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Real estate > Real Estate Interest and Ownership Chapter 2 > Flashcards

Real Estate Interest and Ownership Chapter 2 Flashcards

1
Q

Estate

A

1) The degree, quantity, nature and extent of ownership interest which a person has in real property.
2) It refers to one’s legal position of ownership-not to the amount of property owned.
3) To be an estate, an interest must be possessory or potentially become possessory, and whose ownership is measurable in terms of time duration.

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2
Q

Two systems of real estate ownership

A

1) Feudal

2) Allodial

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3
Q

The Allodial system features 2 types of estates.

A

1) Freehold

2) Less than Freehold

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4
Q

Freehold

A

Indefinite Duration

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5
Q

Less than Freehold

A

Definite duration- Lease

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6
Q

Types of Fee Estates- Under the category of Freehold.

A

1) Fee simple absolute
2) Defeasible Fee
3) Fee Tail

Inheritable

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7
Q

Fee simple absolute

A

Highest Form-Full bundle of rights. Own as long as want to.

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8
Q

Defeasible Fee

A

Can be defeated- conditions if they are not met will loose property.

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9
Q

Two types of Defeasible Fee

A

1) Fee determinable/simple absolute

2) Fee Conditional/simple defendable

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10
Q

Fee Determinable

A

Automatic- The estate could be granted as long as they do something …. Like never spend a day in jail. There is a stipulation

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11
Q

Fee conditional

A

Not automatic-a certain condition must be met to keep the building. If violated the ownership goes back to the grantor. If condition is not met, it is not automatically given back it must require the grantor to initiate a court action.

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12
Q

Fee Tail

A

Limits heirs to lineal descendants. (Blood relatives) Not legal in Arizona.

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13
Q

Life Estates

A

Freehold, Not inheritable, don’t know how long it will be. Worth less than fee estates.

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14
Q

Two categories of Life Estates

A

1) Conventional

2) Statutory

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15
Q

Ordinary (conventional) life estate

A

Limited in duration to the life of its owner or to the life of some other designated individual.

Freehold; own the property, but only for a limited time

Not inheritable- Upon the death of an individual the estate would revert to the grantor or other individual

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16
Q

Statutory Life Estate

A

called dower, curtesy, community property, and homestead.

Arizona recognizes community and homestead.

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17
Q

Dower

A

Not in AZ
The legal right in some states that a wife acquires in the property her husband holds or aquires anytime during their marriage.

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18
Q

Curtesy

A

The interest, recognized in some states, of a husbands in property owned by his wife at the time of her death.

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19
Q

Rights of Life Tenant

A

1) Sell
2) Lease
3) Encumber-A claim against or liability. Can include liens, deed restrictions, easements, encroachments and licenses.
4) Life Tenant cannot make waste/destroy

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20
Q

Characteristics of a life estate

A

Less than fee simple.
Based on the life of an other.
Only time life estate is inheritable.
Always accompanied by a second estate. (Reversion/Remainder)

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21
Q

Reversion

A

Is not considered inheritance (Backward move)

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22
Q

Remainder

A

Move with heir- forward move
A future interest in real estate created at the same time and by the same instrument as another estate, and limited to arise immediately upon the termination of the prior estate.

23
Q

Homestead

A

To protect homestead equity to $150.000

24
Q

How is homestead established

A 
Value:
Unpaid taxes
Unpaid Assessments
Unpaid Real Estate loans
Unpaid Mechanics liens
25
Q

How is a homestead terminated

A

Not primary residence, abandoned 2 years, sell

26
Q

Special protection upon sale of a homestead

A

Put money into an account for 18 months.

27
Q

How is homestead calculated

A 
subtract 
Taxes
Assessments
RE loans
Mechanics leins

EQUAL= Equity

28
Q

Community property

A

1/2 interest ( Rights of survivorship)

29
Q

Type of Statutory Life Estates.

A

1) Dower- Not in AZ
2) Curtesy-Not in AZ
3) Homestead
4) Community Property

30
Q

Types of Leasehold estates

A

1) Estate for years
2) Estate from period to period
3) Estate at will
4) Estate at Sufferance

31
Q

Estate for years

A

Written lease from specific time- time

32
Q

Estate from period to period

A

Lease for any period with no time- Month-to- Month

Monthly- 1 months notice
Weekly- 10 Days notice

33
Q

Estate at will

A

Lease for an indefinite period of time.

34
Q

Estate at Sufferance

A

Hold over tenant or stop paying.

Someone has possession and is not paying.

35
Q

License

A

Right to use property (revocable)

Billboard on land, hunting on some ones private property.

36
Q

How is License different from easement?

A

Irrevocable right over the real estate over another. Right to use land but no right to it.

37
Q

Define Easement

A

1) A right acquired by one party to use the land of another for a special purpose.
2) Since the easement is a right or interest in use, it is not an ownership interest in the land.

38
Q

Types of easement

A

1) Easement appurtenant

2) Easement in Gross

39
Q

Easement appurtenant

A

Easement runs with the land
2 separate properties required
2 owners required

Servient Property- One Burdened (Land locked)
Dominant Property- One property has use.

40
Q

Easement in Gross

A

1 partial- granted to entity

This easement is a right or interest to a person-not property.

Holder of the easement not required to own property adjacent to the servient property.

Ordinarily cannot be sold to third party and ceases on death or liquidation of the easement hold

Created by agreement between 2 people.

Ex… Cell tower on land.

41
Q

How are easements created

A

1) Agreement- 2 people
2) Condemnation- Immanent Domaine
3) Necessity (Implication)- requirement, landlock
4) Prescription-Class A-3- If shown adverse agreement-open, notorious, contemptuous and hostile

42
Q

How are easements terminated?

A

1) Release- Agree to release
2) Merger- New party owns both
3) Failure of purpose- New road
4) Abandonment-Did something else with property.

43
Q

Types of Tenancies

A

1) Sole and Separate

2) Co-ownership

44
Q

Sole and Separate

A

In Severalty (One served from other interests)- One

Own completely by self

45
Q

Co-ownership

A

Concurrent ( 2 or more persons)

46
Q

Types of Co-Ownership

A

1) Community Property
2) Tenancy-in-Common
3) Joint Tenancy
4) Community Property with rights of survivorship
5) Tenancy by the Entirety

47
Q

Community Property

A

1/2 husbands, 1/2 wives- goes to heirs unless there is a will.

48
Q

Tenancy-in-common

A

Unlimited number of owners-Can be not equal. If die their interest goes to heirs.

Partnership

49
Q

Joint Tenancy

A

Always has Rights of Survivorship
2 or more people. If one dies the piece go to the others.

To work there has to be equal:
Possession 
Interest
Time
Title

***Rights of survivorship trumps will

50
Q

Community Property with Rights of Survivorship

A

Legally married couple each with own 1/2 interest.

Deed has to say- Community Property with rights of survivorship.

When 1 dies the half of the property goes to the spouse.

Have to record

Benefits- Step up tax basis

51
Q

Tenancy by the Entirety

A

Legally married couple/same

Husband and wife only has equal undivided interest
Rights of survivorship does exists. (ROS)
Not in AZ

Used in Non community property states.

52
Q

Fraud

A

Intent to harm for gain

Consumer protection- laws to regulate deceptive advertising.

53
Q

Role of ADRE

A

Az Department of Real Estate

To protect consumer from the agent.

54
Q

Mortgage fraud

A

Intentional lie to a lender to obtain a loan.

Real estate (14 decks)

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