Unit 3 Key Terms

Question 1

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

Answer 1

Condemnation

Question 2

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

Answer 2

CC&Rs Covenants, conditions and restrictions

Question 3

Clauses in a deed limiting the future uses of the property. They may impose a vast variety of limitations and conditions.

Answer 3

Deed restrictions

Question 4

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

Answer 4

Easements

Question 5

An easement that is annexed to the ownership of one parcel and allows the owner the use of the neighbors land. Must be two adjacent parcels and owned by two different parties (dominant tenement and servient tenement)

Answer 5

Easement appurtenant

Question 6

An easement allowed by law as necessary for the full enjoyment of a parcel of real estate. (owners need ingress/enter or egress/exit access to roads)

Answer 6

Easement by necessity

Question 7

An easement acquired by open, notorious, continuous, hostile and adverse use of the property for the period of time prescribed by law. p.40 & 41

Answer 7

Easement by prescription

Question 8

An easement that is not created for the benefit of any land owned by the owner of the easement but that attaches personally to the easement owner (i.e. pipelines, powers lines railroad)

Answer 8

Easement in gross

Question 9

The right of 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.

Answer 9

Eminent domain

Question 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 the adjoining owner or a public street or alley.

Answer 10

Encroachment

Question 11

A claim, charge or liability that attaches to real estate. Anything, such as mortgage, tax, or judgement 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.

Answer 11

Encumbrance

Question 12

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

Answer 12

Escheat

Question 13

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

Answer 13

Estate in land

Question 14

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

Answer 14

Fee simple

Question 15

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

Answer 15

Fee simple absolute

Question 16

An estate in which the holder has a fee simple title that may be divested upon the occurrence or nonoccurence of a specific event. There are 2 categories: fee simple determinable and fee simple subject to a condition subsequent.

Answer 16

Fee simple defeasible

Question 17

A fee simple estate providing that the property returns to the original grantor or heirs when the specified condition occurs, indicating that the property is no longer being used for the purpose prescribed. (so long as, while or during)

Answer 17

Fee simple determinable

Question 18

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

Answer 18

Fee simple subject to a condition subsequent

Question 19

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

Answer 19

Freehold estate

Question 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.

Answer 20

Future interest

Question 21

Land that is owned and occupied as the family home.

Answer 21

Homestead

Question 22

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

Answer 22

Inverse condemnation

Question 23

A form of life estate established by state law, rather then created voluntarily by an owner. It becomes effective when certain events occur (dower, curtesy etc.)

Answer 23

Legal life estate

Question 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. 2)The revocable permission for a temporary use of land- a personal right that cannot be sold.

Answer 24

License

Question 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 a court sale.

Answer 25

Lien

Question 26

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

Answer 26

Life estate

Question 27

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

Answer 27

Police power

Question 28

“For the life of another” A life estate that provides inheritance of the property right by the life tenants heirs, but the right only exists until the death of the identified person or persons. Usually created for people who are physically or mentally incapacitated.

Answer 28

Pur autre vie

Question 29

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

Answer 29

Remainder interest

Question 30

If the owner of the life estate chooses not to name a remainderman, ownership returns to the original owner upon the end of the life estate.

Answer 30

Reversionary interest

Question 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.

Answer 31

Taking

Question 32

The process by which a government body raises money to cover delinquent taxes.

Answer 32

Taxation