CH3: Controls & Encumbrances on Ownership

Question 1

allodial system

Answer 1

anyone can hold ownership in land

Question 2

4 powers of government (PETE)

Answer 2

Police Power
Eminent Domain
Taxation
Escheat

Question 3

most common government powers to affect people

Answer 3

police power

taxation

Question 4

police power

Answer 4

constitutional power of gov. to enact and enforce laws that protect the public’s health, safety, morals and general welfare

• broadest of all
• powers are - zoning laws, building codes, subdivision regulations, and environment protection laws

Question 5

zoning laws

Answer 5

• police power
• land use controls that impact real estate since they may limit (or enhance)development and property values
• segregate different land types in different zones
• regulate types of activity in different areas
• divide categories of buildings (residential, commercial, industrial, agricultural)

Question 6

Exceptions to zoning law: nonconforming uses

Answer 6

• when land use does not conform but is allowed b/c the land was established before new laws enacted

Question 7

Exceptions to zoning law: variances

Answer 7

grants permission to a property owner by the zoning authority, allowing some deviation due to:

• area variance (building size, height limits, setbacks, side yards)
• use variance (use that is prohibited) (must apply to appropriate board)

Question 8

Exceptions to zoning law: conditional uses

Answer 8

land usages that don’t comply for it’s location but are permitted b/c they benefit the public good
- schools, hospitals, churches, cemeteries

Question 9

re-zoning

Answer 9

• revision to zoning law

- involves: review by planning authority, public hearing, approval by the jurisdictional body

Question 10

Spot zoning

Answer 10

re-zones small or individual land parcels rather than entire zone area

Question 11

Building Codes

Answer 11

police power
established standards for construction and materials
enforced through permit system
must bring buildings “up to code” when new codes pass

Question 12

Americans w/ disabilities ADA

Answer 12

applies to many public buildings

• handicap parking spaces
• wheelchair ramps
• accessible bathrooms
• widened doors and hallways
• elevators

Question 13

Subdivision regulations

Answer 13

• laws before land can be subdivided
• authorities use to control land use
• may govern lot size, location of streets, sidewalks, sewer, and water lines
• may require developer to provide open spaces and recreational areas within subdivision

Question 14

Environmental protection acts

Answer 14

• clean air act (EPA regulate air pollution)
• clean water act (adequate treatment facilities)
• national environmental protection laws (EIS impact on energy consumption, sewage systems, school pop, drainage, water facilities, and other environmental, econ, and social conditions)

Question 15

Eminent Domain

Answer 15

gov’s constitutional power to take or condemn private property for public use (5th amendment) RIGHT TO

Question 16

condemnation

Answer 16

ACT OF taking private property for public use w/just compensation

Question 17

real estate taxation definition

Answer 17

• also known as ad valorem tax (according to value)
• extra taxes in form of levies support additional operations like schools, public health services, libraries, police and fire protection etc

Question 18

Real estate tax equation

Answer 18

Appraisal Value * Assessment Ratio = Assessed Value

(Assessed Value/1000) * Mills = annual tax

Question 19

Special Assessment

Answer 19

• type of tax when expenditures are made at some level of gov. for improvements that benefit a property(ies)
• owners who benefit divide cost and share in paying for it

Question 20

Eschat

Answer 20

gov power that provides for property ownership to pass on to the state when a property owner dies w/o living heirs

Question 21

intestate

Answer 21

decedent didn’t have a last will and testament

Question 22

encumbrances

Answer 22

non-possessory interests in real property

Question 23

covenant

Answer 23

a binding promise to do/not do something

Question 24

restrictive covenant

Answer 24

binding promise concerning use of real property (breaking doesn’t jeopardize title) (runs with land)

Question 25

CC and R's - covenants, conditions, and restrictions

Answer 25

- to keep subdivision attractive/protect market value - can expire if not preserved - can have a term date

Question 26

easements

Answer 26

- right to use property for a particular purpose | - created by written agreement or by action of law

Question 27

license

Answer 27

revocable permission to use another's land | can't be assigned

Question 28

appurtenant easements

Answer 28

burden on one parcel of land to benefit another - runs with land - land in benefit = dominant land - land burdened = servient land

Question 29

easements in gross

Answer 29

benefits only a person, not land | ex: electric co enters property to fix something w/o owner's permission

Question 30

creation of easements

Answer 30

can be voluntary or involuntary

Question 31

easements by express reservation

Answer 31

- created in a deed to divide property - transfers servient tenement to buyer - retains dominant tenement for seller

Question 32

easements by express grant

Answer 32

created in deed, either party my request easement

Question 33

easement by implication

Answer 33

created by operation of law when land is divided if there is a long-standing apparent use necessary for enjoyment of dominant tenant

Question 34

easements by necessity

Answer 34

when a property would be completely useless w/o easement

Question 35

easement by prescription 3 conditions

Answer 35

1. open and notorious use of land 2. hostile and adverse 3. continuous for specified number of years

Question 36

Termination of easements

Answer 36

1 release 2 Merger 3. abandonment 4. failure of purpose

Question 37

Liens

Answer 37

non-possessory financial interests in property

Question 38

voluntary liens

Answer 38

ex: mortgages, derivatives like home equity credit lines

Question 39

Involuntary liens or statutory liens

Answer 39

operation of law w/o consent, can be general or specific

Question 40

vendor's lien

Answer 40

involuntary, specific | secures payment of balance of purchase price for real estate if real estate buyer doesn't pay in full at closing

Question 41

mechanic's lien

Answer 41

involuntary, specific | claimed by someone who performed work or specific materials for real property

Question 42

judgement liens

Answer 42

involuntary, general | attach to a person's property as a result of court action

Question 43

tax liens

Answer 43

involuntary, specific | liens on real property to secure payment of real estate taxes

Question 44

Special assessments

Answer 44

Involuntary, specific lien taxes used to pay for public improvements - owners who benefit will pay their share of it's cost

Question 45

IRS Lien

Answer 45

involuntary, general | attaches lien to all of taxpayer's property

Question 46

attachment liens

Answer 46

intended to prevent transfer of property pending litigation