Tutorial 2

Characteristics and traits, etc.

Generally property rights is the right of a person to the possession, use, enjoyment, and disposal of his or her property.
With respect to it's application of real estate, interest is a broad legal term used to denote a property right
- Holder of an interest in real estate enjoys some right, or degree of control or use and may receive payment for the sale of such an interest
- May be bought, sold or used as collateral for a loan

Easements can be intangible
- non-posessory interest in land
- Right to use the land that is owned or leased by someone else for some special purpose (e.g. as a right of way to and from one's property)
- easement entails only a limited user privilege and not privileges associated with ownership
  - Gas and water meters, a small item but someone else has the right to access it
Volumetric subdivision
- Creating a volumetric subdivision (using space above or below the land)
  - Apartment building, multiple levels
- Land subdivision: land can be physically subdivided and each parcel owned by a party
- Strata title: a building can be divided into multiple lots and this is commonly referred to a "strata titling" or a "strata title subdivision"
Leasehold of airspace
- Land belongs to somebody, but someone is purchasing upper airspace.

a right in relation to realty
An interest in property can be created by the owners of real estate who may pledge and/or encumber their property in order to achieve an objective without giving up full ownership

The term estate means "all that a person owns"
All realty owned as part of an individual's estate
Real estate means all realty owned as a part of an individual’s estate.
Estates in real property is used to describe the extent to which rights and interests in real estate are owned.
A system of modifiers has evolved, based on English property law.
- It describes the nature or collection of rights and interests being described as a part of a transaction.
- For example, a fee simple estate represents the most complete form of ownership of real estate.
- Leasehold estate usually describes rights and interests obtained by tenants when leasing or renting a property.
- Leasehold is possessory interest and involves the general right to occupy and use the property during the period of possession.

Fee simple absolute in possession - free to divide up the fee into lesser estates, e.g.
- represents the most complete for of ownership of real estate, whereas a leasehold estate usually describes rights and interest obtained by tenants when leasing or renting a property. Life estate
Freehold estate that lasts only as long as the life of the owner or the life (or a person or a job) or some other defined person

block of land, real estate. Real estate is used to refer to things that are not movable such as land and improvements permanently attached to the land
The rights are real property. Legal right you have to the property. E.g. investments in REIT, e.g. Real property includes intangible assets, such as easements and land subdivision

Estates in possession are of two general types:

freehold estates and
leasehold estates.
These types of estates are technically distinguished on the basis of the definiteness or certainty of their duration.

Differences:

A freehold estate lasts for an indefinite period of time;
A freehold estate connotes ownership of the property by the estate holder,
A leasehold estate, expires on a definite date; whereas a leasehold estate implies only the right to possess and use the property owned by another for a period of time.

A reversion exists when the holder of an estate in land (the grantor) conveys to another person (a grantee) a present estate in the property
- that has fewer ownership rights than the grantor’s own estate
- and retains for the grantor or the grantor’s heirs the right to take back, at some time in the future, the full estate that the grantor enjoyed before the conveyance.
A remainder is the future estate (ie like a reversion)
- but rather than returning to the grantor the future estate will go to a third person and not back to the original grantor.

The Doctrine of Tenure is a legal principle that originated in medieval England and is still applied in Australia today.
It refers to the concept of land ownership and tenure, meaning that individuals or groups who own land- hold it by way of a grant from the Crown
- (the “Crown” is now referred to as the “State”).
All other landowners hold their land as a form of tenure, meaning they have certain rights and obligations attached to their ownership.
For example, they may owe taxes or military service to the monarch in exchange for their landholding.

- Written contract (primary source of rights and obligations between the parties).

Part VIII of the Property Law Act 1974 (QLD):
- s 105 – tenant’s obligation to pay rent, keep in repair etc.
- s 107 – landlord’s right to enter, repair etc
Common law – implied terms and conditions:
- Tenant right – quiet enjoyment
- Landlord obligation - non derogation of grant

lease creates both property and contractual rights for the lessee
a license only creates contractual rights for the licensee
The lessee’s rights in relation to their use of the property can be enforced against the world at large.
A licencee can only enforce rights in relation to their use of the property can be enforced against the licensor.
A lease can be assigned by the lessee to a third party (subject to express provision in the lease prohibiting/restricting this).
A licence cannot be assigned (unless it is associated with a lease – eg carparking licence as part of a retail lease).
A lease grants exclusive possession of a premises (a licence is non-exclusive).

WHY THIS MATTERS –

it impacts your security of tenure if you need to occupy a property (ie leases is better than licences) and makes your income stream as an investment less secure.