Unit 2: Rights and Interests in Land

Question 0

Police Power

Answer 0

Right to enact and enforce laws governing land use

Zoning

Building codes

Question 1

Governmental and Public Rights in Land (PETE)

Answer 1

1) Police Power
2) Eminent Domain
3) Taxation
4) Escheat

Question 2

Eminent domain

Answer 2

Right to take property for public use

Example of ‘involuntary alienation’

Process is called ‘condemnation’

Offers ‘just compensation’

Tenant lease is terminated

Question 3

Taxation

Answer 3

Property taxes - have priority over all other liens

NC property tax liens are specific liens

Property taxes are ‘Ad valorem’ -assessed at value

Question 4

Tax rate

Answer 4

Expressed as dollars per $100 or per $1000 (mill rate)

Tax rate of $4 per $100 =.04

County tax + city tax /100

1.45+ 2.00=3.45/100= 0.345 annual property taxes

Question 5

Special assessments

Answer 5

Charges against specific properties that benefit from a public improvement

Often charged on front footage

If not paid can create a lien

Question 6

Escheat

Answer 6

Government’s reversionary right when a property is abandoned

Exercised when owner dies intestate (no will) and w/o heirs

Question 7

Annual tax

Answer 7

Assessed value x tax rate

Question 8

Assessed Value

Answer 8

Actual value x assessment rate

Actual value is $425.00, state assessment rate is 29%

425,000 x .29 =$ 123,250

Question 9

Rights of ownership (Freehold estates)

Answer 9

1) Fee Simple
2) Fee simple defensible (determinable)
3) Life Estate

Question 10

Fee Simple Absolute

Answer 10

Complete bundle of rights

Maximum or greatest control of property

Last forever

Transferable (alienation) and inheritable

Question 11

Fee Simple Defeasible (qualified fee)

Answer 11

May be a gift

If deed condition is violated, may return to grantor

Transferable and inheritable

Question 12

Life Estate

Answer 12

NOT inheritable

IS transferable

Can NOT give in a will

Life tenant is the owner. May sell property but upon death, buyer/lessee loses interest

Upon death, estate returns to fee smile absolute and goes to the party named in the deed (grantor or 3rd party remainderman who is appointed by grantor)

May be measured by life of grantee or by another life ( pur autre vie)

Question 13

Life Estate: If Life tenant dies before the person who is the measure life

Answer 13

Heirs of the life tenant inherit property

Question 14

Life Estate:

Answer 14

Upon death of person who is the measuring life, estate reverts to the grantor or remainderman

Question 15

Encumbrances

Answer 15

Claim, right or interest held by a party who is not the legal owner

May affect property value

Can cloud title

Question 16

Easement

Answer 16

The right to use the land of another for a specific purpose

Crested by express agreement, prescription or necessity

Non revocable

Question 17

Leasehold estates

Answer 17

Tenant has right to posses the lands if the lessor

Tenant holds the leasehold estate

Landlord holds the lease fee estate and has reversionary interest

All transfers of an interest in real estate must be in writing to be enforceable except a lease of less then 3 yrs

Question 18

Estate for years

Answer 18

Specific termination date

Death of lessor or lessee does not terminate

Sale of property does not terminate

NOT an estate of ownership

Question 19

Periodic estate tenancy

Answer 19

Renews automatically

Month to month

Terminated by advance notice of either party

Question 20

Estate tenancy at will

Answer 20

Indefinite duration

Terminated by notice or death

Question 21

Estate (tenancy) at sufferance

Answer 21

Holdover after legal tenancy expires

Owner may evict tenant or accept rent (if rent accepted, estate becomes periodic estate )

Question 22

Types of easements

Answer 22

1) Appurtenant easement
2) Easement in gross
3) Easement by necessity

Question 23

Appurtenant Easement

Answer 23

1) Appurtenant easement
* Has dominant tenement and a servant tenement.
* Transfers with the land
* does not increase dominant estate’s size but may increase the value
* could grant pet entrant access to neighbors property

Question 24

Easement in gross

Answer 24

* may be personal or commercial * has no dominant property * personal easement in gross cannot be assigned or inherited * if recorded would transfer to new buyer

Question 25

Commercial Easement in a Gross

Answer 25

Given to a business Period is lengthy or indefinite

Question 26

Easement by necessity

Answer 26

Granted by the courts it a private owner to remedy landlocked property. Only available to private owners

Question 27

Termination of an Easement

Answer 27

1) merger- holder of dominant interest acquires serving property or vice versa 2) Release- holder of dominant interest releases rights to servient owner (no longer transfers with deed) 3) Abandonment- not automatic, as a process of time . Must be proven in court

Question 28

Deed restrictions

Answer 28

Privately created limitations on land use which protect property values and he interest of property owners Grantor imposes limitations on land use (no RVs in driveway etc Binding and run with the land

Question 29

Lien

Answer 29

A claim on land to secure payment of a debt 1) specific liens 2) general liens 3) writ of attachment 4) homestead rights 5) encroachments 6) licenses

Question 30

Specific lien

Answer 30

Attaches to specific real or personal property Property taxes Has priority over all other liens

Question 31

General liens

Answer 31

Attach to all personal and real property 1) judgement lien (involuntary) -unpaid hospital bills, child support, income taxes . Life is 10 yrs

Question 32

Writ of attachment

Answer 32

Used to create encumbrance against real property Created by court order Followed by writ of execution to sell the property if needed to satisfy judgement

Question 33

Homestead rights

Answer 33

Homestead exemption is created by state statue to protect primary residence Protects against judgements for personal loans and credit cards NC standard exemption is $35,000

Question 34

Encroachments

Answer 34

Unauthorized use of another persons land; physical object intruding onto neighboring property Survey or ILC reveals them

Question 35

Licenses

Answer 35

Revocable unassignable permission granting privilege to use property

Question 36

Easement by Prescription

Answer 36

Right acquired by a non owner thru hostile use of the lands of another