Chapter 2 -Rights Flashcards
A type of estate that is created when the owner of a fee simple estate grants a Lesser Estate to someone and at the same time names a person other than himself (remainderman) who will receive the fee simple estate when the lesser estate ends.
Remainder Estate
What is included in a lesser estate?
Life estates, fee simple determinable, fee simple on condition subsequent, and leaseholds.
A type of estate created when the grantor makes the “future rights” dependent on both the termination of a lesser estate and on the fulfillment of a condition. This estate is also inheritable.
Contingent Remainder
A type of estate created when a lesser estate is conveyed but the future rights are reserved for the grantor or heirs of the grantor.
Reversionary Estate
True/False
If no remainderman is named when creating a lesser estate, the estate is assumed to be reversionary.
True
This legal duty obligates the tenant to pay the property taxes and mortgage payments and not substantially alter the property from its intended use or allow it to deteriorate in value
Waste
Non-possessory estate created by law consisting of dower and curtesy
Legal life estates.
Dower
A wife’s right to a 1/3 to 1/2 interest in any property her husband owns. Transferable when he dies.
Inchoate dower
A wife’s future right to 1/3 to 1/2 interest in her husband’s property while he is alive.
Consummate Dower
A wife’s future right to 1/3 to 1/2 interest in her husband’s property once he dies.
Curtesy
A husband’s right to a 1/3 life estate in his wife’s property that she owns at the time of her death.
A right that protects a primary residence from a forced sale to satisfy debts and judgments.
Homestead Protection
An estate that consists of tenant’s rights, granted by a lease
Leasehold Estate
How are leasehold estates classified?
An estate for years, an estate from period-to-period, an estate at will or an estate at sufferance.
Estate for years
This estate exists when there is a lease agreement that give the tenant exclusive possession of a property for a specified period of time (days, months, years, etc.)
Estate At Will (tenancy at will)
A temporary arrangement in which the tenant can occupy the property for an unspecified period of time as long as the landlord gives permission. This estate is not assignable.
T/F
An estate at will ends with the death of either party or with the sale of the property
True
Estate At Sufferance (Tenancy at Sufferance)
An estate that arises when a tenant who is legally renting the property remains in possession after the term of the lease expires. The tenant in this case is called a holdover tenant.
Encumbrances
External limitations that restrict an owner’s rights, use of the property or diminish its value.
T/F
Encumbrances may be public encumbrances imposed by government or private encumbrances.
True
PETE
Governmental powers that limit property rights:
Police power, Eminent Domain, Taxation, Escheat
The right of local, station or nation governments to enact and enforce laws that regulate the use of private property in order to provide for the safety, health, morals, and general well-being of the community.
Police power
Examples of police power
planning restrictions, zoning, building codes, and environmental protection laws.
The government’s power to take property without or without the owner’s consent when it is needed for a public purpose such as a park, a road, or a public school.
Eminent Domain (p2-9)
Inverse condemnation
When an owner files a lawsuit against the local government to force them to take and pay for the property.
The state government’s right to take over the property when it is abandoned or when the owner dies without a will or heirs.
Escheat
Lien
A monetary claim a creditor has on the property of a debtor and the debtor’s property is security for payment of the debt.
Categories of liens
voluntary/involuntary, statutory/equitable, specific/general
What determines if a lien is statutory or equitable?
Whether the right exists because of an act of legislature or whether is arises our of justice and fair play.
T/F
Statutory liens are usually involumtary
True
T/F
Equitable liens are usually voluntary.
True
Tax liens are Specific or General depending on…
whether they are attached to just one parcel of property (i.e property tax lien) or to any property the debtor has, real or personal.(i.e judgement lien)
Examples of Specific liens
Property tax lien, mortgages, vendor’s liens, vendee’s liens, mechanic’s liens and attachment liens.
Specific liens are enforceable against only 1 parcel of property.`
Ad valorem tax
Levied against each property owner according to the value of the property.
What category do tax liens fall under?
Involuntary, specific liens.
A type of lien that exists when an owner pledges one specific property to the lender as security for a loan.
Mortgage liens.
Mortgage liens fall under what category?
voluntary, specific liens.
A lien used by contractors, subcontractors, workmen, and suppliers of building materials to collect unpaid wages.
Mechanic’s lien.
Which category do mechanic’s liens fall under?
Mechanic’s liens are involuntary, specific liens.
Which category does a vendee’s lien fall under?
Vendee’s liens are voluntary, specific liens. (2-13)
