real estate principles

7/25/2019 Real Estate Principles

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2011 Cengage Learning


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Chapter 1

Introduction to Real Estate

California Real EstatePrinciples



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Trace the history of real propertyownership in California

List the 4 parts for the definition of

real property & distinguish

between Real & Personal

Property

Explain the bundle of rights!

List the " legal tests for a fixture

Chapter 1



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California #istory1$ %atie '(ericans

)$ Explorer *alboa +1"1,-,$ .P'%I.# rule +1"4)/10))-

.an iego2 lst settle(ent3 by Cabrillo

4$ .panish deelop(ents +156-

7orts 8presidios 9illages 8pueblosLand grants 8 ranchos: )1 ;issions

"$ ;E%ITE .T'TE. ruleTreaty of Guadalupe Hidalgo +1040-

.tatehood +.epte(ber 63 10"?-



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California Real Estate*oard of Land Co((issioners

7or(ed to settle priate land clai(sRecording syste( adopted for land

California legal syste(7or(erly .panish Ciil Code

English co((on law enactedRetained .panish co((unity property laws

;odern California>rban@suburban residents

Population centers2 Areater L'3

.an iego3 .acra(ento3 .an 7rancisco@Baland



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Real Estate

Real property is the physical + plusthe legal

rights of ownership = the Bundle of Rights

Real estate in a physical sense is land and

buildings, things you can touch.



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*>%LE B7 RIA#T.DInclude the right to2

1$ Bwn and possess

)$ >se

,$ Enoy

4$ Encu(ber or borrow

against

"$ ispose

5$ Exclude others who donot share ownership *Subject to

governent controls



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.a(ple Test Fuestion>nder todayGs concept of the bundle of rights3 a

property owner has the right to all E


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Property Rights o NOTInclude the

Right to2

estroy

!"alue to neighboring property #vacant lot$!%ealth & sa'ety issues on tear do(ns #environent$

)hy



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Property Bwnership

Is not absolute

Is subect to goern(ent controls3 such as2Honing and building codes

7air housing and antidiscri(ination

#ealth & safety regulations

Police power

Per(its and licenses

Public interest issues



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efinition2 Real Estate

L'%

'77IRTE%'%T TB L'%

I;;B9'*LE * L'=



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RE'L PRBPERTis L'%2

L'% includes2

EarthGs surfacelateral supportsubacent support

;aterials under the surface.ubstances3 including water

;inerals3 oil & gas



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'ir rights2 aboe the surface

7ro(

earthGs

surfaceto the

7ederal

'iation+7''-

floor



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;ineral Rights

Bil and Aas RightsRule of Capture

Rule of Extraction



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=ater RightsRiparianPrior 'ppropriation

>nderground water

Concept ofReasonable UseRiparian : borders

stea( or laeLittoral : borders

shore of sea or ocean



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=ater Rights2+i''erent states have di''erent la(s

- Appropriation(ater right-(ner has e/clusive right to tae

all (ater 'or speci'ic bene'icial

use o' the land-he state grants perission to

nonriparian o(ner.

-Correlative (ater right

-(ner entitled to tae only a reasonable aounto' (ater 'or bene'it to the land #irrigation$



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Property 'ffixed to the land2

'ffixed : *uilding i(proe(ents

'ppurtenances : Landscaping attached by roots

Incidental : >tility pipes

'ttach(ents : 7enceEase(ents : Right of way

7ixtures : Patio coer

.toc in a (utual water co(pany

I((oable3 by law



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'ppurtenances

! 3aseents

! Stoc in a utual (ater copany



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PER.B%'L PRBPERTis

eerything that is %BT real propertyChattel / Chose

;oable goods

Paper ocu(ents about real property2 (oney3

stocs3 contracts3 deed3 lease3 pro(issory note

Transferred by a *ill of .ale

E;*LE;E%T.'nnual cultiated crop



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Real BR PersonalpropertyJ

RE'L Property PER.B%'L Property

Real property can becoe personal property

4ersonal property can becoe real property



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TE.T B7 ' 7IRE

53 he la( 'avors the borro(er over a lender, a buyer over aseller, and the tenant over the landlord.

M ethod o' 6ttachent

A daptability 'or rdinary 7se

Relationship o' the 4arties

I ntent o' the 4arties

A greeent 8et(een the 4arties



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TR'E 7IRE

Personal property of a business affixed or annexed

to the real property

Considered personal property +cash register@safe-

Tenant (ay re(oe before the lease ends but

(ust repair any da(age to the real property



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California o(estic Partnership Law

Effectie Kanuary 13 )??" registered do(esticpartners hae (any of the sa(e California

constitutional real estate rights as husbands &

wies

%ot recognied by federal laws & regulations

Bther states also do not recognie this law



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1$ 'irspace aboe a parcel of land is2

+a- real property

+b- personal property

+c- an encu(brance+d- a fixture

)$ Honing regulations hae the greatest i(pacton which rightJ

+a- right to encu(ber+b- right to possess

+c- right to use

+d- right to exclude

Review Quiz Chapter One -




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Review Quiz Chapter One

ntrodu!tion to Real "state

,$ 'll of the following are real property except2+a- fruit trees

+b- chattels

+c- stoc in a (utual water co(pany

+d- built/in stoe

4$ In a dispute oer fixtures3 courts tend to faor

+a- sellers oer buyers

+b- landlords oer tenants+c- lenders oer borrowers

+d- grantors oer grantees



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5$ =hich of the following is a test of a fixtureJ

+a- attach(ent

+b- chose+c- appropriation

+d- restrictions



"$ The right of a land owner along a rier to tae wateris called2

+a- percolating rights

+b- rier water rights

+c- user rights+d- riparian rights



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$ California beca(e a state in2

+a- 10?,

+b- 1040

+c- 1046+d- 10"?

0$ .heles in a retail store are an exa(ple of2

+a- real estate

+b- encu(brances

+c- trade fixtures

+d- real property



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6$ 'll of the following Mrun with the land3M except2

+a- ease(ents

+b- priate deed restrictions

+c- water rights+d- current harest rights

1?$ =hich real estate ter( is the (ost inclusieJ

+a- real estate

+b- real property





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'nswers to Chapter 1 Reiew Fui

1$ ' 5$ '

)$ C $

,$ * 0$ C

4$ C 6$

"$ 1?$ *


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