A-2 Real Estate Interests and Ownership

Question 1

The degree quantity, nature and extent of ownership interest that a person has in real property. It refers to one’s legal position of ownership, not to the amount of property owned.

Answer 1

Estate

Question 2

Property ownership and indeterminate duration. Fee estates (inheritable), and life estates (not inheritable)

Answer 2

Freehold Estates

Question 3

(leasehold) estates, where tenants such as renters possess (occupy) but do not own property.

Answer 3

Less than free hold

Question 4

There are two under this category: Fee simple absolute, and fee simple defeasible

Answer 4

Fee Estates

Question 5

Property is wholly owned, transferable and inheritable. It is the most common and complete form of ownership.

Answer 5

Fee simple absolute

Question 6

Stipulations in the deed that if not adhered to by the grantee, can result in the property reverting tot he original grantor Two forms: Fee determinable, and fee conditional

Answer 6

Fee simple defeasible. (two forms)

Question 7

( usually regarding person… if person x never spends a day in jail) If stipulation is violated, that person’s ownership of the estate is automatically terminated and reverts to the grantor or his/her heirs.

Answer 7

Fee determinable

Question 8

The wording of the deed controls the function of the property and is tied to a specific condition or event. (If condition is violated reversion would require the grantor to initiate a court action)

Answer 8

Fee Conditional

Question 9

Limits heirs to lineal descendants (not in Arizona)

Answer 9

Fee tail

Question 10

Include real and personal property. Ordinary (conventional), and statutory.

Answer 10

Life estates

Question 11

Limited in duration to the life of its owner or to the life of some other designated person.

Answer 11

Ordinary (conventional) Life estate

Question 12

Dower, curtesy, community property, and homestead

Answer 12

Statutory Life Estate

Question 13

Spouses share an equal interest in property acquired during marriage.

Answer 13

Community property

Question 14

Owned an occupied as principal interest, and protects up to 150,000 of property equity. Protects against unforeseen liens, judgments, or bankruptcy, and may prevent the home from being sold out from underneath them.

Answer 14

Homestead

Question 15

a tenant possesses a leasehold estate and the landlord possesses a reversionary fee estate.

Answer 15

Less than freehold estates (leasehold)

Question 16

What are the four types of leasehold estates

Answer 16

1. Estate for years 2. Estate from period to period 3. Estate at will 4. Estate at sufferance

Question 17

Estate for years

Answer 17

Runs for a specific time period

Question 18

Estate from period to period

Answer 18

Runs for an indefinite number of periods (usually 30 day increments)

Question 19

Estate at will

Answer 19

Runs for as long as the lessor and lessee will it. Either party may cancel at will

Question 20

Estate at sufferance

Answer 20

Runs until the landlord takes action. This scenario usually involves a tenant in arrears who refuses to leave.

Question 21

What is required for a valid lease 5 Things:

Answer 21

Lessor’s Signature, the landlord intent to “let and demise”, the time period of occupancy, the consideration (amount for rent), and the landlords right of reversion.

Question 22

Gross Lease

Answer 22

Landlord pays all taxes, assessments and operating costs . (apartments)

Question 23

Net Lease

Answer 23

Landlord keeps all the rent while tenants pay overhead. (generally long term)

Question 24

Percentage leases

Answer 24

Tenants pay a base rent against a percentage of their gross sales. (usually figured monthly)

Question 25

Index and Graduated Leases

Answer 25

Index Leases generally use the consumer or wholesale price index. Graduated Leases start small and grow at fixed intervals.

Question 26

Ground Lease

Answer 26

One person owns the land and another owns the building. Max 99 years.

Question 27

Assignment

Answer 27

the renter (assignor) transfers his or her entire interest and contractual obligation

Question 28

Negative Leasehold

Answer 28

When the contract rent exceeds the economic rent

Question 29

License

Answer 29

Personal permission to perform a particular act on the land or property of another (hunting)

Question 30

What is an Easement & Name two principal classes

Answer 30

Non revocable right which one person has in the land of another. 1. easements appurtenant 2. Easements in Gross

Question 31

Easement Appurtenant

Answer 31

Always involves multiple parcels. The dominant tenement is incapable of existence separate and apart from the particular land to which it is annexed. (Passes with the Land)

Question 32

Involves one parcel of land, for the use of another. Not revocable, and creates an interest in the real estate, where granting a license does not. Only has a servant tenement.

Answer 32

Easement in Gross

Question 33

Easements may be created by:

Answer 33

Express agreement, implication, by necessity, or by prescription

Question 34

Easement created by open, continuous and exclusive use under claim of right for the required statutory period (10 years)

Answer 34

Easement by prescription

Question 35

The mode, manner, quality, and way that ownership of an estate is held by a person, persons, or legal entity

Answer 35

Tenancy

Question 36

An estate held by one person in his own right only

Answer 36

Severalty

Question 37

An estate in fee simple; for life, for years, or at will , and arises by purchase or gran to two or more natural persons. (Survivorship if in the deed, AZ not assumed survivorship)

Answer 37

Joint tenancy

Question 38

Joint tenancy: Unity of time

Answer 38

Estates of the tenants be vested at one and the same time.

Question 39

Joint Tenancy: Unity of Title

Answer 39

Signifies that joint tenants hold their property by one and the same title, while tenants in common may take the property using several titles

Question 40

Joint tenancy: Unity of Interest

Answer 40

This means that equal interest must accrue by one and the same conveyance. (no one can have a greater interest)

Question 41

Joint Tenancy: Unity of Possession

Answer 41

Joint tenants must hold the same undivided possession of the whole and enjoy the same rights until the death of one

Question 42

Ownership of realty by two or more persons, undivided interest which may be voluntarily transferred by alienation, devise, or descent and is not subject to any right of survivorship.

Answer 42

Tenancy in Common

Question 43

Community property

Answer 43

all property acquired by either husband or wife during the marriage

Question 44

community property right of survivorship

Answer 44

No probate after death of spouse. Automatic transfer