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48-Hour RE Course > Unit 3: Interests in Real Estate > Flashcards

Unit 3: Interests in Real Estate Flashcards

1
Q

Estate in Land

A

the degree, quantity, nature, and extent of an owner’s interest in real property

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2
Q

To be an Estate in Land

A

an interest must allow possession, meaning the holding and enjoyment of the property either now or in the future, and be measured over time

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3
Q

Freehold estate

A

lasts for an inderterminable length of time, such as for lifetime or forever

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4
Q

Fee simple (absolute)

A

the highest interest in real estate recognized by law

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5
Q

Upon the death of the owner of a fee simple estate, the property interest passes to…

A
  1. the decedent’s co-owner, if there is one and the co-ownership was accompanied by a right of surviorship
  2. the person or persons specified in the decendent’s will (the devisees)
  3. If the decendent has left no will, to the persos(s) designated by the state’s law of interstate sucession
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6
Q

Fee simple defeasible

A

qualified fee estate that is subject to the occurence or nonoccurence of some specified event

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7
Q

fee simple determinable

A

a fee simple defeasible estate that may be inherited

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8
Q

possibility of reverter

A

an interest that can be transferred to somone else

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9
Q

If the possibility of reverter limitation is violated, the holder receives the title automatically

A

True

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10
Q

The language used to distinguish a special limitation______ is the key to create a special limitation

A

words such as ‘so long as’ or ‘while’ or ‘during’

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11
Q

When an owner gives land to a church, ‘so long as’ the land is used for only religious purposes, is known as?

A

fee simple determinable

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12
Q

Fee simple subject to a condition subsequent

A

an owner gives real estate ‘on condition of’ ownership, which means there is a difference in the way the estate will terminate if there is a violation of the condition.

The owner has the right to reentry but must bring legal action in court to assert this right.

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13
Q

Land given ‘on the condition’ that there be no alcohol consumption on the premise is..

A

A fee simple subject to a condition subsequent

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14
Q

The possibility of reverter (fee simple determinable) or right of entry (fee simple subject to a condition subsequent) is a right considered a ______ .

A

future interest

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15
Q

Life estate

A

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. Not inheritable and passes on accorinding to provisions

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16
Q

life tenant

A

entitled to the rights of ownership and can benefit from both possession and ordinary use, and profits arising from ownership

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17
Q

A life estate pur autre vie (for a life of another)

A

provides for inheritance of the property right by the life tenent’s heirs, but the right exists only unitl the death of the identified person(s)

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18
Q

A life estate could be granted to a surviving brother by a deceased property owner for the life of the surviving brother’s children

A

As long as one of the children survives, the life estate is in control of the life tenant or successor

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19
Q

When the life estate ends it is replaced by a

A

fee simple estate

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20
Q

Remainder interest

A

The creator of the life estate may name a remainderman as the person to whom the property will pass when the life estate ends

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21
Q

Reversionary Interest

A

The creator of the life estate may choose not to name a remainderman. Ownership returns to the original owner upon the end of the life estate

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22
Q

Legal life estate

A

established by state law and becomes effective whencertain events such as a Dower, curtesy, and homestead that are used here in the U.S.

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23
Q

Dower and curtesy provide

A

a nonowning spouse with a means of support after the death of the owning spouse

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24
Q

Uniform Probate Code (UPC)

A

gives a surviving spouse the right to an elective share on the death of the other spouse, if the surviving is not satisfied with the decendent’s disposition of the property by will

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25
Q

homestead

A

legal life estate occupied as the family home

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26
Q

Homestead are

A

except from certain judgements for debts, such as charge accounts and personal loans, but not a mortgage for the purchase or improvement of the property
- not protected against real estate taxes billed against the property

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27
Q

How does Homestead excemption work?

A
  • after a sale occurs, debts (mortgageg, unpaid taxes, and liens) will be paid
  • then the family will receive the amount reserved by excemption
  • Last the rest is applied to unsecured debts
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28
Q

Encumbrance

A

type of interest in real estate that does not rise to the level of the ownership or possession, yet it still gets some degreee of use or control

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29
Q

Liens

A

a charge against property that provides security for a debt or an obliagation of the property owner.

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30
Q

If the obligation is not repaid, the lien holder is entitled to have the debt satisfied from the proceeds of a forced sale of the debtor’s property

A

True

31
Q

Examples of liens against an owner’s real estate

A

Taxes, mortgages, judgments, and mechanics’ liens

32
Q

Deed restriction

A

will run with the land and limits the use of the property by the current owner, as well as future owners to whom the property is subsequently transferred

33
Q

Covenants, conditions, and restrictions (CC&Rs)

A

used by a subdivision developer to maintain specific standards in a subdivision, such as by requiring adherence to certain architectural or design specifications for improvements

34
Q

Easement

A

the right to use the land of another for a particular purpose

35
Q

Easement appurtenant

A

is attached to the ownership of real estate and allows the owner of that property the use of a neighbor’s land

36
Q

The parcel that benefits from the easement is known as the ______; the parcel over which the easement runs is known as the _____.

A

dominanttenement; service tenement

37
Q

If the dominant tenement is conveyed to another party, the easement transfers witht the title

A

True

38
Q

party wall

A

exterior wall that borders the line between two lots, it can also be a partition wall between two properties

39
Q

cross easement

A

the reciprocal interest of each owner in the property of the other

40
Q

Easement in gross

A

an individual or company interest in or right to use someone else’s land

41
Q

What are examples of easement in gross?

A
  • A railroad’s right-of-way,
  • Right-of-way for utitlities (pipelines and powerlines)
42
Q

Personal easement in gross terminates on the death of the esement owner

A

True

43
Q

Creating an easement

A
  1. created by a written agreement between the parties that establishes the easement right
  2. Easement by Necessity
  3. Easement by Prescription
44
Q

Easement by necessity

A

created when an owner sells a parcel of land that has no legal access to a street or public way except over the seller’s remaining land

45
Q

Easement by prescription (prescriptive easement)

A

If the claimant has made use of another’s land for a certain period of time

The use must be visible, open, and notorious, and the owner must be able to learn of it.

(prescription lasts 10-21 years)

46
Q

Tacking

A

successive periods of continous occupation by different parties may be combined (tacked) to reach the required total number of years necessary to establish a claim for a prescriptive easement

47
Q

To tack on person’s posession to that of another, the parties must have successors in interest

A

true

48
Q

Easement terminates:

A
  • when the need no longer exists
  • when the owner of either the dominant or the servient tenement becomes sole owner of both properties
  • by the release of the right of the easement to the owner of the servient tenement
  • by the abandonment of the easement (intention)
  • by the nonuse of a prescriptive easement
49
Q

license

A

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

ends with the death of either party or sale

50
Q

A license can be terminated by the property owner

A

True

51
Q

Encroachment

A

when a building, fence, or driveway illegally extend beyond the boundaries of the land of its owner or legal building

52
Q

An enroachment that exceeds the state’s perscriptive period may give rise to an…

A

easement by prescription

53
Q

Lis pendens (Litigation pending)

A

a notice filed in the public records of a pending legal action affecting the title to or possession of property

54
Q

Lis pendens create “cloud on the tile” to the property which may…

A

prevent the property from being solde or further encumbered

55
Q

If the lis pendens have been recorded w/out adequate evidence a bona fide dispute, the property owner can have the lis pendens_____.

A

expunged

56
Q

Government powers include:

A

Police power, eminent domain, taxation, and escheat (PETE)

57
Q

Police power

A

States have the power to enact legislation to preserve order, protect the public health and safety, and promote the general welfare of its citizens.

58
Q

The police power of gov is used to enact environmental protection laws, zoning ordinances, and building codes

ex: use, max occupacy, size, location, and construction

A

True

59
Q

Eminent Domain

A

the right of the government to acquire privately owned real estate for public use

60
Q

Condemnation

A

the process by which the gov exercises the eminent domain right, by either judicial or admin proceedings

61
Q

Eminent domain examples

A

a public housing authority might take privately owned land to build low-income housing, or the state’s land-clearance commission or redevelopment authority could allow parcels to be acquired for construction of a new sports arena

62
Q

Taking of property for public use is found in the 5th Amendment, it reads,

A

“[N]or shall private property be taken for public use, without just compensation,”

SO MUST COMPENSATE

63
Q

Due process of law protects the rights of the owner of the property

A

Found in the 5th and 14th Amendments

64
Q

Kelo vs. City of New London (June 2005)

A

The court held that local govs can condemn homes and businesses for economic development purposes, even when a private developer is a beneficary

“public good” > “beneficial public use”

65
Q

Murr v. Wisconsin (2017)

A

a property owner could be denied the right to build a second structue on a property that had at one time been two separate parcels, each of which would have been entitled to a building permit, but under same ownership .

66
Q

Inverse condemnation

A

an action brought by a property owner seeking just compensation for land adjacent to land used for a public purpose when the property’s use and value have been diminished

67
Q

A property owner may bring inverse condemnation action to be compensated for the loss in value. EX: new high construction near property

A

True

68
Q

Before-after method

A

The value of the owner’s remaining property after the taking is subtracted (-) from the value of the whole parcel before the taking

69
Q

Taxation

A

a charge on real estate to raise funds to finance the operation of governement

70
Q

Taxes on real estate include:

A
  1. annual real property taxes assesed by local and area governmental entities to support school districts, transportation districts, and utility disctricts
  2. taxes on profit realized by individuals and corporations on the sale of real property
  3. special fees that may be levied to finance special projects, such as road or utilitity installation
71
Q

Nonpayment of any of these common real estate taxes may allow the taxing body to enforce its lien rights in the property

A

True

72
Q

Escheat

A

a process by which the state may acquire privately owned real or personal property

73
Q

State laws provide for ownership to transfer to the state when an owner dies and leaves no heirs and there is no will or living trust instrument that directs how the real esate is distributed

A

True

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