real estate vocab unit 4

Question 1

Estate of Land

Answer 1

The degree quantity, nature, and extent of an owners interest in real property
*to be an estate in land, an interest must allow possession, meaning the holding and enjoyment of the property either now or in the future, and must be measured according to time

Question 2

Freehold Estate

Answer 2

• An ownership interest that continues for an indefinite period
• A freehold estate can be a fee simple estate and a life estate

Question 3

Fee Simple Estate

Answer 3

That continues for an indefinite period and may be passed along to the owner’s heirs

Question 4

Life Estate

Answer 4

That is held only for the lifetime of a person (who may not be the holder of the life estate) and ends when that individual dies

Question 5

Nonfreehold Estate (lease)

Answer 5

• One in which the length of time of the property’s use can be determined
• Commonly referred to as a leasehold estate

Question 6

Fee simple or fee simple absolute estate

Answer 6

The highest interest in real estate recognized by law

Question 7

Fee Simple ownership

Answer 7

In which the holder is entitled to all right to the property by law
*the right to use a fee simple estate is limited only by public and private restrictions, such as zoning laws and restrictive

Question 8

Fee simple defeasible estate (defeasible means capable of being terminated)

Answer 8

A qualified fee estate that is subject to the occurrence or nonoccurrence of some specified

Question 9

Fee simple determinable

Answer 9

A fee simple defeasible estate that may be inherited

- “So long as”, “while”, “during”

Question 10

Fee simple subject to a condition subsequent (subsequent means coming after or later)

Answer 10

An owner give real estate on condition of ownership. Which means there is a difference in the way the estate will terminate if there is a violation of the condition
“On condition that”..

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 designated person or persons
- Life estate is not inheritable, it passes to the future owner according to the provisions by which the life estate was created

Question 12

Life tenant

Answer 12

Entitled to the rights of ownership and can benefit from both possession and ordinary use; and profits arising from ownership, just as if the individual were a fee simple owner

Question 13

Pur Autre Vie (for the life of another)

Answer 13

• This provides for inheritance of the property right by the life’s tenant’s heirs, but the right exists only until the death of the identified person or persons
• This is often created for people who are physically or mentally incapacitated in the hop of providing incentive for someone to care for them

Question 14

Remainder interest

Answer 14

The creator of the life estate may name a remainder-man as the person to whom the property will pass when the life estate ends

Question 15

Reversionary interest

Answer 15

The creator of the life estate may choose not to name a remainderman. In that case, ownership returns to the original owner upon the end of the life estate

Question 16

Legal life estate

Answer 16

It is not created by a property owner but rather is established by state law. It becomes effective automatically when certain events occur

Question 17

Dower

Answer 17

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

Question 18

Curtesy

Answer 18

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

Question 19

Uniform Probate Code (UPC)

Answer 19

Gives a surviving spouse the right to an 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 the will

Question 20

Homestead

Answer 20

A legal life estate in real estate occupied as the family home

Question 21

Encumbrance

Answer 21

A type of interest in real estate that does not rise to the level of ownership or possession, yet still gives an individual, business, or other entity some degree of use or control of the property

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

Limiting the use of the property by the current owner, as well as future owners to whom the property is subsequently transferred

Question 24

Covenants, condition, and restrictions (CC&R)

Answer 24

Used by a subdivision developer to maintain specific standards in a subdivision, such as by requiring adherence to certain architectural or design specifications for improvements

Question 25

Easement

Answer 25

The right to use land of another for a particular purpose

Question 26

Easement appurtenant

Answer 26

Allows the owner of that property the use of a neighbors land

Question 27

Dominant tenement

Answer 27

The parcel that benefits from the easement

Question 28

Servient tenement

Answer 28

The parcel over which the easement runs

Question 29

Party wall

Answer 29

An exterior wall of a building that straddles the boundary line between lots, or it can be a shared partition wall between two connected properties

Question 30

Easement in gross

Answer 30

An individual or company interest in or right to use someone else’s land

Question 31

Creating an Easement

Answer 31

A written agreement between parties that establishes the easement right

Question 32

Easement by necessity

Answer 32

This is 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

Question 33

Easement of prescription

Answer 33

If the claimant has made use of another's land for a certain period of time as defined by state laws

Question 34

License

Answer 34

- A personal privilege to enter the land of another for a specific purpose - A license differs from an easement in that it can be terminated or canceled by the owner of the property

Question 35

Encroachments

Answer 35

When a building, fence, or driveway illegally extends beyond the boundaries of the land of its owner or legal building lines

Question 36

Lis Pendens (litigation pending)

Answer 36

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

Question 37

Police Power

Answer 37

A. The authority known as police power, has the power to enact legislation to preserve order, protect the public health and safety, and promote the general welfare of its citizens B. The power of the government is used to enact environmental protection laws, zoning ordinances, and building codes

Question 38

Eminent Domain

Answer 38

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

Question 39

Taxation

Answer 39

A charge on real estate to raise funds to finance the operation of government facilities and services

Question 40

Escheat

Answer 40

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

Question 41

Condemnation

Answer 41

The process by which the government exercises this right, by either judicial or administrative proceedings

Question 42

Inverse Condemnation

Answer 42

An 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