Deck 39: Nature of Real Property

Question 1

Oxford's job required extensive travel between California, Texas, and Georgia. She purchased a membership in an R.V. Park (Park) in California and placed a fifth-wheel trailer on a lot at the Park. Utilities, including electricity, water, and sewer, which serviced the trailer were provided by the Park as part of the membership fee. Park rules required Oxford to move her trailer to a different lot within the Park every six months. After a few years, Oxford contracted with a builder to construct a house on a completely separate piece of property. When the house was finished, Oxford moved in and began using it as her residence. On Oxford's federal income tax return for the year of the move, she claimed a First-Time Homebuyer Credit. The IRS denied the First-Time Homebuyer Credit on the basis of Oxford's ownership of the trailer prior to building the house. Was the trailer personal property, as Oxford claimed?

Answer 1

Property is classified on the basis of movability. For example; food, clothing, TV, and movie tickets are movable property.
Real property:
A real property consists of land, water and real property will be attached to the soil.
Personal property:
Any property which is not real property has to be treated as a personal property.
Personal property is further classified into tangible and intangible movable property.
In this case, the trailer O. owned previously has to be treated as personal property because trailer is not attached to the ground.
Also, trailer does not contain land and water. In fact all the requirements for water and power are supplied by the park owner.
Hence, trailer was the personal property as claimed by O.

Question 2

What are the different ways in which multiple people may own one piece of real property?

Answer 2

Concurrent Ownership Interests in Real Property:
Concurrent ownership - a concurrent owner shares ownership of real property with at least one other person. The following is a brief listing of the different types of concurrent ownership interests in real property:
1. Sole tenancy - is the undivided interest in property held by one person.
2. Joint tenancy - is an undivided interest in property held by at least two people. The interest passes to the surviving tenant(s) listed in the ownership agreement. The property does not pass to heirs of property owners. This type of agreement has the right of survivorship.
3. Tenancy in common - is an undivided interest in property held by at least two people and the interest passes to the tenant's heirs upon death. If the decedent had a valid will, then his/her portion of the tenant in common property will pass to the beneficiaries named in the will. If there is no will, the intestacy laws of the state where the real estate is located will govern even if these laws are different from the laws of the state where the decedent lived.4. Tenancy by the entirety - is the undivided interest in property held by a husband and wife. Neither spouse may transfer interest in the property without the consent of the other. This type of agreement has the right of survivorship, so the surviving spouse would receive full interest in the property.
5. Community property - is an undivided half interest in property owned together by a husband and wife. Each spouse has an equal and undivided interest in the property.

Question 3

Bankruptcy debtor Paul Titus arranged for his employer to directly deposit his paychecks into a checking account he owned jointly with his wife as tenants by the entireties. The bankruptcy trustee sued to get the money back out of the joint account. Could the bankruptcy trustee of only one spouse reach money that had been placed in a tenancy-by-the entireties account?

Answer 3

Tenancy by the Entirety :
Tenancy by the entirety is the undivided interest in property held by a husband and wife. Neither spouse may transfer interest in the property without the consent of the other. This type of agreement has the right of survivorship, so the surviving spouse would receive full interest in the property.
Legal Reasoning:
In In re Titus, 467 B.R. 592 (2012), the trial court determined that the directly deposited checks went into an account held at tenants by the entirety to the extent that the account could NOT be considered assets in a bankruptcy determination.
The bankruptcy court determined that Titus fraudulently transferred monies into an account held in tenancy by the entirety with his wife and ordered the monies be surrendered to the Trustee jointly and severally against the Debtor and Mrs. Titus.
Therefore, the bankruptcy trustee of one spouse MAY reach monies fraudulently placed in a tenancy by the entireties account.

Question 4

What specific portion of a property does any single tenant in common own?

Question 5

The town of Windham condemned real property owned by ATC Partnership. ATC claimed that located in the premises taken through the condemnation proceeding was personal property that Windham failed, neglected, and refused to return, and prevented ATC from removing it from the real estate. The property consisted of machinery and equipment previously used in the operation of a textile mill, the bulk of which was bolted to the realty. ATC conceded that at the time the pieces were installed, the mill owner intended them to be permanent accessions to the realty. ATC acquired the machinery by means of the deed by which it acquired the real property. The court had to decide whether the machinery was part of the real estate or personal property. What was it?

Question 6

Which types of multiple ownership of property give the owners the right of survivorship?
b. What does the right of survivorship mean?

Question 7

Carol Severance owned rental property on Galveston Island's West Beach. No public easement existed on her property, but there was a public easement for beach access on property seaward of the Severance property. Five months after Severance purchased her property, Hurricane Rita blew through Galveston Island, devastating the property seaward of Severance and pushing the vegetation line back past Severance's rental property. As a result, the State of Texas claimed that a portion of the rental house interfered with the public easement for beach access. When Texas attempted to enforce a public easement, Severance sued. Did Hurricane Rita move the public easement for beach access onto Severance's property?

Question 8

In states that recognize community property, what specific language or actions are required for a married couple's property acquired during the marriage to be considered community property?

Question 9

What is accretion?

Question 10

Does a license give a person the right to possess land? Explain.

Question 11

The Jejers acquired real estate in 1950. Their parents owned the property next door. The Jejers improved the property with a driveway and barn. Parts of the driveway and barn overlapped onto the parents' property. The parents neither consented nor objected to the Jejers' use of the property. The Jejers exclusively used the driveway and barn, except when they leased part of the land to a third party. Both properties were subsequently sold. Theodore Mulle purchased the Jejers' property, and after a survey discovered that part of his driveway and barn were on the other parcel of land. Does Mulle own the entire driveway, or only half the barn?

Question 12

Is it possible for a trespasser to acquire title to the property on which the trespass is made

Question 13

Give three examples of real property.

Question 14

Martin, DeWitt, and Prieto were tenants in common of a single family home in Wyoming, in which only Martin lived. DeWitt and Prieto asked Martin either to move out or pay them rent. Martin changed the locks, and refused to allow DeWitt and Prieto entry. DeWitt and Prieto sued Martin for rent payments. Must Martin pay rent to live in a home of which she is co-owner? If so, how much rent?

Question 15

What types of vegetation are normally considered real property?

Question 16

Richard Flowers's will left his wife a life estate in their marital home. The following year, Mrs. Flowers claimed a personal residence exemption from property taxes, but the state of Michigan denied the exemption on the grounds that Mrs. Flowers was not the owner. Was Mrs. Flowers an owner of the property when she only held a life estate?

Question 17

What is the difference in ownership rights of a person whose property borders a non-navigable river and a person whose property borders a navigable river?