Comprehensive Study Guide
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Overview
Property ownership on the Florida Real Estate Salesperson Exam covers the various ways individuals and entities can hold title, the types of estates that define ownership duration and conditions, and the rights and limitations attached to real property. Florida has several unique provisions—including homestead protections and tenancy by the entireties—that are heavily tested. Mastering these concepts is essential for both the exam and professional practice.
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Forms of Ownership
Sole Ownership (Ownership in Severalty)
• One person or entity holds title alone
• Corporations, LLCs, and partnerships hold property this way—the entity is the single legal "person"
• Complete control; no co-owner issues
Co-Ownership Forms
#### Joint Tenancy
• Two or more people hold equal, undivided interests
• Right of survivorship: deceased owner's share passes automatically to surviving joint tenant(s), bypassing probate
• Requires the Four Unities (TTIP):
- Time – all owners acquired interest at the same time
- Title – all owners acquired interest via the same deed/instrument
- Interest – all owners hold equal shares
- Possession – all owners have equal rights to possess the whole property
• Any unity broken = joint tenancy converts to tenancy in common
#### Tenancy in Common
• Two or more people hold title; no right of survivorship
• Interests may be unequal
• Each owner can freely transfer, mortgage, or will their share
• Upon death, interest passes through the owner's estate to heirs or devisees
• Only one unity required: Possession
#### Tenancy by the Entireties (Florida-Specific)
• Available exclusively to legally married couples in Florida
• Both spouses treated as one legal entity
• Includes right of survivorship
• Neither spouse can convey their interest alone—both must consent
• Provides protection from individual creditors of just one spouse
#### Comparison Table
| Feature | Joint Tenancy | Tenancy in Common | Tenancy by Entireties |
|---|---|---|---|
| Right of Survivorship | ✅ Yes | ❌ No | ✅ Yes |
| Equal Shares Required | ✅ Yes | ❌ No | ✅ Yes |
| Requires Marriage | ❌ No | ❌ No | ✅ Yes |
| Unities Required | 4 (TTIP) | 1 (Possession) | 4 + Marriage |
| Creditor Protection | Limited | None | Strong (joint debts only) |
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Condominiums & Cooperatives
#### Condominium
• Owner holds fee simple title to their individual unit
• Also holds an undivided interest in common elements (hallways, pools, grounds)
• Governed by a condo association; owner receives a deed
#### Cooperative (Co-op)
• Residents own shares in a corporation that holds title to the entire building
• Residents receive a proprietary lease for their unit—no deed issued
• Must get board approval to transfer shares
> Key Distinction: Condo = you own your unit outright. Co-op = you own stock in a corporation.
Key Terms – Forms of Ownership
• Ownership in Severalty – sole ownership by one person or entity
• Undivided Interest – each co-owner has rights to the whole property, not a specific portion
• Right of Survivorship – automatic transfer of a deceased owner's interest to surviving co-owners
• Proprietary Lease – the occupancy agreement in a cooperative
• Common Elements – shared areas of a condominium complex
⚠️ Watch Out For
• Joint tenancy requires all four TTIP unities—if even one is missing, it defaults to tenancy in common
• Tenancy by the entireties is only for married couples—not available to business partners or unmarried couples
• In a co-op, residents do not receive a deed—this is a frequently tested distinction
• A corporation holding property is ownership in severalty, not co-ownership
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Types of Estates
Freehold Estates
Freehold estates involve ownership of real property for an indefinite duration.
#### Fee Simple Absolute
• The highest and most complete form of real property ownership
• Owner has unlimited rights: use, sell, devise (will), encumber, or exclude others
• No conditions or limitations
• Lasts forever; passes to heirs indefinitely
#### Fee Simple Defeasible
• Fee simple ownership subject to a condition
• If the condition is violated, ownership may be lost
• Two main types:
- Fee Simple Determinable: automatically reverts to grantor if condition is broken ("so long as," "while," "during")
- Fee Simple Subject to Condition Subsequent: grantor must take action to reclaim property if condition is broken ("but if," "provided that," "on condition that")
#### Life Estate
• A freehold estate limited in duration to the life of a specified person
• Life Tenant: person who holds and uses the property during that measuring life
• Pur Autre Vie: life estate measured by the life of a third party, not the life tenant
- Example: "To Bill for the life of Carol"—Bill is the life tenant, Carol is the measuring life
##### Life Tenant's Rights and Restrictions
Life tenant MAY:
• Use and occupy the property
• Lease the property (lease ends when life estate ends)
• Mortgage their interest
• Sell their life estate interest
Life tenant MAY NOT:
• Commit waste (permanently damage or diminish property value)
• Encumber the property beyond their lifetime interest
• Affect the rights of the remainderman or reversioner
##### What Happens When the Life Estate Ends?
• Remainder: property passes to a designated third party (remainderman) named in the original conveyance
• Reversion: property returns to the original grantor or their heirs
Non-Freehold (Leasehold) Estates
(Less heavily tested in ownership section; covered in leasing)
• Estate for years, periodic tenancy, tenancy at will, tenancy at sufferance
Key Terms – Types of Estates
• Fee Simple Absolute – complete, unconditional ownership
• Fee Simple Defeasible – ownership that can be lost upon a condition
• Life Estate – ownership limited to a person's lifetime
• Life Tenant – holder of a life estate
• Pur Autre Vie – life estate measured by another person's life
• Waste – acts by a life tenant that permanently damage the property
• Remainder – future interest going to a third party after a life estate
• Reversion – future interest returning to the grantor after a life estate
⚠️ Watch Out For
• A life tenant can sell their interest, but the buyer only gets what the life tenant had—the interest ends when the measuring life ends
• Pur autre vie is tested: the life estate ends when the measuring life (third party) dies, not the life tenant
• Remainder vs. Reversion: Remainder = third party; Reversion = back to grantor—know this distinction cold
• Fee simple defeasible is not the same as a condition in a contract—it affects title itself
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Property Rights & Interests
The Bundle of Rights
Real property ownership is described as a "bundle of rights", including the right to:
• Use the property
• Exclude others
• Encumber (mortgage) the property
• Dispose of (sell, gift, will) the property
• Enjoy the property
> Rights can be separated and transferred individually (e.g., granting an easement removes part of the exclusion right).
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Easements
An easement is a non-possessory right to use another's land for a specific purpose.
#### Types of Easements
| Type | Description | Runs with Land? |
|---|---|---|
| Easement Appurtenant | Benefits an adjacent parcel (dominant estate); burdens the servient estate | ✅ Yes |
| Easement in Gross | Benefits an individual or entity (e.g., utility company); no dominant estate | ❌ Generally no |
• Dominant Estate: the property that benefits from the easement appurtenant
• Servient Estate: the property that is burdened by the easement
#### How Easements Are Created
• Express grant (written agreement)
• Prescription (adverse use over time—similar to adverse possession)
• Implication (necessary for property access)
• Necessity (landlocked parcel)
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License vs. Easement
• License: personal, revocable, non-transferable permission to use land—creates no interest in the land
• Example: permission to park in a neighbor's driveway
• Easement: a legal interest in the land, generally not revocable
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Encroachment
• Occurs when a structure from one property illegally extends onto an adjacent property without permission
• Example: a fence built 2 feet over the property line
• Resolved by: survey, negotiation, legal action, or acquiring an easement
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Adverse Possession (Florida-Specific)
A legal doctrine allowing someone to gain title through long-term occupation of another's property.
Florida Requirements (7 years):
• Actual use of the land
• Open and notorious (visible, obvious)
• Continuous for 7 years
• Exclusive use
• Hostile (without owner's permission)
• Color of title (defective document suggesting ownership)
• Payment of property taxes during the period
> Memory Aid: AOCEH (Actual, Open, Continuous, Exclusive, Hostile) + 7 years + taxes
Key Terms – Property Rights & Interests
• Bundle of Rights – the collection of legal rights that constitute property ownership
• Easement – non-possessory right to use another's land
• Dominant Estate – property benefiting from an easement appurtenant
• Servient Estate – property burdened by an easement
• Easement in Gross – easement benefiting a person/entity, not a parcel
• Encroachment – illegal extension of a structure onto another's property
• License – revocable, personal permission to use land (not a property interest)
• Adverse Possession – acquiring title through open, continuous, hostile occupation
• Color of Title – a defective document that appears to convey ownership
⚠️ Watch Out For
• An easement appurtenant runs with the land—it transfers automatically when either property is sold
• A license is NOT an easement—it can be revoked at any time and does not transfer
• Florida adverse possession requires 7 years (not 5 or 10)—plus color of title and payment of taxes
• Encroachment is not an easement—it is an illegal intrusion requiring resolution
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Homestead & Florida-Specific Ownership
Florida Homestead Law
Florida's homestead protections are among the strongest in the nation and are a major exam focus.
#### Three Distinct Areas of Homestead Law
| Area | Purpose | Key Provisions |
|---|---|---|
| Tax Exemption | Reduce assessed value for taxes | Up to $50,000 reduction |
| Creditor Protection | Protect home from forced sale | Unlimited value; acreage limits apply |
| Devise Restriction | Limit ability to will the property | Protects spouse and minor children |
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Homestead Tax Exemption
• Reduces assessed value of a primary residence by up to $50,000
- First $25,000 applies to all taxes (including school taxes)
- Second $25,000 applies to non-school taxes only
• Must be the owner's primary residence as of January 1
• Must apply with the county property appraiser
#### Save Our Homes (Amendment 10)
• Caps the annual increase in assessed value of a homesteaded property
• Cap = 3% OR the Consumer Price Index (CPI), whichever is lower
• Protects homeowners from rapid increases in property taxes due to rising market values
• Benefit can be "ported" (transferred) to a new homestead in Florida
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Homestead Creditor Protection
• Protects the home from forced sale by most creditors
• Acreage limits:
- Up to ½ acre within a municipality
- Up to 160 contiguous acres outside a municipality
• NOT protected from: mortgages, property taxes, mechanics' liens, and HOA liens
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Homestead Devise Restrictions
• A Florida homestead owner cannot freely devise (will) the property if they have a:
- Surviving spouse, OR
- Minor children
• If there is a surviving spouse (no minor children):
- Spouse may receive a life estate (with remainder to lineal descendants), or
- Spouse may elect to take a 50% undivided fee simple interest
• Purpose: protect the family from being left without a home
Key Terms – Homestead & Florida-Specific
• Homestead Exemption – tax reduction of up to $50,000 on a primary residence
• Save Our Homes – cap on annual assessed value increases (3% or CPI, whichever is lower)
• Portability – ability to transfer the Save Our Homes benefit to a new homestead
• Devise Restriction – limitation on a homestead owner's right to will the property
• Creditor Protection – homestead immunity from forced sale by most creditors
⚠️ Watch Out For
• The $50,000 exemption applies only to assessed value, not market value
• Save Our Homes caps increases in assessed value, not market value
• Homestead creditor protection has acreage limits—memorize ½ acre (in city) vs. 160 acres (outside city)
• Homestead devise restrictions only apply when there is a surviving spouse or minor children
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Title & Transfers of Ownership
Real Property vs. Personal Property
• Real Property: land and anything permanently attached (buildings, fixtures, fences, trees)
• Personal Property (Personalty): movable items not permanently affixed to land (furniture, cars, appliances that are unattached)
#### Fixtures – The Personal-to-Real Conversion
A fixture is personal property that has become real property through attachment.
Florida's Test for Fixtures – Three-Part Analysis:
1. Intent of the party who installed it (primary factor in Florida)
2. Method of Annexation – how permanently it is attached
3. Adaptation – how well it fits the property's use
> Trade Fixtures Exception: Business equipment installed by a tenant remains personal property and may be removed before lease expiration—even if permanently attached.
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Escheat
• When a person dies intestate (without a will) and no legal heirs can be found, their property reverts to the State of Florida
• Purpose: ensures property always has an owner
• Rarely occurs in practice due to extensive heir-searching
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Color of Title
• A document (like a defective deed) that appears to transfer ownership but is legally insufficient to pass valid title
• Relevant in adverse possession claims in Florida—required along with payment of taxes to claim title after 7 years
Key Terms – Title & Transfers
• Real Property – land and permanently attached improvements
• Personal Property – movable items; not permanently affixed
• Fixture – personal property that has become real property through attachment
• Trade Fixture – business equipment installed by a tenant; remains personal property
• Escheat – reversion of property to the state when no heirs exist
• Intestate – dying without a valid will
• Color of Title – a defective document that appears to grant ownership
• Annexation – the act of attaching personal property to real property
⚠️ Watch Out For
• In Florida, intent is the primary test for fixtures—not just physical attachment
• Trade fixtures are a major exception—they remain personal property even when bolted to the floor
• Escheat only occurs when there is no will AND no heirs—it is a last resort
• Color of title is a requirement for Florida adverse possession—not just open/hostile use
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Quick Review Checklist
Use this checklist to confirm you are exam-