Chapter 3: Interests in Real Estate Flashcards
Freehold Estate
Ownership of real property. Indefinite duration, and the owner has title and the right to possess
Fee Simple Estate
Best type of ownership, owned without limitation, completely
Conditional Fee Estate
Has right to estate as long as they meet conditions or its passed back to heirs. (Memorial Park)
Life Estate
Has right to estate for the life of person
Leasehold Estate
Estate for years, periodic estate at will, tenancy at sufferance
4 Types of Leaseholds
- For Years: Has start date and end date
- Periodic: Auto renews (Month to Month)
- Estate at Will: Either party can terminate at anytime
- Sufferance: This is when lease expires and the tenant refuses to leave
Types of rent and Consideration
- Gross: Landlord pays all bills. Tenants pay rent only
- Net: Tenant pays rent and bills
- Percentage: Rent plus % of sales for goods and services
Statutory Estate
Estates created by law, like community property, homestead, dower/curtesy
Equitable Estate
An “Interest” (Not Ownership) in real property, most common are liens and easements
Easements
Gives one the right to use or pass over another’s property for a specific use
Easement in Gross
A person or corporation that doesn’t belong to the land
Easement in Appurtenant
Is a right for the benefit of a piece of land
Encumbrances
A claim, Lien, charge or ability attached to and binding real property
Encroachments
The intrusion of ones property onto another’s
Right of Redemption
This happens when a house is foreclosed on, the owner has up to 2 years to repurchase or redeem the home
Allodial system
Land can be privately owned by individuals (King of England decided)
Government retains 4 rights to real property
P.E.T.E
Police Power
Right to regulate and control land
Building codes
codes for structures are set by local government
Variance
Request to the municipality use property differently than the current zoning laws
Municipality
Local town government
Zoning codes
code for permitted use
Buffer zone
Property that separates 2 zones
Downzoning
Changing the zone of a property to a lower value
Setback
Amount of required space between lot line and building line
5 types of zoning laws for properties
Residential, Mixed use, Commercial, Industrial, Spatial
Eminent Domain
Right for government to take private land for public use
Condemnation
The “Act” of taking land, must be for good of all
Condemnation
The “Act” of taking land, must be for good of all
Easement
By Condemnation are when government needs access or a portion of the land for itself
Inverse Condemnation
Is when the property owner sues the government to force it take their land
Taxation
Government retains right to tax real property
Escheat
Right for government to take property of a deceased person without a will or heir
