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Flashcards in Rights and Interest in Land Deck (15):

Governmental Rights in Land


(4 - P.E.T.E.)

1. Police Power - right to enact and enforce laws

2. Eminent Domain - right to "take" private land through condemnation; property owners compensated.

3. Taxation (property & special assessment) - taxes have priority over all other liens; prop taxes = ad velorum; special assessments = charges against prop. to benefit from public improvement & if not paid can create forclosure lien

4. Escheat (government will "cheat" you even in death) - exercised when owner dies intestate (no will)


Circle Formula

A x B = C


C / B = A


C / A = B


How to Formulate Taxes

Tax = T      Assessed Value = A   Rate = R


Solve for TAXES: A  x  R  =  T 

Solve for RATE: T  /  A  =  R

Solve for ASSESSED VALUE: T  /  R  =  A

Tax Rate: % (part per 100) or Mill Rate (part per 1,000)


OR's and EE's Table

Documents & Parties Involved

DEED: Grantor (seller) & Grantee (buyer)

LEASE: Lessor (landlord) & Lessee (tenant)

MORTGAGE: Mortgagee (Lender) & Mortgagor (Borrower)


Estates in Land

Definition and Two Types

Estate = amount and kind of legal interest in real prop that allows or will allow possession

Two Types:

a. Freehold Estate = Indefinite Duration

b. Leasehold Estate = Fixed Term


Freehold Estates

Kinds & What They Do

  1. Fee Simple Absolute: all rights except what gov't kept; conveyed 99% of the time.
  2. Fee Simple Defeasible/Qualified Fee: all rights except 1; revisionary interest (condition/gift)
  3. Life Estate: same as Fee Simple Defeasible, but only for a lifetime; NOT TYPICAL.


Leasehold Estates

Kinds & What They Do


  1. Estate for Years: a.k.a. Tenancy for Years; specific termination date, no notice req.; death sale or prop does not terminate.
  2. Periodic Estate: a.k.a. Estate from period-to-period; auto-renews, i.e. month-to-month; terminated with advanced notice according to contract.
  3. Estate at Will: a.k.a. Tenancy at Will; indefinite duration/no fixed term, landlord's discretion; terminated by notice, death, or sale
  4. Estate at Sufferance: a.k.a. Tenancy at Sufferance; holdover after tenancy expires; owner can accept rent or evict; if rent accepted, turns into periodic estate.




  1. Claim, right, or interest held by someone who is not legal owner; nonpossessory interest
  2. An imperfection, typically, that does not add value
  3. Can be created by prop owner & can cloud title.
  4. Attorney should be contacted if concerned



Definition & Types

Right to use the lands of another for specific use; runs with the land/transfers with the deed; created by express agreement, prescription, or neccessity.

  1. Appurtenent Easement: dom/serv tenement, transfer with the land & could grant permenant access.
  2. Easement in Gross: only serv property/tenement, commercial easement (utility company).
  3. Easement by Neccessity: grated if not other access by court to prevent landlocked property & only available to private owners.

Can be terminated 3 ways:

  1. Merger - dom interest holder (DIH) gets serv prop.
  2. Release - DIH realeases rights to serv owner (quitclaim deed)
  3. Abandonment - not automatic; must be proven in court.


Deed Restrictions

Private Controls on Real Property

  1. created by prop owners to protect their interest
  2. grantor/owner imposes limitations (no RV's in driveway)
  3.  binding on all owners (present & future) & run with the land
  4. owners subject to injunction/$ damages for violations
  5. must be for a lawful purpose
  6. strictest rules prevail if multiple rules



Definition, Function, & Classification

Secures payment of a debt; claim on the land

Classifications: Involuntary/Statutory vs. Voluntary; Specific vs. General

Release with:

  1. Lien Waiver - releases unrecorded lien
  2. Recorded Satisfaction - releases recorded lien


Lien Types

Specific - involuntary; prop taxes, mechanic's lien (dates back to when materials delivered), attaches to specific real or personal property

Mortgage Lien - voluntary; deed of trust, securing payment for the land

General Lien - involuntary; attaches to all property, ex. judgment lien (hosp. bills, child support, court ordered...)

IRS/State Liens - involuntary; for upaid taxes


Homestead Rights

Protects a primary residence against creditors

Does NOT protect against mortgage, prop tax, or mechanic's liens

All states differ in their determined values of homestead rights



Unauthorized use of another's land

A physical object intruding onto a neighboring property

Survey will reveal encroachments