Different Interests in Real Estate
Many people have entered into a lease agreement at some point or another during their lifetimes. A lease provides a tenant with the exclusive possession of real estate while the landlord retains ownership of the property. However, there are a number of different interests in real estate that confer less rights than a lease. Depending on the relationship between the parties, it might make sense to negotiate one of many different interests in real estate rather than entering into a lease agreement.
Leases
The most common of the different interests in real estate is a lease. As many people already know, a lease is an agreement between a landlord and tenant through which a landlord provides the tenant with the exclusive use of a property. A lease can be assignable to others, subject to conditions that may be negotiated between landlords and tenants in lease agreements. In addition, leases are often subject to special protections, making it somewhat difficult to terminate a lease and evict a tenant.
Leases generally involve a more comprehensive relationship between landlords and tenants. For instance, leases are oftentimes the longest of the different interests in real estate, and it is not uncommon for leases to last for years into the future. In addition, leases also have a number of provisions in the lease agreement than govern the relationship between the landlord and tenant, since the landlord is granting the tenant exclusive rights to a property. If parties wish to engage in a longer real property arrangement, and convey an exclusive ability to use a piece of real property, a lease is usually the best real estate intertest to consider.
Easements
An easement is a non-possessory interest in the land of another. Rather than own or have possession to a piece of property, the beneficiary of an easement merely has the right to use someone else’s property for a specified purpose. For instance, if an individual owns a piece of property that is not connected to a public road, that owner may have an easement by necessity to use another person’s property so that they may travel to and from their parcel. An easement is often transferable, so if a prior property owner had an easement, they can convey this easement to subsequent property owners, subject to a number of conditions.
There are a few different ways to acquire an easement over another person’s property. One of the most clear ways to acquire an easement is to expressly agree to the grant of an easement. In addition, if an individual needs an easement to travel to and from their property, they may claim an easement by necessity. Easements can also be implied by prior use of the land. Furthermore, if you use another person’s property over an extended period of time, and meet other conditions, you can also claim an easement. For instance, if you back into a neighbor’s driveway to get in and out of your garage, and you do this for an extended period of time, you may be able to claim an easement and prevent the other owner from stopping you from continuing this practice. An easement is a powerful interest in real estate, and if you think easements apply to your situation, it often pays to talk with an experienced attorney who can research your issue.
Licenses
A license is another one of the different interests in real estate. Whereas a lease gives a tenant exclusive ownership over real estate, a license merely provides a licensee the right to act upon property. Although leases may have restrictions, leases typically allow tenants to conduct different kinds of acts on the property that they lease. A license on the other hand is more restrictive.
Licenses also can generally be revoked at any time without the same procedures needed to evict a tenant who has entered into a lease. Furthermore, licenses generally operate for less time than leases. In addition, licenses are usually non-transferable and only apply between the parties who negotiated the license. If someone is seeking less commitments with respect to real estate, it might actually be better to negotiate a license rather than enter into a more involved lease agreement.
Encumbrances
It should also be mentioned that along with the different interests in real estate discussed above, individuals may have an interest in property that encumbers that real estate. For instance, mortgages, liens, and other encumbrances may have an impact on how a piece of real estate is used or conveyed. Furthermore, covenants or equitable servitudes may also restrict a property owner’s actions with respect to property as well. These involve requirements that a landowner perform or refrain from performing certain acts with respect to the property.
Generally, landowners need to be aware of encumbrances for them to apply to real estate. However, notice can be established explicitly, implicitly, or by recording such encumbrances in the county clerk’s office. Given the complexities of encumbrances, and the impact that encumbrances can have on real estate, it pays to speak with a skilled attorney when dealing with encumbered property.
The Rothman Law Firm has substantial experience with all aspects of real estate law, and we have negotiated thousands of leases and other different interests in real estate. If you are looking for an experienced New York and New Jersey real estate lawyer to handle your legal issue, please feel free to contact The Rothman Law Firm to request a free consultation.