
clear of any encumbrances.
Grant Deed: A deed warranting that the grantor owns the
property and has not transferred it to anyone else or
encumbered it except as disclosed.
Sheriff’s Deed: A document giving ownership to a buyer at a
foreclosure sale, subject to any statutory redemption period.
Ch. 29: Real Property and Landlord-Tenant Relationships- No. 2
Clarkson et al.’s Business Law: Commercial Law for Accountants (1E)
REAL PROPERTY OWNERSHIP
rights she has in the realty immediately prior to the sale
or gift; and
(3) potentially lasts forever, passing from each owner to
her buyer, donee, heir, or assignee.
Duty to Maintain Value: Because the life estate
terminates after the specified person’s death, the holder
must keep the realty in a good state of repair and may
have to pay property taxes during his tenancy.
Ch. 29: Real Property and Landlord-Tenant Relationships- No. 3
Clarkson et al.’s Business Law: Commercial Law for Accountants (1E)
CONCURRENT OWNERSHIP
Tenancy in Common: Co-ownership of property, in which
each party owns an undivided interest in the whole property.
When a tenant in common dies, her interest in the
property passes to her heirs.
tenant’s rights will pass to the surviving joint tenant(s) if
the joint tenancy is one with right of survivorship.
Effect of Sale or Gift: If a joint tenant sells or gives
someone her interest, the sale or gift will transform the
Community Property: Joint ownership of property by
husband and wife, in which each spouse owns an undivided
one-half interest in property acquired during marriage.
Ch. 29: Real Property and Landlord-Tenant Relationships- No. 4
Clarkson et al.’s Business Law: Commercial Law for Accountants (1E)
LEASEHOLD ESTATES
Lease: A contract by which the owner of real property (the
landlord or lessor) grants to a person (the tenant or lessee) an
exclusive right to use and possess the property, usually for a
specified period of time, in return for rent or some other form
of consideration.
Periodic Tenancy: A leasehold estate for an indefinite
period conditioned upon the receipt of rent at fixed
intervals.
leasehold estate expires.
Ch. 29: Real Property and Landlord-Tenant Relationships- No. 5
Clarkson et al.’s Business Law: Commercial Law for Accountants (1E)
NON-POSSESSORY INTERESTS
oil, topsoil) from the property of another.
Easement or Profit Appurtenant: An easement or
profit pertaining to a piece of land adjacent to that
owned by the holder of the easement or profit.
of another.
Ch. 29: Real Property and Landlord-Tenant Relationships- No. 6
Clarkson et al.’s Business Law: Commercial Law for Accountants (1E)
CREATING, TERMINATING, OR
implication, when the circumstances surrounding the
division of a parcel of land imply its creation,
necessity (e.g., an easement of access to a road), or
Termination: The beneficiary of an easement or profit can
terminate it deeding it back to the owner of the burdened land,
by abandoning it and relinquishing the right to use it, or by
purchasing the encumbered property (merger).
Ch. 29: Real Property and Landlord-Tenant Relationships- No. 7
Clarkson et al.’s Business Law: Commercial Law for Accountants (1E)
TRANSFER BY SALE
Offer: A prospective buyer will generally make a written
offer and deposit earnest money with an escrow agent. The
earnest money will apply toward the purchase price if the deal
closes, but will generally be returned only at the seller’s
discretion if the deal falls through.
closing date and time.
Closing/Settlement: The final step, in which all necessary
documents are signed, the mortgage loan (if any) is funded,
title insurance is obtained, and title passes and is recorded on
Ch. 29: Real Property and Landlord-Tenant Relationships- No. 8
Clarkson et al.’s Business Law: Commercial Law for Accountants (1E)
SELLER’S DUTIES
Implied Warranty of Habitability: In a majority of states,
the seller of a new house warrants that it will be fit for
human habitation, regardless of whether any such warranty
is included in the deed or contract of sale.
defect; rather, the buyer is only required to prove that
she has suffered some damage due to the house’s
defective design, construction, or condition.
Some states extend the protection of this implied
(2) that materially affects the value of the property,
(3) which the buyer could not reasonably discover.
Ch. 29: Real Property and Landlord-Tenant Relationships- No. 9
Clarkson et al.’s Business Law: Commercial Law for Accountants (1E)
DEEDS
Deed: A document that conveys legal title to real property. A
valid deed must contain
(1) the names of the buyer (grantee) and seller (grantor),
(2) words evidencing the grantor’s intent to convey the
property,
Warranty Deed: A deed in which the grantor assures the
grantee that
(1) the grantor has title to the subject property,
(2) the grantor has the power to convey said property,
Ch. 29: Real Property and Landlord-Tenant Relationships- No. 10
Clarkson et al.’s Business Law: Commercial Law for Accountants (1E)
SPECIAL DEEDS
warranting that the grantor’s title, interest, or claim is valid or
clear of any encumbrances.
Grant Deed: A deed warranting that the grantor owns the
property and has not transferred it to anyone else or
encumbered it except as disclosed.
Sheriff’s Deed: A document giving ownership to a buyer at a
foreclosure sale, subject to any statutory redemption period.