Unit 3: Interests In Real Estate

Question 1

This type of estate lasts for an indeterminable amount of time such as a lifetime

Answer 1

Freehold estate

Question 2

A freehold estate that continues for an indefinite period and may be passed along to the owners heirs.

Answer 2

Fee simple estate

Question 3

The highest interest in real estate recognized by law

Answer 3

Fee simple estate or fee simple absolute- holder is entitled to all rights to the property intended to last forever. Passes to heirs

Question 4

This type of estate has a condition and is a qualified fee estate that is subject to the occurrrence or nonoccurrence of some specified event.

Answer 4

Fee simple defeasible

Question 5

A fee simple defeasible estate that may be inherited

Answer 5

Fee simple determinable

Question 6

A freehold estate limited in duration to either the life of the holder of the estate or the life of some other designated person or persons

Answer 6

Life estate

Question 7

A legal life estate in real estate occupied as the family home

Answer 7

Homestead

Question 8

A type of interest in real estate that does not rise to the level of ownership or possession yet still gives an individual some degree of use of control of the real property.

Answer 8

Encumbrance

Question 9

Name types of encumbrances

Answer 9

*Easements and licenses which permit a limited use of property.
*private restrictions found in property deeds
*liens, which give notice of claim against property
*encroachments, result when neighboring improvement extends over a property boundary.

Question 10

Name three ways a freehold estate can occur

Answer 10

1. Fee simple defeasible
2. Fee simple determinable
3. Life estate

Question 11

The person the property will pass to when the life estate ends

Answer 11

The remainder interest

Question 12

An investigation of home ownership

Answer 12

Title search

Question 13

This is not created by a property owner but established by law

Answer 13

Legal life estate

Question 14

This protects a woman when husband dies

Answer 14

Dowers law (entitled to 1/3 right of interest)

Question 15

Curtesy Law

Answer 15

This law protects a man

Question 16

This protects the property owner against most creditors

Answer 16

Homestead

Question 17

Conditions or restrictions to ownership

Answer 17

Deed restrictions- agent must inform the buyer in the listing

Question 18

The right to use the land of another person

Answer 18

Easement

Question 19

What are three ways to create an easement

Answer 19

1. By agreement
2. By necessity (2 homes on land, need to walk through front yard and sidewalk to get to your property)
3. By prescription -adverse usage without permission

Question 20

A personal privilege to enter the land of another for a specific purpose

Answer 20

Licenses (attend concerts, movies, public parking)

Question 21

Overhang onto another persons property

Answer 21

Encroachment

Question 22

What are the four Governmental powers?

Answer 22

1. Police power- control use of land
2. Eminent domain - right of Govt to acquire privately owned real estate for public use I.e. build roads where house exists.
3. Taxation- raises money to meet the needs of community, roads, schools etc.
4. Escheat- take ownership when there is no ownership. No heirs- becomes state owned property.