Chapter 2 - Ownership, Interests, and Encumberances

Question 1

When the term ownership in severalty is used, how many owners are there?

Answer 1

One individual or corporation

Question 2

What are the three governmental powers over ownership?

Answer 2

Police power, eminent domain, and condemnation.

Question 3

Eminent domain

Answer 3

Acquire privately owned real estate for public use.

Question 4

Condemnation

Answer 4

Process by which gov’t exercises right of eminent domain.

Question 5

Freehold estate vs. Leasehold estate

Answer 5

Indeterminable length of time vs. fixed period of time

Question 6

Which types fall under freehold estate?

Answer 6

Fee simple, defeasible fee, and life estates

Question 7

Which types fall under leashold estates?

Answer 7

Estates for years + estates from period to period

Question 8

Fee simple absolute

Answer 8

Highest interest in real estate recognized by law

Question 9

Which two possible limit types exist on a fee simple defeasible?

Answer 9

• Condition subsequent (but if…no alcohol consumption)

* Determinable (as long as)

Question 10

Life estate

Answer 10

Ownership duration limited to life of owner or some other designated person(s).

Question 11

What’s unique about inheritability of life estate?

Answer 11

Cannot be inhereted

Question 12

Life tenant

Answer 12

(Temporary) owner of a life estate

Question 13

Pur autre vie

Answer 13

“for the life of another”

Question 14

Remainder interest

Answer 14

Person to whom a life estate will pass when the life estate ends.

Question 15

Reversionary interest

Answer 15

When ownership of a life estate reverts to the original owner.

Question 16

Homestead right

Answer 16

I don’t know what this means (p41)

Question 17

Encumbrances

Answer 17

A burden. Claim, charge or liability that attaches to real estate.

Question 18

The two classes of encumbrances are?

Answer 18

Liens and physical restrictions, easements, licenses, and encroachments.

Question 19

Easement

Answer 19

Law a right to cross or otherwise use someone else’s land for a specified purpose.

Question 20

Lien

Answer 20

Security for a debt

Question 21

When do deed restrictions expire?

Answer 21

They don’t. (“run with the land”)

Question 22

CC&Rs

Answer 22

Covenant, Conditions, and Restrictions

Question 23

Appurtenant easement

Answer 23

Allows a neighbor use of land to enter their property (ex. driveway)

Question 24

Servient tenement

Answer 24

Parcel over which the easement runs

Question 25

Dominant tenement

Answer 25

Neighboring parcel that benefits from easement

Question 26

Easement in gross

Answer 26

Rights-of-way or utility easements

Question 27

Easement by necessity

Answer 27

When parcel of land has no direct access to a street (no one can be land locked)

Question 28

Easement by prescription

Answer 28

When someone makes a claim on someone else's land. ``` Must be: Continuous Exclusive Advserse (without owners' approval) Visible Open Notorious ```

Question 29

How many years are required to establish a prescription easement in Illinois?

Answer 29

20 years

Question 30

License

Answer 30

Privilege to enter the land of another for a specific purpose (sports match, concert, parking garage)

Question 31

Encroachment

Answer 31

When part of a structure extends beyond the land of its owner into a neighboring plot

Question 32

Spot survey

Answer 32

Shows location of all improvements located on a property (shows encroachments)

Question 33

If an encroachment reaches beyond a state's prescriptive period, what can happen?

Answer 33

Easement by prescription.

Question 34

Riparian rights

Answer 34

Apply to property along a river, stream, etc.

Question 35

Littoral rights

Answer 35

Applies to land bordering lakes, seas, and oceans.

Question 36

What defines ownership in littoral rights?

Answer 36

Mean high water mark

Question 37

What defines ownership under riparian rights?

Answer 37

Land to exact center of the waterway

Question 38

Doctorine of prior appropriation

Answer 38

Right to use water adjacent to land is controlled by the state.

Question 39

Accretion

Answer 39

Increase in land from deposits fo soil by water

Question 40

Erosion

Answer 40

Slow wearing of land

Question 41

Avulsion

Answer 41

Sudden removal of land (by act of nature)

Question 42

Three types of co-ownership?

Answer 42

1. Tenants in common 2. Joint tenancy 3. Tenancy by the entirety (married couple)

Question 43

Under tenants in common, what happens when an owner does?

Answer 43

Right of successorship. Can be willed to anyone.

Question 44

Under joint tenancy, what happens when an owner does?

Answer 44

Survivorship. Ownership stake of any living owners increases.

Question 45

What is required to create a joint tenancy? [PITT]

Answer 45

Posession Interest Time Title

Question 46

Which three parties comprise a trust?

Answer 46

Trustor (owner) Trustee (hold title for benefit of a third party) Beneficiary

Question 47

Three types of ownership by organizations

Answer 47

1. General partnership (everyone is a general) 2. Limited partnership (1+ general and 1+ limited partner) 3. Corporation

Question 48

In a condominium, what is a limited common area?

Answer 48

Private areas that association pays to maintain (skylights, assigned parking, balconies, storage rooms, etc.)

Question 49

Two types of time shares

Answer 49

1. Time share estate (bundle of legal rights) | 2. Time share use (like a lease)

Question 50

Interstate land sales full disclosure act

Answer 50

If a person buys a vacant plot of land out of state, a property report must be provided at time of signing or buyer has up to 2 years to cancel the contract. "I've got some great swamp land for you"

Question 51

What does a property report specify?

Answer 51

1. What you can build 2. Zoning 3. Liens 4. Restrictions 5. Perculation test (determines location for septic tank)

Question 52

Ownership in severalty

Answer 52

When a property is owned by a single person ("sever yourself from everyone else")

Question 53

Community property

Answer 53

Whatever either partner owned before marriage is owned 100%

Question 54

Does community property exist in Illinois?

Answer 54

No.

Question 55

Which ownership arrangement is subject to double taxation?

Answer 55

Corporation – taxes paid on profits by the corp, and taxes paid by shareholders on dividends.

Question 56

What is the defining characterstic of a "joint venture"?

Answer 56

Time limitation