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Flashcards in Rights and Interest in Land Deck (15):
1

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)

2

Circle Formula

A x B = C

 

C / B = A

 

C / A = B

3

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)

4

OR's and EE's Table

Documents & Parties Involved

DEED: Grantor (seller) & Grantee (buyer)

LEASE: Lessor (landlord) & Lessee (tenant)

MORTGAGE: Mortgagee (Lender) & Mortgagor (Borrower)

5

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

6

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.

7

Leasehold Estates

Kinds & What They Do

RIGHTS OF POSSESSION

  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.

8

Encumberances

 

  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

9

Easement

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.

10

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

11

Liens

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

12

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

13

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

14

Encroachments

Unauthorized use of another's land

A physical object intruding onto a neighboring property

Survey will reveal encroachments

15