Chapter 3A Legal Issues: Estates & Interest

Question 1

Real Estate / Real Property

Answer 1

Land, and generally whatever is erected upon or affixed thereto.

Question 2

Chattel

Answer 2

Personal property, such as household goods.

• wrench
• scissors

Question 3

Littoral Rights

Answer 3

The right of a property owner whose land borders on a body of water, such as a lake, ocean or sea, to reasonable use and enjoyment of the shore and water the property borders on.

Question 4

Riparian Rights

Answer 4

The right of a property owner whose land borders a natural water course, such as a river, to reasonable use and enjoyment of the water that flows past the property. Riparian literally means “riverbank”.

Question 5

Air Rights

Answer 5

Rights in real property to use the space above the surface of the land.

Question 6

Fee Simple Estate

Answer 6

Absolute ownership of real property; a person has this type of estate where the person is entitled to the entire property with unconditional power of disposition during the person’s life and descending to the person’s heirs or distributees.

Question 7

Bundle of Rights

Answer 7

The premise that the ownership of real estate consists of the ownership of various rights associated with it. These rights include the right to use and/or occupy, the right to sell in whole or in part, the right to lease, the right to bequeath and the right to do none of the foregoing.

Question 8

Illiquidity

Answer 8

The concept that property is an illiquid asset because it cannot easily be sold or exchanged for cash.

Question 9

Special Purpose Real Estate

Answer 9

Property that is appropriate for one type of use or limited use. This type of property has unique design or layout, uses special construction materials, or other features that limit the property’s utility for purposes other than the one for which it was built. For example, a church, theater, or school.

Question 10

Life Estate

Answer 10

The conveyance of title to property for the duration of the life of the grantee.

• Trust
• Gifting it to someone for a term of years/time

Question 11

Remainder Interests / Remainderman

Answer 11

The person who is to receive the property after the termination of the prior estate.
- happens in secondary marriages, house is own by day who has children from first marriage, he marries a new women that has kids from previous marriage. He gives her a life estate (allows her to live there until she passes) and then the house goes to his children.

Question 12

Tenancy in Common

Answer 12

An ownership of real property by two or more persons, each of whom has an undivided interest, without the “right of survivorship”.

Question 13

Partition

Answer 13

The division which is made of real property between those who own it in undivided shares.

Question 14

Trustee

Answer 14

Any person who holds property, authority, or a position of trust and responsibility for the benefit of another.

Question 15

Trustor

Answer 15

A person who conveys title to a trustee.

Question 16

Act of Waste

Answer 16

Describes a cause of action that can be brought in court to address a change in condition of a property brought about by a current tenant that damages or destroys the value of that property.

Question 17

Fixture / Trade Fixture

Answer 17

Personal property so attached to the land or improvements as to become part of the real property.
- Cannot be removed

Question 18

Estate for Years

Answer 18

A leasehold estate for any specific period of time. An estate for years is not automatically renewed, it has to be agreed upon.
- Landlord does not have to give notice

Question 19

Escheat

Answer 19

The reversion to the State of property in event the owner thereof abandons it or dies, without leaving a will and has no distributees to whom the property may pass by lawful descent.

Question 20

Beneficiary

Answer 20

The person who receives or is to receive the benefits resulting from certain acts.

Question 21

Curtesy

Answer 21

A husband’s interest upon the death of his wife in the real property of an estate that she either solely owned or inherited provided they bore a child capable of inheriting the estate.

Question 22

Unities of Interest, Possession, Time and Title

Answer 22

Describes the conditions that must exist in order for certain kinds of property interests to be created. In order for two or more people to own property as joint tenants with right of survivorship, or for a married couple to own property as tenants by the entirety, they must have the four unities (Interest, Possession, Time, and Title)

Question 23

Undivided Interest

Answer 23

The interest in property owned by tenants whereby each tenant has an equal right to enjoy the entire property.

Question 24

Severalty

Answer 24

Ownership by only a single individual.

Question 25

Right of Survivorship

Answer 25

Right of the surviving joint owner to succeed to the interests of the deceased joint owner, distinguishing feature of a joint tenancy or tenancy by entirety.

Question 26

Reversionary Interest

Answer 26

The interest which a grantor has in lands or other property upon the termination of the preceding estate.

Question 27

Personal Property

Answer 27

Any property which is not real property.

• Paintings
• Couches
• Lamps

Question 28

Joint Venture

Answer 28

A business agreement in which the parties agree to develop, for a finite time, a new entity and new assets by contributing equity.

Question 29

Dower

Answer 29

The part of or interest in real estate of a deceased husband given by law to his widow during her life.

Question 30

Joint Tenancy

Answer 30

Ownership of real property by two or more persons, each of whom has an undivided interest with the “right of survivorship”.

Question 31

Real Property v. Real Estate

Answer 31

The main difference between property and estate is that property includes both movable and immovable things while real estate only includes immovable property.

Question 32

Types of Real Property

Answer 32

1) Condominum
2) Residential
3) Brownstones
4) Comerrical - Retail store
5) Industrial - zones area and restrictions to proximity to other zones
6) Special Purpose - parks, recreation, education

Question 33

Condominum

Answer 33

• Real Property
• ## Pecentage of ownwership in building

Question 34

Free Simple Defeasible

Answer 34

Owner of the property holds a fee simple title with contigencies upon certain conditions.

• Land must be used for education
• Owner gifts the house to sister but she can not have her exboyfriend live with her.

Question 35

Leasehold Estate

Answer 35

Ownership of a temporary right to hold land or property in which lessee/tenant holds rights of real property by some form of title from lesor/landlord

Question 36

Periodic Estate

Answer 36

Month to month is common, notice is required by the landlord (how ever long the duration of the period of rent is for)

Question 37

Tenancy at Sufferance

Answer 37

When landlord take tenant to court to have them move out because of some reasonable reason

Question 38

Estate of Will

Answer 38

No period of time, no term, goes on until partiedr agree to end it or give notice

Question 39

Tenancy by Entirety

Answer 39

Tenancy used during marriages where the property is owned 100% by both husband and wife and there is surviorship