Session 6: The Interests in Real Estate Flashcards
Feudal System
Kings or governments own the land and allow individuals to use it
Example of a feudal system
China or other communist countries
Allodial System
People can hold absolute ownership in the land
Example of a feudal system
United States
Estates in land
Degree, quantity, nature & extent of ownership in any real property
Freehold estate
interest in land that has an indefinite duration
How long can a freehold estate last?
Forever
Can a freehold estate be passed on in a will?
Yes
Life estate
interest in land that has a limited duration of someone’s lifetime
Are life estates inheritable?
No
Conventional life estate
voluntarily set up by the grantor
Legal life estate
created by operation of the law
Is a homestead an example of a conventional or legal life estate?
Legal
Life tenant
Entitled to all the rights of ownership including selling, encumbering, or leasing the property
Leasehold estate
Less than freehold. Has definite duration. No ownership privileges
Fee simple (absolute)
The highest interest in real estate recognized by law.
Can a fee simple estate be inherited?
Yes
Is there a time limit on a fee absolute?
No, they are indefinite
Fee simple defeasible (condition subsequent)
The owner of the property says that certain activities/acts can NOT be performed on the property
In a condition subsequent the owner of the property states not tobacco or alcohol sales can happen. The lessee is selling alcohol. What happens to the property
The owner has to go to court to get the property back
Fee simple determinable (special limitation)
The owner of a property says you can ONLY use the property for a specific purpose
In special limitation, a landholder lets a school use their land for a soccer field. The school builds a daycare on it instead. What happens to the land?
It’s reverted back to the owner automatically
Fee tail estate
Property moves through a bloodline (Not recognized in US)
What are the four different freehold estates?
Fee Simple (absolute)
Fee Simple Defeasible (condition subsequent)
Fee Simple Determinable (special limitation)
Fee Tail
Conventional life estate in reversion
the owner gives a life estate to a life tenant and when the tenant dies the property reverts back to the grantor
Conventional life estate in remainder
the owner fives a life estate to a life tenant and when the tenant dies the property foes to a remainderman who now owns the property
Conventional life estate pur autre vie
For the life of another. Measured by the lifetime of someone other than the tenant. When the other person dies the property reverts back to the original owner or a remainderman
Waste
improper use of a property that devalues the property
Homestead
a portion of the value of a primary residence is protected from a certain creditor (bankruptcy) during that persons lifetime
Does a homestead apply to consensual leans?
No
How much is protected in a homestead?
$150,000
Can a person or married couple claim multiple homesteads?
No only one
Does the homestead need to be a primary residence?
Yes
Can you live away from the homestead?
Yes up to two consecutive years
What if you owe less than $150,000 on your homestead? Will a creditor still take it?
No
Can a person claim homestead if they are late on child support or spousal maintenance?
No
Do you have to file paperwork to claim homestead?
No, it’s automatic
Estate for years
Has a specified beginning and end date
What type of estate are most residential leases?
Estate for years
Do you have to give notice on an estate for years?
No
Estate for period to period
Estate lats for an uncertain period of time until proper notice is given
In a period to period lease what happens when rent is paid
The lease automatically renews
Estate at will
Person occupies the property with permission of owner
Informal, usually verbal agreement
Estate at sufferance
The tenant had permission from the owner to occupy at one point in time but no longer has permission and refuses to move out (holdover tenant)
Which estate cancels at death
Estate at will
How do you resolve an estate at sufferance?
Go through eviction court
What are the government powers?
Police powers
Eminent Domain
Taxation
Escheat
Police powers
power of state to adopt and enforce laws to promote public health
What do police powers include?
Zoning ordinances, building codes, environmental protection laws
Enabling acts
State’s authority is passed on to municipalities and counties
Eminent domain
right of the government to take private property for the betterment of the public
Condemnation
The process where the government exercises its right to eminent domain
Can the owner of the property do anything about eminent domain?
Yes, they can fight in court if they feel their property is being taken for purposes other than the public good or there is not just compensation
Taxation
the right of a government to charge the property owner a fee to raise money for public needs
Escheat
a property owner dies without a will and has no heirs. The state considers the property abandoned and will sell
How long does a person have to claim escheat?
7 years
Encumbrance
Claim, charge, or liability that attaches to real estate and may lessen its value but does not prevent the transfer of property
Lien
Charge against property that provides security for a debt owed by the property owner
Easement
the right to use another’s land for a particular reason
Appurtenant easement
two parcels of land, owned by two separate people, with one being dominant and the other servient
Easement in gross
there is only one parcel that is always servient. Commonly used by utility and internet companies
Easement by necessity
One parcel is landlocked and needs the right in ingress and egress
Easement by prescription
Hostile use: Never given permission
Continuous use: constant use
Notorious use: unknown party
Exclusive use: used for at least 10 years
Party wall easement
the wall that shares the property line of two separate properties
View easement
One property promises to never block the view of another property
Conservation easement
Property has to stay in natural habitat state
What happens when the owner of the dominant estate becomes the owner of the servient estate
The easement is terminated
How long can an easement be abandoned to terminate the easement?
5 years
What happens to the easement when the intended purpose no longer exists?
Terminates the easement
Will eminent domain terminate an easement?
Yes
Does death cancel an easement?
No, it stays with the property. Unless the easement was for a person.
License encumbrance
A personal, revocable, and non-assignable right that is not considered an interest in the land itself
temporary use
Deed restriction
private restriction placed in a deed by the owner when the property is transferred to another party
CC&R’s or HOA docs are what type of encumbrance?
Deed restriction
Encroachment
Something physically illegally extending from one property line to another without the permission of the person whose property it’s on
How can you find an encroachment?
Survey
Can an HOA prohibit for sale/rent signs?
No, as long as they meet industry standards
Can an HOA prohibit solar energy?
No, but they can write rules on placement
Prior appropriation
First in time, first in right. The person who has the permit first gets to use the water first
Riparian rights
Non-navigable waterways such as rivers and streams where a person owns the land under the water up to the middle of the waterway
Littoral rights
Navigable waterways such as lakes, seas, and oceans where a person owns the land up to the high watermark
In littoral rights does the person own the land under the water?
No just up to the waterline
Accretion
The gradual addition of land through natural causes such as shoreline movement
Erosion
Gradual wearing away of the land by natural forces
Avulsion
The sudden removal of soil by an act of nature
An easement is most commonly terminated by
Abandonment
Which of the following statements is true?
a. all liens are encumbrances
b. all encumbrances are liens
c. specific liens affect all property of the debtor
d. judgements are specific liens
All liens are encumbrances
A homeowner may be allowed certain protection from judgements of creditors by which of the following
a. dower rights
b. curtsey rights
c. homestead rights
d. statute of rights
Homestead
The rights of property owners of land next to large bodies of water, such as oceans are called
Littoral rights
Which of the following must be present for an appurtenant easement to exist
a. two adjacent parcels, own owner
b. two adjacent parcels, two owners
c. long time unauthorized use
d. landlocked property to allow ingress and egress
two adjacent parcels, two owners
a 100 year old woman died in a nursing home. She had outlived all of her relatives and had no written will. What happens to her $300,000 estate?
It escheats to the state
Mr. Grazio built a fence that extends beyond the boundary of his property onto his neighbor’s property. This is an example of
An encroachment
Josephine has permission from Ryan to hike on his property during the summer months, Josephine has
a license
A property was deeded to a buyer with the stipulation that it only be used for residential purposes, conveys a
a. fee simple absolute
b. leasehold interest
c. defeasible fee estate
d. determinable fee estate
Determinable
All of the following are government powers except
a. covenant
b. police powers
c. escheat
d. eminent domain
Covenant
Betty has a lease that begins on July 1, 2019, and ends on July 31, 2019. What type of leasehold estate does Betty have?
Estate for years
When land is to be condemned under the power of eminent domain, which of the following must apply?
a. constructive notice must be given
b. the taking must be for public use
c. an adverse possession claim must be filed
d. a suit to quiet title must be filed
The taking must be for public use
Which of the following does police powers include?
a. foreclosure
b. acceleration
c. zoning ordinances
d. the right to procesute
Zoning ordinances0
Which of the following is an example of a freehold estate?
a. estate for years
b. dower estate
c. estate at sufferance
d. fee simple estate
Fee simple estate
Bob conveyed the property to Judy for the rest of her life. Once Judy dies the property will automatically go to Brenda. This is an example of
Life estate in remainder
A license is an example of
a. appurtenant easement
b. temporary use right
c. restriction
d. encroachment
Temporary use right
Jake has been crossing over Benny’s land to get to the lake for over ten years without Benny’s possession. Jake can acquire the legal right to use by which of the following
a. easement in gross
b. easement by necessity
c. easement by appurtenance
d. easement by prescription
easement by prescription
Donna lives in a subdivision and has hired Rhonda to list her house. Can Donna’s HOA restrict the placement of a for-sale sign in front of the home?
No
Can an Association prohibit the installation of solar devices?
An association can adopt reasonable rules regarding the placement of solar devices
Arizona’s surface water doctrine is called
Prior appropriation
Arizona’s homestead protection laws protect up to _______ of a persons equity in their primary residence from forced sale
$150,000
What is the meaning of a fee tail estate?
An estate in land that is limited to a fixed-line of succession or blood relatives and is NOT allowed in AZ
The only navigable river in AZ is
Colorado
Which one is not a leasehold estate?
a. Life estate
b. Estate at sufferance
c. Estate at will
d. Estate for years
Life estate
What would be the best example of an encumbrance?
a. a property owner has their roof extended onto a neighbor’s property line
b. the erection of a fence on the border of a disputed/controversial boundary
c. a home that is walking distance to a shopping center
d. all of the above
A property owner has their roof extended onto a neighbor’s property line
Encroachment can be best found by?
Survey
Which easements benefit corporations and individuals as apposed to the land
Easements in gross
To be extinguished by a court action brought by the servient property owner, a prescriptive easement must have been abandoned for at least
5 years
A father conveyed the family home to his daughter by will as pur autre vie estate for the life of her mother. If the daughter should die before the mother, who gains possession of the property?
The daughter’s hers
The Brentwoood’s apartment lease has expired but their landlord has indicated to them that they may remain on the premises until a sale of the building is closed. They will be charged their normal monthly rental rate during this period. The right held by the Brentwoods is called an
Estate at will
Two acres of land are owned by Steve. He sells one acre to Marisa and reserved an appurtenant easement for himself over Marisa’s land for ingress and egress. Steves land is
a. the servient tenement
b. the dominant tenement
c. can be cleared of the easement when Steve sells the withheld acre to a third party
d. subject to an easement in gross
The dominant tenement
Who would not have the state’s authority to carry out and enforce police powers?
a. AZ lottery commissioner
b. City of Mesa’s Fire Chief
c. AZ Real Estate Commissioner
d. City of Tempe’s Police Chief
AZ lottery commissioner
A married couple filed for bankruptcy and must sell their primary residence. The home is worth $200,000 but they still owe $75,000 on the mortgage, to there is $125,000 in equity. What will the couple receive from the sale of their home?
$125,000
