Unit 3: Interests in Real Estate

Question 1

An interest or right in real property that allows or will allow possession

Answer 1

estates

Question 2

two types of estates: ___ and ___

Answer 2

freehold, leasehold

Question 3

____ estates: ownership for an indefinite duraiton

Answer 3

freehold

Question 4

_____ (non-freehold): possession for a fixed term

Answer 4

leasehold

Question 5

_____ ____ absolute is highest level of ownership

Answer 5

fee simple

Question 6

you own it but there are some conditions that go along with it. not as much ownership as fee simple absolute, but close to it on the spectrum of level of ownership. the answer is fee simple _____ or ____ fee

Answer 6

fee simple defeasible / qualified fee

Question 7

most complete bundle of rights. also known as fee estate or fee simple. Transferable, inheritable, and lasts forever. Think of “fee” as inheritable

Answer 7

fee simple absolute

Question 8

transferable and inheritable fee simple ____ or ____ fee

Answer 8

fee simple defeasible or qualified fee

Question 9

this type of ownership is transferrable, but not inheritable and it doesn’t last forever. known as a ____ estate. toward the middle on the spectrum of complete ownership and leasing

Answer 9

life estate

Question 10

_____ give ______ a deed as a life estate. when the ______ dies, it goes back to the ______ (reversionary interest) (reverter) or a ____ ____ (remainderman) (remainder interest)

Answer 10

grantor, grantee, grantee, grantor, third party

Question 11

life estate is transferable, but not ____able

Answer 11

inherit

Question 12

Estate for years, periodic estate, estate at will, estate at sufferance is ____

Answer 12

possession

Question 13

the landlord/leasor hold a leased fee estate with a reversionary interest and tenant/leasee holds a leasehold estate. The purchaser of a leased property obtains ownership “subject to” the ___

Answer 13

lease

Question 14

specific termination date - no notice required, death of landlord or tenant does not terminate, sale of property does not terminate. there is a set termination date: ____ (tenancy) for ____

Answer 14

estate (tenancy) for years

Question 15

renews automatically upon landlord acceptin rent for the period. Example: month to month. terminated by dvanced notice of either party

Answer 15

periodic estate (tenancy)

Question 16

indefinite duration - tenant occupies at landlord’s discrresion

Answer 16

estate (tenancy) at will

Question 17

holdover after legal enancy expires (lowest estate)

Answer 17

estate (tenancy) at sufferance

Question 18

any claim, right, or interest held by a party who is not the legal owner of the property; a nonpossessory interest

Answer 18

encumbrance

Question 19

an appurtenance - attaches to and binds real property

Answer 19

encumbrance

Question 20

types of encumbrance are ___ restrictions, ___, _____, _____

Answer 20

deed, lien, encroachment, easement

Question 21

right to use the land of another for a specific purpose. attaches to and runs with the land - transfers with the deed.

Answer 21

easement

Question 22

_____ easement has a dominant tenement: the property receiving the benefit of the easement and a servient tenement, which is the property encumbered by the easement

Answer 22

appurtenant

Question 23

Easements transfer with the land. Does not increase the ____ of the dominant land, but may increase its ______. dominant land is the land using the servient land for some specific purpose.

Answer 23

size, value

Question 24

examples of ____: driveway crossing a neighbor’s land for ingress and egress. party walls, shared driveways, lake access. this is not able to be revoked unless both parties approve.

Answer 24

easement

Question 25

_____ in _____: commercial easement held by company, government, or a person. Has no dominant property, only servient property. person or entity benefits. example: utility easement

Answer 25

easement in gross

Question 26

court-ordered easements: includes _____ __ ______ (created when an owner sells a contiguous parcel of land that has no legal access. only granted if there is no other access to a street or public way. prevents creation of land-locked property) and ____ __ _____ (acquired by meeting statutory requirements)

Answer 26

Easement by necessity, easement by prescription

Question 27

Easements can be terminated in which three ways

Answer 27

merger, release, abandonment

Question 28

holder of servient property acquires the dominant party is called a _____

Answer 28

merger

Question 29

holder of dominant interest releases rights to servient owner (via quitclaim deed)

Answer 29

release

Question 30

not automatic’ must be proven in court. type of termination of easement

Answer 30

abandonment

Question 31

unless terminated, an _____ will transfer with the deed

Answer 31

easement

Question 32

claim on land to secure a payment of a debt. allows creditor to take and sell property if not paid

Answer 32

liens

Question 33

created by state stature to protect a primary residence from unsecured creditors

Answer 33

homestead exemption

Question 34

a(n) ______ is the unauthorized use of another persons land or physical object intruding onto neighboring property. examples: part of a structure, fence, roof, or tree limb. “trespassing”

Answer 34

encroachment

Question 35

Revocable permission that grants a privilege to use the property is a ____

Answer 35

licenses

Question 36

four governement rights in land

Answer 36

police powier, eminent domain, taxation, excheat (PETE)

Question 37

right to enact and enforce laws governing land use. planning, zoning, building codes, permits, inspecitons, certificats of occupancy, determines how land can be developed

Answer 37

police power

Question 38

right to take private land for public use. process used is called condemnation, example of involuntary alienation - a compulsory transfer of title, compensation = value plus damanges. not voluntary

Answer 38

eminent domain

Question 39

property taxes: paid to the country where the porperty is located. enforced by a tax forfeiture lien. this is a type of governmental power when it comes to land

Answer 39

taxation

Question 40

government’s reversionary right to take property that has been abandoned. exercised when owner dies with no will (intestate) and without heirs

Answer 40

escheat

Question 41

intestate: died with no will and no ____

Answer 41

heirs