REE4433

REE4433

TEST 1

Pay particular attention to all the details of the terms and examples:

Chapter 1

Sources of Real Estate

I. Real Estate is mostly State Law

a. Real Estate is mostly state law because the states decided to maintain the control over Real Estate

i. The revolutionary war started in 1776 and ended in 1783. After the war, thirteen colonies were led independently.

ii. The Articles of Confederation were created to keep cooperation between the colonies

iii. In 1787 the “Constitution” was created in Philadelphia

1. It had to be ratified by nine or more colonies

2. Before the constitution, law was controlled by each state individually

3. The constitution took away some power from state control and gave it to the federal government

4. The States, however kept control over Real Estate

II. Real Estate in Florida

a. A quiet title suit is the lawsuit used to settle real estate problems.

b. The chain of title is a line of all the people that have owned a specific property.

c. Spain or the King of England could be considered the first grantors of land.

i. In 1819 US began negotiating the purchase of Florida from Spain. In 1821, the sale was completed and the US acquired Florida.

1. Spain owed money to some Florida residents. In exchange for Florida, The US paid all the Florida residents the money they were owed by Spain.

a. This erased the debt that Spain had with Florida residents.

ii. The US, supposedly paid a total of 4 millions

iii. Everybody that owned Real Estate before the sale, kept their ownership.

Chapter 2

Land and its Elements

I. Real Estate

a. Real Estate is the term used to describe land along with:

i. Anything permanently attached

ii. The space below and above the land

1. Minerals rights – right to enjoy the resources below the land

II. Fee Simple

a. Fee simple states that the owner of the land has all the rights to the land

b. However, land is heavily regulated and owners are restricted from doing certain things in their land.

c. Rule of Capture (comes from the Common Law)

i. This rule stated that A could drill his land for oil even though B, an adjacent land owner, had oil under his property.

III. Air Rights

a. A fee simple owner owns the air space above his/her property.

b. Anybody passing through the air space is considered a trespasser

i. This is why planes are required to fly at a certain height. It prevents disturbance on the ground below.

IV. Personal Property

a. Anything that is not Real Estate is considered personal property.

b. Personal property is also called chattel

V. Condominiums

a. Condos are often seen in Florida

b. The owner of a condo owns the air space within the walls of the unit

Chapter 3

Fixtures

I. Fixture

a. Personal property becomes a fixture when it is permanently attached to Real Estate

i. Three part test to determine if personal property is a fixture

1. manner which is attached

a. is it bolted down, glued, nailed in or other?

2. character of adaptation of the object

a. what will the object be used for?

3. intention of the owner

a. most important part of the test

b. did the owner meant for it to stay attached or removed in the future?

b. Trade Fixtures

i. These are fixtures, usually placed by the tenant, which can be removed as long as the real estate is not damaged while it is being removed.

ii. Trade fixtures are often seen in commercial property

II. Secured Financing + Fixtures

a. Under the general rule, if a fixture is installed by the tenant in a mortgaged property, the tenant can take the fixture when he/she leaves.

i. Under Florida Law, the fixture must stay as part of the mortgaged property.

1. Example: A owns a mortgaged building. B leases the building from A and installs a stove in the building. C sold the stove to B. B defaults on the lease. C cannot get the stove back because it is now considered a fixture and belongs to the mortgaged property.

2. Example: X got a loan from Z to purchase a piece of land. X then got a loan from Y to build a house on the land. X defaults on both loans. Z would keep possession of the land and the house because it is attached to the land. Y would be left with nothing.

III. 3.08 paragraph

i. T hired a builder to build a house on T’s lot. Builder hired a surveyor to places survey stakes to define the boundary of the lot. The surveyors, by mistake, placed the stakes on the adjoining lot. T was entitled to a lien on this lot (which is owned by a third party) for the value the building contributed to the lot.



	REE4433 REE4433 TEST 1 *Pay particular attention to all the details of the terms and examples:* Chapter 1 Sources of Real Estate I. Real Estate is mostly State Law a. Real Estate is mostly state law because the states decided to maintain the control over Real Estate i. The revolutionary war started in 1776 and ended in 1783. After the war, thirteen colonies were led independently. ii. The Articles of Confederation were created to keep cooperation between the colonies iii. In 1787 the “Constitution” was created in Philadelphia 1. It had to be ratified by nine or more colonies 2. Before the constitution, law was controlled by each state individually 3. The constitution took away some power from state control and gave it to the federal government 4. The States, however kept control over Real Estate II. Real Estate in Florida a. A quiet title suit is the lawsuit used to settle real estate problems. b. The chain of title is a line of all the people that have owned a specific property. c. Spain or the King of England could be considered the first grantors of land. i. In 1819 US began negotiating the purchase of Florida from Spain. In 1821, the sale was completed and the US acquired Florida. 1. Spain owed money to some Florida residents. In exchange for Florida, The US paid all the Florida residents the money they were owed by Spain. a. This erased the debt that Spain had with Florida residents. ii. The US, supposedly paid a total of 4 millions iii. Everybody that owned Real Estate before the sale, kept their ownership. Chapter 2 Land and its Elements I. Real Estate a. Real Estate is the term used to describe land along with: i. Anything permanently attached ii. The space below and above the land 1. Minerals rights – right to enjoy the resources below the land II. Fee Simple a. Fee simple states that the owner of the land has all the rights to the land b. However, land is heavily regulated and owners are restricted from doing certain things in their land. c. Rule of Capture (comes from the Common Law) i. This rule stated that A could drill his land for oil even though B, an adjacent land owner, had oil under his property. III. Air Rights a. A fee simple owner owns the air space above his/her property. b. Anybody passing through the air space is considered a trespasser i. This is why planes are required to fly at a certain height. It prevents disturbance on the ground below. IV. Personal Property a. Anything that is not Real Estate is considered personal property. b. Personal property is also called chattel V. Condominiums a. Condos are often seen in Florida b. The owner of a condo owns the air space within the walls of the unit Chapter 3 Fixtures I. Fixture a. Personal property becomes a fixture when it is permanently attached to Real Estate i. Three part test to determine if personal property is a fixture 1. manner which is attached a. is it bolted down, glued, nailed in or other? 2. character of adaptation of the object a. what will the object be used for? 3. intention of the owner a. most important part of the test b. did the owner meant for it to stay attached or removed in the future? b. Trade Fixtures i. These are fixtures, usually placed by the tenant, which can be removed as long as the real estate is not damaged while it is being removed. ii. Trade fixtures are often seen in commercial property II. Secured Financing + Fixtures a. Under the general rule, if a fixture is installed by the tenant in a mortgaged property, the tenant can take the fixture when he/she leaves. i. Under Florida Law, the fixture must stay as part of the mortgaged property. 1. Example: A owns a mortgaged building. B leases the building from A and installs a stove in the building. C sold the stove to B. B defaults on the lease. C cannot get the stove back because it is now considered a fixture and belongs to the mortgaged property. 2. Example: X got a loan from Z to purchase a piece of land. X then got a loan from Y to build a house on the land. X defaults on both loans. Z would keep possession of the land and the house because it is attached to the land. Y would be left with nothing. III. 3.08 paragraph i. T hired a builder to build a house on T’s lot. Builder hired a surveyor to places survey stakes to define the boundary of the lot. The surveyors, by mistake, placed the stakes on the adjoining lot. T was entitled to a lien on this lot (which is owned by a third party) for the value the building contributed to the lot.