Property Ownership
This national topic covers the bundle of rights that make up real property, the different estates in land, and the ways two or more people can hold title together. Understanding what is being owned and how is the foundation for everything else on the exam.
Real vs. Personal Property and the Bundle of Rights
Real property includes land, everything permanently attached to it (improvements and fixtures), and the bundle of legal rights that go with ownership: the rights to possess, use, exclude, enjoy, and dispose of the property. Personal property (chattel) is movable and not permanently attached. A fixture is personal property that has become real property by being permanently affixed; tests include the method of attachment, adaptation to the property, and the intent of the party who installed it.
Estates and Forms of Co-Ownership
An estate describes the degree and duration of ownership. Fee simple absolute is the highest estate, of indefinite duration and freely transferable and inheritable. A life estate lasts only for the life of a named person. When multiple owners share title, common forms include tenancy in common (separate, inheritable shares), joint tenancy (equal shares with right of survivorship), and, in many states, tenancy by the entirety for married couples. The form of co-ownership controls what happens to a share when an owner dies.