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Real Property Real property consists of land, improvements, rights and privileges Conveyed by deed
Tenements and Hereditaments Tenements include those things that can be touched and seen
(buildings) as well as things that are intangible (easements) Hereditaments are those things capable of being inherited Plants include fruits of the soil (fructus naturales or perennials) or
fruits of industry (fructus industrials or annuals) Plants requiring annual cultivation are considered personal property Plants not requiring annual cultivation are considered real property
Improvements Anything attached that increases the value or utility of the land Can be “to the land” or “on the land” “To the land” includes roads, utilities, grading, etc. “On the land” includes buildings
• Created by the act of parties • Non-inheritable freehold estate
Marital Life Estate: • Created by the operation of law • Governs the distribution of property for a spouse who dies intestate• A will cannot defeat the marital interest of a surviving spouse• Statute does not apply to property owned as tenants by the entirety• Surviving spouse has a choice of EITHER:
• Marital life estate OR
• Property of the deceased spouse willed to the surviving spouse
Life Estates – Rights of Responsibilities of Life Tenants Right of alienation:
• Life tenant may transfer his/her title to another • May pledge the title as security for a debt• Note: May only transfer or pledge title to life estate, not to whole
bundle of rights Responsibility of preservation:
• Must not commit waste • Must preserve the estate for the benefit of the remainderman or
holder of the reversionary interest Right of estovers:
• Allows life tenant to cut and use a reasonable amount of timber from the land to repair buildings or to use as fuel
• Does not allow the tenant to cut and sell timber for profit
• Limited to ownership of husband and wife• Right of survivorship• Surviving spouse receives title by operation of law• Marriage does not create tenancy by entirety for property one spouse brings
into the marriage• One spouse may convey ownership to both spouses as tenants by the
entirety• Both spouses must sign deed to convey property held as tenants by the
entirety to one of them in severalty• After decree of divorce, ownership reverts to tenancy in common
Community Property:• Not practiced in North Carolina
The 1986 North Carolina Condominium Act Purchaser’s right to cancel:
• Can cancel for any or no reason, within SEVEN DAYS after signing contract
• Does not apply to resale Escrow of deposit:
• Deposits must be kept in an escrow account the full SEVEN DAYS or until cancellation and refund occurs
Resale certificates: Disclosure of monthly assessments for common areas and other fees for
which owners are responsible is required Warranties:
• Unit is constructed in an acceptable manner, free from defects, and suitable for the purpose intended unless warranty has been disclaimed so as to void it
• Pledges a specific property as security for a debt • North Carolina uses deed of trust as security instrument• Default on repayment of the mortgage or deed of trust note will cause
the lender to foreclose by having the property sold at public auction• The proceeds of the sale are used to satisfy the debt
Real property tax • Taxes levied by a local government• This type of lien has priority over all other liens• Real property tax liens are good for ten years
• A charge against a property for the prorata cost of some improvements made to areas adjoining the property (i.e. street paving, water and sewer lines, sidewalks)
Mechanic’s lien: • A lien filed by anyone who provides labor or material to a property• Must file within 120 DAYS from the last day that labor or material
was furnished to the property • Effective from the first day that labor or material was furnished to the
property• Must be enforced within 180 DAYS from the last day of work
• An easement between two or more adjoining properties, owned by two or more separate owners, and is said to, “Run with the land”
• Land that is benefited from the easement is the dominant tenement and the land encumbered by the easement is the servient tenement
Easements in gross – not dependent upon ownership of an adjoining property. No dominant tenement; only a servient tenement• Commercial easements in gross are assignable and can be conveyed• Most common use of commercial easement in gross is for the purpose of
installing power lines, telephone or cable lines, and gas lines above, on, or under the surface of the earth
• Personal easements in gross are:• Not assignable• Cannot be conveyed• Not inheritable
• An easement between two or more adjoining properties, owned by two or more separate owners, and is said to, “Run with the land”.
• The land that is benefited from the easement is the dominant estate and the land encumbered by the easement is the servient estate.
Easements in gross – An easement between a parcel of land and a person or legal entity. This involves a servient interest only.• Commercial easements in gross are assignable and can be conveyed • Most common use of commercial easement in gross is for the purpose of
installing power lines, telephone or cable lines, and gas lines above, on, or under the surface of the earth
Creation of Easements Operation of law – Easement acquired by continuous, long term adverse use
• Prescription: • Using another’s land for a prescribed period of time• Must be used without permission• Must file suit to quiet title to prove conditions have been met before
acquiring title• Condemnation:
• Enables the government to take private land for the benefit of the general public under the power of eminent domain
• Commonly used to obtain easements for rights-of-way, not to obtain title
• Statutory cartway proceeding can be created when the owner of a landlocked property petitions to have a cartway sectioned off of another owner’s property for ingress/egress