Chapter 3 - Interests and Estates

Question 1

An interest in real estate that does not include the right to possess is considered

Answer 1

An encumbrance

Question 2

An estate for period-to-period will continue as long as

Answer 2

The tenant makes and landlord accepts, regular rent payments

Question 3

The distinguishing feature of a leasehold estate is

Answer 3

duration limited by a lease term

Question 4

What distinguishes a freehold estate from a leasehold estate?

Answer 4

A leasehold endured only for a specific period of time

Question 5

A widow who was excluded from a will makes a claim to a portion of the couple’s principal residence - is an example of?

Answer 5

The legal concept of elective share

Question 6

To convey clear title in a dower and curtesy state..

Answer 6

both spouses must sign the conveyance

Question 7

Dower refers to

Answer 7

A wife’s life estate interest in her husbands property

Question 8

The owner of a freehold estate is known as

Answer 8

a freehold tenant

Question 9

An interest in real estate is

Answer 9

ownership of any combination of the bundle of rights to real property

Including rights to possess, use, transfer, encumber, exclude

Question 10

Undivided interest

Answer 10

an owner’s interest in a property in which 2 or more parties share ownership

Question 11

Interests are principally distinguished by

Answer 11

whether they include possession

Question 12

estate in land

Answer 12

interest’holder enjoys the right of possession

Question 13

The prime example of public interest is

Answer 13

police power, or the right to of the local or county government to zone

Question 14

Freehold estate

Answer 14

the duration of the owner’s rights cannot be determined. The rights may endure for a lifetime, for less than a lifetime, or for genreations

Question 15

Leasehold estate

Answer 15

is distinguished by its specific duration (lease term)

Question 16

Both leasehold and freehold estates are referred to as

Answer 16

tenancies

Question 17

The renter or lessee is the

Answer 17

leasehold tenant

Question 18

____ differ primarily according to the duration of the estate and what happens to the estate when the owner dies

Answer 18

freehold estate

Question 19

Fee simple freehold estate

Answer 19

is the highest form of ownership interest one can acquire in real estate

Question 20

Fee simple freehold estates include

Answer 20

the complete bundle of rights, and the tenancy is unllimited

Question 21

The owner of the fee simple interest is called the

Answer 21

fee tenant

Question 22

Two forms of fee simple estate

Answer 22

absolute and defeasible

Question 23

Fee simple absolute

Answer 23

is a perpetual estate that is not conditioned by stipulated or restricted uses

Question 24

Fee simple defeasible

Answer 24

is perpetual, provided the usage conforms to stated conditions

Question 25

Fee simple defeasible conditions

Answer 25

the property must be used for a certain purpose or under certain conditions if the use changes or if prohibited condition are present, the estate reverts to the previous grantor of the estate

Question 26

Two types of fee simple defeasible are

Answer 26

determinable and condition subsequent

Question 27

Fee simple defeasible - determinable

Answer 27

the deed to the determinable estate states usage limitations

Question 28

Fee simple defeasible - condition subsequent

Answer 28

if any condition is violated, the previous owner may repossess the property However, reversion of the estate is not automatic: the grantor must re-take physical possession withing a certain time frame

Question 29

Life estate

Answer 29

a life estate is a freehold estate that is limited in duration to the life of the owner or other named persons

Question 30

The holder of a life estate is called

Answer 30

the life tenant

Question 31

The distinguishing characteristics of the life estate are...

Answer 31

the owner enjoys full ownership rights during the estate period holders of the future interest own either a revisionary or a remainder interest the estate may be created by agreement between private parties, or it may be created by law under prescribed circumstances

Question 32

If the life estate names a third party to receive title to the property upon termination of the life estate..

Answer 32

the party enjoys a future interest called a remainder interest or a remainder estate

Question 33

The holder of a remainder interest is called

Answer 33

a remainderman

Question 34

Reversion

Answer 34

if no remainder estate is established, the estate reverts to the original owner or the owner's heirs

Question 35

Two types of life estates

Answer 35

conventional and legal

Question 36

Conventional life estate

Answer 36

is created by grant from a fee simple property owner to the grantee, the life tenant

Question 37

Two types of conventional life estate

Answer 37

ordinary and pur autre vie

Question 38

Ordinary life estate

Answer 38

an ordinary life estate ends with the death of the life estate owner and may pass back to the original owners or their heirs (reversion) or to a named their party (remainder)

Question 39

Pur autre vie

Answer 39

a pur autre view life estate endures over the lifetime of a third person, after which the property passes from the tenant holder to the original grantor (reversion) or a third party (remainderman)

Question 40

Legal life estate

Answer 40

is created by state law as opposed to being created by a property owner's agreement the focus is defining and protecting the property rights of surviving family members upon the death of the husband or wife

Question 41

Three major forms of legal life estate

Answer 41

homestead, dower and curtesy, and elective share

Question 42

Homestead

Answer 42

one's principal residence, homestead laws protect family members against losing their homes to general creditors attempting to collect on debts

Question 43

Homestead laws generally provide that

Answer 43

all or portions of one's homestead are exempt from a forced sale executed for the collection of general debts tax debts, seller financing debt, debts for home improvement are not exempt the family must occupy the homestead the homestead interest cannot be conveyed by one spouse homestead exemption and restrictions endure over the life of the head of the house hold and pass on to children under legal age homestead interest in a property are extinguished if property is sold or abandoned

Question 44

Dower and curtesy

Answer 44

have been largely supplanted by community property laws and elective share laws

Question 45

Estate for years

Answer 45

is a leasehold estate for a definite period of time, with a beginning date and an ending date

Question 46

Most common form of periodic tenancy

Answer 46

month to month lease

Question 47

Estate at will

Answer 47

also called tenancy at will, has no definite expiration date and no renewal cycle

Question 48

Estate at sufferance

Answer 48

a tenant occupies the premises without consent of the landlord or other legal agreement with the landlord

Question 49

Accretion

Answer 49

the natural deposit of soil by water, becomes the property of the riparian or littoral owner