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RE Exam > Interests In Real Estate > Flashcards

Interests In Real Estate Flashcards

1
Q

Interests

A

estates or tenancies. the extent of someone’s claim to real estate.

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2
Q

Freehold Interest

A

ownership

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3
Q

Non-freehold Interest

A

possessory rights that don’t include ownership (rental)

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4
Q

Fee Simple Absolute (fee, fee simple, fee simple indefeasible)

A

default type of ownership. inheritable and not restricted to any bundle of rights.

only limited by public and private restrictions (zoning, building codes)

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5
Q

Fee Simple Defeasible

A

limited ownership in real estate and can be lost if limit is violated or condition is triggered

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6
Q

Fee Simple Determinable

A

Fee Simple Defeasible - automatically lost when limit is violated

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7
Q

Fee Simple Subject to a Condition Subsequent

A

Fee Simple Defeasible - lost when legal action brought pursuant to violation of limit and return property to original grantor

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8
Q

Fee Simple Subject to an Executory Limitation

A

Fee Simple Defeasible - similar to condition subsequent but expect property would be transferred to third party named by grantor

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9
Q

Life Estates

A

exist as long as owner/life tenant of property is alive

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10
Q

habdem clause

A

section in life tenant’s deed that states who the ownership transfers to (usually remainder man) when life tenant passes

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11
Q

Remainderman

A

a person who inherits or is entitled to inherit property upon the termination of the estate of the former owner

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12
Q

Life Estate in Reversion

A

life tenant dies, legal title transfers back to original grantor

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13
Q

Life Estate in Remainder

A

life tenant dies, legal title transfers to some third party named by original grantor

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14
Q

Pur Autrie Vie

A

not based on life tenant’s term of life but on some arbitrary third party’s life as named by original grantor

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15
Q

Legal Life Estates

A

life estate created by law.

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16
Q

Dower’s Rights

A

surviving husband or wife is granted life estate for real property that was not willed to them, but owned by spouse at spouse’s time of death. This is inactive until death.

some states it’s up to 1/3 of deceased spouses real estate

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17
Q

Inchoate

A

inactive

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18
Q

Homestead

A

life estate granted to owners of family home. protection from forced sale of home to satisfy debts up to a certain amount. can only do one at a time.

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19
Q

Present Interest

A

life estate tenant owns this until death

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20
Q

Future Interest

A

Remainderman or grantor in reversion interest hold this

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21
Q

Life Tenant

A

who owns ownership rights in the present moment. they cannot commit waste because it would compromise the future interest. can use entire bundle of rights minus devise.

they can rent/sell but when the owner passes, the rights go to the future interest which isn’t ideal

22
Q

Severalty

A

ownership held by one person.

23
Q

Co-Ownership

A

ownership shared by two or more persons

24
Q

Tenancy in Common

A

co-ownership default. purchase without specifying interests in dividing. could be equal or unequal. cannot be compromised and is inheritable

25
Q

Joint Tenancy

A
  • co-ownership must be chosen by all persons and noted in deed.
  • follows survivorship
  • not inheritable
  • if part of it is sold, it is removed from joint
  • can be completely terminated by voluntary action, court order, or death of all tenants.
  • if 3/4 die, it becomes severalty
26
Q

Unity of Possession

A

4 unities - all have equal rights of possession

27
Q

Unity of Interest

A

4 unities - all have equal interests in property

28
Q

Unity of Time

A

4 unities - all purchase property at same time

29
Q

Survivorship

A

if one co-owner dies, their interest is divided amongst the remaining parties evenly

30
Q

Unity of Title

A

4 unities - all acquire in the same deed

31
Q

Tenancy in Entirety

A

joint tenancy for married couples. includes creditor protections. limitation on forced sale to satisfy debts of only one spouse

if divorce, turns back to tenancy in common

32
Q

Separate Property States

A

Entirety - my sell or devise separately, similar to joint tenants

33
Q

Community Property States

A

Entirety - property acquired during marriage cannot be sold or devised without consent of both spouses even if only one bought it

34
Q

Condominiums

A

subdivided building into units, tenants in common.

35
Q

Master Deed

A

how the condo building and its home owners association will be set up

36
Q

Declaration of Trusts

A

sets up Board of Trustees to manage condo association

37
Q

Bylaws

A

rules of the building

38
Q

Condo Conversion

A

a building that turns into condos

39
Q

Condo Fees

A

monthly fees to maintain common areas and upkeep. If failed to pay, may risk foreclosure

40
Q

Super-Priority Lien

A

Lien implemented by the association is dues are not paid. For up to 6 months of unpaid fees to unit.

run with land, responsibility is on unit not unit owner. binding on prop owner

41
Q

Special Assessments

A

(watch out for) extra condo fees charged to repair or upgrade building

42
Q

Capital Reserve

A

(watch out for) money held in a reserve fund account by condo associations and investors to pay for improvements to property

43
Q

Cooperatives

A

Cooperative formed for limited purpose in apartment buildings. LLC provides housing to shareholders.

people who live their own stock or shares on company, gives right to proprietary lease to their unit.

Own company not unit

44
Q

Co-Op Board

A

board of trustees. owners pay coop fees. Bank will accept stock as collateral for loan

45
Q

Why are Co-Ops Created..

A

to permit their residents to limit unit ownership in a legally permissible way since co-op approves sale of shares.

Allows for housing for specific types of people. must be legal and comply with FHAs

46
Q

Trusts

A

Created during persons life or upon death. Trustor grants access to trustee who cares for trust’s assets on behalf of beneficiaries

47
Q

Trustor

A

Creates trust

48
Q

Beneficiaries

A

Who receives money from trust

49
Q

Land Trusts

A

trusts that only own real estate and don’t include other assets

typically last for some limited period of time (ex; 25 years)

50
Q

Timeshares (interval ownership, prepaid vacations, floating use period)

A

dividing time rather than space. owns a specific part of the year along with shared interest in common areas. Owner pays maintenance fees for upkeep year round

51
Q

Securities

A

investments (stocks or bonds)

52
Q

Syndications

A

Securities -

RE Exam (4 decks)

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