Unit 3: Interests in Real Estate

Question 1

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

Answer 1

Estate in Land

Question 2

Lasts for an indeterminable length of time, such as for a lifetime or forever.

Answer 2

Freehold Estate

Question 3

The length of time of the property’s use can be determined.

Answer 3

Nonfreehold/leasehold Estate

Question 4

Ownership in which the holder is entitled to all rights to the property by law and is intended to run forever.

Answer 4

Fee Simple Absolute Estate

Question 5

A fee estate that is subject to the occurrence or non occurrence of some specified event.

Answer 5

Fee Simple Defeasable Estate

Question 6

A fee simple defeasible estate that may be inherited. This estate is qualified by a special limitation. Does not require legal action for reverter.

Answer 6

Fee Simple Determinable

Question 7

An owner gives real estate on condition of ownership. Requires legal action for reentry.

Answer 7

Fee Simple Subject to a Condition Subsequent

Question 8

The possibility of reverter or reentry will only be possible at some point in the future, and may never take effect.

Answer 8

Future Interest

Question 9

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 9

Life Estate

Question 10

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.

Answer 10

Pur Autre Vie

Question 11

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

Answer 11

Remainder Interest

Question 12

Ownership returns to the original owner upon the end of the life estate.

Answer 12

Reversionary Interest

Question 13

Is not created by a property owner, but rather is established by state law. Becomes effective automatically when certain events occur.

Answer 13

Legal Life Estate

Question 14

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

Answer 14

Homestead

Question 15

A claim, charge, or liability that attaches to real estate, and may or may not be monetary.

Answer 15

Encumbrance

Question 16

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

Answer 16

Lein

Question 17

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

Answer 17

Easement

Question 18

Attached to the ownership of real estate and allows the owner of that property the use of a a neighbors land.

Answer 18

Easement Appurtenant

Question 19

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

Answer 19

Easement in Gross

Question 20

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.

Answer 20

Easement by Necessity

Question 21

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.

Answer 21

Easement by Prescription

Question 22

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

Answer 22

License

Question 23

When a building, fence or driveway illegally extends beyond the boundaries of the land of its owner or legal building lines.

Answer 23

Encroachment

Question 24

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

Answer 24

Lis Pendens

Question 25

Private rule that limits the use of property and is binding on all future grantees.

Answer 25

Deed Restriction

Question 26

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

Answer 26

Police Power

Question 27

The right of the government to acquire privately owned real estate for public use. Condemnation is the process by which the government exercises this right, by judicial or administrative proceedings.

Answer 27

Eminent Domain

Question 28

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.

Answer 28

Inverse Condemnation

Question 29

A charge on real estate to raise funds to finance the operation of government facilities and services.

Answer 29

Taxation

Question 30

A process by which the state may acquire real or personal property when an owner dies and leaves no heirs, will or living trust.

Answer 30

Escheat

Question 31

The right of possession for a fixed term. Purchaser is subject to lease terms.

Answer 31

Leasehold Estate

Question 32

Estate that has a specific termination date. Death of landlord or tenant does not terminate. Sale of the property does not terminate.

Answer 32

Estate (tenancy) for Years

Question 33

Estate with an indefinite duration. Terminated by notice, Death or Sale of the property.

Answer 33

Estate (tenancy) at Will

Question 34

Estate that renews automatically. Terminated by advance notice of either party.

Answer 34

Periodic Estate

Question 35

Estate that is a holdover after legal tenancy has expired. Owner may evict or accept rent. If accepted becomes a periodic estate.

Answer 35

Estate (tenancy) at Sufference

Question 36

Used by a subdivision developer to maintain specific standards in a subdivision.

Answer 36

Covenants, conditions, and restrictions (CC&Rs)

Question 37

PITT: possession, interest, time, title

Answer 37

Joint Tenancy