Renting Or Owning Your Own Home

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Renting Or Owning Your Own Home

• Business Personal Law
• Chapter 9.1

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Learning Objectives

• List the different kinds of rental relationships.
• Explain the rights and obligations of landlords
  and tenants.
• Identify the conditions in which an eviction can
  occur.
• Determine liability for landlords and tenants.

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The Landlord-Tenant Relationship

• If you rent property, such as an apartment or
  house, you are a tenant.
• If you own real property and rent it to someone
  else, you are a landlord.
• Lease the contract between a tenant and a
  landlord.
• Lessee the tenant
• Lessor the landlord

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Types of Tenancies

• Tenants own an interest in the real estate they
  lease called a tenancy.
• Tenancy for years the right to occupy property
  for a definite or fixed period of time. Some
  states require these to be in writing, others
  require it only if for more than 1 year.
• Periodic Tenancy a tenancy that continues for
  successive, fixed periods of time. These may be
  from year to year, month to month or week to
  week. State laws establish required notice.

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Types of Tenancies

• Tenancy at Will an interest in real property
  that continues for an indefinite period of time.
  No writing is necessary. It ends when the
  landlord gives the notice required by law.
• Tenancy at Sufferance occurs when a tenant does
  not leave the premises when the tenancy expires.
  Tenants at Sufferance are wrongdoers. They no
  longer have legal rights to the property.

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The Lease Agreement

• A written agreement between a lessor and a lessee
  is called a lease.
• The lease creates a landlord-tenant relationship.
• Provides the tenant with exclusive control of the
  real property of the landlord.
• General rules of contract law apply to this form
  of agreement.

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The Lease Agreement

• Terms in a Lease known as covenants, set forth
  the rights and duties of the landlord and the
  tenant. Basic rights are possession and continued
  occupancy, free from intrusion or annoyance.
• Security Deposit Often equals one months rent.

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The Lease Agreement

• Assignment and Subletting an assignment occurs
  when you transfer the remaining period of time in
  a lease to someone else. A sublease is the
  transfer of part of the term of a lease, but not
  the remainder of it to someone else.
• Option to renew Many leases contain a provision
  allowing renters the option to renew the lease
  for one or more additional periods.

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The Landlords Duties and Obligations.

• Refrain from discrimination It is against the
  law to refuse to rent property to any person
  because of race, religion, color, national
  origin, gender, age, ancestry, or marital status.
• Maintain the premises Rental property must be
  fit for human habitation.
• Transfer of peaceful possession tenants are
  entitled to the exclusive peaceful possession and
  quiet enjoyment of the premises, the right to use
  without interference.

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The Tenants Duties and Obligations

• Abide by the Terms of the Lease as a tenant you
  have the duty to pay rent to the landlord when it
  is due and observe valid restriction contained in
  the lease.
• Avoid Waste Tenants have a duty to avoid
  damaging and destroying the property. You must
  return the premises to the landlord in as good a
  condition as when you moved in.
• Return Fixtures fixtures are items of personal
  property attached in such a way that they become
  real property.

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Eviction

• An eviction occurs when a landlord deprives a
  tenant of the position of the premises.
• You can be evicted for not paying rent, staying
  after the lease expires, damaging the premises,
  and violating provisions in the lease.
• It is illegal to use force to evict, landlords
  must obtain a court order.
• Tort Liability When someone is injured on
  rented or leased property, both the landlord and
  the tenant may be liable.

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Buying A Home

• Business Personal Law
• Chapter 9.2

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Learning Objectives

• Explain the ways real property can be co-owned.
• Describe how title to real property can be
  transferred.
• Explain the function of warranty and quitclaim
  deeds.
• Define and compare liens, licenses, and
  easements.

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The Nature of Real Property

• What do your really own when you own real
  property?

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The Nature of Real Property

• Real Property is the ground and everything
  attached to it.
• Includes buildings, fences, and trees on the
  surface soil, rocks, and minerals under the
  surface.
• Airspace and property underground is owned as
  high as owners can effectively use it.
• The Federal government own the navigable
  airspace, where airtraffic occurs.

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The Nature of Real Property

• Estate is the interest or right that a person has
  in real property.
• A leasehold estate consists of one of the
  tenancies.
• A freehold estate is an estate in which the
  holder owns the land for life or forever.
• Fee Simple Estate an estate in which the owner
  owns property outright with the exclusive right
  to use it or dispose of it freely.
• Life estate an estate in which the owner owns
  real property for the length of the owners life
  or the life of another.

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Taking Ownership

• How can you show or prove that you own a piece of
  property?
• Ownership comes about by deed, inheritance, or
  law.
• Title can be taken in your name alone or with
  someone else as a co-owner.

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Co-Ownership

• All co-owners own an undivided interest in the
  entire property.
• Tenancy in Common each owners share will go to
  his or her heirs upon death. An owner may deed
  away his or her share without permission of the
  other owners.
• Joint tenancy each owners share goes to the
  surviving co-owners upon death.

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Co-Ownership

• Community Property acquired by the efforts of
  either spouse during marriage.
• It belongs to both parties equally.
• A gift or inheritance does not become part of
  community property.
• Tenancy by Entirety property held by a husband
  and wife who have an equal right to the property.
  Each spouse owns the entire property.
• Neither can transfer without the others consent.
• When one dies the other inherits outright.

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Co-Ownership

• Tenancy in partnership ownership of property by
  partners.
• Partners have the right to use the property only
  for partnership purposes.
• When a partner dies the heirs inherit an interest
  in the partnership but not the specific real
  property.

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Transfer of Ownership

• Most real property is transferred by a written
  deed.
• A deed is a written instrument that transfers
  title of ownership of property.
• A lease transfers only possession of property.
• The person given ownership is the grantee.

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Four Types of Deeds

• General Warranty Deed contains express
  warranties that title to the property is good.
• The warranties are personal promises by the
  grantor.
• Most desirable form of deed, gives most
  protection.
• Special Warranty Deed contains express
  warranties that no defect arose in the title
  during the time the grantor owned the property.

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Four Types of Deeds

• Bargain and Sale Deed transfers title to
  property without giving warranties.
• Requires consideration to be valid.
• Cannot be used to make a gift.
• Quitclaim Deed transfers whatever interest the
  grantor has in the property.
• Does not warrant that the grantor has any
  interest.
• Merely releases the grantors rights to the
  property.

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Limitations on Property Use

• Zoning Laws limits the way property can be used
  in specific areas.
• Eminent Domain the right of the government to
  take private land for public purpose.
• Adverse Possession this occurs when someone who
  does not own a property occupies it for a period
  set by state law often 20 years.

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Limitations on Property Use

• Liens a legal claim against another persons
  property as security for a debt or loan to ensure
  it will be repaid.
• Released when the debt is repaid.
• License temporary, revocable right to the
  limited use of anothers land.
• Easement an irrevocable right to the limited
  use of anothers land.