Chapter 4 - Interests in Real Estate Flashcards

1
Q

*** An ENCUMBRANCE is…

A

Anything such as a mortgage, tax, or judgment liens; an easement; a restriction on the use of the land; or an outstanding dower right - that may diminish the value or use and enjoyment of a property.

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2
Q

*** A right given by law to certain creditors to have their debts paid out of the property of a defaulting debtor is called a…

A

*** A LIEN. (often by court order)

A lien is made to enforce the payment of money.

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3
Q

***A property owner who has the legal right to use a neighbors land holds an_________.

A

***An EASEMENT

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4
Q

*** An __________ ________ is attached to the ownership of real estate and allow the owner of that property the use of a neighbor’s land.

A

**An EASEMENT APPURTENANT.
For an easement appurtenant to exist, two adjacent parcels of land must be owned by two different parties. IT RUNS WITH THE LAND.

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5
Q

***A ______ _____ can be an EXTERIOR wall of a building that straddles the boundary line between two lots, OR it can be a shared pared partition wall between two connected properties.

A

***PARTY WALL
The individual lot owners own the half of the wall on their lot, and each has an easement appurtenant in the other half of the wall.

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6
Q

***An _____ __ ____ is an individual or company interest in or right to use someone else’s land

A

***EASEMENT IN GROSS

a Utility company (pipeline or power line)or a railroad’s right of way is an easement in gross.

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7
Q

***How is an EASEMENT CREATED?

A

*** An easement is created by a written agreement between the the one who owns the land over which the easement runs and the other party who benefits from the easement. TWO OTHER WAYS for an easement to be created…EASEMENT BY NECESSITY and EASEMENT BY PRESCRIPTION.

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8
Q

***What is an EASEMENT BY NECESSITY?

A

***An easement by necessity is created by COURT ORDER based on the principle that OWNERS MUST have the RIGHT to enter and exit their land - the right of ingress (enter) and egress (exit); they cannot be landlocked. (it is not merely for convenience).

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9
Q

***What is an EASEMENT BY PRESCRIPTION or prescriptive easement?

A

***When a claimant has made use of another’s land for 10 - 21 years. The claimant’s use must have been CONTINUOUS, NONEXCLUSIVE and WITHOUT the owner’s permission. the use must be VISIBLE, OPEN, and NOTORIOUS, and the owner must have been able to learn of it.

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10
Q

*** A LICENSES is a personal privilege to ____ ____ ____ of another for a ____ purpose. A license differs from an easement in that is can be terminated or canceled

A

**A LICENSES is a personal privilege to enter the land for specific purpose.

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11
Q

***When a building, fence, or driveway illegally extends beyond the boundaries of the land of its owner or legal building lines, an ___________ occurs.

A

**ENCROACHMENT.

physical trespass …like a tree.

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12
Q

***What does a LIS PENDENS mean?

A

*** It’s latin for LITIGATION PENDING. It’s a notice filed in the public record of a pending legal action affecting the title to or possession of property. A LIS PENDENS creates a ‘cloud on the title’ to the property, which may prevent the property from being sold or further encumbered. (don’t buy it until you know the outcome of the lawsuit).

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13
Q

***An ____ __ _____ defines the degree, quantity, nature, and extent of an owner’s interest in real property.

A

** ESTATE IN LAND
Many types of estate exist, but not all INTERESTS in real estate or ESTATES.
you can have an ‘interest’ in land but if you can’t say it’s mine you don’t have an estate. if you don’t own the land you don’t have an estate.

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14
Q

***A FREEHOLD ESTATE… what is it?

A

***An estate in land in which ownership is for an indeterminate length of time, in contract to a lease-hold estate.
A FREEHOLD ESTATE can be a ‘fee simple estate’ and may be passed along to the owner’s heirs. OR a Freehold Estate can be a ‘life estate’ that is held only for the lifetime of a person (who may not be the holder of the life estate) and ends when that individual dies.

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15
Q

***A FEE SIMPLE ESTATE or FEE SIMPLE ABSOLUTE, is the HIGHEST interest in real estate recognized by law. This estate is intended to run forever. Upon the death of the owner, the property interest passes to:

A
  • The Decedent’s co-owner (if there is one and the co-owndership was accompanied by a right of survivorship) or
  • The person(s) specified in the decedent’s will (the devisee) or
  • If the decedent has left no will, to the person(s) designated by the state’s law of intestate (left no will) succession.
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16
Q

*** FEE SIMPLE ESTATE or fee simple interest is:

A

**One who has ownership rights of real estate that could continue forever and which provide that no other person can claim to be the owner of or have any ownership control over the property.

17
Q

*** A Fee Simple DEFEASIBLE Estate is a QUALIFIED fee estate that is subject to the Occurrence or Nonoccurrence of some SPECIFIED EVENT. There are two categories of a DEFEASIBLE ESTATE:

A

**FEE SIMPLE DETERMINABLE (must do - occurrence - special limitation or determinable fee) and
FEE SIMPLE SUBJECT TO A CONDITION SUBSEQUENT (not do - nonoccurrence - or ‘on that condition’)

18
Q

***What is a FEE SIMPLE DETERMINABLE estate?

A

*** An estate that may be inherited. This estate is QUALIFIED by a special limitation (occurrence or event) the language used to distinguish a special limitation - words such as SO LONG AS OR WHILE OR DURING (must do).

19
Q

***What is a FEE SIMPLE SUBJECT TO A CONDITION SUBSEQUENT estate?

A

***The estate does not automatically terminate upon violation of the condition of ownership. (or ON CONDITION THAT)
Land given on the condition that there will be no consumption of alcohol on the premises is a fee simple subject to a condition subsequent. if alcohol is come on the property, the former owner has the right to reacquire full ownership.

20
Q

***A freehold estate LIMITED in duration to either the life of the holder of the estate or the life of some other designated person or persons is called a…

A

** LIFE ESTATE

limited in duration and not inheritable

21
Q

***A person in possession of a life estate is called a?

A

LIFE TENANT.
A life tenant is not a renter like a tenant associated with a life. A life tenant is ENTITLED to the rights of ownership and can benefit from both possession and ordinary use, and profits arresting from the ownership, just as if the individual were a fee simple owner. The life tenants ownership may be sold, mortgaged, or leased, but it is always subject to the FINITE limitation of the life estate.

22
Q

***PUR AUTRE VIE means?

A

** for the life of another.
A life estate may also be based on the lifetime of a person other than the life tenant. The PUR AUTRE VIE provides for inheritance of the property right by the life tenant’s heirs, but the right exists only until the death of the identified person or persons.

23
Q

***What is a LEGAL (state law) Life Estate?

A

***A LEGAL life estate is NOT created by a property owner, but rather is established by STATE LAW.
It becomes effective automatically when certain events occur.
DOWER, CURTESY, and HOMESTEAD are the legal life estates currently used in some states. (not in TN)

24
Q

***Most states have abolished the common law concepts of dower and curtesy in favor of the UPC. What’s that stand for?

A

** UNIFORM PROBATE CODE

25
Q

*** There are 4 Governmental Powers. They are:

A
  • *PETE
    1. POLICE POWER - enacts environmental protection laws, zoning, ordinances, and building codes.
    2. EMINENT DOMAIN - the right of the government to acquire privately owned real estate for PUBLIC USE.
    3. TAXATION - is a charge on real estate to raise funds to finance the operations of government facilities and services.
    4. ESCHEAT - a process by which the state may acquire privately owned real or personal property when an OWNER DIES AND LEAVES ON HEIRS, NO WILL or living trust.
26
Q

*** DEDICATION or Dedicate =

A

*** We give the land from our own free will to the government (like a school, then named after the person who gave it) for another beneficial use.

27
Q

** A DOMINANT tenement ______ from the easement appurtenant.

A

** BENEFITS from the easement

28
Q

** An owner conveys ownership of his residence to his church but reserves for himself a life estate in the residence. The future interest held by the church is a?

A

** REMAINDER - the person to who the property will pass when the life estate end.

29
Q

*** CONDEMNATION is?

A

** It’s the process of taking the eminent domain property.

The process by which the government exercises this right of Eminent Domain by either judicial or administrative proceedings.