FUNDAMENTALS OF PROPERTY OWNERSHIP

Abstract of title – a condensed history of the title, summary of the transfers, with data on
liens, encumbrances, etc.
 History of title or chain of title – a detailed enumeration of conveyance and liens and
encumbrances and all relevant matters pertaining to a title; from the time original title was
granted.
 Cloud-on-title – an outstanding claim or encumbrance which, if valid, would impair the
owner’s rights on the property.
Adverse possession – open and notorious occupancy of property under a claim or right in conflict to
the right of another claimant.

Alienable – public domain that can be conveyed by government (only agricultural land is

alienable). Appurtenance – something annexed to a property which is transferred together with

the property. Classes of real property:

 Public dominion (agricultural,, forest/timber, mineral, national parks) – not owned by the State
but by society.
 Patrimonial – property of the State owned by it in its private or proprietary capacity.
 Property of L฀Us – patrimonial but only at the specific local government level.
 Private property – property owned by private individuals or entities.

Easement – right or privilege which another land owner has over another; such as right-of-way.
Easement appurtenant – a continuing easement conveyed to the next owner.
Easement in gross – easement that serves only one person, not conveyed.

Encroachment – trespass, overlap or building of an improvement on the property of

another. Encumbrance – anything which affects or limits the absolute use or ownership
of property; Liens – money encumbrances

Estate – the type or quantity of interest, right, equity in real property; also the total of property of a
deceased.

 Fee Simple – freehold; bundle of rights; absolute ownership subject to limitations of the State.
 Fee simple absolute – greatest power over the title, without limitation.
Fee simple defeasible – ownership dependent on a certain event occurs or a certain condition;
Life estate – right to use for the duration of the life of the beneficiary.
Severalty – one person or corporation owns the entire bundle of rights, subject to government
limitations.

Family Code

Conjugal property of gains – spouses own properties separately but all the fruits from these
properties are deemed owned jointly.
Absolute community – a regime of ownership where both spouses own all their property jointly

Fiduciary – a person of trust and confidence; as between a principal and broker.

Fixtures – appurtenances attached to land and part of real property unless excepted.

Forms of legal interest:

Fee simple (complete);
Partial – leased fee estate, leasehold estate, air rights, subsurface rights.
 Air right – right of the owner to control the use of the air space above the property subject to
legal restrictions;

Hereditamernts – phrase in early English law to mean all sorts of immovable property
Legal description – a description recognized by law that can be used in official records or documents.
Muniments of title – deeds and other original documents showing a chain of title to prove ownership.

Restrictions on property:

Voluntary lien – easements, private restrictions.

 Involuntary lien – encumbrances imposed by higher authority without owner’s consent; taxes,
special assessments, etc.
Mechanics lien – lien in favor of persons who performed services or furnished materials
 Private restrictions – deed restrictions, easements, leases, mortgages, liens, encroachments,
adverse possession.

Property – all things which are or may be the object of appropriation.

 Real estate (realty) – land and improvements.
 Real property – all rights, interests and privileges related to the ownership of real estate.
 Movable property – property that can be easily transferred; in most cases, personal property.
 Personal property- property that is not real estate, a movable.
 Patrimonial property – property owned by the State in its private capacity.
 Public domain – property for the use of all, such as roads, bridges, rivers, plazas, canals, etc.

Reversion – the right of an owner to recover property previously conveyed by lease or other
form; Reversionary interest – the value of the interest remaining on termination of the
preceding estate. Right of survivorship – right to have the interest of a deceased joint
owner; right in joint tenancy.

Right-of-way – an easement allowing another party or parties to use the land as passage for people,
vehicles, utilities.

Riparian rights – rights of landowners to waters on, under or adjacent to his land.

Stewardship concept - the principle that owners should use their property to promote not only their
self- interest but also the general welfare; the principle allows the State to regulate ownership for
the general welfare.
Inherent powers of the State – police power, eminent domain, taxation.
 Eminent domain – right of the State to take private property for public use upon
payment of just compensation
 Escheat – reversion of private property to the State due to death of the owner who has no
heir.

Technical description – information about a property’s location, boundaries and size.

Types of tenancy
 Tenancy in common – two or more persons with undivided interest, without survivorship,
interest need not be equal.
 Joint tenancy – two or more persons, right of survivorship, equal undivided interests

Types of ownership in real property – Individual, Tenancy, Undivided Interests, Special forms –
condo, coop, time-share.