Chapter 7 - Real Estate Interests

Question 1

Interests

Answer 1

Possession and control over a particular plot of land

Question 2

Bundle of legal rights

Answer 2

relates to the power to control one’s property in relation to specific parcel, public and private restrictions.

Question 3

Governmental Powers

Answer 3

Eminent domain
Taxation
Escheat
Police Power

Question 4

Eminent Domain

Answer 4

Power of the government to pay the fair market value for privately owner real estate and appropriating the land for public use.

Question 5

Taxation

Answer 5

A charge levied by the government

Question 6

Escheat

Answer 6

The reversion of a property to the state or county when someone dies without an heir to inherit or when a property is abandoned

Question 7

Police Power

Answer 7

Government’s right to impose and legislation to protect the public from health hazards, safety, and the welfare from anything deemed threatening.

They are very different from one county to the next and affect building codes environmental protection laws, zoning ordinances, and govern the use, occupancy, size, location, and construction of real estate.

Question 8

Estate in land

Answer 8

the degree, nature, extent, or quantity of interest a person has in real property.

Divided into two main categories freehold and leasehold.

Question 9

Freehold estates

Answer 9

Last for an unspecified length of time, for example for a lifetime or forever. They include fee simple, defeasible fee, and life estates.

Question 10

Leasehold estates

Answer 10

last for a specific period until a certain event occurs.

Question 11

Fee Simple Estate

Answer 11

Are for an infinite time period. When the property owner dies, the fee simple estate passes to the owner’s heirs or passes to another stated in their will.
There are two types - fee simple absolute and fee simple defeasible

Question 12

Fee simple absolute

Answer 12

Maximum interest in real estate recognized by law. The holder is entitled to absolute rights to the property, except governmental powers, limited by certain public and private restrictions.

Licensees will need to know it is the strongest, and try to remember it as absolutely the best, because this is often tested

Question 13

Fee Simply defeasible estate

Answer 13

fee simple absolute except there is a requirement or stipulation.
Two subcategories are condition subsequent or determinable

Question 14

Fee simple determinable

Answer 14

a Fee simple defeasible estate and qualified by a special limitation.
“as long as” “while” or during”
property owner retains possibility of reversion if limitation is broken.

Question 15

Life estate

Answer 15

Cannot be inherited. A freehold estate is limited in duration to the life of the owner

Question 16

Life tenant

Answer 16

a tenant for life. When the tenant dies, ownership reverts back to the original owner or third party.

Question 17

Pur autre vie

Answer 17

a life estate based on the lifetime of another person.

Question 18

Legal life estate

Answer 18

is a form of life estate established by state law. It becomes effective automatically when certain events occur

Question 19

Homestead

Answer 19

dwelling, rented or owner, or occupied as a buyer in possession under a land contract and the land surrounding it, not exceeding one acre.

In Wisconsin cannot be less than 1/4 acre and cannot be more than 40 acres

Question 20

Homestead Act

Answer 20

exemption up to $75K to protect against creditors when going through foreclosure in Wisconsin

Question 21

Easements

Answer 21

The right to use another person’s land for a particular purpose. It is a liberty or privilege.

Question 22

Appurtenant easement

Answer 22

ownership of one parcel of and and allows the owner the use of a neighbor’s land.

Question 23

Servient Estate

Answer 23

The parcel over which the easement runs

Question 24

Dominant Estate

Answer 24

neighboring parcel that benefits is known as the dominant estate.

Question 25

Party Wall

Answer 25

Actual wall located on a boundary line in-between two adjacent parcels of land and is used by both property owners. Both owners are entitled to half ownership of the wall on his lot. Expenses are shared.

Question 26

Party Driveway

Answer 26

The same as a party wall but a driveway.

Question 27

easement in gross

Answer 27

company interest in or right to use a property owner’s land. Ex: Utility companies or Commercial easements.
End in death of the easement owner.

Question 28

Easement by necessity

Answer 28

created by court order because of the code that landowners are entitled to the right to enter and exit their land.

Question 29

Easement by prescription

Answer 29

given by continuously using the easement for a certain period of time. In WI this is 20 years according to 893.25.
Also known as squatters right.

Question 30

Tacking

Answer 30

Adding or combining successive periods of occupation of real property by different parties by adverse possessors.

Question 31

Easement by condemnation

Answer 31

created by a government agency that has exercised its right under eminent domain. The owner must be paid for any loss in the value of property

Question 32

Terminating an easement

Answer 32

1. by non-use of a prescriptive easement
2. . if and when the easement is no longer necessary
3. when the owner of either the dominant or the servient tenement becomes the owner of both properties
4. By release of the right of easement to the owner of the servient tenement
5. By abandonment of the easement
6. by adverse possession by the owner of the servient tenement
7. by destruction of the servient tenement
8. by lawsuit against someone claiming an easement
9. by property conversion

Question 33

Deed restrictions

Answer 33

clauses in a deed which limit the future use of the real property. Limiting the use of the property preventing future owners from a variety of things.

Question 34

Covenants, conditions, and restrictions (CC&Rs)

Answer 34

rules governing the use of a property.
Promised agreements made by the prospective purchaser concerning the use of the property and to abide by certain rules and restrictions to regulate the use, appearance, and maintenance or property and typically imposed by a developer.

Question 35

License

Answer 35

personal privilege when given permission to enter the land of another for a specific purpose (for example deer hunting on another’s property) Different from an easement because it’s revocable.

Question 36

Encroachments

Answer 36

Occurs when part of a fence, driveway, deck, or other structure illegally extends beyond the land of boundaries of the owner or beyond the legal building lines.

Question 37

Riparian Rights

Answer 37

entitle an owner to have reasonable access to and from shoreline, access the water, construct piers and ownership of land of the Ordinary High-Water Mark.

Question 38

Shoreland Zoning

Answer 38

Serves to protect the natural beauty, environment, quality of water, flora and fauna, and animal habitat. Littoral rights affect lakes, seas, and oceans.