Chapter 7/8

Question 1

An ____________ is an owner’s interest in a property in which two or more parties share ownership.

Answer 1

Undivided interest

Question 2

possession. If the interest-holder enjoys the right of possession, the party is considered to have an _____________.

Answer 2

Estate in land

Question 3

If a private interest-holder does not have the right to possess, the interest is an _________________.

Answer 3

Encumbrance

Question 4

If the interest-holder is not private, such as a government entity, and does not have the right to possess, the interest is ______________.

Answer 4

Some form of public interest

Question 5

The prime example of public interest is ___________, or the right of the local or county government to zone.

Answer 5

Police power

Question 6

______________ is when the power of the government, or a public utility such as the power company, takes private property for public use.

Answer 6

Eminent domain

Question 7

3 reasons the government may not take private property:

Answer 7

1) the taking confers a private benefit on a particular private party.
2) the taking is for a public use that is merely a pretext to confer a private benefit on a private party
3) the taking is for economic development purposes, unless the economic development is a secondary purpose resulting from municipal community development or urban renewal activities to eliminate slum or blighted areas.

Question 8

_____________ is also utilized as a charge on a particular piece of real estate to raise funds in order to meet the public needs of a government.

Answer 8

Taxation

Question 9

____________ is when an owner dies and there is no heir to will the property to.

Answer 9

Escheat

Question 10

________________ gives a government entity the ability to fulfill its responsibility to provide for the health, safety and welfare of the public. The exercise of this power must always be in the best interest of the public; however, the exercise of this power may restrict some of the fundamental freedoms of the people.

Answer 10

Police power

Question 11

Examples of police power:

Answer 11

Zoning ordinances, building codes, subdivision regulations, eminent domain, environmental restrictions

Question 12

True or false: Property owners who are affected by the exercise of police power are often not compensated for the imposed restrictions and loss of use of their property that can result form the exercise of this power.

Answer 12

True - It is always believed that if restrictions are imposed, they are for the health, safety and welfare of the public.

Question 13

True or false: Property tax liens typically take priority over any other liens.

Answer 13

True

Question 14

Property which is owned by the government, a government agency or a non-profit association is exempt from ____________________.

Answer 14

Payment of property taxes

Question 15

Another form of control through taxation results when __________________ are put in place to enable areas or neighborhoods to pay for particular improvements

Answer 15

Special assessments - These assessments are not permanent; they typically run for just a few years.

Question 16

If a property owner dies with a valid will in place it is called ________.

Answer 16

Estate

Question 17

If the property owner dies without a valid will, it is called ___________.

Answer 17

Intestate

Question 18

If a person dies with no heirs and no one qualified to receive the property, the state will use the power of ________ to claim the property.

Answer 18

Escheat

Question 19

__________________ is defined as government ownership of lands, streets, public buildings, utilities, and other business enterprises.

Answer 19

Public ownership

Question 20

_______________ allows a government entity to purchase a fee, leasehold, or easement interest in privately owned real property for the public good and for public use, regardless of the owner’s desire to sell or otherwise transfer any interest. In exchange for the interest, the government must pay the owner “just compensation.”

Answer 20

Eminent domain

Question 21

With eminent domain, to acquire a property, the public entity initiates a _______________.

Answer 21

Condemnation suit

Question 22

What does a condemnation suit accomplish?

Answer 22

Transfer of title extinguishes all existing leases, liens, and other encumbrances on the property.

Question 23

Public entities that have the power of eminent domain include:

Answer 23

All levels of government
School districts
Public utilities
Public service corporations (power companies, etc.)
Public housing and redevelopment agencies
Railroads

Question 24

To acquire a property, the public entity must first adopt a formal resolution to acquire the property, variously called a _________________.

Answer 24

Resolution of necessity

Question 25

In order to proceed with condemnation, the government agency must demonstrate that:

Answer 25

The project is necessary
The property is necessary for the project
The location offers the greatest public benefit with the least detriment

Question 26

A “________” refers to the “taking clause” of the Fifth Amendment which says, in part, that private property cannot be taken for public use without just compensation.

Answer 26

Taking

Question 27

_____________ allow the county and municipality to protect the public against the hazards of unregulated construction.

Answer 27

Building codes

Question 28

Building codes establish standards for virtually every aspect of a construction project, including offsite improvements such as:

Answer 28

Streets, curbs, gutters, drainage systems, and onsite improvements such as the building itself.

Question 29

______________ typically address:

Architectural and engineering standards
Construction materials standards
Building support systems such as life safety, electrical, mechanical, and utility systems

Answer 29

Building codes

Question 30

True or false: Building permits are required for both residential and commercial properties and must be obtained before the project starts.

Answer 30

True

Question 31

A ________________ is issued by a building inspector after all development or improvement has been completed and the property is clear for occupation and use.

Answer 31

Certificate of occupancy (CO)

Question 32

An ______________ is an interest that includes the right of possession.

Answer 32

Estate in land

Question 33

In a __________________, the duration of the owner’s rights cannot be determined: the rights may endure for a lifetime, for less than a lifetime, or for generations beyond the owner’s lifetime.

Answer 33

Freehold estate

Question 34

A _____________ is distinguished by its specific duration, as represented by the lease term.

Answer 34

Leasehold estate

Question 35

Both leasehold and freehold estates are referred to as _________. The owner of the freehold estate is the ___________, and the renter, or lessee, is the _____________.

Answer 35

Tenancies, freehold tenant, leasehold tenant

Question 36

The _______________________ is the highest form of ownership interest one can acquire in real estate. It includes the complete bundle of rights, and the tenancy is unlimited, with certain exceptions.

Answer 36

Fee simple freehold estate

Question 37

The owner of the fee simple interest is called the ___________.

Answer 37

Fee tenant

Question 38

There are two forms of fee simple estate:

Answer 38

Absolute and defensible

Question 39

The _____________________ is a perpetual estate that is not conditioned by stipulated or restricted uses. It may also be freely passed on to heirs.

Answer 39

Fee simple absolute estate

Question 40

The _________________ is perpetual, provided the usage conforms to stated conditions.

Answer 40

Defensible fee estate

Question 41

Essential characteristics of fee simple defensible estate are:

Answer 41

1) the property must be used for a certain purpose, or under certain conditions.
2) if the use changes or if prohibited conditions are present, the estate reverts to the previous grantor of the estate.

Question 42

The two types of fee simple defeasible are:

Answer 42

Determinable, condition subsequent

Question 43

The deed to the _______________ states usage limitations. If the restrictions are violated, the estate automatically reverts to the grantor or heirs

Answer 43

Determinable estate

Question 44

In a ______________, if any condition is violated, the previous owner may repossess the property. However, reversion of the estate is not automatic; the grantor must re-take physical possession within a certain time frame.

Answer 44

Condition subsequent estate

Question 45

A __________ is a freehold estate that is limited in duration to the life of the owner or other named person. Upon the death of the owner or other named individual, the estate passes to the original owner or another named party.

Answer 45

Life estate

Question 46

The holder of a life estate is called a _________________.

Answer 46

Life tenant

Question 47

The distinguishing characteristics of the life estate are:

Answer 47

1) the owner enjoys full ownership rights during the estate period
2) holders of the future interest own either a reversionary or a remainder interest
3) the estate may be created by agreement between private parties, or it may be created by law under prescribed circumstances

Question 48

If a life estate names a third party to receive title to the property upon termination of the life estate, the party enjoys a future interest, called a remainder interest or a remainder estate. The holder of a remainder interest is called a __________.

Answer 48

Remainderman

Question 49

If no remainder estate is established, the estate reverts to the original owner, or the owner’s heirs. In this situation, the original owner retains a reversionary interest or estate. This is called ______________.

Answer 49

Reversion

Question 50

The two types of life estates are the __________ and the ________ life estates.

Answer 50

Conventional, legal

Question 51

A _____________________ is created by grant from a fee simple property owner to the grantee, the life tenant. Following the termination of the estate, rights pass to a remainderman, or revert to the previous owner.

Answer 51

Conventional life estate

Question 52

The two types of conventional life estates are the __________ and the ______________ life estates.

Answer 52

Ordinary, pur autre vie

Question 53

An _______________ ends with the death of the life estate owner and may pass back to the original owners or their heirs (reversion) or to a named third party (remainder).

Answer 53

Ordinary life estate

Question 54

A _____________________ endures over the lifetime of a third person, after which the property passes from the tenant holder to the original grantor (reversion) or a third party (remainderman).

Answer 54

Pur autre vie life estate

Question 55

A legal life estate is created by _________, as opposed to, being created by a property owner’s agreement.

Answer 55

State law

Question 56

The focus of a legal life estate is:

Answer 56

Defining and protecting the property rights of surviving family members upon the death of the husband or wife.

Question 57

The major forms of legal life estate are the:

Answer 57

homestead, dower and curtesy, and elective share

Question 58

A fee simple estate is:

Answer 58

A freehold estate of potentially unlimited duration.

Question 59

A _____________ is limited to the life of the owner

Answer 59

Life estate

Question 60

An ___________ is another’s right to use or take possession of a legal owner’s property, or to prevent the legal owner from enjoying the full bundle of rights in the estate.

Answer 60

Encumbrance

Question 61

What are the most common types of encumbrances?

Answer 61

Easements and liens

Question 62

An ___________ is an interest in real property that gives the holder the right to use portions of the legal owner’s real property in a defined way.

Answer 62

Easement

Question 63

True or false: Easement rights may apply to a property’s surface, subsurface, or airspace, but the affected area must be defined.

Answer 63

True

Question 64

The receiver of the easement right is the _________ party; the giver of the easement right is the __________ party.

Answer 64

Benefitted, burdened

Question 65

Essential characteristics of easements include:

Answer 65

1) An easement must involve the owner of the land over which the easement runs, and another, non-owning party. One cannot own an easement over one’s own property.
2) An easement pertains to a specified physical area within the property boundaries.
3) An easement may be affirmative, allowing a use, such as a right-of- way, or negative, prohibiting a use, such as an airspace easement, that prohibits one property owner from obstructing another’s ocean view.

Question 66

An __________________ is a personal right that one party grants to another to use the grantor’s real property. The right does not attach to the grantor’s estate. It involves only one property, and, consequently, does not benefit any property owned by the easement owner.

Answer 66

Easement in gross

Question 67

True or false: an easement in gross may be personal or commercial.

Answer 67

True

Question 68

A __________________ is granted for the grantee’s lifetime. The right is irrevocable during this period but terminates on the grantee’s death. It may not be sold, assigned, transferred or willed.

Answer 68

Personal easement in gross

Question 69

A _______________________ is granted to a business entity rather than a private party. The duration of the commercial easement is not tied to anyone’s lifetime. The right may be assigned, transferred, or willed. This type of easement is usually owned by the government, a government agency, or a public utility.

Answer 69

Commercial easement in gross

Question 70

An _____________________ gives a property owner a right of usage to portions of an adjoining property owned by another party.

Answer 70

Easement appurtenant (attaching to)

Question 71

The property enjoying the usage right is called the _________________.

Answer 71

Dominant tenement or dominant estate

Question 72

The property containing the physical easement itself is the _______________.

Answer 72

Servient tenement

Question 73

An _________________ attaches to the estate and transfers with it unless specifically stated otherwise in the transaction documents.

Answer 73

Easement appurtenant

Question 74

Non-exclusive use of an easement means:

Answer 74

The servient tenement, as well as the dominant tenement, may use the easement area, provided the use does not unreasonably obstruct the dominant use.

Question 75

An ______________ is the unauthorized, physical intrusion of one owner’s real property into that of another.

Answer 75

Encroachment

Question 76

A ____________, much like a personal easement in gross, is a personal right that a property owner grants to another to use the property for a specific purpose. They are not transferable and do not attach to the land. They cease on the death of either party or on the sale of the property.

Answer 76

License

Question 77

Liens have the following legal features:

Answer 77

1) a lien does not convey ownership except if the lien is a mortgage lien
2) a lien attaches to the property and can be transferred to the new owner
3) a property may be subject to multiple liens
4) a lien terminates on payment of the debt and recording of documents

Question 78

If an heirless owner of a property has been missing and cannot be located, after which period of time the land escheats to the state?

Answer 78

7 years

Question 79

Encumbrances and police powers are:

Answer 79

Interests that do not include possession

Question 80

The “taking clause” which says, in part, that private property cannot be taken for public use without just compensation, belongs to which Amendment?

Answer 80

Fifth Amendment

Question 81

The Landowner’s Bill of Rights applies to any attempt by the government or a private entity to take your property. There are 10 basic rights covered under the Bill of Rights dealing with the only process that an entity may legally take your property, condemnation:

Answer 81

1) You are entitled to receive adequate compensation if your property is taken for a public use.
2) Your property can only be taken for a public use.
3) Your property can only be taken by a governmental entity or private entity authorized by law to do so.
4) The entity that wants to take your property must notify you that it wants to take your property.
5) The entity proposing to take your property must provide you with a written appraisal.
6) The entity proposing to take your property must make a bona fide offer to buy the property before it files a lawsuit to condemn the property.
7) You may hire an appraiser or other professional to determine the value of your property or to assist you in any condemnation proceeding.
8) You may hire an attorney to negotiate with the condemning entity and to represent you in any legal proceedings involving the condemnation.
9) Before your property is condemned, you are entitled to a hearing before a court appointed panel that includes three special commissioners. The special commissioners must determine the amount of compensation the condemning entity owes for the taking of your property. The commissioners must also determine what compensation, if any, you are entitled to receive for any reduction in value of your remaining property.
10) If you are unsatisfied with the compensation awarded by the special commissioners, or if you question whether the taking of your property was proper, you have the right to a trial by a judge or jury. If you are dissatisfied with the trial court’s judgment, you may appeal that decision.

Question 82

___________ basically concern the rights to own and use water found in lakes, streams, rivers, and the ocean. In addition, they determine where parcel boundaries can be fixed with respect to adjoining bodies of water.

Answer 82

Water rights

Question 83

This position requires that property owners obtain permits for use of water. If a proposed usage is reasonable and beneficial, the state will grant a permit, which over time, can attach to the property of the permit holder.

Answer 83

Doctrine of Prior Appropriation

Question 84

______________ is a Civil Law term referring to the right of one individual to use and enjoy the property of another.

Answer 84

Usufructuary

Question 85

What does the Texas Commission on Environmental Quality (TCEQ) do?

Answer 85

Issues water rights for people who can show a beneficial use for the water, such as crop irrigation.

Question 86

True or false: If a water right has not been used for a period of ten years, the Texas Commission on Environmental Quality (TCEQ) has the right to revoke the permit, unless the reason for the lack of use of the water was due to a restriction, such as a water conservation program.

Answer 86

True

Question 87

Since Texas is a gulf state, Texas’ open beach law gives the public the right to use the public beaches. Anything between the high tide line and the low tide line is considered a public beach, creating an easement. The ________________ states that no one can build a structure on the easement

Answer 87

Texas Open Beach Act

Question 88

_____________ concern properties abutting bodies of water that are not moving, such as lakes and seas.

Answer 88

Littoral rights

Question 89

Owners of properties abutting a navigable, non-moving body of water enjoy the _________ right of use, but do not own the water or the land beneath the water. Ownership extends to the high-water mark of the body of water.

Answer 89

Littoral

Question 90

True or false: Littoral rights attach to the property. When the property is sold, the littoral rights transfer with the property to the new owner.

Answer 90

True

Question 91

___________ rights concern properties abutting moving water, such as streams and rivers.

Answer 91

Riparian

Question 92

If a property abuts a stream or river, the owner’s _________ rights are determined by whether the water is navigable or not navigable.

Answer 92

Riparian

Question 93

If the property abuts a non-navigable stream, the owner enjoys unrestricted use of the water and owns the land beneath the stream to _____________.

Answer 93

The stream’s midpoint

Question 94

If the waterway in question is navigable, the waterway is considered to be a public easement. In such a case, the owner’s property extends to _______________.

Answer 94

The water’s edge

Question 95

The land resulting from the soil build-up caused by the natural action of the river or stream.

Answer 95

Accretions

Question 96

One’s riparian rights to use flowing water are subject to the conditions that:

Answer 96

1) the usage is reasonable and does not infringe on the riparian rights of other owners downstream
2) the usage does not pollute the water
3) the usage does not impede or alter the course of the water flow

Question 97

A riparian owner’s right to use water was changed in _____ and requires a state permit for the maximum actual water put to beneficial use without waste.

Answer 97

1969

Question 98

True or false: Like littoral rights, riparian rights attach to the property.

Answer 98

True

Question 99

___________ are underground geological formations that collect and attract water.

Answer 99

Aquifers

Question 100

True or false: Unlike surface water, groundwater is the property of the landowner, which allows a landowner the right to capture the water beneath his or her property, and sell, lease, and move the water pumped from his or her property to a neighbor, corporation, or city.

Answer 100

True

Question 101

Texas courts have limited the rule of capture in order (or “law of the biggest pump”) to prohibit a landowner from:

Answer 101

1) Pumping water for the purpose of maliciously harming an adjoining neighbor;
2) Pumping water for a wasteful purpose;
3) Causing land subsidence (sinking) on adjoining land from negligent pumping; and
4) Drilling a slant well that crosses the adjoining property line.

Question 102

Three major restrictions which have been imposed to prevent unlimited pumping of groundwater can be found in the Texas Water Code. These restrictions govern:

Answer 102

1) Pumping water that comes from the underflow of a river;
2) Pumping groundwater from an aquifer within the jurisdiction of a Groundwater Conservation District (GCD); and
3) Pumping groundwater from the Edwards Aquifer within the jurisdiction of the Edwards Aquifer Authority.

Question 103

Name three rights appointed to a landowner in the State of Texas.

Answer 103

1) Water rights
2) Mineral rights
3) Homestead rights

Question 104

True or false: A legal life estate is created by state law, as opposed to being created by a property owner’s agreement.

Answer 104

True

Question 105

The focus of a legal life estate is:

Answer 105

Defining and protecting the property rights of surviving family members upon the death of the husband or wife.

Question 106

True or false: Rural Homesteads in Texas may not be more than 200 acres for a family, and 100 acres for a person. The home must be included in this acreage.

Answer 106

True

Question 107

In urban areas, Texas homesteads may not be more than ___________:

Answer 107

10 acres including a business along with a home.

Question 108

Homestead laws generally provide that:

Answer 108

1) All or portions of one’s homestead are exempt from a forced sale executed for the collection of general debts (judgment liens)
2) Tax debts, seller financing debt, debts for home improvement, and mortgage debt are NOT exempt.
3) The family must occupy the homestead.
4) The homestead interest cannot be conveyed by one spouse; both spouses must sign the deed conveying homestead property.
5) The homestead exemption and restrictions endure over the life of the head of the household, and pass on to children under legal age
6) Homestead interests in a property are extinguished if the property is sold or abandoned.
7) In some states the exemption is automatic; in others, homeowners must file for the exemption.

Question 109

Homestead law in Texas provides that:

Answer 109

1) A homestead can be held by every head of household and every single person.
2) The premises must be occupied or intend to be occupied by the family or the householder.
3) The head of household or householder must occupy or lease the property.

Question 110

An owner of a homestead must have lived in his or her home in Texas for ____ days in order to use the homestead exemption against bankruptcy.

Answer 110

1215

Question 111

Liens not subject to the homestead exemption:

Answer 111

1) Purchase money on the homestead
2) Taxes on the homestead
3) Mechanic’s liens for work or services completed on the homestead
4) Extensions of credit on the homestead (i.e. Home equity loan)
5) Some reverse mortgages
6) Debts owed to the federal government
7) Encumbrance that existed on the property prior to becoming a homestead
8) Owing of partition liens, to settle divorce case claims, or death case claims
9) Refinancing a lien against the homestead
Manufactured home refinancing

Question 112

The ______________________ exempts a portion of the property’s value from taxation.

Answer 112

Homestead tax exemption

Question 113

______ is a wife’s life estate interest in the husband’s property. When the husband dies, the wife can make a claim to portions of the decedent’s property.

Answer 113

Dower

Question 114

_________ is a husband’s life estate interest in the wife’s property. When the wife dies, the husband can make a claim to portions of the decedent’s property.

Answer 114

Curtsey

Question 115

_____________ is a state-level statute enabling a surviving spouse to make a minimum claim to the deceased spouse’s real and personal property in place of the provisions for such property in the decedent’s will.

Answer 115

Elective share

Question 116

By a provision of the state Constitution of ______, which was carried over in substantially the same language into the constitutions of 1869 and 1876, the state released to the owner of the soil all mines and mineral substances therein.

Answer 116

1866

Question 117

Under the ____________________, the surface owner is made the agent of the state for the leasing of such lands, and both the surface owner and the state receive a fractional interest in the proceeds of the leasing and production of minerals.

Answer 117

Relinquishment Act of 1919

Question 118

True or false: Under a lease, the operator assumes all expenses of operations to develop the mineral resources in return for a conveyance of 7/8 interest in them; the landowner or lessor retains 1/8 interest free and clear of all costs.

Answer 118

True

Question 119

The interest of the mineral owner or lessor is known as ______.

Answer 119

Royalty

Question 120

Unlike surface water, groundwater is the property of the landowner, which allows a landowner the right to do what?

Answer 120

Capture the water beneath his or her property, and sell, lease, and move the water pumped from his or her property to a neighbor, corporation, or city

Question 121

What are the major forms of a legal life estate?

Answer 121

Homestead, dower and curtesy, and elective share

Question 122

The term _______ refers to any asbestos-containing material that, when dry, can be easily crumbled or turned to powder by hand.

Answer 122

Friable

Question 123

The Environmental Protection Agency and the Department of Housing and Urban Development say that approximately seventy-five percent of homes built before 1978 contain some ____________.

Answer 123

Lead-based paint

Question 124

Real estate agents who take listings of homes built prior to 1978 must have their sellers fill out a disclosure form about their knowledge or lack of knowledge about the presence of ______________ in the home.

Answer 124

Lead-based paint

Question 125

In the Seller’s Disclosure section of Information on Lead-Based Paint:

Answer 125

The sellers check whether or not they have any knowledge of the presence of lead-based paint in the home. They also indicate whether or not they have any reports that pertain to lead-based paint in the home and if so, that they have provided the buyers with all available records.

Question 126

In the Buyer’s Acknowledgement section of Information on Lead-Based Paint:

Answer 126

The buyers acknowledge they have received copies of reports and other pertinent information, that they have received the EPA pamphlet Protect Your Family from Lead in Your Home, and that they have received or waived their right to the 10-day risk assessment period.

Question 127

In the Broker’s Acknowledgement section of Information on Lead-Based Paint:

Answer 127

The real estate broker indicates that he or she has informed the sellers as required and is aware of his or her responsibility to ensure compliance.

Question 128

In the Certification of Accuracy section of Information on Lead-Based Paint:

Answer 128

All parties sign the disclosure

Question 129

_______ is an odorless, colorless, tasteless, and radioactive gas created in the ground where uranium and radium exist. In certain homes, it can build to dangerous levels.

Answer 129

Radon

Question 130

What are 3 testing methods for radon?

Answer 130

1) Charcoal canisters - These devices absorb radon or its products on to the charcoal.
2) Electret Ion (E-perms) Chambers – These devices have a Teflon disc, which is statically charged.
3) Continuous Radon Monitors – These monitors are active devices which need electrical power. They are generally more expensive and require professionally trained testers for their operation.

Question 131

_______________________ are mixtures of synthetic organic chemicals with the same basic chemical structure and similar physical properties ranging from oily liquids to waxy solids.

Answer 131

Polychlorinated Biphenyls (PCBs)

Question 132

Carbon monoxide (CO) concentration is measured in _________.

Answer 132

Parts per million (ppm)

Question 133

Human exposure to asbestos may be caused by:

Answer 133

Air, wind, and water erosion from naturally-occurring deposits as well as by the mining, manufacture and use of some asbestos-containing products.

Question 134

Lead-based paint cannot be absorbed through the skin. However, it is dangerous when it enters the bloodstream through ___________________________.

Answer 134

Ingestion or inhalation

Question 135

______________________ are invisible lines of force that surround any electrical device. They can be caused by power lines, electrical wiring and appliances, which produce electric and magnetic fields.

Answer 135

Electromagnetic fields or “EMFs”

Question 136

_________________ is a deadly, colorless, odorless, poisonous gas. It is produced by the incomplete burning of various fuels, including coal, wood, charcoal, oil, kerosene, propane, and natural gas.

Answer 136

Carbon monoxide (CO)

Question 137

On average, how many people die yearly in the United States due to CO produced by non-automotive consumer products?

Answer 137

170