Chapter 3 interest in real estate Flashcards
What estate is considered the best type of ownership?
Freehold
An estate created by law
Statutory estate
An Estate categorized by time
Leasehold
Land, privately owned by individuals is considered apart of the
Allodial system
The right of the government to regulate and control the way land is used
Police power
What are the four rights the government has in land?
- police power 2. Eminent domain 3. Taxation. 4. Escheat
What is the most common example of police power?
Zoning
The amount of space required between the lot line in the building line is called
A setback
An area of land separating one land-use from another, such as residential from commercial is
A buffer zone
The right of the government to take private land for public use
Eminent domain
The actual action of the government taking the land is called
Condemnation
The right the government retains to tax real property
Taxation
“Ad valorem taxes” are also
Property taxes
What creates the highest priority lien against real property?
Property taxes
Escheat means
If a person dies intestate (without a will) and without airs, the government will take title to his real property under the right of escheat this also applies if a property is abandoned, the government does not want any land to be an unowned
The interest for nature of the interest of a person has in real property
An estate
What are the four categories of estates?
Freehold estates, leasehold estate, statutory estates, equitable estates 
When an individual owns real property, he is said to have a _______ type of estate in that property?
Freehold
Fee simple absolute or fee simple is considered
The best type of ownership
True or false: fee simple ownership is always in estate of inheritance
True
What is the difference between a life Estate and a life tenant?
A life estate is ownership for the duration of someone’s life, and the owner is called the life tenant
What are the four categories in leasehold estate?
Estate for years, periodic estate, estate at will, Tenancy at sufferance
Any lease with a specific starting, and ending date is called
Estate for years
True or false: leasehold, estate, survives death, or the sale of the property
True
Leases that automatically renews themselves for example month to month leases, or week to week leases are called
Periodic estates
What type of a state is considered a very loose agreement?
Estate at will
When a lease expires, and the tenant remains on the premises, what is created?
Tenancy at sufferance
True or false: a holdover tenant no longer has any right to remain on the property because they are not paying rent, and the landlord no longer excepts their presents however, at the time the landlord accepts rent from the holdover tenant, then a holdover tenacy is created or periodic estate.
True
When the landlord pays all the expenses of the property, it is called what type of lease?
Gross lease meaning tenant pays flat rate
Tenants under a net lease pay:
Rent plus a portion of the property expenses, such as taxes, maintenance or utilities
Estates that are created by statue or a law
Statutory Estates
What are the two most familiar statutory laws in Texas?
Property and Homestead
What are the two primary purposes of Homestead laws?
Prevent the forced sale of the home by creditors, and provide a surviving spouse with shelter
The homestead law prevents the forces sale of the homestead for all payment of debts with five exceptions:
Nonpayment of property, taxes, a mortgage lien , a mechanics and materialman’s lien, a property owners, association, fees, or dues, and a home equity loan
A rule Homestead is limited to how many acres for a family unit and how many acres for an individual?
200 acres for a family unit and 100 acres for individual
What are the most common equitable Estates?
Liens and easements
What is a lien?
A claim against a property to secure payment for a debt
Another word for lien is
Encumbrance
What gives a buyer the right to purchase a property within a preset period At a preset price?
Option
An easement
Gives one the right to use or pass over another’s property for a specific use
What are the two categories of easements?
Easement in gross easement in appurtenant
Easements can be created by
Grants, reservations, implied grants, prescription, necessity, condemnation
The continuous use of the land over some time without the owners permission, can establish right to use the land
Prescription
The unauthorized intrusion of another property into an enjoining property is called
Encroachment
Another word for prescription is
Limitation
Easements can be terminated by
Mergers, release, abandonment, and death
When two properties become one and an easement terminates, it is called
A merger
A claim, lien, charge, or a liability attached to an binding real property is called
An encumbrance
Legally to remove an encumbrance you need
A release
What is a lien?
A right given by law to certain creditors to have debts paid out of the property of a defaulting Debtor , usually there a court sale
What is the most common example of a lien?
Mechanics and material men’s (M & M) liens
What are the two different types of liens?
Specific and general
True or false the lead paint disclosure is required for all properties built before 1978
True
What is asbestos used for?
Insulate pipes, chimneys and roofs, problems, arise, and its removal because of the dust can be extremely hazardous
What are green fields?
Parcels of land that have never been developed
What are grey fields?
Parcels of land, capable of redevelopment
What are Brownfields?
Sites known or suspected to be hazardous that are usually occupied by industrial manufacturers or chemical plants
What is the most common private controls of land-use ?
(CC&Rs) covenants, conditions, and restrictions
The right or privilege or improvement that belongs to and passes with land, but it’s not necessarily a part of the land
Appurtenance
What water right gives the owner the right to use water from a river or stream on or next to the property?
Riparian rights
Litoral rights given owner of the right to
Use water from a lake ocean or sea next to the property
If a land owner sues the government in order to force it to buy his or her land, this is called
Inverse condemnation
Releases can terminate
Easements
In order to be valid, a lease must have
Competent parties, consideration, and Legal purpose
