Chapter 2: Property Ownership and Interests Flashcards
Explain the concept of the bundle of rights; the characteristics of real estate, including the riparian rights and all types of fixtures; and identify terms that may or may not be fixtures by applying the Total Circumstances Test.
accretion
The increase or addition of land by the deposit of sand or soil washed up naturally from a river, lake, or sea.
agricultural fixtures
In North Carolina, a fixture attached to leased property by a tenant farmer is considered the landowner’s real property rather than the tenant’s personal property.
air rights
The right to use the open space above a property, usually allowing the surface to be used for another purpose.
appurtenances
A right, a privilege, or an improvement belonging to, and passing with, the land
avulsion
The sudden tearing away of land, as by earthquake, flood, volcanic action, or the sudden change in the course of a steam. The loss of land may not result in loss of title to the property.
bundle of legal rights
The concept of land ownership that includes ownership of all legal rights to the land (i.e. disposition, exclusion, enjoyment, possession, and control).
common elements
Parts of a prop common use by all of the condominium residents. Each condominium owner has an undivided ownership interest in the common elements.
common interest community (hybrid) ownership
Ownership that contains elements of both ownership in severalty and concurrent ownership.
concurrent ownership
Ownership involving two or more owners.
condominium ownership
The absolute ownership of a unit in a multiunit building based on a legal description of the airspace the unit actually occupies, plus an undivided interest in the ownership of the common elements, which are owned jointly with the other condominium unit owners.
cooperative ownership
A residential multiunit building whose title is held by a trust or corporation that is owned by and operated for the benefit of persons living within the building, who are the beneficial owners of the trust or stockholders of the corporation, each possessing a proprietary lease to a specific apartment in the building.
doctrine of prior appropriation
Followed primarily by Western states, this doctrine contends that water rights are determined by priority of beneficial use. the first person to use water or divert for a beneficial use or purpose can acquire individual rights to the water. In these states, property owners may have land that borders water but no rights to use that water.
emblements
Growing crops, such as grapes and corn, that are produced annually through labor and industry; also called fructus industrials. Usually considered to be personal property.
erosion
The gradual wearing away of land by water, wind, or other natural forces; the diminishing of property by the elements may cause loss of ownership.
fee simple absolute
The maximum possible estate in real property; most complete and absolute ownership; indefinite in duration, freely transferable and inheritable.
fee simple defeasible
An estate in which the holder has a fee simple title that may be terminated upon the occurrence or nonoccurrence of a specified event.
fee simple determinable
An estate in real estate that continue “so long as” a prescribed land use continues. Estate ends automatically upon the termination of the prescribed use; no lawsuit is necessary for reversion.
fee simple with condition subsequent
An estate in real estate that prohibits a specific condition on the property. Grantor has the right to re-enter the property and reclaim ownership through legal proceedings.
fixture
An item of personal property that has been converted to real property by being permanently affixed to the realty.
freehold estates
An estate in land in which ownership is for an indeterminate length of time, in contrast to a lease-hold estate
fructus industriales
Growing crops, such as grapes and corn, that are produced annually through labor and industry; also called emblements. Usually considered to be personal property.
fructus naturales
Plants that do not require annual cultivation and are considered real property.
future interests
A person’s present right to an interest in real property that will not result in possession or enjoyment until sometime in the future, such as a reversion or right of reentry.
homeowners association (HOA)
An organization of property owners in a subdivision, planned community, or condominium that makes and enforces rules for the properties within its jurisdiction.
homestead
Land that is owned and occupier as the family home. In many states, a portion of the area or value of this land is protected for exempt from judgments for debts.
