Unit 7 Flashcards
Police Power
The government’s right to impose laws, statutes, and ordinances, including zoning ordinances and building codes, to protect the public health, safety, and welfare.
Police power is used to enact environmental protection laws, zoning ordinances, and building codes.
Escheatment/Escheat
Escheatment is a process by which the state may acquire privately owned real or personal property. State laws provide for ownership to transfer, or escheat, to the state when an owner dies and leaves no heirs and also leaves no will or living trust instrument that directs how the real estate is to be distributed. In IL, real property escheats to the county where the land is located.
What are the 4 governmental powers?
PETE Police power Eminent domain Taxation Escheat
Eminent domain vs condemnation
Eminent domain is the legal right, condemnation is the process used to enact eminent domain
Quick take
Property is seized because the need is urgent, details figured out later. Only the Tollway Authority, Airport Authority, and Sanitary District can do a quick take
What Illinois bodies can do a quick take?
Tollway, Airport, and Sanitary
What are the two types of fee simple estates?
Fee Simple Absolute and Fee Simple Defeasible
Fee Simple Absolute
The maximum possible estate or right of ownership of real property, continuing forever. Most common, comes with bundle of rights.
Fee Simple Defeasible
An estate in which the holder has a fee simple title that may be divested on the occurrence or nonoccurrence of a specified event. There are two categories of defeasible fee estates: fee simple on condition precedent (also called fee simple determinable) and fee simple on condition subsequent.
Fee Simple Determinable Example
When an owner gives land to a church, “so long as the land is used for only religious purposes,” it is called a fee simple determinable. The church had the full bundle of rights possessed by a property owner, but in this case one of the “sticks” in the bundle is a control “stick.” If the church ever decides to use the land for a nonreligious purpose, the original owner has the right to reacquire the land without going to court. Because the right of reentry and possibility of reverter can happen only in the future, they are considered future interests. While the condition passes from owner to owner forever, Illinois allows the original grantor’s right of reverter to continue for only 40 years. After that time, the condition still may be enforced but no longer by the threat of losing the property.
Life Estate
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. Unlike other freehold estates, a life estate is not inheritable. It passes to future owners according to the prearranged provisions of the life estate.
Life Tenant
A person in possession of a life estate.
Conventional Life Estate
A conventional life estate is created intentionally by the owner. It may be established either by deed at the time the ownership is transferred during the owner’s life or by a provision of the owner’s will after the owner’s death. The estate is conveyed to an individual who is called the life tenant. The life tenant has full enjoyment of the ownership for the duration of his life. When the life tenant dies, the estate ends and its ownership passes, often as a fee simple to another designated individual, or returns to the previous owner.
Pur Autre Vie
A life estate also may be based on the lifetime of a person other than the life tenant. This is called a life estate pur autre vie (“for the life of another”). Although a life estate is not considered an estate of inheritance, a life estate pur autre vie provides for the life tenant’s “ownership” only until the death of the person against whose life the estate is measured.
EX: A man often does not pay his apartment rent. He is set to inherit his family home after his father dies. In the meantime, a woman sets up a life estate pur autre vie giving the man the rights of a life tenant to a cottage she owns. The man’s life tenancy terminates at the moment of his father’s death, at which time ownership of the cottage will revert to the woman, her heirs, or pass to a designated remainderman.
Freehold estate
Ownership for an indefinite duration
Leasehold estate
possession for a fixed term (rent/lease)
Does death of landlord or tenant terminate the lease?
No
Termination notice must be equal to the term of the lease
This means if it is a month to month rental, it needs to be a full month notice.
How much notice does the leseee or lessor need to provide to terminate a year to year lease
60 days or more
Estate at will
indefinite duration, tenant occupies at landlord’s discretion. termination would be by notice (cycle of payment), death, or sale of the property.
Estate at sufferance
Tenant is in unlawful possession of property after the lease term. If the landlord accepts additional payment to stay longer, the lease becomes automatically renewing at payment cycle (if pays for another month, is seen as a renewal for the year). So if you accept a month’s payment and had a renter lined up for the following month, you can’t rent to them because the lease renewed for a year by accepting payment.
