Chapter 2 -Rights

Question 1

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.

Answer 1

Remainder Estate

Question 2

What is included in a lesser estate?

Answer 2

Life estates, fee simple determinable, fee simple on condition subsequent, and leaseholds.

Question 3

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.

Answer 3

Contingent Remainder

Question 4

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.

Answer 4

Reversionary Estate

Question 5

True/False

If no remainderman is named when creating a lesser estate, the estate is assumed to be reversionary.

Answer 5

True

Question 6

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

Answer 6

Waste

Question 7

Non-possessory estate created by law consisting of dower and curtesy

Answer 7

Legal life estates.

Question 8

Dower

Answer 8

A wife’s right to a 1/3 to 1/2 interest in any property her husband owns. Transferable when he dies.

Question 9

Inchoate dower

Answer 9

A wife’s future right to 1/3 to 1/2 interest in her husband’s property while he is alive.

Question 10

Consummate Dower

Answer 10

A wife’s future right to 1/3 to 1/2 interest in her husband’s property once he dies.

Question 11

Curtesy

Answer 11

A husband’s right to a 1/3 life estate in his wife’s property that she owns at the time of her death.

Question 12

A right that protects a primary residence from a forced sale to satisfy debts and judgments.

Answer 12

Homestead Protection

Question 13

An estate that consists of tenant’s rights, granted by a lease

Answer 13

Leasehold Estate

Question 14

How are leasehold estates classified?

Answer 14

An estate for years, an estate from period-to-period, an estate at will or an estate at sufferance.

Question 15

Estate for years

Answer 15

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.)

Question 16

Estate At Will (tenancy at will)

Answer 16

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.

Question 17

T/F

An estate at will ends with the death of either party or with the sale of the property

Answer 17

True

Question 18

Estate At Sufferance (Tenancy at Sufferance)

Answer 18

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.

Question 19

Encumbrances

Answer 19

External limitations that restrict an owner’s rights, use of the property or diminish its value.

Question 20

T/F

Encumbrances may be public encumbrances imposed by government or private encumbrances.

Answer 20

True

Question 21

PETE

Answer 21

Governmental powers that limit property rights:

Police power, Eminent Domain, Taxation, Escheat

Question 22

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.

Answer 22

Police power

Question 23

Examples of police power

Answer 23

planning restrictions, zoning, building codes, and environmental protection laws.

Question 24

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.

Answer 24

Eminent Domain (p2-9)

Question 25

Inverse condemnation

Answer 25

When an owner files a lawsuit against the local government to force them to take and pay for the property.

Question 26

The state government’s right to take over the property when it is abandoned or when the owner dies without a will or heirs.

Answer 26

Escheat

Question 27

Lien

Answer 27

A monetary claim a creditor has on the property of a debtor and the debtor’s property is security for payment of the debt.

Question 28

Categories of liens

Answer 28

voluntary/involuntary, statutory/equitable, specific/general

Question 29

What determines if a lien is statutory or equitable?

Answer 29

Whether the right exists because of an act of legislature or whether is arises our of justice and fair play.

Question 30

T/F

Statutory liens are usually involumtary

Answer 30

True

Question 31

T/F

Equitable liens are usually voluntary.

Answer 31

True

Question 32

Tax liens are Specific or General depending on…

Answer 32

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)

Question 33

Examples of Specific liens

Answer 33

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.`

Question 34

Ad valorem tax

Answer 34

Levied against each property owner according to the value of the property.

Question 35

What category do tax liens fall under?

Answer 35

Involuntary, specific liens.

Question 36

A type of lien that exists when an owner pledges one specific property to the lender as security for a loan.

Answer 36

Mortgage liens.

Question 37

Mortgage liens fall under what category?

Answer 37

voluntary, specific liens.

Question 38

A lien used by contractors, subcontractors, workmen, and suppliers of building materials to collect unpaid wages.

Answer 38

Mechanic’s lien.

Question 39

Which category do mechanic’s liens fall under?

Answer 39

Mechanic’s liens are involuntary, specific liens.

Question 40

Which category does a vendee’s lien fall under?

Answer 40

Vendee’s liens are voluntary, specific liens. (2-13)