Unit 10 Flashcards
Identify the limitations on ownership rights that are imposed by government action.
Government actions, such as police power, eminent domain, taxation, and escheat, limit ownership rights to ensure public welfare and development. These limitations can reduce or terminate private ownership rights for societal benefit.
- Describe the various estates in land, including homesteads, and the rights and limitations they convey.
Estates in land range from freehold estates to leasehold estates, each offering specific rights to possess, use, or transfer property. Homestead laws provide additional protections for primary residences in Texas.
List the nine lien rights that are foreclosable against Texas homesteads.
Foreclosable liens in Texas include property tax liens, purchase money liens, mechanic’s liens, and others. These liens can threaten homesteads under certain conditions, emphasizing the importance of knowing how they apply.
Explain concepts related to encumbrances, including the creation and termination of easements.
Encumbrances such as easements and liens affect property value and use. Easements can be created through agreements, necessity, or prescription, and they terminate when the need no longer exists or parties agree to release them.
Distinguish among surface and groundwater rights in Texas.
Surface water rights in Texas are governed by riparian rights and prior appropriation, while groundwater rights follow the rule of capture, allowing landowners to extract water beneath their property but with legal restrictions on waste.
Distinguish between specific and general liens, voluntary and involuntary liens, statutory and equitable liens, and give examples of each.
Liens are categorized by their scope and nature, with specific liens affecting only one property and general liens affecting all property of the debtor. Voluntary liens, like mortgages, are agreed upon, while involuntary liens, like tax liens, arise by law.
Identify the process through which real estate taxes become delinquent and/or become a lien, the enforcement options, and the equitable and statutory rights of redemption.
Real estate taxes become a lien on January 1, and if delinquent, penalties and enforcement actions, including foreclosure, may follow. Property owners retain equitable and statutory redemption rights to recover their property after a tax sale.
Describe a tax lien and the key components in each of the four phases of the annual tax levy process, as well as the steps for levying special assessments.
Tax liens secure payments for ad valorem taxes, following a process that includes property valuation, protest, rate adoption, and collection. Special assessments fund public improvements that benefit specific properties.
Explain the various types of liens other than taxes and how they are prioritized to satisfy unpaid debts.
Non-tax liens, such as mechanic’s liens, judgment liens, and IRS liens, may attach to properties. Lien priority is often determined by the date of recording, with tax liens generally holding the highest priority.
Ad valorem tax
A tax based on the assessed value of real property, imposed by local governments for public services.
Appraisal review board
A group of citizens that hears disputes between property owners and appraisal districts over property tax appraisals.
Assessment roll
A public record listing all taxable properties and their assessed values for property tax purposes.
Allodial system
The system of land ownership in the United States under which individuals can own land outright, free from obligations to a monarch or government.
Defeasible fee estate
An estate that can be taken away if a specific condition is not met, resulting in a reversion to the grantor or a designated party.
Attachment
A legal process by which a court orders the seizure of property to ensure payment of a judgment or debt.
Determinable fee estate
A type of defeasible fee estate that automatically ends when a specific condition occurs.
Easement
A right to use another person’s land for a specific purpose, such as access or utility lines.
Easement appurtenant
An easement that benefits a specific parcel of land and transfers with the land when it is sold.
Easement by implication
An easement created when circumstances imply its necessity, such as access to a landlocked property.
Easement by necessity
An easement created by law to provide access to landlocked property.
Easement by prescription
An easement obtained through continuous, open, and adverse use of another’s property for a statutory period.
Equitable right of redemption
The right of a property owner to redeem their property by paying off debts before a foreclosure is finalized.
Easement in gross
An easement granted to benefit a person or entity, not tied to any specific parcel of land, such as utility company access.
Eminent domain
The government’s power to take private property for public use with compensation to the owner.
Equitable lien
A lien imposed by the court based on fairness, usually to secure payment for services or improvements made to a property.
Encroachment
An unauthorized intrusion of a structure or object onto another person’s property.
Encumbrance
A claim or liability on real property, such as a lien or easement, which can affect its value or use.
Escheat
The process by which property reverts to the state when the owner dies without legal heirs or a valid will.
Estate in land
The degree, nature, and extent of a person’s interest in real property.
Fee simple subject to a condition subsequent
An estate in which the grantor retains the right to reclaim the property if a specified condition is violated.
Federal judgment lien
A lien placed on a property as a result of an unpaid federal court judgment.
Estate taxes
Taxes levied on the estate of a deceased person before assets are distributed to heirs.
General lien
A lien that attaches to all of a debtor’s property, not just specific real estate.
Fee simple
The highest form of property ownership, providing full rights to use, sell, and transfer the property.
Feudal system
A system of land ownership where land is held in exchange for service to a monarch or governing authority.
Freehold estate
An interest in real property that includes the right to own and possess the property indefinitely, such as a fee simple or life estate.
General contractor
The individual or company responsible for managing a construction project and hiring subcontractors.
Financing statement
A legal document filed to secure a creditor’s interest in a debtor’s personal property, used in UCC filings.
Grantee
The person receiving title to real property through a deed.
Grantor
The person transferring title to real property through a deed.
Homestead
A legal status that protects a primary residence from certain creditors, with exemptions from forced sale under Texas law.
Groundwater rights
The right of landowners to extract and use groundwater from beneath their property, subject to state laws.
Inheritance taxes
Taxes imposed on property and assets inherited from a deceased person.
Involuntary lien
A lien placed on property without the owner’s consent, such as a tax lien or judgment lien.
IRS tax lien
A lien imposed by the Internal Revenue Service for unpaid federal taxes.
Judgment
A court ruling that creates a legal obligation to pay a debt, which can result in a lien against property.
