Unit 3: Interests in Real Estate

Question 1

Condemnation

Answer 1

A judicial or administrative proceeding to exercise the power of an eminent domain, through which a government agency takes private property for public use and compensates the owner.

Question 2

Convenants, Conditions, and Restrictions (CC&Rs)

Answer 2

Private agreements that affect land use. they may be enforced by an owner of real estate that benefit from them and can be included in the seller’s deed to the buyer.

Question 3

Deed Resctrictions

Answer 3

Clauses in a deed limited the future uses of the property. Deed restrictions may impose a vast variety of limitations and conditions - for example, they may limit the density of buildings, dictate the types of structures that can be erected, or prevent buildings from being used for specific purposes or even from being used at all.

Question 4

Easement

Answer 4

A right to use the land of another for a specific purpose, such as for a right-of-way or utilities; and incorporeal interest in the land because it does not include a right of possession.

Question 5

Easement by Appurtenant

Answer 5

An easement that is annexed to the ownership of one parcel and allows the owner the use of the neighbor’s land.

Question 6

Easement by Necessity

Answer 6

An easement allowed by law as necessary for the full enjoyment of a parcel of real estate (e.g., a right of ingress and egress over a grantor’s land).

Question 7

Easement by Prescription

Answer 7

An easement acquired by open, notorious, continuous, hostile, and adverse use of the property for the period of time prescribed by state law.

Question 8

Easement in Gross

Answer 8

An easement that is not created for the benefit of any land owners by the owner of the easement but that attaches personally to the easement owner. For example, a right granted by a property owner to a friend to use a portion of the property for the rest of the friend’s life would be an easement in gross.

Question 9

Eminent Domain

Answer 9

The right of a government or municipal quasi-public body to acquire property for public use through a court action called condemnation, in which the court decides that the use is a public use and determines the compensation to be paid to the owner.

Question 10

Encroachment

Answer 10

A building or some portion of it - a wall or fence, for instance - that extends beyond the land of the owner and illegally intrudes on the land of an adjoining owner or public street or alley.

Question 11

Encumbrance

Answer 11

Anything - such as a mortgage, tax, or judgment lien; an easement; a restriction on the use of the land; or an outstanding dower right - that may diminish the value or use and enjoyment of a property.

Question 12

Escheat

Answer 12

The reversion of a property to the state or country, as provided by state law, in cases in which a decent dies intestate without heirs capable of inheriting, or when the property is abandoned.

Question 13

Estate in Land

Answer 13

The degree, quantity, nature, and extent of interest a person has in real property.

Question 14

Fee Simple

Answer 14

The highest interest in real estate recognized by the law; the holder is entitled to all rights to the property.

Question 15

Fee Simple Absolute

Answer 15

The maximum possible estate or right or ownership of real property, continuing forever.

Question 16

Fee Simple Defeasible

Answer 16

An estate in which the holder has a fee simple title that may be divested upon the occurrence or nonoccurrence of a specified event. There are two categories of defeasible fee estates, fee simple on condition precedent (fee simple determinable) and fee simple on condition subsequent.

Question 17

Fee Simple Determinable

Answer 17

A fee simple estate qualified by a special limation. The language used to describe the limitation includes the words so long as, while, or during

Question 18

Fee Simple subject to a Condition Subsequent

Answer 18

An estate carrying the limitation that, if it is no longer used for the purpose conveyed, it reverts to the original grantor by the right of reentry.

Question 19

Freehold Estate

Answer 19

An estate in land in which ownership is for an indeterminate length of time, in contrast to a leasehold estate.

Question 20

Future Interest

Answer 20

A person’s present right to an interest in real property that will not result in possession or enjoyment until sometime in the future, such as a reversion or right of reentry.

Question 21

Homestead

Answer 21

Land that is owned and occupied as the family home. In many states, a portion of the area or value of this land is protected or exempt from judgments for debts other than those secured by the property.

Question 22

Inverse Condemnation

Answer 22

An action brought by a property owner seeking just compensation for diminished use and value of the land because of an adjacent property’s public use.

Question 23

Legal Life Estate

Answer 23

A form of life estate established by state law, rather created voluntarily by an owner. It becomes effective when certain events occur. See dower courtesy and homestead for legal life estates used in some states.

Question 24

License

Answer 24

(1) In real estate practice, the privilege or right granted to a person by a state to operate as a real estate broker or salesperson.

Question 25

Lien

Answer 25

A right given by law to certain creditors to have their debts paid out of the property of a defaulting debtor, usually by means of court sale.

Question 26

Life Estate

Answer 26

An interest in real property or personal property that is limited in duration to the lifetime of its owner or some other designated person or persons.

Question 27

Police Power

Answer 27

The government’s right to impose laws, statutes, and ordinances, including zoning ordinances and building codes, to protect the public health, safety, and welfare.

Question 28

Pur Autre Vie

Answer 28

“For the life of another”. A life estate pur autre vie is a life estate that is measured by the life of a person or persons other than the grantee.

Question 29

Remainder Interest

Answer 29

The remnant of an estate that has been conveyed to take effect and be enjoyed after the termination of a prior estate, such as when an owner conveys a life estate to one party and the remainder to another.

Question 30

Reversionary Interest

Answer 30

The return of the rights of possession and quiet enjoyment to the lessor at the expiration of a lease.

Question 31

Taking

Answer 31

Process of land being taken from a property owner for public use through eminent domain with the requirement that the owner be compensated fairly.

Question 32

Taxation

Answer 32

The process by which a government body raises monies to fun its operation