Unit 2 Rights And Interests In Land

Question 1

PETE stands for:

Answer 1

• Police Power
• Eminent Domain
• Taxation
• Escheat

Question 2

What determines how land can be used, developed and puts forth codes to enhance health and public safety?

Answer 2

Government Police Power.

Through zoning

Question 3

Eminent Domain is:

Answer 3

Right to take private land for public use.

Question 4

Real property taxes have priority over :

Answer 4

All other Liens

Question 5

Property taxes are ad valorem. Ad Valorem means:

Answer 5

At assessed value

Question 6

Tax rate can be expressed as dollars per $100 or per 1000 which is often called the:

Answer 6

Mill rate

Question 7

Charges against specific properties that benefit from a public improvement are called:

Answer 7

Special assessments

Question 8

When an owner dies intestate ( no will) and with out heirs the government takes over the property by:

Answer 8

Escheat

Question 9

Annual tax =

Answer 9

Assessed value x tax rate

Question 10

Assessed value =

Answer 10

Actual value x assessment rate

Question 11

North Carolina tax rate is divisible by:

Answer 11

100

Question 12

National tax rate is divisible by:

Answer 12

1000

Question 13

With a mortgage the mortgagor is the:

Answer 13

Borrower

Question 14

A freehold estate grants ownership for :

Answer 14

Unlimited amount of time

Question 15

Leasehold (non-freehold) grants:

Answer 15

Possession for a fixed term.

land lord and tenent

Question 16

Fee simple absolute:

Answer 16

• Complete bundle of rights
• maximum and greatest control of property
• lasts forever
• transferable

Question 17

Fee simple defeasible:

Answer 17

(Determinable) defeatable or qualified fee

-may be a gift

If deed consition is violated may revert to grantor

Question 18

Life estate:

Answer 18

Life tenant grantee is the owner.

Upon death of the life tenant estate returns to fee simple absolute and goes to the party names in the deed.

Question 19

The purchaser of leased property obtains ownership “subject to” what?

Answer 19

The lease

Question 20

Statute of Frauds is:

Answer 20

All transfers of an interest ( freehold or leasehold) in realestate must be in writing to be enforceable, except a lease of less than three years.

Question 21

Estate for years:

Answer 21

Has a specific termination date no advance notice required.

Sale of property does not terminate
Buyer of property is subject to lease.

Question 22

Periodic estate ( period to period):

Answer 22

Renews auotmatically for set period upon payment of rent.

Question 23

Estate at will:

Answer 23

Indefinite duration tenant occupies at landlords discretion.

Question 24

Estate at sufferance.

Answer 24

Holdover after legal tenancy expires

• owner may evict tenant or accept rent
• if rent is accepted from tenant at sufferance, estate at sufferance becomes a periodic estate.

Question 25

An encumberance is:

Answer 25

Any claim, right, or interest held by a party who is not the legal owner of the property.

Question 26

Define Easement:

Answer 26

The right to use the lands of another for a specific purpose. (Runs with the land unless released and will transfer with the Deed.)

Question 27

A Deed restriction is:

Answer 27

Privately created limitations on land use, which protect property values and the interests of property owners.

Question 28

A claim on land to secure payment of a debt is:

Answer 28

A Lien

Question 29

True or False | A recording of a satisfaction releases a recorded lien.

Answer 29

True

Question 30

True or False | Gov. lien for real property taxes or special assessments have priority over all other liens.

Answer 30

True

Question 31

General Liens:

Answer 31

Attach to all personal and real property.

Question 32

Life of a judgement in North Carolina is typically:

Answer 32

10 years

Question 33

What is a Writ of Attachment?

Answer 33

- used to create an encumbrance against real property. | - Created by court order until lawsuit can be settled

Question 34

What are homestead rights?

Answer 34

A homestead exemption is created by state statute to protect a primary residence against creditors. (Protect against judgements and debits for personal loans and credit cards.)

Question 35

an Encroachment is:

Answer 35

unauthorized use of another persons land; physical object intruding onto neighboring property.

Question 36

A license is:

Answer 36

Revocable, unassignable, permission, granting privilege to use property; usually granted to an individual.

Question 37

A tenants right to possess real estate for the term of a lease is a:

Answer 37

Lease Hold Estate

Question 38

An Easement given to the utility company in perpetuity would be an:

Answer 38

Easement in Gross

Question 39

Which of the following estates usually does NOT terminate on the death of the holder of the estate? a. Life estate b. Estate for years c. Estate at will d. Estate at sufferance

Answer 39

b. Estate for years (An Estate for years is a contract and termination the date specified in the lease, not upon the death of the lessor or lessee.)

Question 40

In North Carolina all property must be reassessed every :

Answer 40

8 years

Question 41

Lis Pendens means:

Answer 41

Litigation pending

Question 42

All the following may be inherited EXCEPT: a. conventional life estate b. qualified fee c. fee simple absolute d. life estate pur autre vie

Answer 42

a. conventional life estate ( conventional life estate can not be inherited because it ceases to exist upon the death of the life tenant and the estate then goes to either the reversionary or remainder interest.)

Question 43

True or False Sale of property terminates a tenants lease.

Answer 43

False

Question 44

What are the 2 ways government can take land?

Answer 44

Eminent Domain and Escheat

Question 45

An appurtenant easement has a servient tenement and a :

Answer 45

Dominant tenement