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Real Estate > Chapter 2 > Flashcards

Chapter 2 Flashcards

1
Q

Accession

A

The acquisition of a trade fixture by a property owner due to failure to remove by the end of a lease.

Differences between other fixtures: Owned and installed by tenant Removable by tenant prior to lease expiration Not included in the sale or mortgage of real property

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2
Q

Agricultural Fixtures

A
  • An article used in farming operation
  • Not considered a trade fixture
  • Considered real property of owner
  • Not removable by tenant without special written agreement.

Examples: feeding troughs

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3
Q

Uniform Commercial Code (UCC)

A

Security agreement may be filed by creditor.
-normally included in title search

Financed items remain personal property until paid in full, then becomes real property

Creditor may remove items upon default.

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4
Q

Estates in Land definition & the classifications

A

Defined as the degree, quantity, nature and extent of interest one has in a real property.

Two broad classifications:

  • Non Freehold Estates or leasehold estates
  • Freehold Estates
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5
Q

Nonfreehold Estates

A

Estates involving tenant’s right of possession

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6
Q

Four types of leasehold estates

A
  • Estate for years
  • Estate from period to period.
  • Estate at will
  • Estate at sufferance
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7
Q

Define Freehold Estates

A
  • Estates involving rights of ownership.

- Estates of an indeterminable length of ownership (lifetime or forever).

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8
Q

Types of freehold estates

A
  • fee simple estate
  • defeasible fee estate
  • Fee simple determinable.
  • Fee simple subject to a condition subsequent.
  • Pur autre vie estate
  • Conventional life estate
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9
Q

Fee simple absolute

A
  • highest form of ownership
  • no limitation on the ownership as long as it does not violate:
    1. public land use regulations
    2. deed restrictions, or
    3. The rights of others.
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10
Q

Fee simple defeasible

A

Ownership may be lost or defeated

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11
Q

Fee simple determinable

A

requires a certain activity or use to continue

-automatic reversion to grantor or grantor’s heirs.

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12
Q

Fee simple subject to a condition subsequent

A

the owner must not perform some action.

-grantor has right of reentry by court proceeding.

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13
Q

Conventional Life Estate

A
  • Ownership by life tenant terminates upon the death of the life tenant
  • Cannot be willed by life tenant
  • Can have successive life estates
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14
Q

Pur Autre Vie

A
  • ownership by life tenant will terminate upon the death of the measuring life.
  • the measuring life has no ownership rights.
  • Upon death of measuring life, estate will either revert back to original owner (reversionary) or transfer to another named person (Remainderman)
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15
Q

Legal Life Estate

A

one created by a statute rather than common law.

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16
Q

Homestead laws

A

protect the family home (or portion thereof) from most debt judgements.
-NC has a limited exemption (35K with certain exceptions).

17
Q

Marital life estates allowed non-owning spouse a lifetime right to one-third ownership.

  • Replaced by intestate succession laws in NC.
  • Importance of both signatures on contracts/deeds.
A

'’Dower’’ or ‘‘curtsey’’

18
Q

Remainder Interest

A

Grantor names ‘‘remaindermain’’ that will receive title at the end of life estate

19
Q

Reversionary Interest

A

Grantor does not name “remainderman” so title reverts back to grantor or his estate

20
Q

Doctrine of Merger

A

If one person acquires all of the present and future interests in real property, those interests combine into a full fee simple absolute.

21
Q

Ownership of Real Property

A

-a sole, separate and exclusive possession, dominion, or ownership; one’s own right without a joint interest in any other person.

22
Q

Concurrent Ownership

A
  • Tenancy in common
  • Joint tenancy
  • Tenancy by Entirety
23
Q

Tenancy in Common

A
  • Undivided unity of possession
  • Ownership interest does not have to be equal.
  • Each owner owns may encumbre or convey his interest.
  • Survivorship is not possible.
  • Right of partition available
24
Q

Joint Tenancy

A
  • Undivided unity of possession.
  • Ownership interest is usually equal
  • North Carolina law change now allows unequal interest.
  • All joint tenants must purchase at the same time and all must appear on the deed.
  • Survivorship is automatic unless removed.
  • in NC, survivorship must be intentionally added by appropriate wording in title.
25
Q

Tenancy by Entirety

A
  • Undivided unity of possession.
  • Owners must be husband and wife when they obtain property.
  • Ownership interest must be equal.
  • Both must purchaser at the same time and both must appear on the deed.
  • Both must sign deed to convey.
  • Terminated by death, divorce or mutual agreement of spouses.
  • Survivorship is automatic.
26
Q

Condominium Ownership

A

Unit owner holds title to airspace.

  • may have exclusive rights to a limited common elements like balcony or storage unit.
  • Tenancy in common with all unit owners for common areas of complex.
  • North Carolina Condominium Act of 1986
27
Q

North Carolina Condominium Act

A

Developer must

  • file plat map or plan.
  • prepare set of bylaws.
  • provide public offering statement prior to contracting signing.
  • Allow buyer of new unit 7-day rescission period.
  • Resales must provide resale certificate.. no rescission period.
28
Q

Cooperative Ownership

A
  • Title to building and land held by corporation.
  • Purchaser buys stock in corporation.
  • Proprietary lease of unit.
  • Gaining popularity in NC.
29
Q

Townhouse Ownership

A
  • units usually attached horizontally by party walls.
  • sometimes called “row houses”
  • individual owners owns land under unit.
  • Not covered by North Carolina Condominium Act.
30
Q

Timeshare ownership

A
  • Right to occupy a unit during five or more separated time periods over at least five years.
  • Covered by North Carolina Time Share Act.
  • Five-day rescission period on purchases.
  • Monies must stay in escrow account 10 days or until contract is rescinded.
  • Must be actively licensed to sell time-shares.
  • NCREC may fine developer $500 per violation with no maximum fine total.
31
Q

Planned Unit Development

A
  • Method of real estate development
  • Features flexible zoning.
  • Homeowners’ association typically has title to common areas and enforces covenants.
32
Q

Synonyms of personal property

A

Chattel & personalty

Real Estate (4 decks)

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