Download US Real Property Ownership: Allodial System, Leasehold Estates, Encumbrances, Zoning and more Essays (high school) Business in PDF only on Docsity! CHAPTER 3 allodial system- that individuals could privately own land All land in the United States is held under the allodial system. today, the government retains four (4) rights in land. Regardless of who owns property or what type of ownership, the government has these rights in all real property. These rights exist at the local, state, and federal levels. The acronym PETE is a helpful memory aid. taxation - Taxation is the right the government retains to tax real property. - Property taxes are ad valorem taxes . That is, they are according to value. The greater the value of the property, the higher the taxes. leasehold estates- One interest in real property that is less than a freehold estate is a leasehold estate. A conveyance called a lease is used to create the leasehold estate. While the conveyance, or lease, is personal property (paper), the estate created by the lease is real property A leasehold estate gives possession and use of a property without ownership. The person giving the use (the owner, landlord) is the lessor . The tenant is the lessee . ◦ There are four categories of leasehold estates. Estate for years- is any lease with a specific starting and ending date. The key is the preset time period. Periodic estate- is a lease that automatically renews itself for like periods. This type of lease is usually for an undetermined period, with no preset termination date. Estate at will- Either the landlord or tenant may agree to termi- nate the lease “at will.” This lease is the only one that easily terminates on the landlord’s death or sale of the property. All other leases would remain in effect and binding on the new owner. Tenancy at sufferance- is created when a lease expires and the tenant remains on the premises. -This holdover tenant no longer has any right to remain on the property because he/she is not paying rent, and the landlord does not accept his or her presence. If a landlord accepts rent from the holdover tenant, a holdover tenancy is created, which is sometimes considered a peri- odic estate. encumbrance- as property owners, we can also have other limitations on our ownership rights, as pre- viously discussed, called encumbrances. Recall that we discussed the governmental rights in land - police power, eminent domain, taxation, and escheat. These rights limit individuals’ rights. All property is subject to these governmental rights. encroachment- The intrusion of one’s property onto another’s property creates an encroachment. A neighbor’s fence that crosses a boundary or tree limbs extending over a boundary are examples of encroachments. Encroachments must always be disclosed. An encroachment is the unauthorized intrusion of another’s property onto an adjoining property. An encroachment that is allowed to remain can eventually acquire the right to be there.) Prescription may also be called limitation. police power- is the right of the government to regulate and control the way land is used. The most common example of police power is zoning . 0. The government will not reimburse the owner for any loss of value because they have not “taken” the land. If the intended use of a property violates zoning, the owners must request a variance – per- mission to violate the rules. Variances are often requested before construction to avoid violation of the rules. A setback is the amount of space required between the lot line and the building line. The setback can be determined by zoning or deed restrictions. A buffer zone is an area of land separating one land use from another, such as residential from commercial The buffer zone is located between incompatible uses. It is a transitional use. Example: single family, apartments, retail. The
