Real Estate Law - Lecture notes 1 PDF

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Real Estate Law from 4/10/17...

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Real Estate Law 1. Land (last week’s recap) a. Air rights b. Surface rights c. Subsurface rights 2. Real Estate a. Land with added man-made improvements (housing, business, etc.) that are permanently attached 3. Real property a. Builds upon real estate, plus the bundle of rights associated with it i. Right to possession ii. Right of enjoyment iii. Right of exclusion – right to exclude others from property iv. Right of disposition – right to sell property 4. Real v Personal property a. Annual Cultivated Props - personal i. If you own agriculture and sell land in the spring, you are entitled to come back in the fall to harvest b. Orchard / Vineyard – real i. Goes with the sale, need to make allowance for its transfer in the real estate contract c. Real property is conveyed by Deed d. Personal property requires a bill of sale e. When you turn personal property into real property -> annexation i. (process of buying supplies to make cement is personal property, creating cement and making a sidewalk is real property) f. Real property into personal -> Severance i. (picking an apple from a tree makes the apple personal property) g. A fixture is personal property that is attached to land or building (kitchen cabinets, light fixtures) i. Must remain h. Trade fixtures – property used in the course of a business i. You have the duty to remove upon sale and repair any damages as a result of the fixtures 5. Fair Housing a. 1866 Civil Rights Act i. Bans racial discrimination in the housing market

b. 1968 Federal Fair Housing Act i. Can't discriminate housing based on race, color, national origin, religion, or familial status c. 1974 – Can’t discriminate for sex d. 1988 – Can’t discriminate based on disability e. You have a one year statute of limitations to bring discrimination to HUD, or two years to bring to state court/ have attorney general bring to federal court for you i. A landowner can be brought for suit in multiple levels of the court system 6. Document record a. Has to be notorized b. Give “constructive notice” to the next owner 7. Broker Agreement a. Exclusive right to sell i. One broker, employed by the person who owns the building b. Exclusive agency agreement i. One broker, but says if the owner sells the property, they don’t have to pay a commission ii. Seller becomes competition with the broker – seller could take a lower offer because they don’t have to pay commission to the broker iii. Can do a hybrid, listing people that would be an except to the agreement if they are buyers c. Open listing i. Not tied to any one broker, whoever brings a buyer gets paid d. Net listing i. Seller sets a goal, anything above that is the broker’s commission e. How to terminate i. Contract fulfilled ii. Term expired 1. Typically 6 months 2. When term is up, the contract is terminated unless the seller chooses to renew iii. Property destroyed iv. Property transfer by operation of law v. Mutual agreement 8. Buyer Broker a. Employment agreement of an agent to work for you to find you a property b. Can be compensated by: i. % of purchase price

ii. Hourly rate iii. Flat fee 9. Contract a. Earnest money – the more money, the more the seller is comfortable its an honest buyer, get it returned if you don’t buy the house b. Contingencies – anything that might stop you from buying the house (excusable out) i. Financing ii. Appraisal – the bank will only loan you up to a certain amount of the appraised value iii. Structural inspection iv. Good and marketable title v. Existing leases / Rent – see how much money a rental property is bringing in vi. Declaration 10. Risk of Loss a. Says burden of property doesn’t shift until closing b. Without risk of loss statement, if house burns down, you still have bought it (but could claim the property insurance proceeds) 11. “time is of the essence” a. Without, there is no duty to close by the listed date b. Some contracts allow automatic extension if it is delayed by no fault of the buyer (bank loan takes longer, etc.) c. Can ask the seller for pre-occupancy agreement and can then can close d. Post-occupancy agreement 12. PRE-NUP!!!!! a. Contract entered in to, prior to marriage b. Dictates how assets will be divided in event of a divorce c. Has to be in writing to be legally-credible d. Full and adequate disclosure (where most prenups fail) i. Full detail of your wealth and assets prior to marriage e. Both parties should have independent counsel f. Need 30-45 days before the wedding to review and negotiate g. Will never address children only assets 13. Divorce a. Irreconciable differences b. Living separate for more than a year c. Cruel and inhumane treatment

d. e. f. g. h. i.

Adultery Felony Insanity Drug / Alcohol Abuse or neglect of a child Will typically be 50/50, but court has leeway to redistribute assets based upon fault absent a pre-nup j. Who gets control of the children is 100% based on the best interest of the children k. Separate property – if you put any of them into a joint property, they become marital (absent a trust, separate property remains separate) i. Gift ii. Inherit iii. Assets brought in to the marriage l. Alimony or spousal support i. Temporary – anything less than permanent ii. Permanent iii. Things considered: 1. Length of marriage 2. Employment / income 3. Earning ability 4. Age 5. Disability (physical or mental) m. Child support i. Ends when the child turns 18 ii. % of income iii. Takes into consideration: 1. Health insurance 2. Extracurricular activities iv. Some courts will rule for covering college costs, but many courts will uphold that parents have no legal obligation to cover college expenses...