PROPERTY LAW (NATIONAL) — CHEAT SHEET

REAL VS. PERSONAL PROPERTY

Fixture Test: MARIA

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Key Distinction: Trade fixtures (commercial equipment) = personal property even if attached Emblements: Annual crops = personal property of tenant (even on landlord's land)

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LEGAL DESCRIPTIONS (TN Uses Metes & Bounds)

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Math: 1 section = 640 acres | ¼ section = 160 acres | 1 acre = 43,560 sq ft

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LAND USE CONTROLS & EASEMENTS

Public Controls (Government)

• Zoning (variance, special use permit, nonconforming use)

• Eminent domain, police power, building codes, escheat

Private Encumbrances

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Lien Priority Order (highest to lowest):

Tax liens (super-priority)

Assessments

Mechanic's liens

Mortgages

Judgment liens

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OWNERSHIP FORMS (Freehold Estates)

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Joint Tenancy 4 Unities: TTIP = Title, Time, Interest, Possession

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DEEDS & TITLE TRANSFER

Valid Deed Requirements

• Competent grantor (legal capacity)

• Identified grantee

• Words of conveyance ("hereby convey")

• Legal description (metes & bounds, lot & block, or survey reference)

• Consideration (not required in TN but best practice)

• Grantor's signature (grantee signature NOT required)

• Delivery and acceptance (in TN: grantor intent to transfer)

Deed Types

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Title Insurance

• Owner's policy: Protects as long as owner has interest (one-time premium)

• Lender's policy: Protects lender only; expires at payoff

Recording: TN uses race-notice rule = first to record wins (if bona fide purchaser)

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PROPERTY VALUE & APPRAISAL

Value Characteristics: DUST

• Demand (desire to own)

• Utility (useful for purpose)

• Scarcity (limited supply)

• Transferability (marketable)

Three Appraisal Approaches

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Factor	Question	Real Property = Yes
Method	How attached?	Attached to land/building
Adaptability	Fitted to property's use?	Specially adapted to property
Relationship	Tenant-landlord context?	Owner benefits (vs. tenant trade fixtures)
Intention	Clear intent to attach?	Permanent attachment
Agreement	Written agreement?	Contract specifies inclusion
Method	Definition	TN Use
Metes & Bounds	Start at POB → direction-distance → closes to POB	Primary in TN; used with recorded surveys
Rectangular Survey	Township (6×6 mi) → Section (1 mi²) → Quarters	Midwest/federal lands; reference only in TN
Lot & Block	Subdivided plat reference	Residential subdivisions; references recorded plat
Type	Characteristics	Duration	Transferable?
Easement	Right to use another's land (appurtenant or in gross)	Permanent unless terminated	Appurtenant: yes; in gross: usually no
License	Revocable permission to enter	Until revoked	No
Covenant	Promise to act/refrain on land (runs with land)	Permanent	Yes, if touches & concerns land
Estate	Inheritance?	Survivorship?	Sale Rule	TN Recognition
Fee Simple Absolute	Yes	N/A	Free; most rights	Yes
Fee Simple Determinable	Conditional; reverts to grantor	No	Limited by condition	Yes
Life Estate	NO — ends at death	No	Cannot convey more than life interest	Yes
Joint Tenancy	NO — goes to survivor	YES (right of survivorship)	Any joint tenant can sever by sale	Yes
Tenancy in Common	YES (unequal shares ok)	NO partition needed	Each owns separate share	Yes
Tenancy by Entirety	Married couples only; survivor takes all	YES	Both must sign to convey; TN recognizes	Yes
Deed	Grantor's Warranty	Best For
General Warranty	Full protection (past + future defects)	Buyer protection (most expensive)
Special Warranty	Grantor's period only	Foreclosures, REO
Quitclaim	No warranties; "whatever I own"	Clearing defects, family transfers
Approach	Formula	Best For
Sales Comparison	Adjusted comp sales	Single-family, typical residential
Cost	Land value + (Depreciated improvements)	New construction, special-use
Income	NOI ÷ Cap Rate	Rental properties, commercial

Depreciation Types (Cost Approach)

• Physical: wear & tear (curable)

• Functional: design flaw (sometimes incurable)

• External: neighborhood decline (always incurable)

CBS Rule for Adjustments: Comparable Better = Subtract; Comparable Worse = Add

GRM (Gross Rent Multiplier): Sale Price ÷ Monthly Rent = GRM → Estimated Value = GRM × Monthly Rent

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CONTRACTS & PURCHASE AGREEMENTS

Valid Contract: CALCO

• Competent parties (legal age, mental capacity)

• Agreement (offer + acceptance)

• Legality (not illegal)

• Consideration (bargained exchange)