Level 3 - Property Ownership & Interests Flashcards
1
Q
What are the 5 Bundle of Rights?
A
- exclusion, possession, enjoyment, disposition (transfer), and control
2
Q
Accretion
A
the process that results in the gradual increase in land area through deposits of soil by natural forces.
3
Q
Agriculture Fixture
A
items used for agriculture purposes
4
Q
Annexation
A
the process of creating a fixture, converting personal property to real property
5
Q
Appurtenances
A
rights that run with real property ownership, most often transferred with the property, but possible to sell separately.
6
Q
Attachments
A
physical objects permanently attached to land (can be human-made or natural)
7
Q
Avulsion
A
the sudden loss of land by flood or when a stream or river changes course
8
Q
Bundle of Rights
A
ownership of land with all the legal rights of possession, control, enjoyment, exclusion, disposition, and control.
9
Q
Chattel
A
a commonly used term for personal property in the world of real estate
10
Q
Emblements
A
crops (or the profit from crops) grown by a farmer that are considered personal property
11
Q
Erosion
A
the gradual loss of land over time
12
Q
Fixture
A
an object that was once personal property but is now firmly attached to the land in such a way that it is considered to be real property
13
Q
Foreshore
A
the piece of land between the high and low tides
14
Q
Fructus Industriales
A
plants or crops intended for harvest and treated as personal property, aka emblements.
15
Q
Fructus Naturales
A
trees, perennial plants, and uncultivated plants usually treated as real property because of their permanence.
16
Q
Littoral Rights
A
rights that govern lakefront or oceanfront property and usually allow the property owner to use the water bordering their property
17
Q
Personal Property
A
any unattached, moveable asset on the property not considered real estate (land plus improvements); aka chattel or personalty.
18
Q
Real Property
A
land from the surface to the center of the earth and upward into space, all attachments, and the bundle of legal rights of ownership.
19
Q
Reliction
A
a gradual increase in land area when water gradually withdraws
20
Q
Riparian Rights
A
rights that govern the use of flowing water, such as rivers and streams that pass through or border a property.
21
Q
Severance
A
the act of converting real property into personal property
22
Q
Title
A
the actual ownership of real property that includes the bundle of rights in which a party may own a legal or equitable interest; not an actual document.
23
Q
Total Circumstances Test
A
four-part legal test used to determine whether an item is a fixture.
24
Q
Trade Fixture
A
personal property that is owned by and needed for a tenant’s business.
25
What are the two kinds of Freehold Estates?
Fee Simple Estate & Life Estate
26
What are the two kinds of Fee Simple Estates?
Defeasible & Absolute
27
What are the two kinds of Defeasible Fee Simple Estates?
Special limitation with possible reverter & Condition subsequent with right of re-entry.
28
What are the two kinds of Life Estates?
Conventional & Legal
29
What are the two kinds of Conventional Life Estates?
Ordinary & Pur autre vie
30
What are the three kinds of Legal Life Estates?
Homestead, Dower & Curtesy & Elective Share.
31
Estovers
the right to use a property's resources to maintain the property
32
Fee Simple Defeasible
a property interest characterized by perpetual ownership on the condition that the property is used for a certain purpose or under specific conditions - ownership reverts back to the original owner if these stipulations are violated.
33
Fee Simple Estate
maximum ownership of real property; is of indefinite duration, freely transferable, and freely inheritable; aka fee or fee simple absolute.
34
Freehold Estate
a form of ownership with an indeterminate length
35
Homestead
a legal life estate that prevents a person's primary residence from being forcible sold to pay certain kinds of debts
36
Legal Life Estate
any life estate created by a function of law as opposed to the actions or desires of a property owner.
37
Leasehold Estate
an interest in the occupation of a property, established through a lease, aka non-freehold or less-than-freehold.
38
Life Estate
a type of estate limited to the duration of a measuring life.
39
Life Tenant
a person who has a beneficial interest in an estate or property that is limited in duration to their lifespan.
40
Pur Autre Vie
a life estate characterized by ownership lasting only for the duration of a designated party's lifetime.
41
Remainder Interest
the interest in an estate that will pass to another party (other than the grantor) at the death of the person upon whom the life estate is based.
42
Remainderman
the person who holds the remainder interest in a life estate
43
Reversionary Interest
the interest in an estate wherein, upon the death of the life estate owner, full ownership reverts back to the original fee simple owner (grantor)
44
What are the three forms of ownership?
ownership in severalty, co-ownership & ownership in trust.
45
What are the two co-ownership concepts?
undivided interest & right of survivorship.
46
What are the four unities?
possession, interest, time & title
47
What are the 3 types of co-ownership?
tenancy in common, joint tenancy, tenancy by the entirety.
48
Tenancy in Common
co-ownership with individual, undivided interest in the property; includes rights of inheritance rather than survivorship.
49
Unity of Possession
every owner can use all of the property
50
Unity of Interest
each co-owner owns an equal share
51
Unity of Time
all co-owners purchased the property at the same time
52
Unity of Title
all co-owners purchased the property with the same instrument (deed or will)
53
Joint Tenancy
co-ownership in which the parties have an equal, undivided interest in the property; includes the right of survivorship rather than inheritance.
54
Tenancy by Entirety
- married couples only
- equal & undivided interest in the property
- right of survivorship
- both must consent to sell the property
- requires five unities: standard four plus unity of person (marriage)
55
What are the 3 roles of Trusts?
truster, trustee & beneficiary.
56
Trustor
creator of the trust
57
Trustee
the person entrusted to hold and manage the assets
58
Beneficiary
the individual who ultimately receives the benefits or assets of the trust.
59
What are the 3 types of trusts?
- living trusts, testamentary trusts & land trusts.
60
Living trusts
trusts that are created when the truster is still alive.
61
What are the two types of Living Trusts?
- revocable trusts & irrevocable trusts
62
Revocable Trusts
can be changed after they are formed.
63
Irrevocable Trusts
can't be changed once they have been formed.
64
Testamentary Trusts
come into being when a trustor dies. They do not prevent assets from going into probate.
65
Land Trusts
are trusts where land is held by a trust for a long period of time. They can be used to avoid liens, hide the owner of a parcel of land, or transfer land as a part of a will, among other uses.
66
Community Property
a system of property co-ownership. most commonly applied to married couples, which describes what is joint property and what is individual property.
67
Right of Survivorship
the statutory principle of survivorship tenancy that provides that when one co-owner dies, their ownership interest reverts to the surviving co-owners.
68
Severalty
undivided ownership of an estate, with an interest that is exclusive from other owners; often used in the context of ownership in severalty or tenancy in severalty.
69
Trust
a legal entity where control of some assets or property is transferred by a grantor (trustor) to a third party (trustee) to be held for the benefit of another (beneficiary)
70
Common Elements
portions of a shared ownership property not controlled by any one owner or tenant; examples: parking lots, lobbies, fitness centers & elevators
71
Condominium
property where each owner has a separate interest in their own unit and undivided interest in the common areas.
72
Cooperative
property where each owner owns shares in a corporation that owns a building, then has a proprietary lease for their unit.
73
Limited Common Elements
portions of a shared property owned by everyone, as with other common elements, but are only used by a few owners or even one owner.
74
Party Wall
a wall shared by two separate properties; the owners on each side share the right of use, often as an easement.
75
Planned Unit Development (PUD)
a subdivision that includes residential dwellings along with nonresidential real estate, departing from normal zoning and subdivision regulations; recreational facilities may be co-owned by PUD lot owners as tenants in common.
76
Proprietary lease
long term and exclusive lease given to resident and stock owner of a cooperative.
77
Timeshare
a form of co-ownership where each owner has use of the property at a different prescribed period of time; aka interval ownership.
78
Timeshare Estate
a right of occupancy in a timeshare project, which is coupled with an estate in a real property.
79
Timeshare Use
a license or contractural or membership right of occupancy in a timeshare project that is not coupled with an estate in the real property.
80
Townhouse
a type of structure that has more than one story and is usually separated by party walls; owner can either have fee simple ownership or separate interest in their own unit and undivided interest in the common areas; aka townhome.
81
What are the three ways easements are created?
- by grant, implication or operation of law
82
Appurtenances
rights that run with real property ownership; most often transferred with the property, but possible to sell separately.
83
Dominant Tenenement
the parcel of land that benefits from an easement appurtenant by having the right to cross another owner's adjacent land; aka dominant estate
84
Easement
an interest in, or a right to use, another individual's land or property, generally for a specific, limited purpose
85
Easement by Condemnation
easement in which private property is taken for public use via eminent domain
86
Easement in Gross
an easement that applies to the person or entity, not the specific land.
87
Encroachment
physical property that crosses the boundary into a neighboring landowner's property.
88
Encumbrances
non-possessory interest in a property that burdens the title.
89
Federal Tax Lien
general, involuntary lien that is held against all of the defaulting federal taxpayer's property.
90
General Lien
a lien for which the real estate AND personal property may be sold to satisfy the debt.
91
Judgement Lien
general, involuntary liens given by courts at the conclusion of lawsuits.
92
Junior Lien
a lien that has another (senior) lien superseding it in priority, aka inferior lien
93
Lien
the claim made by a creditor against real or personal property pledged by a borrower as collateral.
94
Lien Agent
a title insurance company or agency that must be notified prior to filing a mechanic's lien in North Carolina.
95
Lien Priority
the order in which liens against a property will be settled.
96
Lis Penders
a document recording at the courthouse giving notice that a lawsuit is pending on a particular piece of property.
97
Mechanic's Lien
a type of involuntary, specific lien that a mechanic or material man can impose upon a property if the property owner fails to pay for materials or work done on the property.
98
Personal Property Tax Lien
general lien on all real property of the taxpayer located within the city or county; in NC, attaches on the date the property is to be listed and is valid for ten years from the date the unpaid taxes become due.
99
Quiet Title Suit
a lawsuit brought with the purpose of removing any outstanding ownership claim, title defect, or encumbrance on a property.
100
Senior Lien
a lien that comes first on the priority of liens, often a tax lien; aka superior lien.
101
Servient Tenement
the parcel of land that must allow an adjacent owner to cross; an easement appurtenant exists at the expense of this party; aka servient estate
102
Special Assessment Lien
a lien placed against property to collect taxes for a specific improvement benefiting the property.
103
Specific Lien
a lien that applies to a certain property only.
104
State Tax Lien
involuntary, general lien on the estate that is held against all of the defaulting state taxpayer's property.
105
Subordination Agreement
a contract that gives a mortgage recorded at a later date priority over a previously recorded mortgage
106
Tax Lien
a lien that is imposed against a property if the property owner becomes delinquent in the payment of taxes.
107
Writ of Attachment
a court order in which the court seizes property until it reaches a judgment; aka attachment lien.
