Interests in Real Estate Flashcards
Estate in Land
ownership interest defined by the degree, quantity, nature and extent of an owner’s interest in real property
Freehold Estate
lasts for an indeterminable length of time
Fee Simple Estate
the highest interest in real estate recognized by law
Nonfreehold Estate
one for which the length of time of the property’s use can be determined; leasehold estate
Fee Simple Absolute
entitles its owner to all rights to the property by law; upon the death of the owner property interest passes to a co-owner, persons specified in the will or with no will via state’s law of intestate succession
Fee Simple Defeasible
qualified fee estate that is subject to the occurrence or nonoccurence of some specified event
Fee Simple Determinable
a fee simple defeasible estate that may be inherited
Fee Simple Subject to a Condition Subsequent
an owner gives real estate on condition of ownership; there is a difference in the way the estate will terminate if there is a violation of the condition
Possibility of Reverter
if a limitation is violated in a fee simple determinable the holder of the possibility can reacquire full ownership with no legal action
Right of Reentry
in a fee simple subject to condition; estate does not automatically terminate upon violation of the condition of ownership it does require legal action
Life Estate
a freehold estate limited in duration to either the life of the holder of the estate or the life of some other designated person or persons
Life Tenant
the holder of a life estate
Pur Autre Vie
a type of life estate that provides for inheritance of the property right by the life tenant’s heirs until the death of the identified person or persons
Remainder Interest
a designation of the fee simple estate after the life estate ends that names a remainderman as the person who it passes to
Reversionary Interest
a designation of the fee simple estate after the life estate ends where ownership returns to the original owner
Legal Life Estate
created by state law rather than by a property owner
Dower
the life estate of a wife in the real estate of her deceased husband
Curtesy
the life estate of a husband in the real estate of his deceased wife
Uniform Probate Code
gives a surviving spouse the right to an elective share on the death of the other spouse, if the surviving spouse is not satisfied with the decedent’s disposition of the property by will
Homestead
legal life estate in real estate occupied as the family home; protected from most creditors during the occupant’s lifetime
Encumbrance
type of interest in real estate that does not rise to the level of ownership or possession yet still gives the entity some degree of use or control
Lien
a charge against property that provides security for a debt or an obligation of the property owner
Deed Restriction
a restriction that affects the use of real estate and runs with the land, limiting the use of the property by the current owners as well as future owners
CC&R’s
covenants, conditions and restrictions - used by a subdivision developer to maintain specific standards detailed in the original plans
Easement
the right to use land for a particular purpose
Easement Appurtenant
attached to the ownership of real estate and allows the owner of that property the use of neighbor’s land
Dominant Tenement
the parcel that benefits from an easement appurtenant
Servient Tenement
the parcel over which an easement appurtenant runs
Party Wall
an exterior wall of a building that straddles the boundary line between two lots
Cross Easement
the reciprocal interest of each owner in the property of the other
Easement in Gross
an individual or company interest in or right to use someone else’s land
Easement by Necessity
created when an owner sells a parcel of land that has no legal access to a street or public way except over the seller’s remaining land - owners cannot be landlocked
Easement by Prescription
created when a claimant has made use of another’s land for a certain period of time as defined by state law; must be continuous, nonexclusive and without the owner’s permission. Must also be visible, open, notorious and the owner must have been able to learn about it
License
the personal privilege to enter the land of another for a specific purpose; can be terminated or canceled by the owner of the property
Encroachment
when a building illegally extends beyond the boundaries of the land of its owner or legal building lines
Lis Pendens
a notice filed in the public record of a pending legal action affecting the title to or possession of property
Four Governmental Powers (PETE)
police power, eminent domain, taxation, escheat
Police Power
the power to enact legislation to preserve order, protect the public heath and safety, and promote the general welfare of its citizens
Enabling Acts
the legislation through which the state’s authority is passed on to municipalities and counties
Eminent Domain
the right of the government to acquire privately owned real estate for public use
Taking
when land is taken for public use through the government’s power of eminent domain, the owner must be compensated fairly
Inverse Condemnation
action brought by a property owner seeking just compensation for land adjacent to land used for a public purpose when the property’s use and value have been diminished
Taxation
a charge on real estate to raise funds to finance the operation of government facilities and services; includes annual real property taxes, taxes on profit from the sale of real estate and special fees levied to finance special projects
Escheat
a process by which the state may acquire privately owned real or personal property
