exam prep 1-interests in real estate Flashcards
This defines the legal relationship between the parties who sign the lease. It grants possession, but not title, to the tenant, and is for a limited period of time. It may also be called a “freehold” estate
Leasehold estate
This is a fixed termination type of lease that may be for a day, week, month, year, several years, or any definite period of time. When the specified date occurs, the lease terminates automatically
Estate for years
This involves possessory interest that is automatically renewed at the end of each period specified in the lease
Periodic Estate
In this type of leasehold, the duration of the lease is unknown at the time it is created. An example would be a month-to-month lease
estate at will
A type of possession in which a tenant stays after the right to possess has terminated
estate at sufferance
An ownership estate that may be inherited
fee simple determinable
Ownership that terminates at an event pre-determined by the owner (either death or during the owner’s life)
life estate (conventional)
An estate based on the lifetime of a person other than the life tenant. Provides for the inheritance of the life tenant’s heirs only until death of the third party
per autre vie
A lien due to a court decree resulting from a lawsuit
judgment lien
Before heirs can inherit an estate, federal estate taxes and state inheritance taxes must be paid. In order to ensure payment of these taxes, a general lien is placed on the deceased person’s property at the time of death. The tax is a lien on all of the property the heirs inherit.
estate and inheritance tax lien
A legal notice that a lawsuit is pending that affects the title of a property. This serves as warning to prospective buyers that a pending lawsuit could impact title
lis pendens
The IRS will file a general lien against all property belonging to that person for various taxes owed and unpaid
income tax lien
A type of lien created by the property owner, or with the property owner’s consent
voluntary lien
Lien used when a property owner doesn’t pay for work that was performed
Mechanic’s lien
A claim against a specific property, identifiable property (the most common type of this lien is a mortgage)
specific or special lien
A claim against a person and all of that person’s property; occurs as a judgment against that person
general lien
A lien created on the property used as collateral for a loan to purchase a home
Mortgage lien
A type of lien levied against an owner who does not pay property taxes
Property tax lien
A permanent right to use another’s land for the benefit of a neighboring parcel
easement appurtenant
A type of easement that may be terminated when the reason for the easement no longer exists, such as when a new road is built that reaches a previously landlocked parcel
easement by necessity
The right to use the land of another and does not involve any adjoining estate; utility companies often make use of these easements
easement in gross
A permanent right to use another’s property after doing so for a statutory period of time
easement by prescription
Shared between two buildings and constructed on the boundary line between two owner’s lots
party wall
Rights to occupy the property
possessory
Easements fall into this category of rights because they do not give the easement holder the right to occupy the property
nonpossessory
When a building, shrub, fence, etc., illegally crosses over into another’s property
encroachment
Not classified as an encumbrance, this is a temporary right to enter the land or use property belonging to another for a specific purpose
license
The buildup of land from sand, silt or gravel over water. Hint: Think “creation”
accretion
The land mass formed by the buildup of sand, silt or gravel over water
alluvion
The increase of land resulting from the gradual, permanent withdrawal of water
reliction
The sudden loss or gain of land due to water
avulsion
The gradual loss of land due to water, wind, or other natural disturbances
erosion
The addition of value to property through labor or addition of new materials
accession
A land tract divided into lots of parcels for subsequent development
subdivision
Development fee paid to municipal agency
municipal fee
Subdivision bond with municipality named as a beneficiary for the purpose of ensuring the completion of improvements to surrounding areas
completion bond
Cost to prepare land for the purposes of development (may include land acquisition and construction)
development cost
A fee paid by a developer to the local community agency to offset the burden on the community’s infrastructure due to development
impact fee
Temporary financing used for the purpose of construction
construction loan
Cash committed by the owner of a development
owner participation
A requirement by a lender that a portion of a construction or development loan be paid off as each lot is sold
lot release provision
A mortgage given by a buyer to a seller or lender to secure payment of all or part of the purchase price
purchase money mortgage
The placement of a lien holder behind another lien holder
subordination
A limitation placed on land use (usually by the owner or developer) that is made part of the deed
deed restriction
Loss of legal rights because of failure to assert them on a timely basis
doctrine of laches
