Real Estate Essentials: The Basics You Need to Know

Uncategorized

Welcome! What we will learn today includes the concept of real estate as well as titles and their attributes; types of tenancy and types of properties; and definition by measurement using the township as the standard; possession of property; Deeds and their conveyance from giver to receiver; restrictions use imposed both privately and publicly; and mortgages; how they are transferred and how they affect the larger financial markets.

Traditional Definition

First, we will start with the concept of real estate. How can we define it? The elemental concept of real estate–the American tradition of property rights–is derived largely from the Anglo-Saxon tradition.

This concept of real estate begins with Nordic cosmology, early informal English tradition, Saxon common law, and the English Magna Carta.

Starting along a shoreline, we can visualize property by looking at a point on the horizon. To the right, we view the Sea; to the left, the Earth; above we view the Air; and by focusing downward beneath the surface, the Core.

Next, we face inland and draw a horizon line. Above the horizon we view the Sky that helps us to determine air rights, the height of buildings, etc. Then, we view the Ground as the surface of all the Earth, whereas, the Core below helps to define mineral rights.

As we face away from land out to Sea, we can mark a horizon line with the Sky above and the Sea below. Generally speaking, we can see about twelve to fifteen miles out to Sea on a clear day because the curvature of the earth. This application of line of sight helps to define the delineation between sovereign states and international waters.

Titles

Next, let’s talk about Titles and the various attributes of these documents. We start with the Title known as a “Fee Simple.” This Title is the most common one. Generally, ownership of residential property is by Fee Simple.

This Title reflects a bundle of rights, the right to: 1) dispose of the property, to use sell or give it away; 2) the use of the property; 3) possession of that property, which is what the Title’s about and; 4) the ability and right to exclude others from using the property.

The Differences between Real Estate and Real Property

Real Estate plus the Title equals what we call Real Property and Freehold Tenancy. This tenancy has an indefinite duration of time.

Freehold-Estate Tenancy can extend perpetually and can be passed from one party–one generation–to another. The Freehold may be Fee Simple.

Alternately, the tenancy could be a Life Estate for which someone has the right to remain on a property (in a house) until s/he passes away. Then, it is turned turned over to another party, by prearranged agreement. This party is referred to as the Remainder Man (a traditional term).

Title is equal to the Estate minus the tenancy. Therefore, we can define Real Estate as a Bundle of Rights that includes the rights of Disposition, Use, Possession, and Exclusion. We can abbreviate these rights with the acronym D. U. P. E.

A Non-Freehold extends for a limited duration of time, the length of time that a person may hold it. Therefore, it is Non-Freehold. Generally, this Estate is referred to as a Leasehold that requires a lease contract, which specifies a duration of time.

This lease is similar to the Title except there is one of the four property rights in Bundle of Rights which is excluded. This excluded right is the right to Dispose of the property, to sell or give it away. However, the rights to Use, Possess, and Exclude others from using it still apply under this lease.

Below, we have a comparison chart. The key feature is that a Freehold has an indefinite duration.

The Non-Freehold enjoys only a limited duration of time because the lease, the Leasehold, excludes the right of Disposition. In contrast, a Freehold Bundle of Rights includes all four: Disposition, Use, Possession, and Exclusion. Therefore, the Estate is equal to the Title is equal to this bundle of our rights to the property.

Let’s talk about the types of tenancy along with the types of properties. This tenancy in Severalty involves a number people. In common, it is often with the married couple and specified heirs for that tenancy. In Joint Estate, there is a Right of Survivors. Anyone with this tenancy who survives has the right to continue the tenancy and to have that Fee Simple with its four-fold Rights of Property. By Entireties, the Right of Survivors are the same.

Properties

The types of property include business property–service sector, industrial (generally manufacturing), commercial property (both wholesale and retail), residential property, and agricultural property.

Residential properties are defined as properties of four or less units  properties for sale in fethiye or vacant land that is zoned for residential use. Also, it includes ten or less acres of agricultural land (commonly, acreage that small lacks the natural conditions to provide a sustainable working farm.

Definition by Measurement

For definition by measurement, we use the Township as our basic standard of measurement. The Township is six miles by six miles square (36 square-miles encompassing 23,040 acres).

To measure a Township, let’s use an example of an uncharted island of irregular form. We start by drawing a Baseline and Meridian line upon it, striving to center it as well as possible (for simplicity’s sake, whatever is practical).

Let’s use an island for our example. We use the full Township plan, carrying it over onto the water around this island. We measure the island down to measurement of quarter miles.

 

Leave a Reply

Your email address will not be published. Required fields are marked *