Chapter 4 Yellow Text--Interests in Real Estate

Question 1

Estate in Land

Answer 1

defines the degree, quantity, nature and extent of an owner’s interest in real property.

Question 2

Freehold Estate

Answer 2

is an ownership interest that continues for an indefinite period. Such as for a lifetime or forever.

Question 3

Fee Simple Estate

Answer 3

A freehold estate the continues for an indefinite period and may be passed along to the owner’s heirs.

Question 4

Life Estate

Answer 4

A freehold estate that is held only for the lifetime of a person (who may not be the holder of the life estate) and ends when the individual dies.

Question 5

Fee Simple

Answer 5

The highest interest in real estate recognized by law.

Ownership in which the holder is entitled to all rights to the property by law.

Question 6

Fee Simple Defeasible

Answer 6

An estate in which the holder has a fee simple title that may be divested upon the occurrence or nonoccurrence of a specified event.. There are two categories of defeasible fee estates: fee simple on condition precedent (fee simple determinable) and fee simple on condition subsequent. (53-54)

Question 7

Fee Simple Determinable (possibility of reverter)

Answer 7

may be inherited
is qualified by a special limitation
words such as “so long as” or “while” or “during” is key to creating this special limitation.
*could be taken away if property is not used as it was intended for use. But does not need to be brought to court.

Question 8

Fee Simple subject to a condition subsequent (right of reentry)

Answer 8

An estate carrying the limitation that, it it is no longer used for the purpose conveyed, it reverts to the original grants by the right of reentry. (53) the owner has the right of reentry but must bring a legal action in court to assert this right.

Question 9

Homestead

Answer 9

Land that is owned and occupied as the family home. In many states, a portion of the area or value of this land is protected or exempt from judgements for debts other than those secured by the property.

Question 10

Fee Simple Absolute

Answer 10

The maximum possible estate or right of ownership of real property, continuing forever. (53)

Question 11

Future Interest

Answer 11

A person’s present right to an interest in real property that will not result in possession or enjoyment until sometime in the future, such as a reversion or right of reentry. (54)

Question 12

Life Estate

Answer 12

is 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. This is NOT inheritable.

Question 13

Life Tenant

Answer 13

The holder of a life estate. Is always subject to the finite limitation of the life estate. Has all privileges of ownership.

Question 14

Pur Autre Vie

Answer 14

(for the life of another) provides for inheritance of the property right by the life tenant’s heirs, but he the right exists only until the death of the identified person or persons. (54)

Question 15

Remainder interest

Answer 15

The creator of the life estate may name a remainder-man

as the person to whom the property will pass when the life estate ends.

Question 16

Reversionary interest

Answer 16

The creator of the life estate may choose not to name a remainder man. In that case, ownership returns to the original owner upon the end of the life estate. (54)

Question 17

Legal Life Estate

Answer 17

A form of life estate established by state law, rather than created voluntarily by an owner. It becomes effective when certain events occur. (54) Dower & Curtesy

Question 18

Curtesy

Answer 18

Life estate of a husband in the r/e of his deceased wife

Question 19

Dower

Answer 19

Life estate of a wife in the r/e of her deceased husband

Question 20

Encumbrance

Answer 20

a type of interest in r/e that does not rise to the level of ownership or possession, yet still give an individual, business, or other entity some degree of use or control of the property. (55)

anything such as a mortgage, tax or judgment lien: 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.

Question 21

Lien

Answer 21

a right given by law to certain creditors to have their debts paid out of the property of a defaulting debtor, usually by means of a court sale. (56)

Question 22

Deed restriction

Answer 22

runs with the land and is placed by a previous owner. limiting the use of the property by the current owner as well as future owners to whom the property is subsequently transferred. (56)

Question 23

Covenants, conditions and restrictions (CC&R’s)

Answer 23

private agreements that affect land use. the may be enforced by an owner of r/e the benefits from them and can be included in the seller’s deed to the buyer. (56 & 397)

Question 24

Easement

Answer 24

the right to use the land of another for a particular purpose. (56)

Question 25

easement appurtenant

Answer 25

is attached to the ownership of r/e and allows the owner of that property the use of a neighbor’s land. land must be owned by two different parties. (56)

Question 26

dominant tenement

Answer 26

The parcel that benefits from the easement. the easement transfers with the title if the property is conveyed to another party. (56)

Question 27

servient tenement

Answer 27

the parcel over which the easement runs (56)

Question 28

Easement in Gross

Answer 28

an individual or company interest in or right to use someone else’s land. (57)

Question 29

Creating an Easement

Answer 29

Has to be a written agreement. (57)

Question 30

Easement by Necessity

Answer 30

created when an owner sells a parcel of land that has no legal access to a street or public way except over the sellers remaining land. (58)

Question 31

Easement by Prescription

Answer 31

acquired by open, notorious, continuous, hostile and adverse use of the property for the period of time prescribed by the state law. (58)

Question 32

License

Answer 32

A personal privilege to enter the land of another for a specific purpose. (59) Ends with the death of either party or with the sale of the land.

Question 33

Encroachments

Answer 33

When a building, fence, or driveway illegally extends beyond the boundaries of the land of its owner or legal building lines (59)

Question 34

Lis Pendens

Answer 34

(Litigation is pending) is a notice filed in the public record of a pending legal actin affecting the title or possession of property. It clouds the title of a property (59)

Question 35

the 4 Governmental Powers

Answer 35

P–Police Power
E–Eminent domain
T–Taxation
E–Escheat

Question 36

Police Power

Answer 36

the power to enact legislation to preserve order, protect the public health and safety and promote the general welfare of its citizens. (60)

include zoning laws, building codes, environmental protection laws

Question 37

Eminent Domain

Answer 37

the right of the government to acquire privately owned r/e for public use. (60)

Question 38

Condemnation

Answer 38

the actual process of taking the property by eminent domain.

Question 39

Taking

Answer 39

When the govt takes property it must compensate the owner fairly. (61)

Question 40

Inverse condemnation

Answer 40

an action brought by a property owner seeking just compensation for land adjacent to land used for a public purpose why when the property’s use and value have been diminished. (61)

Question 41

Taxation

Answer 41

a charge on r/e to raise funds to finance the operation of government facilities and services. (62)

Question 42

Escheat

Answer 42

a process by which the state may acquire privately owned real or personal property when a person dies or leaves no heirs. (62)