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Illinois Real Estate Broker License > Chapter 2 - Ownership, Interests, and Encumberances > Flashcards

Chapter 2 - Ownership, Interests, and Encumberances Flashcards

1
Q

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

A

One individual or corporation

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2
Q

What are the three governmental powers over ownership?

A

Police power, eminent domain, and condemnation.

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3
Q

Eminent domain

A

Acquire privately owned real estate for public use.

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4
Q

Condemnation

A

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

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5
Q

Freehold estate vs. Leasehold estate

A

Indeterminable length of time vs. fixed period of time

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6
Q

Which types fall under freehold estate?

A

Fee simple, defeasible fee, and life estates

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7
Q

Which types fall under leashold estates?

A

Estates for years + estates from period to period

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8
Q

Fee simple absolute

A

Highest interest in real estate recognized by law

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9
Q

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

A
  • Condition subsequent (but if…no alcohol consumption)

* Determinable (as long as)

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10
Q

Life estate

A

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

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11
Q

What’s unique about inheritability of life estate?

A

Cannot be inhereted

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12
Q

Life tenant

A

(Temporary) owner of a life estate

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13
Q

Pur autre vie

A

“for the life of another”

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14
Q

Remainder interest

A

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

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15
Q

Reversionary interest

A

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

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16
Q

Homestead right

A

I don’t know what this means (p41)

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17
Q

Encumbrances

A

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

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18
Q

The two classes of encumbrances are?

A

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

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19
Q

Easement

A

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

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20
Q

Lien

A

Security for a debt

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21
Q

When do deed restrictions expire?

A

They don’t. (“run with the land”)

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22
Q

CC&Rs

A

Covenant, Conditions, and Restrictions

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23
Q

Appurtenant easement

A

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

24
Q

Servient tenement

A

Parcel over which the easement runs

25
Q

Dominant tenement

A

Neighboring parcel that benefits from easement

26
Q

Easement in gross

A

Rights-of-way or utility easements

27
Q

Easement by necessity

A

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

28
Q

Easement by prescription

A

When someone makes a claim on someone else’s land.

Must be:
Continuous
Exclusive
Advserse (without owners' approval)
Visible
Open
Notorious
29
Q

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

A

20 years

30
Q

License

A

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

31
Q

Encroachment

A

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

32
Q

Spot survey

A

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

33
Q

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

A

Easement by prescription.

34
Q

Riparian rights

A

Apply to property along a river, stream, etc.

35
Q

Littoral rights

A

Applies to land bordering lakes, seas, and oceans.

36
Q

What defines ownership in littoral rights?

A

Mean high water mark

37
Q

What defines ownership under riparian rights?

A

Land to exact center of the waterway

38
Q

Doctorine of prior appropriation

A

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

39
Q

Accretion

A

Increase in land from deposits fo soil by water

40
Q

Erosion

A

Slow wearing of land

41
Q

Avulsion

A

Sudden removal of land (by act of nature)

42
Q

Three types of co-ownership?

A
  1. Tenants in common
  2. Joint tenancy
  3. Tenancy by the entirety (married couple)
43
Q

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

A

Right of successorship. Can be willed to anyone.

44
Q

Under joint tenancy, what happens when an owner does?

A

Survivorship. Ownership stake of any living owners increases.

45
Q

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

A

Posession
Interest
Time
Title

46
Q

Which three parties comprise a trust?

A

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

47
Q

Three types of ownership by organizations

A
  1. General partnership (everyone is a general)
  2. Limited partnership (1+ general and 1+ limited partner)
  3. Corporation
48
Q

In a condominium, what is a limited common area?

A

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

49
Q

Two types of time shares

A
  1. Time share estate (bundle of legal rights)

2. Time share use (like a lease)

50
Q

Interstate land sales full disclosure act

A

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”

51
Q

What does a property report specify?

A
  1. What you can build
  2. Zoning
  3. Liens
  4. Restrictions
  5. Perculation test (determines location for septic tank)
52
Q

Ownership in severalty

A

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

53
Q

Community property

A

Whatever either partner owned before marriage is owned 100%

54
Q

Does community property exist in Illinois?

A

No.

55
Q

Which ownership arrangement is subject to double taxation?

A

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

56
Q

What is the defining characterstic of a “joint venture”?

A

Time limitation

Illinois Real Estate Broker License (17 decks)

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