Chapter 5 - Interests in Real Estate

Question 1

Condemnation

Answer 1

The act of taking private property for public use by a political subdivision upon payment to owner of just compensation.

Question 2

Escheat

Answer 2

The reverting of property to the State when heirs capable of inheriting are lacking.

Question 3

Eminent Domain

Answer 3

The right of the government to acquire property for necessary public or quasi-public use by condition; the owner must be fairly compensated.

Question 4

Police Power

Answer 4

The right of the State to enact laws and enforce them for the order, safety, health, morals and general welfare of the public.

Question 5

Tax

Answer 5

Enforced charge extracted of personal, corporations and organizations by the government to be used to support government services and programs.

Question 6

Fee Simple Absolute

Answer 6

An inheritable estate in land providing the greatest interest of any form of title.

Question 7

Fee Simple Determinable

Answer 7

An estate that will end automatically when the stated event or condition occurs. The interest will revert to the grantor or the heirs of the grantor.

Question 8

Fee Simple Estate

Answer 8

The greatest interest that one can have in real property. An estate that is unqualified, of indefinite duration, freely transferable and inheritable.

Question 9

Life Estate

Answer 9

An estate or interest in real property, which is held for the duration of the life of some certain person. It may be limited by the life of the person holding it or by the life of some other person.

Question 10

Life Tenant

Answer 10

The owner of a life estate.

Question 11

Remainder

Answer 11

An estate which takes effect after the termination of the prior estate, such as a life estate. A future possessory interest in real estate.

Question 12

Remainderman

Answer 12

A person who inherits or is entitled to inherit property upon the termination of the estate of the former owner.

Question 13

Reversionary Interest

Answer 13

The interest which a person has in lands or other property, upon the termination of the preceding estate. A future interest.

Question 14

Leasehold Estate

Answer 14

A tenant’s right to occupy real estate during the term of the lease. This is a personal property interest.

Question 15

Lessee

Answer 15

One who contracts to rent, occupy, and use property under a lease agreement; a tenant.

Question 16

Lessor

Answer 16

An owner who enters into a lease agreement with a tenant; a landlord.

Question 17

Estate For Years

Answer 17

An interest in lands by virtue of a contract of a contract for the possession of them for a definite and limited period of time. May be for a year or less. A lease may be said to be an estate for years.

Question 18

Periodic Estate

Answer 18

An interest in land where there is no definite termination date but the rental period is fixed at a certain sum per week, month, or year. Also called an estate from period to period.

Question 19

Estate at Will

Answer 19

The occupation of lands and tenements by a tenant for an indefinite period, terminable by one or both parties.

Question 20

Estate at Sufferance

Answer 20

An estate arising when the tenant wrongfully holds over after the expiration of the term. The landlord has the choice of evicting the tenant as a trespasser or accepting such tenant for a similar term and under the condition of the tenant’s previous holding. Also called a tenancy at sufferance.

Question 21

Lease

Answer 21

A contract between an owner and tenant, setting forth conditions upon which the tenant may occupy and use the property and the term of the occupancy.

Question 22

Actual Eviction

Answer 22

The removal of a tenant by the landlord because the tenant breached a condition of a lease or another rental contract.

Question 23

Constructive Eviction

Answer 23

Any disturbance of the tenant’s possession of the lease premises by the landlord whereby the premises are rendered unfit or unsuitable for the purpose for which they were leased.

Question 24

Sublease

Answer 24

A lease given by a lessee.

Question 25

Graduated Lease

Answer 25

A lease which provides for a varying rental rate, often based upon a future determination; sometimes rent is based upon the result of periodic appraisals; used largely in long-term leases.

Question 26

Gross Lease

Answer 26

A lease in which the lessor pays all costs of operating and maintaining the property and real estate taxes.

Question 27

Ground Lease

Answer 27

An agreement for the use of land only, sometimes secured by improvements placed on the land by the user.

Question 28

Net Lease

Answer 28

A lease requiring a lessee to pay charges against the property such as taxes, insurance and maintenance costs in addition to rental payments.

Question 29

Percentage Lease

Answer 29

Lease on the property, the rental for which is determined by the amount of business done by the lessee; usually a percentage of gross receipts from the business with provisions for a minimum rent.

Question 30

Encumbrance

Answer 30

Anything which affects or limits the fee simple title to or value of property, e.g., mortgages or easements.

Question 31

General Lien

Answer 31

A lien on all the property of a debtor.

Question 32

Involuntary Lien

Answer 32

A lien imposed against property without consent of an owner.

Question 33

Judgment Lien

Answer 33

A legal claim on all of the property of a judgment debtor which enables the judgment creditor to have the property sold for payment of the amount of the judgment.

Question 34

Lien

Answer 34

A form of encumbrance which usually makes specific property security for the payment of a debt or discharge of an obligation.

Question 35

Mechanic’s Lien

Answer 35

A lien created by statute which exists against real property in favor of persons who have performed work or furnished materials for the improvement of the real property.

Question 36

Priority of Lien

Answer 36

The order in which liens are given legal precedence or preference.

Question 37

Specific Lien

Answer 37

A lien that attaches to one specific property only.

Question 38

Tax Lien

Answer 38

A lien imposed by law upon a property to secure the payment of taxes.

Question 39

Voluntary Lien

Answer 39

Any lien placed on property with consent of, or as a result of, the voluntary act of the owner.

Question 40

Covenants, Conditions, and Restrictions (CC&Rs)

Answer 40

The basic rules establishing the rights and obligations of owners of real property within a subdivision or other tract of land in relation to other owners within the same subdivision or tract and in relation to an association of owners organized for the purpose of operating and maintaining property commonly owned by the individual owners.

Question 41

Deed Restrictions

Answer 41

Limitations in the deed to a property that dictate certain uses that may or may not be made of the property.

Question 42

Dominant Tenement

Answer 42

A parcel of real property that has an easement over another piece of property (the servient estate).

Question 43

Easement

Answer 43

A right, privilege or interest limited to a specific purpose which one party has in the land of another.

Question 44

Easement Appurtenant

Answer 44

An easement that benefits the dominant estate and “runs with the land”. In other words, an easement appurtenant generally transfers automatically when the dominant estate is transferred.

Question 45

Easement by Condemnation

Answer 45

An easement created by the government or government agency that has exercised its right under eminent domain.

Question 46

Easement by Grant

Answer 46

The creation of an easement by one party expressly transferring the easement to another party.

Question 47

Easement by Implication

Answer 47

An easement that is not created by express statements between the parties; but as a result of surrounding circumstances that dictate that an easement must have been intended by the parties.

Question 48

Easement by Necessity

Answer 48

Parcels without access to a public way may have an easement of access over adjacent land if crossing that land is absolutely necessary to reach the landlocked parcel and there has been some original intent to provide the lot with access.

Question 49

Easement by Prescription

Answer 49

Implied easements granted after the dominant estate has used the property in a hostile, continuous, and open manner for a statutorily prescribed number of years.

Question 50

Easement in Gross

Answer 50

An easement that benefits an individual or legal entity, rather than a dominant estate.

Question 51

Servient Tenement

Answer 51

A parcel of real property that is encumbered by an easement of a dominant estate.

Question 52

Encroachment

Answer 52

An unlawful intrusion onto another’s adjacent property by improvements to real property, e.g., a swimming pool built across a property line.

Question 53

Accretion

Answer 53

Accession by natural forces, e.g., alluvium.

Question 54

Alluvium

Answer 54

The gradual increase of the earth on a shore on an ocean or bank of a stream resulting from the action of the water.

Question 55

Accession

Answer 55

An addition to property through the efforts of man or by natural forces.

Question 56

Avulsion

Answer 56

A sudden and perceptible loss of land by the action of water as by a sudden change in the course of a river.

Question 57

Erosion

Answer 57

The wearing away of land by the act of water, wind, or glacial ice.

Question 58

Littoral Rights

Answer 58

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 59

Riparian Rights

Answer 59

The right of a landowner whose land borders on a stream or watercourse to use and enjoy the water which is adjacent to or flows over the owner’s land provided such use does not injure other riparian owners.