Unit 2 Glossary Review Flashcards
P.E.T.E
Police power, Eminent Domain, Taxation, Escheat
Police Power
Public control of land, determines how the land can be developed
Eminent Domain
Right to “take” private land for public use through process of Condemnation. Give compensation, an example of “involuntary alienation”.
Property tax priority…
over ALL OTHER liens
Escheat
Gov right to take abandoned property, exercises when over dies and has no will or heirs
Real property tax calculations
Annual tax = Assessed value x tax rate
Assessed value = actual value x assessment rate
Estate
The amount and kind of legal interest in, or right in, real property that allows or will allow possession.
Freehold estate
Ownership for indefinite duration. Complete bundle of rights. Fee simple absolute 99.9% of deals. Fee simple defeasible/qualified fee. Life Estate.
Leasehold estate
POSSESSION for fixed term Estate for years Periodic Tenancy Estate at will Estate at sufferance Landlord/lessor holds a leased fee estate and has a reversionary interest.
Fee simple defeasible/qualified fee
Normally a gift created by a deed CONDITION. Transferable and inheritable.
Life Estate
Life tenant is the owner.
Upon death, estate return to fee simple absolute OR remainderman.
Life tenant may sell or lease the property, but upon death the buyers or tenants lose their interest.
Estate for years
Specific termination date, no advanced notice. Like a years rent…
Periodic estate
Renews automatically; month to month.
Estate at will
No fixed term, like someone just sleeping on your couch.
State at sufferance
Land lord is suffering, owner may evict or take another month’s rent.
