Interests in Real Estate

Question 1

Estate in Land

Answer 1

ownership interest defined by the degree, quantity, nature and extent of an owner’s interest in real property

Question 2

Freehold Estate

Answer 2

lasts for an indeterminable length of time

Question 3

Fee Simple Estate

Answer 3

the highest interest in real estate recognized by law

Question 4

Nonfreehold Estate

Answer 4

one for which the length of time of the property’s use can be determined; leasehold estate

Question 5

Fee Simple Absolute

Answer 5

entitles its owner to all rights to the property by law; upon the death of the owner property interest passes to a co-owner, persons specified in the will or with no will via state’s law of intestate succession

Question 6

Fee Simple Defeasible

Answer 6

qualified fee estate that is subject to the occurrence or nonoccurence of some specified event

Question 7

Fee Simple Determinable

Answer 7

a fee simple defeasible estate that may be inherited

Question 8

Fee Simple Subject to a Condition Subsequent

Answer 8

an owner gives real estate on condition of ownership; there is a difference in the way the estate will terminate if there is a violation of the condition

Question 9

Possibility of Reverter

Answer 9

if a limitation is violated in a fee simple determinable the holder of the possibility can reacquire full ownership with no legal action

Question 10

Right of Reentry

Answer 10

in a fee simple subject to condition; estate does not automatically terminate upon violation of the condition of ownership it does require legal action

Question 11

Life Estate

Answer 11

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

Question 12

Life Tenant

Answer 12

the holder of a life estate

Question 13

Pur Autre Vie

Answer 13

a type of life estate that provides for inheritance of the property right by the life tenant’s heirs until the death of the identified person or persons

Question 14

Remainder Interest

Answer 14

a designation of the fee simple estate after the life estate ends that names a remainderman as the person who it passes to

Question 15

Reversionary Interest

Answer 15

a designation of the fee simple estate after the life estate ends where ownership returns to the original owner

Question 16

Legal Life Estate

Answer 16

created by state law rather than by a property owner

Question 17

Dower

Answer 17

the life estate of a wife in the real estate of her deceased husband

Question 18

Curtesy

Answer 18

the life estate of a husband in the real estate of his deceased wife

Question 19

Uniform Probate Code

Answer 19

gives a surviving spouse the right to an elective share on the death of the other spouse, if the surviving spouse is not satisfied with the decedent’s disposition of the property by will

Question 20

Homestead

Answer 20

legal life estate in real estate occupied as the family home; protected from most creditors during the occupant’s lifetime

Question 21

Encumbrance

Answer 21

type of interest in real estate that does not rise to the level of ownership or possession yet still gives the entity some degree of use or control

Question 22

Lien

Answer 22

a charge against property that provides security for a debt or an obligation of the property owner

Question 23

Deed Restriction

Answer 23

a restriction that affects the use of real estate and runs with the land, limiting the use of the property by the current owners as well as future owners

Question 24

CC&R’s

Answer 24

covenants, conditions and restrictions - used by a subdivision developer to maintain specific standards detailed in the original plans

Question 25

Easement

Answer 25

the right to use land for a particular purpose

Question 26

Easement Appurtenant

Answer 26

attached to the ownership of real estate and allows the owner of that property the use of neighbor's land

Question 27

Dominant Tenement

Answer 27

the parcel that benefits from an easement appurtenant

Question 28

Servient Tenement

Answer 28

the parcel over which an easement appurtenant runs

Question 29

Party Wall

Answer 29

an exterior wall of a building that straddles the boundary line between two lots

Question 30

Cross Easement

Answer 30

the reciprocal interest of each owner in the property of the other

Question 31

Easement in Gross

Answer 31

an individual or company interest in or right to use someone else's land

Question 32

Easement by Necessity

Answer 32

created when an owner sells a parcel of land that has no legal access to a street or public way except over the seller's remaining land - owners cannot be landlocked

Question 33

Easement by Prescription

Answer 33

created when a claimant has made use of another's land for a certain period of time as defined by state law; must be continuous, nonexclusive and without the owner's permission. Must also be visible, open, notorious and the owner must have been able to learn about it

Question 34

License

Answer 34

the personal privilege to enter the land of another for a specific purpose; can be terminated or canceled by the owner of the property

Question 35

Encroachment

Answer 35

when a building illegally extends beyond the boundaries of the land of its owner or legal building lines

Question 36

Lis Pendens

Answer 36

a notice filed in the public record of a pending legal action affecting the title to or possession of property

Question 37

Four Governmental Powers (PETE)

Answer 37

police power, eminent domain, taxation, escheat

Question 38

Police Power

Answer 38

the power to enact legislation to preserve order, protect the public heath and safety, and promote the general welfare of its citizens

Question 39

Enabling Acts

Answer 39

the legislation through which the state's authority is passed on to municipalities and counties

Question 40

Eminent Domain

Answer 40

the right of the government to acquire privately owned real estate for public use

Question 41

Taking

Answer 41

when land is taken for public use through the government's power of eminent domain, the owner must be compensated fairly

Question 42

Inverse Condemnation

Answer 42

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

Question 43

Taxation

Answer 43

a charge on real estate to raise funds to finance the operation of government facilities and services; includes annual real property taxes, taxes on profit from the sale of real estate and special fees levied to finance special projects

Question 44

Escheat

Answer 44

a process by which the state may acquire privately owned real or personal property