Tz Real property law THE STUDY OF LAW Lead-in Property law governs the right of use, control and disposition which a person may have over personal property and real property. 1 a What is the difference between personal property and real property? b Which of these is considered real property? a an apartment building ® f farmland & bacp fr g a forest & ¢ railway tracks &. h a business plan T d a large outdoor sculpture Ris. i acar P e a factory 2 Reading 1: Real property law © 4=\-© till, 2 Read the text below and decide whether these ‘statements are true (T) or false (F). 4. Afee simple is an estate of indefinite duration. TF LsjLa. 2 Alife estate can be passed on to the grantée’s nels. (néxtlun) F LS'4 oe 3 A lease grants exclusive possession of real property for a limited term, but does not confer title interest in the property. 4 An oral contract for the purchase of real property is usually valid. F Real ty can be divided into freehold estates’ and leaseholds. proper Freehold estates are those in which an individual has ownership of land for an indefinite period of time. tt is important to note that in property law, the term land refers to real estate (and everything that grows on that real estate), any Jy improvements to the real estate (e.g. buildings) and the right to the minerals underneath the land and the airspace above It. There are generally three types of freehold estate in English-speaking jurisdictions: the fee simple”, the life estate and the estate pur autre vie. A fourth type of freehold estate, the fee tail, is now largely obsolete. The transfer of title in land from one person to another is known as the conveyance. The most complete, unlimited form of freehold estate is the fee simple, which is inheritable and lasts as long as the owner (or any subsequent heirs) wants 9, to keep it. A life estate is one in which the individual retains possession of 7 the land for the duration of his or her life. Although the ownership of a life estate is technically temporary because it ends when the owner dies, it is 2 The term estate refers to a person's interest in real property. It also refers to a deceased person's real and personal property. 2 algo fee simple absolute‘treated a5 complete ownership (fee simple) for the duration of the person's life. The ; estate pur autre vie is similar to the lite estate, but differs in that it is measured ‘by the life of someone other than the grantee (to whom en interest in the real “property is conveyed by a grantor). An example of an estate Pur autre vie would be 42 landowner who wishes to leave property to a charity in her will, but to enjoy tax Savings during her life. She could formally donate the Property but retain possession during her own life (a Ife estate) and specify that she warts someone, e.g. her husband, to be able to remain in the property should he outlive her (estate pur autre vie), In common-law jurisdictions, leasehold interests in land are sometimes classified | | FE Retsonal property, along with tanglble property such as goods and chattels, Leaseholds are property interests of limited duration and ere generally created ‘Through @ lease ~ 2 contract for exclusive possession in retum for which the tenant °) pays the tandiord or landlady a specified rent or compensation, A licence? is like ‘The Statute of Frauds is generally applicable to interests in and, requiring that ‘Instruments such as deeds, real-estate sales Contracts and certain leases be in i writing to_be legally enforceable. true 4 (US) license Key terms 1: Instruments and people in real property law 3 Match the sentence halves to complete these definitions, Instruments 2 A lease is an instrument which grants ‘ba 2 A licence is an instrument which gives € bd 3 A deeds an instrument which transfers c title to @ property from one owner to another. temporary possession of a property without conferring ownership, the right to use property for a certain purpose without conferring either possession or ownership. People 4 A tenant is someone who leases or 4 part or all of a deceased person's estate. rents FO € an interest in real property to another, 3 A landlord is someone who owns & property from a landlord. ‘6 An heiris someone who is entitled & permission to enter another person's property to inherit temporarily, Z A.grantoris someone who conveys, property, and rents it out or leases it to others 8 A grantee is someone who acquires ¢°, for money. 9 A licensee is someone who receives i 4 With a partner, take turns making sentences that instruments, an interest in property from another by deed or other written instrument. combine the people and the Dawns: A tenant signs a lease when he/she rents property from a. landlord. Unit7 Real property law nesLanguage use 1: Forming adjectives with negative prefixes 5 Find two adjectives in Reading 1 with negative prefixes (e.g. un-, in-). 6 Choose the correct prefixes (ib, in-, im-, ir or un-) to complete these sentences. Use your dictionary if necessary. 4. Under the {| legal lease doctrine, a lease of safe andl sanitary premises that violate the local housing code is deemed an\\_legal, and thus a9 enforceable, contract, allowing the tenant to withhold rent but remain in possession. = bach. 2 If the tenant isqable to pay rent when due, but on or before such due date he/she gives the landlord written notice that it is jc. possible for him/her to pay said rent on time and the reasons, ‘the landlord shall attempt to work out a procedure for paying such rent. 3 Freehold usually permits the owner to use the land for a particular purpose, allowed by government and planning laws, for an a_definite or {Rimited period. 4 The term estate at will refers to an estate in which a person folds or occupies property with the permission of the owner, for a term of unspecified colg.certain duration; i. there is no fixed term to the tenancy. Reading 2: Real property investment law Mychajlo is a graduate student of law enrolled in a Master's degree programme in European Law. in a seminar on Eastern European Real Property Law, he has to give a presentation on the real property law of a specific jurisdiction. He has found an Eng| text explaining the real property investment law of his own country, Ukraine, and is considering using it as a source of information. However, since Mychajlo’s native language is not English, he has difficulty understanding the text. 7 Read through the extract from the text on page 75 carefully and match the headings (2-e) with the appropriate sections (1-3). You will not need two of the headings. a Lease right to land b Improvements © Grounds for termination available to the landlord d_ Grounds for termination available to the tenant e Termination 8 Quickly read the extract again..What features do you think might make it difficult to understand? \ecation (freer)‘ease agreements for an indefinite term may be terminated at any time by either party on three calendar months’ notice. Lease agreements fora definite term may be temminaten only ‘n-case of mutual agreement of the parties, or by a court of law. BY ote es The landlord shall have the tight to terminate the lease agreement if: ~ the tenant uses the real property in violation of the agreement or the real property's designation; ~ the tenant transfers the use of the real property to another person without the landlord's prior consent; * the fenant, due to his/her negligence, creates a threat of possible damage to the real property; * the tenant has not commenced any major tepairs of the real property where an obligation to do so was imposed on the tenant. ‘The landlord shall have the right to terminate a leasé agreement and claim the retumn of zeal property if the tenant does not make lease payments for the use of the real property * during thiee consecutive months, In the event the landlord terminates a lease agreement the tease agreement shall be deemed temminated trom the moment the tenant is notified by the landlord of termination, * the landlord transferred the leased real property, and the quality of the leased property contravenes the terms and conditions stipulated by the lease agreement. or the designation of the teal property; 7 the landlord tals o comply with the obligation to make capital 1epais of the real propery, ‘According to Ukrainian law, an agreement on lease of the land shall be terminated in certain cases provided by the law, namely: * compulsory purchase! of the land for public needs and forced alienation of land on the grounds of public necessity under the procedure set by Ukrainian law: + (US) (upon) exercise of the power of eminent domain a TESTO eee ee Unit7 Real property law ri}76 Language use 2: Formal/informal style: synonyms seca een miei wa 5 'e ‘text might be difficult to. understand is the fact that it eee ee and. are not common late eee written: retain possession ofthe lands formalin style, while to keep would:be more infermal. The text in. os following, To terminate is@ formal way of saying ‘to bring to an end’ or ‘to. end’ something, 9 Find more formal words and phrases (highlighted in Reading 2 on page 75) which correspond to these words. 1 agreement before 5 following in order_—_—8 in agreement with 2 begun 6 do what is required 9 legal description 3 common 7 goes against 10 state purchase of privately 4 ended ‘owned property 10 Discuss these questions in small groups. 1 When is it appropriate to use a formal language style in legal matters? What factors does it depend on? 2 In which of the following situations do you think it would be appropriate to use formal language? O When giving a presentation on a legal topic in a seminar © When writing a seminar paper O When speaking to a client (© When writing a letter or email summarising the law to a client Listening 1: Property-law presentation You are going to hear an excerpt from Mychajlo's seminar presentation (see Reading 2). a £74 Under what circumstances are foreigners permitted to buy real property in your jurisdiction? Listen to the excerpt. How does the law in Ukraine ‘compare to the law in your jurisdiction? 12 £7. Listen again and decide whether these sentences are true (T) or false (F). 1 Foreigners are not permitted to buy agricultural land in Ukraine under any circumstances. 2 If @ foreigner inherits farmland, he/she is allowed to retain it for the purpose of conducting business there. 3 Foreign business entities may not acquire buildings or structures on non- agricultural land. 4 Foreigners can acquire land in Ukraine by founding a company.peaking 1: Giving emphasis to important points Listeners can better understand and remember information given in a presentation if the speaker indicates its importance and gives it Sufficient emphasis. 13 In his presentation, Mychajlo makes use of several of these techniques for emphasising important ideas. Which techniques does he use? Read through the audio transcript of his talk (page 132) and underline the examples of each technique. 4. Repetition 2 Rephrasing an idea in different words 3 Using the voice to stress an idea 4 Using sentence openers that point to an important idea 5 Using intensifying adverbs or adjectives 14 Prepare a short presentation about the real property law ina Jurisdiction you are LAW IN PRACTICE . Lead-in Buy-to-let, the practice of buying a property to rent out to tenants as a source of income, is an attractive form of investment for many people. In recent years, EU enlargement and the availability of cheap flights from budget airlines have resulted ina growth in so, called fly-to-let — that is, buying to let in other countries, 15 Discuss these questions in small groups. 2 Would you consider investing in property in a foreign country? 2 What are the uncertainties involved in dealing with foreign markets? 3 What advice would you give someone considering such an investment? Key terms 2: Buying real property 16 Choose the correct word to complete each of these five definitions of terms often used when discussing the purchase of Property. 44 deposit / lien / conveyance is the initial payment you make when buying a house. 2 The tenancy agreement / property transter tax / rental income is the money received from let properties (the money paid by a tenant to a landlord). 3 Ain) mortgage / escrow / easement is an agreement which allows you to borrow money, especially in order to buy a house or apartment, or the amount of money itself. 4 The cadastral register / chain of title / capital appreciation is the increase in the value of an asset. 5 The stamp duty / purchase price / notarial deed is the amount you must pay for an asset. Unit7 Real property law (77 SESS naa 17 Complete this advertisement using the words from Exercise 16. You will not need to use all of them. Buy-to-let in Prague Why Prague? It is estimated that 50,000 new homes need to be finished annually until 2010 to meet the current housing shortage in the Czech Republic. The majority of housing is required in Prague itself, as EU investment continues to-create new jobs. Typical example of a Prague buy-to-let*: be -€50,000 €7,500 (85%) £42,500 Monthly mortgage payment €245 pom 8.49% 20-yr repayment eee -€291 pem @ 7% pa (conservative estimate) Rentas a % of mortgage 118% ~The above figures are illustrations of what might be achieved. The actual figures could be higher, ‘or lowor. With any pr invoctmont, there are rieks: interest rates could rice, property values: and rents could fall. Itis important to consider the risks as well as the potential rewards. cE Ae tt 18 Does buy-to-let in Prague look like a good investment? What could you do to check that the figures quoted above are realistic? Listening 2: Telephone enquiry: buy-to-let Marta Cervera is a Spanish woman who is thinking of investing in a buy-to-let property in Prague. She calls Jana Fialova, a Czech lawyer, to ask about the legal issues involved in such a purchase. 19 4£7.2 Listen to the first part of the conversation and answer these questions. 1 How did Marta Cervera first hear about Jana Fialové? 2 Does Ms Cervera need to form a company to buy @ property in the Czech Republic? 20 4£72 Listen to the first part of the conversation again and choose the correct answers to these questions. 1. What made Ms Cervera consider investing in a buy-to-let in Prague? a She has inherited some money. b She needs to lose some money for tax purposes. © She has received some money from an earlier investment. 2 How does Ms Fialové describe the process of buying property in Prague? a Simple b Complicated © Quick 78= mo normally pays the stamp duty* in the Czech Republic? a The seller ‘b The buyer © There is no stamp duty. 4 How long can incorporation take in the Czech Republic? a Six to eight days b Six to eight weeks © Six to eight months 21 457.3 Listen to the second part of the conversation and tick the terms that Jana Fialové mentions. 1 notarised o 6 liens = 11 completion Oo 2 purchase agreement [] 7 foreclosure C22 easements a 3 gazump oO 8 encumbrances Oo 13 survey Qo 4 escrow QO 9 restrictive covenants [] 14 tenancy agreement [] 5 title Oo 20 planning permission [] 15 boundaries Oo 22 457.3 Listen again and decide whether these sentences are true (I) or false (F). 4. Czech banks generally require a deposit of between 10% and 30% of the Purchase price before they will grant a mortgage. 2 Ms Fialova suggests that some of the purchase price should be kept in a Separate account to be released once all of the conditions of purchase have been met. 3 Czech property developers often incur large debts that they are unable to pay. 4 Buyers of Czech property are not liable for charges against property incurred by previous owners, 5 Restrictive covenants typically give a third party the right to use another 5 person's land, 6 Ms Fialové has the details of Ms Cervera's future tenants. Ft # Key terms 3: Conveyancing 23 Match the conveyancing terms (1~10) with the correct definitions (a4). 1 stamp duty @ A liability or charge on real property 2 notarise A third party interest in real property reserved for specific purposes 3 purchase agreement © Atax on the conveyance of real property 4 escrow d To authenticate a written document 5 chain of title © A promise to do or not to do something with or on real property 6 encumbrance fA legally binding document containing details about rental terms 7 lien Accontract between a buyer and a seller 8 covenant h Money kept by a third party as security until a particular condition 9 easement is completed +10 tenancy agreement? 1 The successive ownerships or transfers of real property 4 Arestriction on the use of real property + also property transfer tax + 2 also rental agreement Unit7 Real property law {79 TSE BE ESRa ha a TS 80 Writing: Follow-up email 24 Write a follow-up email from Jana Fialovaé to Marta Cervera. Include these pointe: Oa suitable greeting © confirmation that you would bo pleased to act for Me Carvera © a summary of the main points discussed O details of the next stages Oa suitable ending Reading 3: Draft tenancy agreement Marta Cervera finds a flat that she would like to buy and makes a successful offer. Jana Fialova's brother then prepares a draft tenancy agreement for Ms Cervera’s approval. 25 Quickly read the first page of the draft agreement and answer these questions. ‘1 What happens at the end of the tenancy period if a further rental agreement has not been signed? 2 What must the landlord do if he/she wishes to evict the tenants following a breach of the agreement during the fixed term? Shorthold tenancy agreement LANDLORD(S): The LANDLORD will provide details of MARTA CERVERA AND ROBIN MCLEVY which scheme is being used to the TENANT i within 14 days of the commencement of the FENANT(S)= tenancy, or as required by law. WELLING? : aS Bouse PRAHA3 This agreement creates aSHORTHOLD aoa ‘TENANCY. The LANDLORD has an absolute The DWELLING HOUSE will be let for a right to recover possession of the property FIXED TERM of 2) ........... months from: __at the expiry of the FIXED TERM, and at any 3) ine» (Commencement date) point thereafter, by following the procedures Fora RENT of CZK 4) _ per week/ as specified by law. If the FIXED TERM ends, and no new tenancy agreement has been month (delete as applicable) payable in advance on 8) .......... of each week/ month (delete as applicable) ‘The LANDLORD agrees to let the DWELLING HOUSE to the TENANT(S) at the RENT payable as set out above for the duration of the FIXED TERM. ‘The DEPOSIT is CZK 6)... and will be protected by a government-authorised signed, a statutory periodic tenancy? is automatically created If the LANDLORD believes that the TENANT has breached any part of this agreement, and wishes to recover possession of the DWELLING HOUSE. prior to the end of the FIXED TERM, the ‘TENANT must first be served with notice in accordance with statute. tenancy deposit protection scheme. + 2 formal legal term used to describe a place where the occupier lives and treats as his/her home 2 This means that the tenancy is governed by law to run for the length of each rental payment period, usually monthly. In the UK, if tenancy is in the statutory periodic tenancy, then the landlord must give ‘two months’ notice to quit if he wishes the tenants to leave. The tenants must give one month's notice (to the end of the next rental period).Listening 3: Telephone enquiry: tenancy agreement Jana Fialova calls Marta Cervera to clarify some of the details of the tenancy agreement. 26 7.4 Listen and complete the agreement on page 80 according to what is decided. Use no more than three words for each space. Text analysis: Telephone enquiries 27 a Look at these types of functional language used in telephone enquiries. Tick the ones that are used in Listenings 2 and 3. Look at the audio transcripts on pages 132-134 if necessary, 1. answering the phone Qo 11 asking the caller to call back later QO 2 offering help Q 42 explaining that the person is unavailable [-] 3 asking to speak to someone Esl 13 leaving 2 message ag 4 asking who's calling Qa 14 taking a message o 5 saying who's calling fe 15 showing interest / showing that you're 6 connecting the caller Q listening oO 7 giving a reason for calling Oo 16 asking for repetition and/or clarification [] 8 greeting Oo 17 clarifying QO 9 asking the caller to wait oO 18 apologising Oo 10 checking that the person who answers 19 ending the call n Oo has time to talk oO 20 referring to future contact Oo b What language is used by the speakers to express each of the functions you have ticked? Underline the expressions in the audio transcripts. 28 Match these examples of common telephone language with the appropriate function (4-20) from Exercise 27a, Some functions are represented several times, others not at all. a | wonder if | could call you again next week? J Would you mind saying that again? b Let me just get a pen. k He can't get to the phone right now, © When can | expect to hear from you? 1 I'm calling in connection with ... d Sorry, | didn't catch that. ™ So that's i, as in igioo? @ Is this a good time? an What can | do for you? f I see. ‘0 It's about ... 8 Can you ask her to call me back? P I'd better read that back to you. h Nice to hear from you again! 'g Would you ming calling back in an hour? I Really? Speaking 2: Using English on the phone 29 When did you last use English on the ‘telephone? Do you ever talk to people over ‘the Internet? How confident do you feel speaking English on the telephone? 30 Do you have any useful tips for speaking English on the telephone? Discuss your ideas with a partner, then compare your list with the one in the answer key (page 149). 31 Work with @ partner. Before you begin your Phone call, sit back to back so that. you cannot see each other. If possible, use a mobile phone and stand at the other side of the room. Student A: Turn to poge 115, ‘Student B: Turn to page 117. Unit7 Real property law — { 81 25S RA BEETlg Language Focus 1 Word formation Complete this table. verb positive adjective negative adjective abstract noun limit limited unlimited. limitation | define definite indehinike oa honden Hecker Gpeciged unspecified | specification inherit inhale -Jed | uninheritable | onhincranes enforce engprtan le. _| Amemfereualcke | enforcement appt ‘applicable Tun dig Decasete | application : Compeki complete Uncempente [completion | 2 Collocations Decide which of the nouns in the box collocate with the adjectives : listed below. Some of the nouns go with more than one adjective. ‘agreement consent estate possession property 1. real estate, eeniaa 2 prior 2 repens cea 4 exclusive © pepe | 3 Formal/informal synonyms Match the verbs (1-7) with their more formal synonyms (2-). 1. go against < a terminate 2 start D b commence 3 keep G ‘© consent 4 agree C d redeem Send a e contravene 6 buy back f renounce 7 give up & g retain 4 Telephoning language Match the two halves of the sentences to form examples of common telephoning language. 1 Good afternoon, i I'm calling about the Milligan case. Can | call you back Y) Hello? Ms Moore? Thanks very much 10 Not at all, I'll speak Can | ask her to call you back? Can you hold? Wintermint and Rainey. to Mr Crisp, please? 2 Hello, can you put me through & later on this afternoon? 3 Certainly. Who shall! -€ ‘as soon as | have any news. Goodbye. 4 I'm sorry, Ms Moore is busy right now. we I'm expecting a call any time now. 5 Ms Moore will be just a few moments. i i say is calling? 6 I'm very sorry, but I'll have to stop you there. \ for your help. 7 8 9 eon teooc® ‘you again ¢. 82