Interests, Estates, and Encumbrances

Question 1

What is undivided interest?

Answer 1

An owner’s interest in a property in which two or more parties share ownership

Question 2

If an interest holder enjoys the right of possession, what is her or she considered to have?

Answer 2

An estate in land

Question 3

If a private interest holder does not have the right to possess, what is the interest called?

Answer 3

An encumbrance

Question 4

What is eminent domain?

Answer 4

When the power of the government or a public utility takes private property for public use

Question 5

What are some examples of the exercise of police power?

Answer 5

Zoning ordinances
Building codes
Subdivision regulations
Eminent domain
Environmental restrictions

Question 6

What does eminent domain allow a government to do?

Answer 6

Eminent domain allows a government entity to purchase a fee, leasehold, or easement interest in privately owned real property for the public good and for public use, regardless of the owner’s desire to sell or otherwise transfer any interest. In exchange for the interest, the government must pay the owner “just compensation.”

Question 7

What is “Taking”

Answer 7

A “taking” refers to the “taking clause” of the Fifth Amendment which says, in part, that private property cannot be taken for public use without just compensation.

Question 8

What do building codes address?

Answer 8

Architectural and engineering standards
Construction materials standards
Building support systems such as life safety, electrical, mechanical, and utility systems

Question 9

What are both leasehold and freehold estates referred to?

Answer 9

Tenancies

Question 10

What is the highest form of ownership interest one can acquire in real estate?

Answer 10

A fee simple freehold estate

Question 11

What is a fee simple absolute estate?

Answer 11

A perpetual estate that is not conditioned by stipulated or restricted uses

Question 12

What is the holder of a life estate called?

Answer 12

A life tenant

Question 13

How can an encroachment become an easement?

Answer 13

If the burdened party fails to take effective remedial action within a period prescribed by law, the encroacher may obtain a court order creating an easement by prescription

Question 14

What is a license?

Answer 14

A personal right that a property owner grants to another to use the property for a specific purpose

Question 15

What are the four legal features of a lien?

Answer 15

A lien does not convey ownership, with one exception
A lien attaches to the property
A property may be subject to multiple liens
A lien terminates on payment of the debt and recording of documents

Question 16

What is an easement appurtenant?

Answer 16

An easement that gives a property owner a right of usage to portions of an adjoining property owned by another party

Question 17

Eminent Domain

Answer 17

is when the power of the government, or a public utility such as the power company, takes private property for public use.

Question 18

Taxation

Answer 18

is also utilized as a charge on a particular piece of real estate to raise funds in order to meet the public needs of a government.

Question 19

Police Power

Answer 19

gives a government entity the ability to fulfill its responsibility to provide for the health, safety and welfare of the public.

Question 20

In a freehold estate

Answer 20

the duration of the owner’s rights cannot be determined: the rights may endure for a lifetime, for less than a lifetime, or for generations beyond the owner’s lifetime.

Question 21

A leasehold estate

Answer 21

is distinguished by its specific duration, as represented by the lease term.

Question 22

Fee simple freehold estate

Answer 22

the highest form of ownership interest one can acquire in real estate. It includes the complete bundle of rights, and the tenancy is unlimited, with certain exceptions indicated below. The fee simple interest is also called the “fee interest,” or simply, the “fee.” The owner of the fee simple interest is called the fee tenant.

Question 23

An encumbrance

Answer 23

is an interest in and right to real property that limits the legal owner’s freehold interest. In effect, an encumbrance is another’s right to use or take possession of a legal owner’s property, or to prevent the legal owner from enjoying the full bundle of rights in the estate.

Question 24

An easement

Answer 24

is an interest in real property that gives the holder the right to use portions of the legal owner’s real property in a defined way. Easement rights may apply to a property’s surface, subsurface, or airspace, but the affected area must be defined.

Question 25

An encroachment

Answer 25

is the unauthorized, physical intrusion of one owner’s real property into that of another.

Question 26

Fee simple absolute

Answer 26

The fee simple absolute estate is a perpetual estate that is not conditioned by stipulated or restricted uses. It may also be freely passed on to heirs. For these reasons, the fee simple absolute estate is the most desirable estate that can be obtained in residential real estate. It is also the most common.

Question 27

Fee simple defeasible

Answer 27

The defeasible fee estate is perpetual, provided the usage conforms to stated conditions. Essential characteristics are:

The property must be used for a certain purpose, or under certain conditions
If the use changes or if prohibited conditions are present, the estate reverts to the previous grantor of the estate

Question 28

A conventional life estate is created by

Answer 28

grant from a fee simple property owner to the grantee, the life tenant. Following the termination of the estate, rights pass to a remainderman, or revert to the previous owner.

Question 29

An easement appurtenant

Answer 29

gives a property owner a right of usage to portions of an adjoining property owned by another party. The property enjoying the usage right is called the dominant tenement, or dominant estate. The property containing the physical easement itself is the servient tenement, since it must serve the easement use.

Question 30

A license, much like a personal easement in gross, is a

Answer 30

personal right that a property owner grants to another to use the property for a specific purpose. Licenses are not transferable and do not attach to the land. They cease on the death of either party