Question

Why are legal foundations important in valuing real estate?

List and briefly explain the four types of ownership estates in use today.

List and describe the four types of leasehold estates.

List and describe the three types of easements.

Answer 1

Why are legal foundations important in valuing real estate?
The legal foundations are quite vital in valuing real estate as these legalities help in defining the purpose and use of real estate accordingly. These legal foundations help in decisions of financing, sales, investment and government tax policy etc.The legal foundations are intended to set laws that govern the types of different ownership and real estate.

List and briefly explain the four types of ownership estates in use today.
1)Sole ownership- This type of ownership is solely by one person. A single person/ corporation holds interest in a particular property.
2)Tenancy in common- By 2 or more persons who own undivided interest. It is a unique type of joint ownership where interests can be owned in different percentages.
3) Joint Tenancy- Type of ownership where two or more persons hold equal undivided interests, but 4 conditions are necessary.i) Each property holder have the same interest. ii) Each owner of that property receives the interest under the same deed. iii) All get interest at the same time and lastly Everyone have equal undivided interest.
4) Tenancy by entirety- Type of ownership commonly between two parties. By the entirety means that decisions about sale of the property can't be taken individually.

List and describe the four types of leasehold estates
Leasehold estates works on the legal foundation that a lessee gets ownership of a certain for a specific point of time.
Types of leasehold estates
1)Tenancy at will- a non written agreement commonly called as estate at will that can be ended either by lessee or the owner at will.
2) Tenancy at sufferance- In this type, the lease given has a specific period. However, the term of the lease weighs heavily on landlord's decision. H/she may prolonged the period or end it.
3) Tenancy for Years- As the name suggests this type represents the leasehold agreement that can for several years and that has a fixed term. A written agreement is generally made as this leasehold agreement may set for long term.
4) Periodic tenancy- In this type, the time period is generally short. It can even run from month to month or week to week basis. This agreement can be cancelled anytime by the landlord with prior notice to lessee.

List and describe the three types of easements
Easement- A legal stance to use a certain property for specific uses
1) Public Easement- This type of easement allows the use of property for public use. Example: Giving up extra space for public parking, or for community centre etc
2) Easement by Necessity- This type arises out of necessity to use others property for specific purposes. Example: Crossing neighbour's property on the way to your property.
3) Prescriptive Easement- this type occurs when someone make use of others property without their consent. Understood under the legal principle of adverse possession, state laws decides the time frame to gather the easement.