6 Interests In Real Estate Flashcards
Feudal System
Kings or governments own land and allow individuals to use it.
Allodial System
People can hold ownership in land.
Freehold Estate
Has an indefinite duration. Can last a lifetime or forever. When owner dies it can pass to heirs or according to the will.
Life Estate
A freehold estate limited to the lifetime of the owner. Not inheritable.
Estate in Land
The degree, quantity, nature and extent of ownership interest that a person has in real property.
Leasehold Estate
This estate has a definite duration. Leasehold transfers right of possession and does not include ownership.
Fee Simple
Highest interest in real estate. Last for indefinite period of time and can be inherited, gifted or sold.
Fee Simple Defeasable
Property conveyed to a new owner with restriction that owner does not perform a certain activity/act or property reverts back to grantor.
Fee Simple Determinable
Conveyed to new owner as long as they continue to use it for a specific purpose. Once property is used for any other purpose, it reverts back to grantor.
Fee Tail Estate
Not recognized in AZ. Bloodline. Whoever is next in bloodline after an owners death is next in line.
Life Estate in Reversion
The owner gives a life estate to a life tenant and when the life tenant dies the property reverts back to the grantor.
Life Estate in Remainder
The owner gives a life estate to a life tenant and when the life tenant dies the property goes to a remainderman who now owns the property.
Life Estate pur autre vie (for the life of another)
The life estate is measured by the lifetime of someone other than the life tenant. When the other person dies, the property reverts back to the original owner or to someone else.
Dower
A woman’s right to a mans estate upon death.
Curtesy
A mans right to a woman’s estate upon her death.
Homestead
A portion of the value of a primary residence is protected from certain creditors during that persons lifetime. This right does not apply to consensual liens, mortgage, deed of trust, or a mechanics lien.
Homestead Exemptions
Bankruptcy does not cancel a homestead. Automatic. You have $150k in exemption that you are protected with. Does not protect from mortgages, deed of trust, mechanics liens, or exceeding homestead exemption max. 200k owed means 50k owed to you after exemption.
PETE
Police Powers
Eminent Domain
Taxation
Escheat
Easement
The right to use the land of another for a particular reason. May not be automatically terminated, legal action may be required.
Appurtenant Easement
2 parcels attached with one being dominant and one being servient.
Easement by Gross
One parcel that is always servient. Utility companies and personal use rights.
Easement by Necessity
1 parcel is landlocked and needs ingress and egress.
Easement by Prescription
Hostile, continuous, notorious and exclusive use for a prescribed period of time. 10 years.
Party Wall Easement
This is wall that shares the property lines of two separate properties.
License
A personal, revocable, and non assignable right that is not considered an interest in the land itself.
Water Rights
2 classifications, ground and surface. Perc test = septic tank.
Prior Appropriation
First in time, first in right. The person who has the permit first get the use the water first.
Riparian Rights
Non navigable waterways, like rivers and streams. An owner would own the land underneath the river to the center of the waterway.
Littoral Rights
Navigable waterways like lakes seas and oceans. An owner owns land up to the high watermark. Owner does not own any land under these types of waterways.
