Real Property

1
Real Property
2
Eminent Domain

• Definition The right of the government to take
  possession of private property and appropriate it
  for public use
• Why does government need this right
• Bank One Ballpark

3
Eminent Domain

• Due Process
• Public Good
• Public Use
• Fair Market Value

4
Right of Way

• A right-of-way is a tract of land consisting of a
  series of connected parcels of property used for
  highways, railroad tracks, sewer lines, etc
• Title to land held by person/entity operating the
  right-of-way
• May be obtained by outright purchase or through
  eminent domain

5
Easements

• An easement is a right of a person or entity to
  make lawful and beneficial use of the land of
  another
• Uses are similar to those of a right-of-way
• Usually restricted to one use
• Owner of land may continue to use the property so
  long as it does not interfere with easement use
• Easement holder must maintain the easement

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Easement

• Ways to obtain an easement
• Purchase
• Eminent Domain
• Prescription
• Open use of property for ten years without
  permission

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Mechanics and Materialmens Liens

• Definition A right crated by law that permits
  workers and materials suppliers, who provide
  improvements to real property, to place a claim
  on that land if they are not paid.
• Lienor can force the sale of the property in
  order to get paid
• Apply to private projects only

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Mechanics Liens

• Requirements for a valid lien
• Written contract required only with owner of
  residential property who intends to reside in the
  home
• Twenty day preliminary lien notice
• Record Notice and Claim of Lien
• File lawsuit
• Record Lis Pendens

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Mechanics Liens

• Twenty Day Preliminary Lien Notice
• Lets owner know who potentially may claim a lien
  on the property
• Must substantially comply with form provided in
  statute
• Must serve on owner of property within 20 days of
  first performing work on the project
• May serve it late, but only reaches back 20 days
  from date served

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Mechanics Liens

• Twenty Day Preliminary Lien Notice
• Must state value of services being provided
• Lien good for that amount plus twenty percent
• May serve amended notice increasing amount of
  services
• Payments received are applied to reduce amount
  stated

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Mechanics Liens

• Notice and Claim of Lien
• Actually places lien on project
• Recorded with County Assessors office to let
  potential buyers know lien is on property
• Buyer of property subject to lien

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Mechanics Liens

• Notice and Claim of Lien
• Must be recorded within 120 days of completion
  to be valid
• May file prior to completion
• Must substantially conform to statutory form
• Completion is
• 30 days after final C of O
• or
• Cessation of labor for a period of 60 consecutive
  days

13
Mechanics Liens

• Notice and Claim of Lien
• Owner may record Notice of Completion to shorten
  time in which claimants have to record the Notice
  and Claim of Lien
• If Notice of Completion is recorded, all
  claimants have 60 days after the recording to
  record Notice and Claim of Lien
• Owner must mail by certified or registered to any
  potential lien claimant within 15 days of
  recording the Notice of Completion

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Mechanics Lien

• Filing of Lawsuit
• Lawsuit to foreclose lien must be filed within
  six months of recording Notice and Claim of Lien
  or lien expires
• Must record Lis Pendens within 5 days of filing
  lawsuit

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Mechanics Liens

• Bond in lieu of lien rights
• Owner may avoid lien claims by requiring
  contractor to furnish a payment bond covering the
  project
• Bond avoids liens that are recorded after the
  recordation of the bond
• Amount and form of bond governed by statute

16
Mechanics Lien

• Waiver of Lien Rights
• Provision in contract preventing contractor from
  having lien rights is unenforceable
• Owner may, however, require contractor to waive
  lien rights as to amounts paid

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Mechanics Liens

• Waiver of Lien Rights
• Form of waiver must substantially conform to
  statutory form
• Four types
• Conditional on Progress Payment
• Unconditional on Progress Payment
• Conditional on Final Payment
• Unconditional on Final Payment