Chapter 2 - Property, Estates, & Ownership Flashcards
Chap 2 Vocab
Absolute Auction
An auction where the property is sold to the highest qualified bidder; there is no minimum bid or reserve or right of confirmation. Also called Without Reserve.
Acknowledgment
Recognition of validity; a document signer’s declaration to an authorized official (usually a notary public) that he is signing voluntarily. (1) A signed statement, made before a notary public, by a named person confirming the signature on a document and that it was made of free will. (2) A formal declaration to a public official (notary) by a person who has signed an instrument which states that the signing was voluntary.
Actual Notice
Actual knowledge of a fact, rather than knowledge imputed or inferred by law.
Constructive Notice
Knowledge of a fact imputed to a person by law. A person is held to have constructive notice of something when he or she should have known it, even if he or she did not know it. Everyone is considered to have constructive notice of the contents of recorded documents since everyone is expected to protect their interests by searching the public record. – Notice given by recording a document or taking physical possession of the property.
Concurrent ownership
When property is owned by two or more persons or entities at the same time.
Also known as co-ownership.
Bundle of Rights
All real property rights that are conferred with ownership, including the right of possession, right of quiet enjoyment, right of disposition, right of exclusion, right of control. Also called Bundle of Sticks.
An ownership concept describing all the legal rights that attach to the ownership of real property.
Air Rights
The right to undisturbed use and control of the airspace over a parcel of land (within reasonable limits for air travel); may be transferred separately from the land.
airspace
The interior area which an apartment, office or condominium occupies. Airspace is considered real property to a reasonable height. For example, an owner or developer of condominiums may sell the airspace as real property.
Avulsion
A natural process in which land is removed from one person’s property and deposited onto another’s. Avulsion happens very suddenly, as in a flash flood.
defined channel
Any natural watercourse, even if it is dry during a good portion of the year.
Appropriative Rights
Water rights allocated by government permit, according to an appropriation system. It is not necessary to own property beside the body of water in order to apply for an appropriation permit.
Appurtenance/Appurtenant
A right that goes along with ownership of real property; usually transferred with the property but may be sold separately. Anything used with the land for its benefit.
items transfer with the land when property is sold.
Appropriation
The right to use water for a beneficial use by diverting surface water.
As of Right Zoning
Refers to the landowner’s bundle of rights associated with a property; prohibits discrimination among landowners in a particular area.
Bill of Sale
A document used to transfer ownership of personal property from one person to another.
Chattel
Personal property.
This term is sometimes used in law to describe any interest in real or personal property other than a freehold.
Chattel Mortgage
A loan that uses only personal property as security.
chattel real
An item of personal property which is connected to real estate; for example, a lease.
Community Property
In some states, property acquired during marriage that is owned jointly by the married couple.
All property acquired by spouses during a valid marriage (excluding certain separate property).
Community property with right of survivorship
A law allowing spouses to hold title to their property.
doctrine of correlative
rights - Owner may use only a reasonable amount of the total underground water supply for his or her beneficial use.
Double Net Lease
A lease in which the tenant pays two of the expenses associated with property ownership, in addition to paying the rent. Also called Net-Net.
Emblement
A crop that is planted and cultivated through someone’s labor and industry that are cultivated annually for sale.
Considered to be personal property.
Also called Fructus Industriales.
Doctrine of Emblements
A rule that allows a tenant farmer to re-enter the land to harvest crops that were planted by the tenant farmer even after the land has been sold to a new owner.
Estate
A possessory interest in real property; either a freehold estate or a leasehold estate. Also called Tenement or Hereditament. – (1) The ownership interest or claim a person has in real property. (2) A legal interest in land; defines the nature, degree, extent and duration of a person’s ownership in land.
Estate at Sufferance
Retention of possession without the consent of the landlord after the lease has expired. Also called Tenancy at Sufferance. – A tenancy created when one is in wrongful possession of real estate even though the original possession may have been legal.
Estate at Will
An occupation of space, for an indefinite period, which can be terminated by either the lessor or lessee at any time. Also called Tenancy at Will. - The tenancy that may be ended by the unilateral decision of either party. There is no agreed upon termination date, and either party must give 30-days notice before ending the tenancy.
estate for life
A possessory, freehold estate in land held by a person only for the duration of his or her life or the life or lives of another.
Estate for Years
A leasehold estate set to last for a definite period (e.g., one week, three years), after which it automatically terminates. Also called Term Tenancy. – (1) A leasehold estate with a definite end date that must be renegotiated. (2) Commonly used for commercial leases.
Estate from Period to Period
A leasehold, which is automatically renewed for the same term as in the original lease; notice needed to terminate. Also called Periodic Tenancy, or Estate from Period to Period or Month-to-Month Rental. – (1) A leasehold estate that is automatically renewed for the same term; a conveyance for an indefinite period of time. This does not need to be renegotiated upon each renewal. (2) Commonly a month-to-month rental.
Estate in Fee
The maximum possible estate one can possess in real property. Also called Fee Simple or Fee Simple Absolute. – (1) The most complete form of ownership of real property. (2) A freehold estate that can be passed by descent or by will after the owner’s death. (3) Also known as estate of inheritance or fee simple estate.
estate of inheritance
(1) An estate which may descend to heirs. (2) Also known as perpetual estate.
fee simple
The greatest possible interest a person can have in real estate.
Fee Simple Absolute
The greatest estate (ownership) one can have in real property because it is freely transferable and inheritable, and of indefinite duration, with no conditions on the title. Also called Fee, Fee Simple, or Fee Title.– (1) The largest, most complete ownership recognized by law. (2) An estate in fee with no restrictions on its use. (3) Property transferred or sold with no conditions or limitations on its use.
fee simple defeasible
Also known as fee simple qualified.
Fee Simple Determinable
A defeasible fee that terminates automatically if certain conditions occur. The grantor (or his or her heirs) has a possibility of reverter. Also called Determinable Fee.
fee simple estate
The most complete form of ownership.
fee simple qualified
(1) An estate in which the holder has a fee simple title, subject to return to the grantor if a specified condition occurs. (2) Also known as fee simple defeasible.
Fee Simple Subject to a Condition Precedent
A condition in which the grantor retains title to the estate until a specific condition occurs.
Fee Simple Subject to a Condition Subsequent
A defeasible fee that the grantor may terminate if conditions stated in the deed are not met. The grantor (or his or her heirs) has a right of re-entry.
Fixture
A man-made attachment; an item of personal property that has been attached to or closely associated with real property in such a way that it has legally become part of the real property.
Floodplain
Land that is or has been covered by the 100-year flood, which is one that has a 1% chance of occurring in any given year. – Low land adjacent to a river, lake or ocean.
Floodwater
Water that overflows a defined channel.
Freehold
The full use of real estate for an indeterminate time. It differs from leasehold, which allows possession for a limited time.
Freehold Estate
A possessory interest in real property of uncertain (and often unlimited) duration; an ownership estate in real property; either a fee simple or life estate. The holder of a freehold estate has title. – An estate in real property which continues for an indefinite period of time.
fructus industrials
Crops produced by human labor such as lettuce and grapes.
Fructus Naturales
Naturally occurring plants (“fruits of nature”) generally considered part of real property. Also called Natural Attachments. – Naturally occurring plant growth such as grasses.
General Partnership
A partnership in which each member has an equal right to manage the business, share in the profits, and carry equal responsibility for the partnership’s debts.
Graduated Lease
A lease under which rental increases are made at scheduled intervals for specific amounts.
Group Home
A residential property where a small number of unrelated people in need of care, support, or supervision can live together.
Holdover Tenant
A lessee who remains in possession of property after the lease has expired; a tenant who refuses to surrender possession of property at the tenancy’s end.
intestate succession
When a person inherits property as a result of someone dying without a will.
Joint Tenancy
A form of co-ownership in which the co-owners have equal undivided interests and the right of survivorship. Requires the unities of time, title, interest, and possession.
Land
The surface of the earth, and everything under the ground to the center of the earth, and the airspace above as far as can reasonably be used. – Includes airspace, surface rights, mineral rights, and water rights.
Land Lease
A lease under which the tenant leases the land from the owner, but the tenant owns the building. Also called Ground Lease.
Lease
- Conveyance of a leasehold estate from the fee owner to a tenant. 2. A contract for which one party pays the other rent in exchange for possession of real estate. – (1) A contract between owner, (lessor or landlord) and a lessee (tenant) which gives the tenant a tenancy. (2) Also known as a rental agreement. (3) A contract between an owner and tenant. (4) A movable document describing the temporary possession and use of the property.
Leased Fee Estate
The owner’s interest in a leased estate, which is reversionary in that possession reverts to the landlord (lessor) when the lease ends. – The interest of the lessor in property.
Leasehold
(1) An agreement, written or unwritten, transferring the right to exclusive possession and use of real estate for a definite period of time. (2) Also known as a rental agreement or lease.
Leasehold Estate
The temporary interest that an owner gives to a tenant (lessee) that includes the right of possession and quiet enjoyment, without title. Also called Less-Than-Freehold Estate. – A tenant’s right to occupy real estate during the term of the lease. This is personal property interest.
Lessee
A person who leases property. Also called Tenant. – (1) Tenant. (2) The one to whom property is rented or leased.
Lessor
A person who leases property to another. Also called Landlord. – (1) Landlord. (2) Property owner. (3) The person who owns the property and signs the lease to give possession and use to the tenant.
less-than-freehold estate
(1) The lessee’s interest. (2) An estate owned by a tenant who rents real property. (3) Also known as a leasehold estate. Personal Property.
Life Estate
An interest in real property, the duration of which is limited by the life of its owner or another designated person. – An estate that is limited in duration to the life of its owner or the life of another designated person.
Life Estate Pur Autre Vie
A life estate “for another’s life,” where the measuring life is someone other than the life tenant.
Life Tenant
Someone who owns a life estate; the person entitled to possession of the property during the measuring life.
Littoral Rights
Water rights of landowners whose land touches a commercial lake, sea, or ocean. – Land bordering a lake, ocean or sea as opposed to land bordering a stream or river (running water). (Pronounced lit-to-ral)
MARIA
The mnemonic for the five tests of a fixture: Method of attachment, Adaptation, Relationship of the parties, Intention, and Agreement of the parties.
Marital Property
Property acquired by either a spouse or a legal partner during the course of a marriage or civil union.
Measuring Life
A person whose life determines the length of a life estate.
Mineral Rights
Rights to the minerals located beneath the surface of the land. – The legal interest in the valuable items found below the surface of a property (i.e., gold and coal).
Minerals
Land elements found beneath the ground such as gold and coal and owned as real property. Fugitive substances that are not solid such as oil or gas must be taken from the ground. Once these elements are taken from the ground, they become the personal property of whoever removed them.
Month–to–Month Tenancy
A lease that has a term of one month but renewable for successive months at the option of both parties. – A tenant rents property for a month at a time, under a periodic tenancy that continues for successive months until terminated by proper notice.
mutual water company
A water company organized by or for water users in a given district with the object of securing an ample water supply at a reasonable rate; stock is issued to users.
Nonmarital Property
Any property that was owned prior to the marriage or civil union or that was given or devised by will only to one spouse or legal partner during the term of the marriage or civil union.
Notary Public
A person with the authority to take oaths and acknowledgments. A licensed public officer who takes or witnesses the acknowledgement.
Notice to Quit
A landlord’s notice to a tenant, demanding that he vacate the leased property. Also called Notice to Vacate.
Overage Rent
The amount above the base rent that a tenant owes according to the terms of a percentage lease. Also called Percentage Rent.
Owner’s Policy
A type of title insurance issued in the name of the property owner. Coverage runs from the time of purchase for as long as the policyholder owns the property.
Ownership
(1) The right of one or more persons to possess and use property to the exclusion of all others. (2) A collection of rights to the use and enjoyment of property.
Ownership in Severalty
Ownership by a single individual person or legal entity, as opposed to co-ownership. Also called Sole Ownership or Separate Property.
P.O.C. (Paid Outside of Closing)
Any expenses associated with a real estate transaction that are paid outside of closing. Such payments should be noted on a settlement statement.
paramount title
Title which is superior or foremost to all others.
partition action
A court action to divide a property held by co-owners.
Partition, Judicial
A court action to divide real property among its co-owners, so that each owns part of it in severalty, or (if it’s not practical to physically divide the property) each gets a share of the sale proceeds.
Partition, Voluntary
When co-owners agree to terminate their co-ownership, dividing the property so each owns a piece of the property in severalty.
Periodic Tenancy
A leasehold estate that continues for successive periods of equal length (such as from week to week or month to month), until terminated by proper notice from either party. Also called Periodic Estate, Estate from Year to Year, or Period-to-Period Tenancy.
Personal Property
Tangible items that (usually) are not permanently attached to or part of real estate; any property that is not real property; movable property not affixed to land. Also called Chattel or Personalty. Anything movable that is not real property.
prima facie
Latin meaning first sight, a fact presumed to be true until disproved.
pur autre vie
(1) For another’s life. (2) A life estate created on the life of a designated person.
Quiet Enjoyment
The right of an owner or lessee legally in possession of property to uninterrupted use of the property without interference from the former owner, lessor, or any third party claiming superior title.
Real Estate
The actual physical land and everything, both natural and man-made, that is attached (or appurtenant) to it. Land and whatever physical property is on it, including buildings and structures. Current usage makes the term real estate synonymous with real property.
Real Estate Settlement Procedures Act (RESPA)
Federal law dealing with real estate closings that provides specific procedures and guidelines for the disclosure of settlement costs. Implemented by Regulation X, which is under the oversight of the Consumer Financial Protection Bureau.
Real Property
The physical land and everything attached to it, and the rights of ownership (bundle of rights) in the real estate. Also called Realty. Land (air, surface, mineral, water rights), appurtenances and anything attached, and immovable by law. Also included in real property are the interests, benefits and rights inherent in owning real estate, i.e., the bundle of rights. Current usage makes the term real property synonymous with real estate.
Recording
The process of placing a document on file with a designated public official for public notice. This public official is usually a county officer known as the County Recorder who designates the fact that a document has been presented for recording by placing a recording stamp upon it indicating the time of day and the date when it was officially placed on file.
Recording Fees
Charges for filing documents at the county recorder’s office so that they become part of the public record.
Remainder
A future interest that becomes possessory when a life estate terminates, and that someone other than the grantor of the life estate holds.
Remainderman
A person, other than the grantor, who has a future interest in the fee estate when a life estate ends. A remainder interest is inheritable.
Right of Survivorship
A characteristic of statutory survivorship tenancy, joint tenancy, and tenancy by the entirety; surviving co-tenants automatically acquire a deceased co-tenant’s interest in the property. (1)The right of a surviving tenant or tenants to succeed to the entire interest of the deceased tenant. (2) The distinguishing feature of a joint tenancy.
Riparian Rights
Water rights of landowners whose land touches a natural body of water, such as a stream, a river, or an inland lake. The rights of a landowner whose land is next to a natural watercourse to reasonable use of whatever water flows past the property.
Roundtable Closing
A settlement procedure conducted with all parties present.
Rule of Capture
A legal principle that grants a landowner the right to all oil and gas produced by wells on his or her land, even if it migrated from underneath land belonging to another.
Runs with the Land
Rights, conditions, or restrictions that are associated with the property as opposed to the individual who owns the property. They pass from owner to owner when the land is conveyed; an appurtenance.
Seizin
The possession of a freehold estate; ownership. Also spelled Seisin or Seizen.
separate property
Property owned by a married person in his or her own right outside of the community interest, including property acquired by the spouse (1) before marriage, (2) by gift or inheritance, (3) from rents and profits on separate property, and (4) with the proceeds from other separate property.
Severalty
Ownership Ownership by one person.
Severance
A process through which fixtures are detached from the land and so revert back to personal property.
Tenancy
(1) The interest of a person holding property by any right or title. (2) A mode or method of ownership or holding title to property.
Tenancy at Sufferance
Possession of property by a tenant who once had a valid lease but stays on after the lease expires without the landlord’s permission. Also called Estate at Sufferance.
Tenancy at Will
When a tenant is in possession with the owner’s permission, but with no definite lease term and no rent being paid (or rent is not paid on a regular basis); e.g., a landlord lets a holdover tenant remain on the premises without paying rent until the landlord finds a new tenant. Also called Estate at Will.
Tenancy by Entirety
A form of property co-ownership by legally married spouses, in which each spouse has an undivided one-half interest without the other’s consent. Not recognized in all states.
Tenancy from Period to Period
A leasehold that is automatically renewed for the same term as in the original lease; notice needed to terminate. Also called Periodic Tenancy or Estate from Year to Year.
Tenancy in Common
A form of co-ownership in which two or more persons each have an undivided interest in the entire property (unity of possession), but no right of survivorship. whose interests are not necessarily equal
tenancy in partnership
Ownership by two or more persons who form a partnership for business purposes.
Tenant
Someone in lawful possession of real property, especially, someone who has leased property from the owner. A renter.
Trade Fixtures
Items of personal property that are annexed to leased property, are necessary to a trade or business, and are removable by the tenant prior to the expiration of the lease. An item of personal property, such as a shelf, cash register, room partition or wall mirror, used to conduct a business.
Triple Net Lease
A lease in which the tenant pays all the expenses associated with the owning the property, in addition to paying the rent. Also called Net-Net-Net.
T-TIP
The mnemonic for the four unities of joint tenancy: Time, Title, Interest, and Possession.
Unity
Equal right of possession or undivided interest. For example, each tenant has the right to use the whole property. None of the owners may exclude any co-owner from the property, nor claim any portion of the property for exclusive use.
Unity of Interest
Each co-owner having an equal interest (equal share of ownership) in a piece of property.
Unity of Person
Both co-owners considered to be a single legal entity. Applies only to married couples and is necessary for tenancy by the entirety.
Unity of Possession
Each co-owner being equally entitled to possession of the entire property because the ownership interests are undivided.
Unity of Time
Each co-owner acquiring title at the same time.
Unity of Title
Each co-owner acquiring title through the same instrument (deed, will, or court order).
Universal Agent
An agent authorized to do everything that can be lawfully delegated to a representative.
Water
Water on the surface flowing in a stream or underground (percolating) is real property. If it is taken and bottled, then it becomes personal property.
