Chapter 4 Yellow Text--Interests in Real Estate Flashcards Preview

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Flashcards in Chapter 4 Yellow Text--Interests in Real Estate Deck (42)
1

Estate in Land

defines the degree, quantity, nature and extent of an owner's interest in real property.

2

Freehold Estate

is an ownership interest that continues for an indefinite period. Such as for a lifetime or forever.

3

Fee Simple Estate

A freehold estate the continues for an indefinite period and may be passed along to the owner's heirs.

4

Life Estate

A freehold estate that is held only for the lifetime of a person (who may not be the holder of the life estate) and ends when the individual dies.

5

Fee Simple

The highest interest in real estate recognized by law.
Ownership in which the holder is entitled to all rights to the property by law.

6

Fee Simple Defeasible

An estate in which the holder has a fee simple title that may be divested upon the occurrence or nonoccurrence of a specified event.. There are two categories of defeasible fee estates: fee simple on condition precedent (fee simple determinable) and fee simple on condition subsequent. (53-54)

7

Fee Simple Determinable (possibility of reverter)

may be inherited
is qualified by a special limitation
words such as "so long as" or "while" or "during" is key to creating this special limitation.
*could be taken away if property is not used as it was intended for use. But does not need to be brought to court.

8

Fee Simple subject to a condition subsequent (right of reentry)

An estate carrying the limitation that, it it is no longer used for the purpose conveyed, it reverts to the original grants by the right of reentry. (53) the owner has the right of reentry but must bring a legal action in court to assert this right.

9

Homestead

Land that is owned and occupied as the family home. In many states, a portion of the area or value of this land is protected or exempt from judgements for debts other than those secured by the property.

10

Fee Simple Absolute

The maximum possible estate or right of ownership of real property, continuing forever. (53)

11

Future Interest

A person's present right to an interest in real property that will not result in possession or enjoyment until sometime in the future, such as a reversion or right of reentry. (54)

12

Life Estate

is a freehold estate limited in duration to either the life of the holder of the estate or the life of some other designated person or persons. This is NOT inheritable.

13

Life Tenant

The holder of a life estate. Is always subject to the finite limitation of the life estate. Has all privileges of ownership.

14

Pur Autre Vie

(for the life of another) provides for inheritance of the property right by the life tenant's heirs, but he the right exists only until the death of the identified person or persons. (54)

15

Remainder interest

The creator of the life estate may name a remainder-man
as the person to whom the property will pass when the life estate ends.

16

Reversionary interest

The creator of the life estate may choose not to name a remainder man. In that case, ownership returns to the original owner upon the end of the life estate. (54)

17

Legal Life Estate

A form of life estate established by state law, rather than created voluntarily by an owner. It becomes effective when certain events occur. (54) Dower & Curtesy

18

Curtesy

Life estate of a husband in the r/e of his deceased wife

19

Dower

Life estate of a wife in the r/e of her deceased husband

20

Encumbrance

a type of interest in r/e that does not rise to the level of ownership or possession, yet still give an individual, business, or other entity some degree of use or control of the property. (55)

anything such as a mortgage, tax or judgment lien: an easement; a restriction on the use of the land; or an outstanding dower right - that may diminish the value or use and enjoyment of a property.

21

Lien

a right given by law to certain creditors to have their debts paid out of the property of a defaulting debtor, usually by means of a court sale. (56)

22

Deed restriction

runs with the land and is placed by a previous owner. limiting the use of the property by the current owner as well as future owners to whom the property is subsequently transferred. (56)

23

Covenants, conditions and restrictions (CC&R's)

private agreements that affect land use. the may be enforced by an owner of r/e the benefits from them and can be included in the seller's deed to the buyer. (56 & 397)

24

Easement

the right to use the land of another for a particular purpose. (56)

25

easement appurtenant

is attached to the ownership of r/e and allows the owner of that property the use of a neighbor's land. land must be owned by two different parties. (56)

26

dominant tenement

The parcel that benefits from the easement. the easement transfers with the title if the property is conveyed to another party. (56)

27

servient tenement

the parcel over which the easement runs (56)

28

Easement in Gross

an individual or company interest in or right to use someone else's land. (57)

29

Creating an Easement

Has to be a written agreement. (57)

30

Easement by Necessity

created when an owner sells a parcel of land that has no legal access to a street or public way except over the sellers remaining land. (58)

31

Easement by Prescription

acquired by open, notorious, continuous, hostile and adverse use of the property for the period of time prescribed by the state law. (58)

32

License

A personal privilege to enter the land of another for a specific purpose. (59) Ends with the death of either party or with the sale of the land.

33

Encroachments

When a building, fence, or driveway illegally extends beyond the boundaries of the land of its owner or legal building lines (59)

34

Lis Pendens

(Litigation is pending) is a notice filed in the public record of a pending legal actin affecting the title or possession of property. It clouds the title of a property (59)

35

the 4 Governmental Powers

P--Police Power
E--Eminent domain
T--Taxation
E--Escheat

36

Police Power

the power to enact legislation to preserve order, protect the public health and safety and promote the general welfare of its citizens. (60)

include zoning laws, building codes, environmental protection laws

37

Eminent Domain

the right of the government to acquire privately owned r/e for public use. (60)

38

Condemnation

the actual process of taking the property by eminent domain.

39

Taking

When the govt takes property it must compensate the owner fairly. (61)

40

Inverse condemnation

an action brought by a property owner seeking just compensation for land adjacent to land used for a public purpose why when the property's use and value have been diminished. (61)

41

Taxation

a charge on r/e to raise funds to finance the operation of government facilities and services. (62)

42

Escheat

a process by which the state may acquire privately owned real or personal property when a person dies or leaves no heirs. (62)