Unit 10: Interest in Real Estate

Question 1

Feudal System

Answer 1

system of ownership associated w/ pre-colonial England in which the king or other sovereign was the source of all rights

Question 2

allodial system

Answer 2

land is held free & clear of any rent or service due to the govt

Question 3

police power

Answer 3

govts right to impose laws, statutes, & ordinances, including zoning ordinances & building codes to protect the public health, safety, morals, & welfare

Question 4

eminent domain

Answer 4

right of govt. to acquire property for public use

Question 5

taxation

Answer 5

process by which a govt. or municipal quasi-public body raises monies to fund its operation

Question 6

escheat

Answer 6

reversion of property to the state in the event the property is abandoned or the owner dies w/o leaving a will & has no heirs property can pass to

Question 7

estate in land

Answer 7

the degree, quantity, nature, & extent of interest that a person has in real property

Question 8

freehold estates

Answer 8

estate in land in which ownership is for an indeterminate length of time, in contrast to a leasehold estate

Question 9

life estate

Answer 9

limited in duration to the lifetime of its owner or some other designated person

Question 10

fee simple

Answer 10

max possible estate or right of ownership or real property, continuing forever (AKA fee simple absolute or fee)

Question 11

defeasible fee estate

Answer 11

holder has a fee simple title that may be divested on the occurrence of a specified event

Question 12

determinable fee estate

Answer 12

the property automatically reverts to the generator upon the occurrence of a specified event or condition

Question 13

fee simple subject to a condition subsequent

Answer 13

an estate conveyed “provided that” or “if” it is used for a specific purpose. if it is no longer used for that purpose it reverts to the original grantor

Question 14

life tenant

Answer 14

a person in possession of a life estate

Question 15

remainder interest

Answer 15

the future interest in an estate that takes effect after the termination of another estate such as a life estate

Question 16

reversionary interest

Answer 16

future interest in an estate that takes effect after the termination of another estate, such as life estate

Question 17

homestead

Answer 17

land that is owned and occupied as the family home.

Question 18

encumbrance

Answer 18

any lien, easement, or restriction on the use of the land that may diminish the value of a property, a cloud against clear, free title to property

Question 19

restrictions

Answer 19

private agreements placed in the public record that affect the use of land

Question 20

easement

Answer 20

right to use the land of another for a specific purpose, such as for right of way or utilities

Question 21

easement appurtenant

Answer 21

easement that passes with the land on conveyance

Question 22

right of way

Answer 22

right acquired through accepted usage or contract, to pass over a designated portion of the property of another

Question 23

easement in gross

Answer 23

not created for the benefit of any land owned by the owner of the easement but that attaches personally to the easement owner ex: utility easement

Question 24

easement by necessity

Answer 24

allowed by las as the necessary for the full enjoyment of a parcel of RE ex: right of ingress & egress over a grantors land

Question 25

easement by prescription

Answer 25

acquired by continuous open, uninterrupted, exclusive, & adverse use of the property for 10 years

Question 26

easement by implication

Answer 26

arises when the parties actions imply that they intend to create an easement

Question 27

license

Answer 27

the revocable permission for a temporary use of land

Question 28

encroachment

Answer 28

a building of some portion of it, that extends beyond the owner & illegally intrudes on some land of an adjoining owner or a street or alley

Question 29

riparian rights

Answer 29

owners rights in land that borders on or includes a stream or river, rights includes access to & use of the water for domestic purposes

Question 30

littoral rights

Answer 30

landowners claim to use water in large navigable lakes & oceans that are adjacent to the property

Question 31

prior appropriation

Answer 31

concept of water ownership in which the landowners right to use available water is based on a govt administer permit system

Question 32

groundwater rights

Answer 32

water under Earths surface below the saturation point & used by a property owner through the rule of capture

Question 33

lien

Answer 33

right given by law to certain creditors to have debts paid out to the property of a defaulting debtor usually by means of a court sale

Question 34

voluntary lien

Answer 34

lien that arise b/c of actions permitted by a person such as when signing a deed of trust or mortgage

Question 35

involuntary lien

Answer 35

arises by the actin of another such as a judgement lien

Question 36

statutory lien

Answer 36

imposed on a property by statute - a tax lien, in contrast to equitable lien

Question 37

equitable lien

Answer 37

arises out of common law

Question 38

general lien

Answer 38

right of a creditor to have all of debtors property both real & personal - sold to satisfy a debt

Question 39

specific liens

Answer 39

affecting or attaching only to certain specific parcel of land or piece of property

Question 40

priority

Answer 40

order in which unpaid debts or obligations will be satisfied if the property goes through a court sale

Question 41

IRS Tax Liens

Answer 41

general lien imposed by the IRS for the non-payment of income taxes

Question 42

subordination agreement

Answer 42

charges the priority of mortgage, judgement, & other liens under certain circumstances

Question 43

tax liens

Answer 43

charge against property created by operation of law

Question 44

Ad Valorem Tax

Answer 44

levied according to value

Question 45

special assessment

Answer 45

imposed against only these specific parcels of RE that will benefit from a proposed public improvement like a street or paved alley

Question 46

appraisal review board

Answer 46

hear appeals concerning assessed valuations for tax purposes & recommended or deny charges in values shown of record

Question 47

tax sale

Answer 47

court ordered sale of real property to raise money to cover delinquent taxes

Question 48

equitable right of redemption

Answer 48

right to redeem a property before foreclosure sale by paying the full debt & interest & accrued charges

Question 49

statutory right of redemption

Answer 49

right of defaulted property owner to recover the property after its sale by paying the appropriate fees & charges

Question 50

assessment roll

Answer 50

public record of the assessed values of all lands & buildings w/in a specific area

Question 51

mortgage (deed of trust)

Answer 51

a lien or charge on the property of a mortgage that secures the underlying debt or obligations

Question 52

mechanics lien

Answer 52

created in favor of contractors who have performed work or furnished materials in the erection or repair or a building

Question 53

general contractor

Answer 53

construction specialist who enters into a formal construction contract w/ a landowner to construct a RE building or project

Question 54

subcontractor

Answer 54

specialize in various aspects of the building process to perform individual jobs

Question 55

judgement

Answer 55

formal decision of a court on the respective rights & claims of the parties to an action or suit

Question 56

estate taxes

Answer 56

federal taxes on a descendants real & personal property

Question 57

inheritance taxes

Answer 57

stated imposed taxes on a descendants real & personal property

Question 58

venders lien

Answer 58

equitable lien of the grantor upon the land conveyed, in the amount of the unpaid purchase price

Question 59

vendees lien

Answer 59

buyers claim against the sellers property when the seller has not delivered title to the buyer, as in an installment contract or contract for deed

Question 60

surety bail bond

Answer 60

pledge or RE instead of cash as security for bail

Question 61

wage lien

Answer 61

ordered by TXWC against all real & personal property of an employer who owes back wages to an employee

Question 62

federal judgement lien

Answer 62

obtained by U.S. entity that affects all real & personal property of the judgement debtor

Question 63

Uniform Commercial Code (UCC)

Answer 63

attempts to make uniform throughout the US all laws relating to commercial transactions

Question 64

security agreement

Answer 64

creates a security interest in personal property

Question 65

financing statement

Answer 65

gives notice of security interest & must be recorded