Chapter 7 - Definitions Flashcards
“Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat.” is definition of
Fee simple interest
A fee simple estate is:
- Inheritable
- Transferable
- Perpetual
What does perpetual mean?
This form of ownership is perpetual, in other words, I don’t have to do anything to renew or continue my ownership. If I have a fee simple interest, my interest will continue on perpetually until I die or transfer the property.
“Divided or undivided rights in real estate that represent less than the whole, i.e., a fractional interest such as a tenancy in common, easement, or life interest.” is definition of __________
partial interest
“Rights of use, occupancy, and control, limited to the lifetime of a designated party, sometimes referred to as the life tenant.” is definition of ___________
Life Interest
Leased fee interest is defined as
“The ownership interest held by the lessor, which includes the right to receive the contract rent specified in the lease plus the reversionary right when the lease expires.”
Leasehold interest is defined as
“The right held by the lessee to use and occupy real estate for a stated term and under the conditions specified in the lease.”
A leasehold interest may have value if the contract rent stipulated in a lease is less than the property’s market rent. A leasehold interest is considered a non-freehold estate.
An easement is defined as
“The right to use another’s land for a stated purpose.”
Easement in gross is defined as:
“An easement that benefits a legal person or entity (individual, corporation, partnership, LLC, government entity, etc.) and not a particular tract of land; an easement having a servient estate but no dominant estate.”
“An easement that benefits a legal person or entity (individual, corporation, partnership, LLC, government entity, etc.) and not a particular tract of land; an easement having a servient estate but no dominant estate.”
Easement in gross
Examples of easements in gross would be easements for railroads, pipelines and utility companies. An easement in gross burdens one’s property but does not benefit another parcel of land.
For example, every property in a neighborhood might have a utility easement along its front edge for local water and sewer lines. Therefore, there may be no need for an appraiser to make an adjustment for this easement, because the subject and all the properties that are used as comparable sales are affected by similar easements.
easement appurtenant. That is defined as
“An easement that is attached to, benefits, and passes with the transfer of the dominant estate; runs with the land for the benefit of the dominant estate and continues to burden the servient estate, although such an estate may be transferred to new owners.”
“An easement that is attached to, benefits, and passes with the transfer of the dominant estate; runs with the land for the benefit of the dominant estate and continues to burden the servient estate, although such an estate may be transferred to new owners.”
easement appurtenant.
Sometimes, easements work for the benefit or detriment of one party over another. If I own a property in the rear of your property and I access it through an access right-of-way over your property, I gain a benefit and your property is encumbered.
In this example, I would have the ___________ estate and you would have the___________ estate.
dominant tenement / dominant estate (benefit)
servient tenement / servient estate (encumberment)
An affirmative easement is defined as
“The right to perform a specific act on a property owned by another.”
A negative easement is defined as
“An easement preventing a property owner from certain, otherwise permitted, uses of his or her land, e.g., agreeing not to do something such as building a wall or fence blocking an adjoining property’s view.”
Examples:
- Conservation easements
- Drainage easements
- Historic preservation easements
- Subsurface rights
- Air rights
A conservation easement is defined as:
“An interest in real property restricting future land use to preservation, conservation, wildlife habitat, or some combination of those uses. A conservation easement may permit farming, timber harvesting, or other uses of a rural nature as well as some types of conservation-oriented development to continue, subject to the easement.”
A drainage easement, or drainage right of way, is defined as:
“The right to drain surface water from one owner’s land over the land of one or more adjacent owners.”
A historic preservation easement is defined as:
“A type of easement in gross that protects historically or architecturally significant properties by prohibiting or requiring review of future alterations or additions to protected features. When only some or all of the exterior surfaces and not the interior are protected, such an easement is often called a façade easement. The Internal Revenue Code allows a charitable gift deduction for the voluntary grant of qualifying historic preservation easements on some types of historic buildings.”
A license is defined as:
“For real property, a personal, unassignable, and typically revocable privilege or permit to perform some activity on the land of another without obtaining an interest in the property.”
A license can be terminated at any time and is considered to be personal property, rather than real property. An example might be the purchase of hunting or fishing rights on private property.
An encroachment is defined as:
“Trespassing on the domain of another.”
a garage or a deck that is built a foot or two over the property line - situation like that is called ___________
encroachment
Bob grants a life interest in his property to his mother, Mary. As long as Mary is alive, Bob’s interest in the property is referred to as a (an)
estate in remainder
