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Interests in Real Estate Flashcards

(49 cards)

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1
Q

estate in land

A

a legal ownership or possessory interest in real property. MUST ALLOW POSSESSION.

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2
Q

Freehold Estate

A

Possession for an indefinite duration (can last a lifetime or forever)

Involves ownership and title

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3
Q

Types of Freehold

A
  1. Fee Simple
  2. Life Estate
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4
Q

Fee Simple

A

The highest form of ownership

Continues indefinitely and is inheritable

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5
Q

Life Estate

A

Lasts only for the lifetime of a designated person

Can be based on the life of the holder or another person

Not inheritable—terminates upon death of the measuring life

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6
Q

Leasehold

A

Based on a specified duration of time. Typically created by a lease agreement.

(Estate for years, Periodic tenancy, Tenancy at will, Tenancy at sufferance)

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7
Q

FSA limits

A

Public restrictions (e.g., zoning, building codes, environmental laws)

Private restrictions (e.g., deed covenants or subdivision rules)

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8
Q

Defeasible Estate

A

a fee simple estate that may be lost on the occurrence or nonoccurrence of a specified event or condition.

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9
Q

2 types of Defeasibles

A
  1. Fee Simple Determinable
  2. Fee Simple Subject to Condition Subsequent
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10
Q

Fee Simple Determinable

A

Ownership automatically ends upon violation of a specified limitation.

Language used: “so long as,” “while,” “during”

The possibility of reverter is held by the original grantor or their heirs

No legal action needed—the title reverts automatically

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11
Q

FSSTCS

A

Ownership does not end automatically upon violation of the condition

Language used: “on the condition that,” “provided that,” “but if”

Grantor retains a right of reentry

Legal action must be taken to reclaim the property

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12
Q

Two Future Interests

A

Possibility of Reverter

Right of Entry

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13
Q

Life Estate

A

A life estate is a freehold estate that lasts for the lifetime of a designated individual

Duration is measured by a life, not a fixed term

Upon death of the measuring life, the estate terminates and passes to a future interest holder

Important: A life estate is not inheritable

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14
Q

Life Tenant Rights

A

Has full rights of use, enjoyment, and profits

Can sell, lease, or mortgage the life estate

Cannot leave it to heirs—ownership ends at death of the measuring life

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15
Q

Measuring Life can Be:

A

The life of the life tenant themselves

The life of another person (called a pur autre vie estate)

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16
Q

pur autre vie estate

A

A life estate measured by the life of someone other than the life tenant

Can be inheritable—but only until the measuring life dies

The life tenant’s heirs may inherit the life estate if the tenant dies before the measuring life

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17
Q

Dower

A

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

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18
Q

Curtsey

A

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

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19
Q

Uniform Probate Code (UPC)

A

gives the surviving spouse a right to an elective share if they are dissatisfied with the will. Community property states do not use dower or curtesy.

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20
Q

Homestead

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A

A legal life estate in property used as a family home

Protects the home (or a portion of its value) from most unsecured creditors during the owner’s lifetime

21
Q

Homestead Protections

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A

Exempts home from judgments for personal debts (e.g., credit cards, medical bills)

Does not protect against:
Mortgages

Property taxes

Mechanics’ liens

Home equity loans

22
Q

Homestead Formation

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A

States either:

Require a formal declaration to claim the homestead
OR
Automatically recognize a homestead based on use and occupancy

Upon forced sale, the homestead exemption reserves a set amount for the family

Remaining proceeds go toward unsecured debts after paying secured debts

23
Q

Homestead Limitatons

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A

Only one homestead per family

Applies to residential property only

24
Q

Encumbrance

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A

nonpossessory interest in real property that limits the owner’s use or rights in some way.

It does not grant ownership, but gives someone else control, access, or a financial claim on the property.

25
Categories of Encumbrances
Liens – Financial claims on property Easements – Rights to use property for specific purposes Private Restrictions (CC&Rs, deed restrictions) – Use limitations Encroachments – Unauthorized physical intrusions Licenses – Temporary permissions Lis Pendens – Legal notice of pending litigation
26
Liens
legal claim against property to secure a debt or obligation. If unpaid, the lienholder may force a sale of the property to satisfy the debt. Do not transfer ownership, but can cloud title and must be paid off before property can be sold with clear title.
27
Types of Private Restrictions
1. Deed Restrictions 2. CCR's
28
Deed Restrictions
Placed in a deed by a previous owner and “run with the land” Legally enforceable by future owners Must be lawful—restrictions that violate laws (e.g., Fair Housing Act) are void
29
CCRs
Common in subdivisions or HOA-governed communities Control: Architectural styles Landscaping Use limitations Enforced by developer or other owners Included in public records and referenced in deeds
30
Easement
The right to use another person’s land for a specific, limited purpose Can exist on the surface, below, or above ground
31
Easement Appurtenant
Requires two adjacent parcels Dominant tenement = benefits from the easement Servient tenement = bears the burden Transfers with the title Terminates when both parcels are owned by one person
32
Party Walls & Driveways
Wall or driveway shared by adjoining property owners Each owner owns the portion on their land and has a cross easement in the other half Must be established by written agreement
33
Easement in Gross
Personal or commercial right to use land No dominant tenement Commercial easements (e.g., utilities, railroads) may be assignable and inheritable Personal easements (e.g., hunting rights) are nontransferable and end upon death
34
Easement Creation (3 Types)
By Express Agreement (most common) - In writing, between parties By Necessity - Landlocked parcel must be given legal access (ingress/egress) - Created by court order By Prescription - Acquired through continuous, open, and notorious use for a statutory period (10–21 years, varies by state) - Use must be without permission - Tacking: Successive owners can combine use periods if they are successors in interest
35
Easement Termination
Need no longer exists Merger (dominant and servient become one) Release by dominant party Abandonment (intentional, proven) Nonuse (in prescriptive easements)
36
License
A personal, revocable privilege to use another’s land for a specific purpose. Not a right or estate—not transferable or inheritable Terminates upon: - Death of either party - Sale of property - Revocation by property owner
37
Enchroachment
physical intrusion onto another’s land without permission detected by survey or inspection May lead to: Damages Removal In some cases, easement by prescription if left unchallenged
38
Lis Pendis
Latin: “Litigation pending” A public notice that property is subject to a lawsuit. Creates a cloud on title, discouraging sale or financing Not a lien, but has a similar chilling effect Cleared by: Court dismissal Settlement Filing of a release
39
Gov Powers CHEAT
PETE
40
Gov Powers
Police Power - Right to regulate property use for health, safety, morals, and general welfare Eminent Domain - Right to take private land for public use with just compensation Taxation - Right to tax property to fund public services Escheat- Right to claim property when an owner dies without heirs or a will
41
Police Power
Granted by state law; delegated to local governments via enabling acts Used to enact: - Zoning laws - Building codes - Environmental regulations Must be uniform and nondiscriminatory in application Effect: May increase or decrease property value depending on zoning and planning decisions
42
Eminent Domain
Right of government (or authorized entities) to acquire private land for public use Requires: 1. Public purpose 2. Just compensation 3. Due process Condemnation: Legal process by which eminent domain is exercised
43
Constitutional Eminant Domain
5th Amendment: “nor shall private property be taken for public use, without just compensation” Owner must be fairly paid, and has the right to challenge the value in court
44
Inverse Condemnation
Owner sues the government for damaging property value without taking title Often applies to adjacent land affected by public works (e.g., highways, airports)
45
Kelo v. City of New London (2005):
Court upheld the use of eminent domain for economic development Even if property goes to a private developer
46
Murr v. Wisconsin (2017):
Denied a landowner’s right to build a second structure when two merged lots were treated as one under land-use rules Court found no taking because it was a reasonable land-use regulation
47
ED Compensation
Market value before taking minus market value after taking Result = just compensation owed
48
Taxation
Includes: - Annual property taxes (schools, utilities, roads) - Capital gains taxes on sale of real estate - Special assessments (e.g., new sewer lines for a neighborhood) Key Point: Taxes create liens on the property, and failure to pay can result in forced sale through tax foreclosure
49
Escheat
Occurs when a person dies intestate (without a will) and without legal heirs Property is transferred to: - State (in most cases), or - County (in some jurisdictions) Purpose: Prevent land from becoming ownerless or abandoned

Real Estate (9 decks)

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