Chapter 7 Intrests in real estate

Question 1

What is the acronym for PETE Stand for

Answer 1

Police, Eminet Domain, Taxation, Escheat

Question 2

What is the right for government to acquire private own real estate for public use, private use or economic development.

Answer 2

Eminent domain.

Question 3

The government exercise this right by either judicial or administrative proceedings.

Answer 3

Condemnation

Question 4

Illinois permits a summary proceeding in which a plaintiff/condemnor may obtain immediate fee simple title to real property, including right of possession and use.

Answer 4

quick-take

Question 5

Every state has the power to enact legislation to preserve order, protect the public health
and safety, and promote the general welfare of its citizens. !at authority is called a state’s

Answer 5

police power

Question 6

This is a charge on real estate to raise funds to meet the public needs of a government.

Answer 6

Taxation

Question 7

when an owner
dies and leaves no heirs and also leaves no will or living trust instrument that directs how the
real estate is to be distributed.

Answer 7

Escheat

Question 8

This type of estate last for an indeterminate length of time, such as for a lifetime or forever.

Answer 8

Freehold Estates

Question 9

Type of freehold estates

Answer 9

Fee Simple(or indefeasible fee), defeasible fee, and life estates.

Question 10

What type of estate last for a fixed period of time

Answer 10

leasehold estate

Question 11

how long does fee simple estates last under normal conditions

Answer 11

Forever

Question 12

which type of estate is said to have the highest interest recognized by law.

Answer 12

fee simple absolute

Question 13

Which fee simple is subject to the occurrence or non occurrence of some specified event

Answer 13

fee simple defeasible

Question 14

What is a fee simple determinable

Answer 14

!is estate
is qualified by a special limitation (which is an occurrence or event). former owner retains a possibility of reverter. If the
limitation is violated, the former owner (or heirs or successors) can reacquire full ownership
with no need to go the court.

Question 15

This is a freehold estate limited in duration to the life of the owner or the life of
some other designated person or persons. that is not inheritable and passes to future owners according to the prearranged provision of the life estate.

Answer 15

life estate

Question 16

This is entitled to the rights and benefits of ownership from both possession and
ordinary use and profits just as if the individual held a fee simple interest. !e life tenant’s
ownership may be sold, mortgaged, or leased, but it is always subject to the limitation of the
life estate, and under those conditions

Answer 16

life estate

Question 17

life tenant may not injure the property,
such as by destroying a building or allowing it to deteriorate. In legal terms, such injury is
called

Answer 17

Waste

Question 18

this s created intentionally by the owner. It may be established either by
deed at the time the ownership is transferred during the owner’s life or by a provision of the
owner’s will after the owner’s death. !e estate is conveyed to an individual who is called the
life tenant

Answer 18

Conventional life estate

Question 19

A life estate also may be based on the lifetime of a person other than the life tenant. !is
is called a

Answer 19

life estate pur autre vie (“for the life of another”).

Question 20

What is remainder interest

Answer 20

the creator of the life estate may name a remainderman as the person
to whom the property will pass when the life estate ends (see Figure 7.2). Note that
“remainderman” is the legal term; neither the term remainderperson nor the term remainderwoman
is used legally.

Question 21

reversionary interest,

Answer 21

the creator of the life estate may choose not to name a remainderman.
In that case, the creator will recapture ownership when the life estate ends.
ownership is said to “revert to the original owner

Question 22

What is an encumbrance

Answer 22

a claim charge or liability that attaches to real estate

Question 23

what is a lien

Answer 23

its a charge against a property that provides security for a debt or an obligation of the property owner.