Unit 3 - Interests in Real Estate Flashcards
What is Estate in Land
Defines the degree, quantity, nature, and extent of an owner’s interest in real property
What is a Freehold Estate
An ownership interest that continues for an indefinite period of time
What is a Non-Freehold Estate
Length of time of the property’s use can be determined. (Lease) AKA-Leashold Estate
What is a Fee Simple/Fee Simple Absolute Estate
Ownership in which the holder is entitled to all the rights to the property by law
What is a Fee Simple Defeasible Estate
A qualified fee estate that is subject to the occurrence or nonoccurrence of some specified event. (Limits control)
What is Fee Simple Determinable
Estate is qualified by a special limitation with words such as “so long as”, “while”, “during”. Reverts back to owner if limitations are violated, without courts needed. (Possibility of Reverter)
What is Fee Simple Subject to a Condition Subsequent
Estate is qualified by special limitation with words such as, “on condition that”. Owner has the right of reenty if violated but must bring a legal action in court. (Right of Entry)
What is Future Interest in Fee Simple Estates
In defeasible fee estates, Possibility of Reverter and Right of Entry can be possible at some time in the future.
What is a Life Estate
A Freehold Estate limited in duration to either the life of the holder of the estate or the live of some other designated person. Not inheritable.
What is a Life Tenant
The holder of a Life Estate
What is Pur Autre Vie (For the Life of Another)
Provides for the inheritance of the property right by the life tenant’s heirs, but the right exists only until the death of the identified person or persons.
What is Remainder Interest in Life Estate
Creator of Life Estate may name a remainderman as the person to whom the property will pass when the life estate ends.
What is Reversionary Interest in Life Estate
Creator of Life Estate may choose not to name a remainderman and ownership would return to the original owner upon the end of the life estate.
What is Legal Life Estate
Not created by property owner, but by state law when certain events occur. (Dower, Curtesy, Homestead)
What is Dower and Curtesy in Legal Life Estate
Dower-wife gets property if husband dies. Curtesy-husband gets property if wife dies.
What is Homestaed in Legal Life Estate
The family home is protected from most creditors during the occupant’s lifetime. Protects house from unsecured loan.
What is an Encumbrance
Type of interest in real estate that does not rise to the level of ownership or possession, but does give some degree of use of control of the property
What are 4 types of Encumbrances - PEEL
Private restrictions found in deeds, Easements and Licenses, Encroachments, Liens
What is a Lien
A charge against property that provides security for a debt or an obligation of the property owner.
What is a Deed Restriction
Will run with the land, limiting the use of the property by the current owner, as well as future owners to whom eht property is subsequently transferred.
What are Covenants, Conditions and Restrictions - CC&R’s
Used by subdivision developer to maintain specific standards in subdivision.
What is an Easement
Right to use the land of another for a particular purpose.
What is an Easement Appurtenant
Attached to the ownership of real estate and allows the owner of that property the use of a neghbor’s land. Two adjacent parcels must be owned by two different parties.
What is Dominant Tenement and Servient Tenement
Dominant - The parcel that benefits from the easement.
Servient - The parcel over which the easement runs
What is a party wall
Exterior wall of a building that straddles the boundary line between two lots, or a shared partition wall between two connected properties, similar to a condo “shared” wall
What is an Easement in Gross
An individual or, company interest in or right to use someone else’s land. (Railroad or Utility company)
What is an Easement by Necessity
Created by court order based on the principle that owners must have the right to enter and exit their land. They cannot be landlocked
What is Easement by Prescription
When claimant has made use of another’s land for a certain period of time and meets the following criteria: Open, Hostile, Notorious, Adverse, Continuous/Uninterupted, 9 years.
What is Tacking in Easement by Prescription
Provides that successive periods of continuous occupation by different partmes my be combined to reach the 9 year requirement.
What are 5 ways an Easement terminates
-when need no longer exists
-when owner of dominant or servient tenement owns both
-release of right of easment to the owner of the servient side
-abandonment of easement (determined by parties intentions)
-by nonuse of a prescriptive easement
What is a License
A personal privilege to enter the land of another for a specific purpose, given orally or informally. License ends with the death of either party or with the sale of the land.
What is an Encroachment
When a building, fence, or driveway illegally extends beyone the boundaries of the land of its owner or leagal building lines.
What is Lis Pendens
A notice filed in the public record of a pending legal action affecting the title or possession of property. “Thinking about suing you”
What are the 4 Governmental Powers that limits ownership
PETE
Police Powers, Eminent Domain, Taxation, Escheat
What is Police Powers
Power of state to enact legislation to preserve order, protect the public healthe, and safety; and promote the general welfare of its citizens
What are Enabling Acts
Enables government to take property
What is Eminent Domain
Government’s right to acquire private property for public use by process of Condemnation.
What is Condemnation
The actual process the government uses to take property
What is Taking
Fifth Amendment allows for taking of property under Eminent Domain, stating owner must be compensated fairly.
What is Inverse Condemnation
An action brought by a property owner seeking just compensation for land adjacent to land taken under Eminent Domain, and the property’s use and value have been diminished.
What is Taxation
A charge on real estate to raise funds to finance the operation of government facilities and services.
What is Escheat
Process by which the state my acquire privately owned real or personal property. When an owner dies and leaves no heirs, and there is no will.
