Interests In Real Estate Flashcards
**Police Power
The inherent right of the state to enact legislation to preserve order, protect the public health and safety, and promote the general welfare of its citizens.
What local, state and federal powers do governments possess that limit individual ownership rights?
POLICE POWER
EMINENT DOMAIN
TAXATION
ESCHEAT
**Eminent Domain
The right of the government, under due process of law, to acquire privately owned real estate for public use through the process of CONDEMNATION. Compensation must be paid to the owner.
**Condemnation
The right of the government, under due process of law, to acquire privately owned real estate for public use through the process of CONDEMNATION. Compensation must be paid to the owner.
Taxation
A charge on real estate to raise funds to meet the needs of a government.
Escheat
The process by which the state may acquire privately owned real or personal property.
Estate in land
Defines the degree, quantity, nature and extent of an owner’s interest in real property
Freehold Estate
Ownership interests that last for an indeterminable length of time, such as for a lifetime or forever. The two broadest categories of FREEHOLD ESTATES and FEE SIMPLE ESTATE and LIFE ESTATE
Fee Simple (Fee Simple Absolute)
Is the highest interest in real estate recognized by law in which the owner is entitled to all rights to the property by law. The estate is intended to run forever and to pass onto the owner’s heirs. It is one of the broadest categories of FREEHOLD ESTATE.
Defeasible Fee (Fee Simple Defeasible) Estate
A qualified estate that is subject to the occurrence or nonoccurrence of a specified event. Two categories of defeasible estate exist: 1) FEE SIMPLE DETERMINABLE; 2) FEE SIMPLE SUBJECT TO CONDITION SUBSEQUENT. A DEFEASIBLE FEE ESTATE is one of the two types of FEE SIMPLE ESTATES.
Fee Simple Determinable
An inheritable estate qualified by a SPECIAL LIMITATION (an occurrence or event) using words like “so long as,” “while,” and “during.” The POSSIBILITY OF REVERTER is retained so automatic RIGHT OF RENTRY by the former owner (or his heirs or successors) occurs upon violation of the limitation. It is one of two examples of a DEFEASIBLE FEE ESTATE.
Fee Simple Estate Subject to a Condition
An estate given by an owner on CONDITION OF OWNERSHIP by using a phrase like “on condition that.” RIGHT OF REENTRY is not automatic and the original owner must go to court to assert this right. It is one of two examples of a DEFEASIBLE FEE ESTATE.
**Life Estate
A non-inheritable FREEHOLD ESTATE that is limited in duration to the life of the owner or to the life of some other designated person or persons. Future ownership passes according to its provisions. There are two categories of LIFE ESTATES: 1) CONVENTIONAL; 2) LEGAL
Life Tenant
The beneficiary of a CONVENTIONAL LIFE ESTATE, a LIFE TENANT has full enjoyment of the real estate as though he were a FEE SIMPLE owner until the death of the person against whose life the estate is measured.
The LIFE TENANT’s ownership may be sold, mortgaged, or leased, but it is always subject to the limitations of the LIFE ESTATE.
**Conventional Life Estate
An estate created by the intentional act of the owner, either by deed or will, that is conveyed to an individual known as a LIFE TENANT who has full enjoyment of ownership until the death of the person against whose life the estate is measured. There are two categories: 1) PUR AUTRE VIE; 2) REMAINDER AND REVERSION
**Pur Autre Vie
Meaning “for another’s life,” PUR AUTRE VIE is a LIFE ESTATE based on the life of someone other than the LIFE TENANT. For example, if Bob is given use of the family house for as long as his mother lives, he has possession of the house pur autre vie.
Although not considered an ESTATE OF INHERITANCE, PUR AUTRE VIE provides for inheritance by the LIFE TENANT’S heirs until the death of the third party.
This kind of CONVENTIONAL LIFE ESTATE is often created for incapacitated individuals as an incentive for someone to provide care for them.
**Remainder and Reversion
When LIFE ESTATES end, they revert back to either via:
1) REVERSIONARY INTEREST (back to the GRANTOR and his heirs); or
2) REMAINDER INTEREST (to a third party or REMAINDERMAN).
Both carry no RIGHT OF POSSESSION until the LIFE ESTATE ends or is terminated by a court.
**Legal Life Estate
An estate established by state law that becomes effective automatically when certain events occur. Examples are: 1) the life estate a wife has on the real estate of her deceased husband (DOWER); 2) the life estate interest a husband has in the real estate of his deceased wife (CURTESY): 3) protection of farmer’s dwelling apart from physical land (HOMESTEAD)
Encumbrance
A claim, charge or liability that attaches to real estate. Types of encumbrance include: 1) LIEN; 2) DEED RETRICTIONS; 3) EASEMENTS
Lien
A charge against property that provides security for a debt or obligation of the property owner
Deed Restrictions
Private restrictions that affect use of the land. Once placed in the deed by a previous owner, they “run with the land,” limiting use of the property and binding to all GRANTEES.
Easement
The right to use the land of another party for a particular purpose. It may exist in any portion of the real estate, including the airspace above it or a RIGHT-OF-WAY across the land.
Appurtenances Easement
Exists with adjacent parcels of land under different ownership. They are attached to one parcel of land and allow the owner of one parcel use of the neighbor’s land.
The parcel over which the easement runs is the SERVIENT TENEMENT.
The parcel that benefits from the easement is the DOMINANT TENANT
**Easement in Gross
An individual or company interest in right to use someone else’s land. Examples are railroad and utility RIGHT-OF-WAYS for tracks and pipes or high tension lines.
**Easement By Necessity
Created when an owner sells a parcel of land that has no access to a street or public way except over the seller’s remaining land. They are created under court order on the principle that owners must have a right to enter (INGRESS) and exit (EGRESS) their land.
**Easement By Prescription (Prescriptive Easement)
A claim to land ownership made when one has made use of another’s land for a certain period defined by state law. The CLAIMANT’s use must have been;
1) Continuous
2) Adverse
3) Notorious
4) Open
5) Exclusive
Easement by Condemnation
Acquired for a public purpose, this easement is created under the government’s right of EMINENT DOMAIN.
**License
A personal privilege to enter the land of another for a specific purpose. Unlike an EASEMENT, a license can be terminated or cancelled.
**Encroachment
The illegal extension of a building or a fence that extends beyond the land of the owner.
**Riparian Rights
Common-law rights granted to owners of land lying along the course of a river or stream, or similar body of water. They generally include unrestricted rights to use the water. On non-navigable waterways, the owner owns to the center of the waterway. Private ownership of land along commercially navigable waters stops at the water’s edge.
*Littoral Rights
Rights of owners whose land borders commercially navigable lakes, seas or oceans. Owners with littoral rights enjoy unrestricted use of available waters but own the land adjacent to the water only up to the MEAN HIGH WATER MARK
