Unit 10: Interest in Real Estate Flashcards
Feudal System
system of ownership associated w/ pre-colonial England in which the king or other sovereign was the source of all rights
allodial system
land is held free & clear of any rent or service due to the govt
police power
govts right to impose laws, statutes, & ordinances, including zoning ordinances & building codes to protect the public health, safety, morals, & welfare
eminent domain
right of govt. to acquire property for public use
taxation
process by which a govt. or municipal quasi-public body raises monies to fund its operation
escheat
reversion of property to the state in the event the property is abandoned or the owner dies w/o leaving a will & has no heirs property can pass to
estate in land
the degree, quantity, nature, & extent of interest that a person has in real property
freehold estates
estate in land in which ownership is for an indeterminate length of time, in contrast to a leasehold estate
life estate
limited in duration to the lifetime of its owner or some other designated person
fee simple
max possible estate or right of ownership or real property, continuing forever (AKA fee simple absolute or fee)
defeasible fee estate
holder has a fee simple title that may be divested on the occurrence of a specified event
determinable fee estate
the property automatically reverts to the generator upon the occurrence of a specified event or condition
fee simple subject to a condition subsequent
an estate conveyed “provided that” or “if” it is used for a specific purpose. if it is no longer used for that purpose it reverts to the original grantor
life tenant
a person in possession of a life estate
remainder interest
the future interest in an estate that takes effect after the termination of another estate such as a life estate
reversionary interest
future interest in an estate that takes effect after the termination of another estate, such as life estate
homestead
land that is owned and occupied as the family home.
encumbrance
any lien, easement, or restriction on the use of the land that may diminish the value of a property, a cloud against clear, free title to property
restrictions
private agreements placed in the public record that affect the use of land
easement
right to use the land of another for a specific purpose, such as for right of way or utilities
easement appurtenant
easement that passes with the land on conveyance
right of way
right acquired through accepted usage or contract, to pass over a designated portion of the property of another
easement in gross
not created for the benefit of any land owned by the owner of the easement but that attaches personally to the easement owner ex: utility easement
easement by necessity
allowed by las as the necessary for the full enjoyment of a parcel of RE ex: right of ingress & egress over a grantors land
easement by prescription
acquired by continuous open, uninterrupted, exclusive, & adverse use of the property for 10 years
easement by implication
arises when the parties actions imply that they intend to create an easement
license
the revocable permission for a temporary use of land
encroachment
a building of some portion of it, that extends beyond the owner & illegally intrudes on some land of an adjoining owner or a street or alley
riparian rights
owners rights in land that borders on or includes a stream or river, rights includes access to & use of the water for domestic purposes
littoral rights
landowners claim to use water in large navigable lakes & oceans that are adjacent to the property
prior appropriation
concept of water ownership in which the landowners right to use available water is based on a govt administer permit system
groundwater rights
water under Earths surface below the saturation point & used by a property owner through the rule of capture
lien
right given by law to certain creditors to have debts paid out to the property of a defaulting debtor usually by means of a court sale
voluntary lien
lien that arise b/c of actions permitted by a person such as when signing a deed of trust or mortgage
involuntary lien
arises by the actin of another such as a judgement lien
statutory lien
imposed on a property by statute - a tax lien, in contrast to equitable lien
equitable lien
arises out of common law
general lien
right of a creditor to have all of debtors property both real & personal - sold to satisfy a debt
specific liens
affecting or attaching only to certain specific parcel of land or piece of property
priority
order in which unpaid debts or obligations will be satisfied if the property goes through a court sale
IRS Tax Liens
general lien imposed by the IRS for the non-payment of income taxes
subordination agreement
charges the priority of mortgage, judgement, & other liens under certain circumstances
tax liens
charge against property created by operation of law
Ad Valorem Tax
levied according to value
special assessment
imposed against only these specific parcels of RE that will benefit from a proposed public improvement like a street or paved alley
appraisal review board
hear appeals concerning assessed valuations for tax purposes & recommended or deny charges in values shown of record
tax sale
court ordered sale of real property to raise money to cover delinquent taxes
equitable right of redemption
right to redeem a property before foreclosure sale by paying the full debt & interest & accrued charges
statutory right of redemption
right of defaulted property owner to recover the property after its sale by paying the appropriate fees & charges
assessment roll
public record of the assessed values of all lands & buildings w/in a specific area
mortgage (deed of trust)
a lien or charge on the property of a mortgage that secures the underlying debt or obligations
mechanics lien
created in favor of contractors who have performed work or furnished materials in the erection or repair or a building
general contractor
construction specialist who enters into a formal construction contract w/ a landowner to construct a RE building or project
subcontractor
specialize in various aspects of the building process to perform individual jobs
judgement
formal decision of a court on the respective rights & claims of the parties to an action or suit
estate taxes
federal taxes on a descendants real & personal property
inheritance taxes
stated imposed taxes on a descendants real & personal property
venders lien
equitable lien of the grantor upon the land conveyed, in the amount of the unpaid purchase price
vendees lien
buyers claim against the sellers property when the seller has not delivered title to the buyer, as in an installment contract or contract for deed
surety bail bond
pledge or RE instead of cash as security for bail
wage lien
ordered by TXWC against all real & personal property of an employer who owes back wages to an employee
federal judgement lien
obtained by U.S. entity that affects all real & personal property of the judgement debtor
Uniform Commercial Code (UCC)
attempts to make uniform throughout the US all laws relating to commercial transactions
security agreement
creates a security interest in personal property
financing statement
gives notice of security interest & must be recorded
