Chapter 10 - Interest in Real Estate Flashcards
Chapter 10 Objectives
1) Summarize the four government powers in real estate, and provide at least one example of each.
2) Describe at least three types of freehold estates in detail.
3) Define a homestead.
4) Define an easement and provide at least three examples of an easement.
5) Define a lien and provide at least four examples of a lien.
6) Explain the difference between riparian and littoral rights.
Police Power
The right of any political body to enact laws and enforce them, for the order, safety, health, morals and general welfare of the public.
There is no federal police power and only exists at the state level
Eminent Domain
A right of the government to acquire property for necessary public use by condemnation; the owner must be fairly compensated.
Land cannot be condemned for private use (only public) The power to the land by the government, the action of this is condemnation. The result, is eminent domain
Ex: Roadway being widened, airports, parks, utility services. The landowner must be informed of the landowner bill of rights
Condemnation
Taking private property for public use, with fair compensation to the owner; exercising the right of eminent domain. (The action to create eminent domain)
Usually includes disputes of appraisal of land being taken (payment usually includes the appraised value of land and damages to the property)
Escheat
The reversion of the State of property in event the owner thereof abandons it or dies, without leaving a will and has no distributes to whom the property may pass by lawful descent (by default the state becomes owner)
Feudal Ownership System
where the king owned all of the land
Allodial Ownership System
US land is held under this system - owned by individual citizens. Subject to the powers and rights held by the government
The 4 Government Powers of Ownership (PETE)
Police Power
Eminent Domain
Taxation
Escheat
Taxation
property taxes - to raise revenues to meet the public needs of the government
Freehold Estate
An estate of indeterminable duration, e.g., fee simple or life estate.
Fee Simple Estate (complete and total ownership)
Absolute ownership of real property; a person has this type of estate where the person is entitled to the entire property with unconditional power of disposition during the person’s life and descending to the person’s heirs or distributees. (The highest type of interest that is recognized by law)
Fee Simple Absolute
An inheritable estate in land providing the greatest interest of any form of title.
Fee Simple Determinable
An estate that will end automatically when the stated event or condition occurs. The interest will revert to the grantor or the heirs of the grantor.
Ex: owner wants to donate land to church and that it must be used for religious purposes - the ownership would then be contingent on this purpose
Remainderman
A person who inherits or is entitled to inherit property upon the termination of the estate of the former owner.
Life Estate
A freehold estate created for the duration of the life or lives of certain named persons; a non-inheritable estate.
Life Tenant
The owner of a life estate. Full enjoyment of ownership for duration of life - when they die, it ends.
Estate in Reversion
Property or estate ownership that reverts back to the grantor after a temporary ownership period.
Estate in Remainder
An estate which vests after the termination of the prior estate.
Reversionary Interest
The interest which a person has in lands or other property, upon the termination of the preceding estate. A future interest.
Devisor
One who disposes of real property by will.
Devisee
One who receives a gift of real property by will.
Two Categories of Estates and Land
1) Freehold Estates
2) Leasehold Estates
Defeasible Fee Estate
fee simple interest that may be defeated in a specified event
1) Determinable Fee
2) Fee Simple subject to a condition subsequent - the grantor must go to court to assert the right of entry
Fee Simple Subject to a Condition Subsequent
similar to determinable, but it does not automatically end and revert back to previous owner when a condition occurs (it instead has to go to court)
Per Ultra V Life Estate (For the life of another)
created when the grantor conveys the prop to a life tenant based on the life of another. Ends when the death of that other occurs (often created for a physically or mentally impaired person)
Homestead
A legal life estate in land that is owned and occupied as a family home.
Texas Homestead Law
to protect a family against eviction by creditors and to protect spouses by requiring that both husband and wife both convey the deed and sign
- Must intend to occupy the homestead as their home
- must own or lease the property
family obtains 6 months after the event of sale in order to acquired another homestead (before creditors)
can be terminated by:
- death
- selling the property
- abandoned (the discontinuance of use or property with the intention not use it)
Limitations to a Homestead
- 10 acres in urban areas
- 200 acres in rural areas (100 for single)
Homestead Protection Exemptions
- taxes owed on the property
- mortgages on the property
- liens
- homeowner association liens
owelty loan - one spouse maintains possession and the divorced can retain their portion through this loan
Encumbrance
A claim, charge, or liability that attaches to, and is binding on real estate. A right or interest held by someone that does not own the property
1) Liens
2) Easements
Restriction
A limitation on the use of real property.
Lien
A claim against a property that provides security for the repayment of a debt or an obligation of the property owner (mortgage, property as collateral)
Easement
A right acquired by one party to use the land of another party for a special purpose. (can also be in the air)
Easement Appurtenance
A right of use in the adjoining land of another that moves with the title to the property benefiting from the easement. (Two parties: Servient and Dominant)