Unit 3: Interests in Real Estate Flashcards
Defines the degree, quantity, nature, and extent of an owner’s interest in real property.
Estate in Land
Lasts for an indeterminable length of time, such as for a lifetime or forever.
Freehold Estate
The length of time of the property’s use can be determined.
Nonfreehold/leasehold Estate
Ownership in which the holder is entitled to all rights to the property by law and is intended to run forever.
Fee Simple Absolute Estate
A fee estate that is subject to the occurrence or non occurrence of some specified event.
Fee Simple Defeasable Estate
A fee simple defeasible estate that may be inherited. This estate is qualified by a special limitation. Does not require legal action for reverter.
Fee Simple Determinable
An owner gives real estate on condition of ownership. Requires legal action for reentry.
Fee Simple Subject to a Condition Subsequent
The possibility of reverter or reentry will only be possible at some point in the future, and may never take effect.
Future Interest
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.
Life Estate
Provides for 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.
Pur Autre Vie
The creator of a life estate may name a remainderman as the person to whom the property will pass when the life estate ends.
Remainder Interest
Ownership returns to the original owner upon the end of the life estate.
Reversionary Interest
Is not created by a property owner, but rather is established by state law. Becomes effective automatically when certain events occur.
Legal Life Estate
A legal life estate in real estate occupied as the family home.
Homestead
A claim, charge, or liability that attaches to real estate, and may or may not be monetary.
Encumbrance
A charge against property that provides security for a debt or an obligation of the property owner.
Lein
The right to use the land of another for a particular purpose.
Easement
Attached to the ownership of real estate and allows the owner of that property the use of a a neighbors land.
Easement Appurtenant
An individual or company interest in or right to use someone else’s land.
Easement in Gross
An easement that is 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.
Easement by Necessity
The type of easement acquired when the claimant has made use of another’s land for a certain period of time as defined by state law.
Easement by Prescription
A personal privilege to enter the land of another for a specific purpose.
License
When a building, fence or driveway illegally extends beyond the boundaries of the land of its owner or legal building lines.
Encroachment
A notice filed in the public record of a pending legal action affecting the title to or possession of property.
Lis Pendens
