exam prep 1-interests in real estate

Question 1

This defines the legal relationship between the parties who sign the lease. It grants possession, but not title, to the tenant, and is for a limited period of time. It may also be called a “freehold” estate

Answer 1

Leasehold estate

Question 2

This is a fixed termination type of lease that may be for a day, week, month, year, several years, or any definite period of time. When the specified date occurs, the lease terminates automatically

Answer 2

Estate for years

Question 3

This involves possessory interest that is automatically renewed at the end of each period specified in the lease

Answer 3

Periodic Estate

Question 4

In this type of leasehold, the duration of the lease is unknown at the time it is created. An example would be a month-to-month lease

Answer 4

estate at will

Question 5

A type of possession in which a tenant stays after the right to possess has terminated

Answer 5

estate at sufferance

Question 6

An ownership estate that may be inherited

Answer 6

fee simple determinable

Question 7

Ownership that terminates at an event pre-determined by the owner (either death or during the owner’s life)

Answer 7

life estate (conventional)

Question 8

An estate based on the lifetime of a person other than the life tenant. Provides for the inheritance of the life tenant’s heirs only until death of the third party

Answer 8

per autre vie

Question 9

A lien due to a court decree resulting from a lawsuit

Answer 9

judgment lien

Question 10

Before heirs can inherit an estate, federal estate taxes and state inheritance taxes must be paid. In order to ensure payment of these taxes, a general lien is placed on the deceased person’s property at the time of death. The tax is a lien on all of the property the heirs inherit.

Answer 10

estate and inheritance tax lien

Question 11

A legal notice that a lawsuit is pending that affects the title of a property. This serves as warning to prospective buyers that a pending lawsuit could impact title

Answer 11

lis pendens

Question 12

The IRS will file a general lien against all property belonging to that person for various taxes owed and unpaid

Answer 12

income tax lien

Question 13

A type of lien created by the property owner, or with the property owner’s consent

Answer 13

voluntary lien

Question 14

Lien used when a property owner doesn’t pay for work that was performed

Answer 14

Mechanic’s lien

Question 15

A claim against a specific property, identifiable property (the most common type of this lien is a mortgage)

Answer 15

specific or special lien

Question 16

A claim against a person and all of that person’s property; occurs as a judgment against that person

Answer 16

general lien

Question 17

A lien created on the property used as collateral for a loan to purchase a home

Answer 17

Mortgage lien

Question 18

A type of lien levied against an owner who does not pay property taxes

Answer 18

Property tax lien

Question 19

A permanent right to use another’s land for the benefit of a neighboring parcel

Answer 19

easement appurtenant

Question 20

A type of easement that may be terminated when the reason for the easement no longer exists, such as when a new road is built that reaches a previously landlocked parcel

Answer 20

easement by necessity

Question 21

The right to use the land of another and does not involve any adjoining estate; utility companies often make use of these easements

Answer 21

easement in gross

Question 22

A permanent right to use another’s property after doing so for a statutory period of time

Answer 22

easement by prescription

Question 23

Shared between two buildings and constructed on the boundary line between two owner’s lots

Answer 23

party wall

Question 24

Rights to occupy the property

Answer 24

possessory

Question 25

Easements fall into this category of rights because they do not give the easement holder the right to occupy the property

Answer 25

nonpossessory

Question 26

When a building, shrub, fence, etc., illegally crosses over into another’s property

Answer 26

encroachment

Question 27

Not classified as an encumbrance, this is a temporary right to enter the land or use property belonging to another for a specific purpose

Answer 27

license

Question 28

The buildup of land from sand, silt or gravel over water. Hint: Think “creation”

Answer 28

accretion

Question 29

The land mass formed by the buildup of sand, silt or gravel over water

Answer 29

alluvion

Question 30

The increase of land resulting from the gradual, permanent withdrawal of water

Answer 30

reliction

Question 31

The sudden loss or gain of land due to water

Answer 31

avulsion

Question 32

The gradual loss of land due to water, wind, or other natural disturbances

Answer 32

erosion

Question 33

The addition of value to property through labor or addition of new materials

Answer 33

accession

Question 34

A land tract divided into lots of parcels for subsequent development

Answer 34

subdivision

Question 35

Development fee paid to municipal agency

Answer 35

municipal fee

Question 36

Subdivision bond with municipality named as a beneficiary for the purpose of ensuring the completion of improvements to surrounding areas

Answer 36

completion bond

Question 37

Cost to prepare land for the purposes of development (may include land acquisition and construction)

Answer 37

development cost

Question 38

A fee paid by a developer to the local community agency to offset the burden on the community’s infrastructure due to development

Answer 38

impact fee

Question 39

Temporary financing used for the purpose of construction

Answer 39

construction loan

Question 40

Cash committed by the owner of a development

Answer 40

owner participation

Question 41

A requirement by a lender that a portion of a construction or development loan be paid off as each lot is sold

Answer 41

lot release provision

Question 42

A mortgage given by a buyer to a seller or lender to secure payment of all or part of the purchase price

Answer 42

purchase money mortgage

Question 43

The placement of a lien holder behind another lien holder

Answer 43

subordination

Question 44

A limitation placed on land use (usually by the owner or developer) that is made part of the deed

Answer 44

deed restriction

Question 45

Loss of legal rights because of failure to assert them on a timely basis

Answer 45

doctrine of laches