Unit 4: Interests in RE Flashcards
estate in land
The degree, quantity, nature, and extent of an owner’s interest in real property
freehold estate
A hold that lasts for an indeterminable length of time, such as for a lifetime or forever.
fee simple/fee simple absolute
Highest interest in real estate recognized by law. Ownership in which the holder is entitled to all rights to the property by law.
fee simple defeasible
qualified fee estate that is subject to the occurrence or nonoccurrence of some specified event. There are two categories of defeasible estate. fee simple determinable and fee simple subject to a condition subsequent.
fee simple determinable
A fee simple defeasible estate that may be inherited. This estate is qualified by a specific limitation. When words like -so long as- or -while- or -during- are being used. In this case, the owner retains the -possibility of reverter-, which is the interest that can be transferred to someone else.
fee simple subject to a condition subsequent
When 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. This also gives the owner the right of reentry if there’s a violation of the condition of ownership. However, this must bring legal action in the court to assert their rights.
Life estate
Unlike other freehold estates, a life estate is based on the life of the estate holder and isn’t inheritable. It passes to the owner after the holder’s life. Anything can happen to the estate but upon the death of the original life estate holder then the estate must go to the intended person.
Pur Autre Vie
A life estate may be based on someone else’s estate and not just the life tenant. Same attributes as a life estate but someone else’s life can be measured.
Remainder interest (needed for life estate)
The creator of the life estate may name a remainder-man as the person to whom the property will pass.
Reversion interest (needed for life estate)
Creator of life estate may choose
Legal life estate
This isn’t created by the owner but rather established by state law. Dower, curtesy and homestead are all terms used when this type of estate is used.
Dower - life estate of a wife in the real estate of her deceased husband
Curtesy - life estate of a husband in the real estate of a deceased wife.
Homestead - Legal life estate in real estate occupied as the family home.
Lien
Charge against a property that provides security for a debt or an obligation of the property owner. If the obligation is not met then the lienholder is entitled to have the debt satisfied from the proceeds of a court-ordered or forced sale of the debtor’s property.
deed restriction
If a deed restriction is left by the previous owner then it will run with the land, limiting the use of the property.
Easement
The right to use the land of another for a particular reason/purpose.
Easement appurtenant
Attached to the ownership of real estate and allows the owner of that property the use of a neighbor’s land. A parcel that benefits from the easement is the dominant tenement. A parcel over that which the easement runs is known as servient tenement.
Easement in gross
An individual or company interested in or right to use someone else’s land. Ex. Railroad
Creating an easement
An easement is created by a written agreement between two separate parties.
Easement by Necessity
This is created when an owner sells a parcel of land that has no legal access to a street or public way except over someone else’s land.
easement by Prescription
If the claimant has made use of another’s land for a certain amount of time(defined by state law). Then an easement by prescription may be required.
Terminating an Easement
An easement terminates
- When a need is longer exists
-When the owner of either the dominant or the servient tenement becomes the sole owner
- By the release of the right of easement to the owner of the servient tenement
- By the abandonment of the easement, or
- By the nonuse of a prescriptive easement
License
Personal privilege to enter the land of another for a specific purpose.
Encroachments
When a building, fence, or driveway illegally extends beyond the boundaries of the land of its owner or legal building limits.
Lis Pendens (latin for litigation pending)
Is a notice filed in the public record of a pending legal action affecting the title to or possession of property.
Four Governmental Powers
P.E.T.E
-Police power
-Eminent Domain
-Taxation
-Escheat
Police Power
A state’s power to enact legislation to preserve power, protect the public, and promote the general welfare of its citizens.
Eminent Domain
Right of the government to acquire privately owned real estate for public use.
Condemnation
The process by which the government exercises the eminent domain right. Either by judicial or administrative proceedings.
Taking
The government has to also adhere to the Fifth Amendment constitutional right when exercising eminent domain, which is ‘Nor shall private property be taken for public use, without just compensation.’ Meaning just compensation must be met for eminent domain to be legal. The price is set by the owner.
Inverse condemnation
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 has diminished.
Taxation
A charge on real estate to raise funds to finance the operation of government facilities and services. Taxes on real estate include:
-Annual real property taxes assessed by local and area governmental entities to support school districts, transportation districts, and utility districts.
- Special fees that may be levied to finance special
Escheat
Is a process by which the state may acquire privately owned real or personal property due to the owner’s death and leaves no heirs.
