Unit 3 - Interests In Real Estate Flashcards
(117 cards)
1
Q
Condemnation
A
A judicial or administrative proceeding to exercise the power of eminent domain, through which a government agency takes private property for public use and compensates the owner.
2
Q
Covenants, conditions & restrictions (CC&Rs)
A
Private agreement that affect land use. They may be enforced by an owner of real estate that benefits from them and can be included in the seller’s deed to the buyer.
3
Q
Deed restrictions
A
Clauses in a deed limiting the future users of a property.
Deed restrictions may impose a vast variety of limitations and conditions — for example, they may limit the density of buildings, dictate the types of structures that can be erected, or prevent buildings from being used for specific purposes or even from being used at all.
4
Q
Easement
A
A right to use the land of another for a specific purpose, such as for a right-of-way or utilities; an incorporeal interest in land because it does not include the right of possession.
5
Q
Easement by necessity
A
An easement allowed by law as necessary for the full enjoyment of a parcel of real estate (e.g., a right of ingress and egress over a grantors land).
6
Q
Easement by prescription
A
An easement acquired by open, notorious, continuous, hostile and adverse use of the property for the period of time prescribed by state law.
7
Q
Easement in gross
A
An easement that is not created for the benefit of any land owned by the owner of the easement but that attaches personally to the easement owner.
For example, a right granted by a property owner to a friend to use a portion of the property for the rest of the friend’s life would be an easement in gross.
8
Q
Easement appurtenant
A
An easement that is annexed to the ownership of one parcel and allows the owner the use of the neighbor’s land.
9
Q
Eminent domain
A
The right of a government or municipal quasi-public body to acquire property for public through a court action called a condemnation, in which the court decided that the use is a public use and determines the compensation to be paid to the owner.
10
Q
Encroachment
A
A building or some portion of it — a wall or fence, for instance — that extends beyond the land of the owner and illegally intrudes on the land of an adjoining owner or public street or alley.
11
Q
Encumbrance
A
Anything — such as a mortgage, tax, or judgement lien; an easement; a restriction on the use of the land; or an outstanding dower right — that may diminish the value or use and enjoyment of a property.
12
Q
Escheat
A
The reversion of property to the state or county, as provided by state law, in cases in which a decedent dies intestate without heirs capable of inheriting, or when the property is abandoned.
13
Q
Estate in land
A
The degree, quantity, nature, and extent of interest a person has in real property.
14
Q
Fee simple
A
The highest interest in real estate recognized by the law; the holder is entitled to all rights to the property.
15
Q
Fee simple absolute
A
The maximum possible estate or right of ownership of real property, continuing forever.
16
Q
Fee simple defeasible
Defeasible fee estate
A
An estate in which the holder has a fee simple title that may be divested upon the occupancies or non-occurrence of - specified event.
There are two categories of defeasible fee estates:
- Fee simple, on condition precedent (fee simple determinable), and
- Fee simple on condition subsequent
17
Q
Fee simple determinable
A
A fee simple estate qualified by a special limitation. Language used to describe the limitation includes the words “so long as”, “while”, or “during”.
18
Q
Fee simple subject to a condition subsequent
A
An estate carrying the limitation that, if it is no longer used for the purpose conveyed, it reverts to the original grantor by the right of reentry.
19
Q
Freehold estate
A
An estate in land in which ownership is for a indeterminable length of time, in contrast to a leasehold estate.
20
Q
Leasehold estate
A
A tenants right to occupy real estate during the term of a lease, generally considered a personal property interest, although a long-term lease may be eligible for treatment as real property for financing purposes.
21
Q
Future interest
A
A person’s present right to an interest in real property that will not result in possession or enjoyment until sometime in the future, such as a reversion right or right of reentry.
22
Q
Homestead
A
Land that is owned and occupied as the family home. In many states, a portion of the area or value of this land is protected or exempt from judgements for debts other than those secured by the property.
23
Q
Inverse condemnation
A
An action brought by a property owner seeking just compensation for diminished use and value of land because of an adjacent property’s public use.
24
Q
Legal life estate
A
A form of life estate established by state law, rather than created voluntarily by an owner. It becomes effective when certain events occur.
Dower, curtesy and homestead are legal life estates in some states.
25
License
(1) In real estate practice, the privilege or right granted to a person by a state to operate as a real estate broker or sales person.
(2) The revocable permission for a temporary use of land — a personal right that cannot be sold.
26
Lien
A right given by law to certain creditors to have their debts paid out of the property of a defaulting debtor, usually by means of a court sale.
27
Life estate
An interest in real or personal property that is limited in duration to the lifetime of its owner or some other designated person or persons.
28
Police power
The governments right to impose laws, statutes, and ordinances, including zoning ordinances in building codes, to protect the public health, safety, and welfare.
29
Pur autre vie
“For the life of another”
A life estate pur autre vie is a life estate that is measured by the life of a person or persons other than the grantee.
30
Remainder interest
The remnant of an estate that has been conveyed to take affect and be enjoyed after the termination of a prior estate, such as when an owner conveys a life estate to one party and the remainder to another.
31
Reversionary interest
The remnant of an estate that the grantor holds after granting a life estate to another person.
32
Taking
Process of land being taken from a property owner for public use through eminent domain with the requirement that the owner be compensated fairly.
33
Taxation
The process by which a government body raises monies to fund its operation.
34
Servient tenement
Land on which an easement exists in favor of an adjacent property, called the dominant tenement.
35
Tacking
Concept providing that successive periods of continuous occupation by different parties may be combined to reach the required total number of years needed to establish a claim for a prescriptive easement.
36
Cloud on the title
Any document, claim, unreleased lien, or encumbrance that may impair the title to real property or make the title doubtful; usually revealed by a title search and removed either by a quitclaim deed or suit to quiet title.
37
Curtesy
A life estate, usually a fractional interest, given by some states to the surviving husband in real estate owned by his deceased wife.
Most states have recognized other marital property rights and abolished cutesy.
38
Dower
The legal right or interest, recognized in some states, that a wife acquires in the property her husband held or acquired during their marriage. During the husband’s lifetime, the right is only a possibility of an interest; upon his death, it can become an interest in land.
39
Dominant tenement
A property that includes in its ownership the appurtenant right to use an easement over another person’s property for a specific purpose.
40
Life tenant
A person in possession of a life estate.
41
Lis pendens
A recorded legal document giving constructive notice that an action affecting a particular property has been filed in either a state or federal court.
42
Party wall
An exterior wall of a building that straddles the boundary line between two lots, or a commonly shared partition wall between two connected properties.
#party
43
Right-of-way
The right given by one landowner to another to pass over the land, construct a roadway, or use as a pathway, without actually transferring ownership.
44
True or false
A freehold estate is an ownership interest that continues for an indefinite period.
True
45
_____ estate
Fee simple absolute
Fee simple defeasible
- special limitation with possibility of reverter
- condition subsequent with right of re-entry
Fee simple estate
46
____ estate
Conventional life estate
- ordinary with remainder of reversion
- pur autre vie with remainder of reversion
Legal life estate
- dower
- homestead
- curtesy
Life estate
47
1. Uses phrases like
”So long as”
“While”
“During”
2. Uses phrases like
“On condition that”
1. Fee simple determinable
| 2. Fee simple subject to a condition subsequent
48
____ estate is the highest interest in real estate recognized by law.
Fee simple estate, or fee simple absolute
49
____ estate is a qualified fee estate that is subject to the occurrence or non-occurrence of some specified event.
Two types of this estate include fee simple determinable and fee simple subject to a condition subsequent.
Fee simple defeasible
50
____ is a fee simple defeasible estate that may be inherited.
This estate is qualified by a special limitation (an occurrence or an event).
Fee simple determinable
51
With ____, an owner gives real estate on condition of ownership, meaning there is a difference in the way the estate will terminate if there is a violation of the condition.
Fee simple subject to a condition subsequent
52
A nonfreehold estate is commonly referred to as a ____ estate.
Leasehold
53
A freehold estate can also be a ____ estate that is held only for the lifetime of a person and ends when that individual dies.
Life estate
54
In a fee simple defeasible, the former owner retains a ____, which is an interest that can be transferred to someone else.
Possibility of reverter
55
In the ____ estates, the possibility of reverter (fee simple determinable) and right of reentry (fee simple subject to a condition subsequent) will only be possible at some time in the future and may never take effect.
Each of those rights are considered a ____.
1. Defeasible fee estates
| 2. Future interest
56
“For the life of another”
Pur autre vie
57
The holder of a life estate is called a ____.
Life tenant
58
1. ____: The creator of the life estate may name a remainderman as the person whom the property will pass when the life estate ends.
2. ____: The creator of the life estate may chose not to name a remainderman. In that case, ownership returns to the original owner upon the end of the life estate.
1. Remainder interest
| 2. Reversionary interest
59
____ is not created by a property owner, but rather is established by state law. It becomes effective automatically when certain events occur.
Dower, cutesy, and homestead are currently used in some states.
Legal life estate
60
A ____ is a legal life estate in real estate occupied as the family home.
The home (or a portion of it) is protected from most creditors during the occupant’s lifetime.
Homestead
61
____ is a type of interest in real estate that does not rise to the level of ownership or possession, yet still gives an individual, business, or other entity some degree of use or control of the property.
Encumbrance
62
A ____ is a charge against property that provides security for a debt or an obligation of the property owner.
Lien
63
Once placed in the deed by a previous owner, a ____ will run with the land, limiting use of the property by the current owner, as well as future owners to whom the property is subsequently transferred.
Deed restriction
64
True or false
A deed restriction cannot violate any law, such as a fair housing law, by attempting to prohibit certain property transfers. Attempting to do so would be illegal and thus unenforceable.
True
65
____ are used by a subdivision developer to maintain specific standards in a subdivision, such as by requiring adherence to certain architectural or design specifications for improvements.
Covenants, condition, and restrictions (CC&Rs)
66
Two private restrictions on the use of real estate include ____ and ____.
1. Deed restrictions
| 2. Covenants, conditions, and restrictions (CC&Rs)
67
An ____ is the right to use the land of another for a particular purpose.
It may exist in any portion of the real estate, including the airspace above or a right-of-way across the land.
Easement
68
An ____ is attached to the ownership of real estate and allows the owner of that property the use of a neighbor’s land.
To this type of easement to exist, two adjacent parcels of land must be owned by two different parties.
Easement appurtenant
69
In an easement appurtenant, the parcel that benefits from the easement is known as the ____ tenement; the parcel over which the easement runs is known as the ____ tenement.
1. Dominant
| 2. Servient
70
An ____ is an individual or company interest in or right to use someone else’s land.
Commercial - may be assigned, conveyed and inherited.
Personal - usually not assignable and generally terminates on the death of the easement owner.
Ex. A railroad’s right-of-way
Easement in gross
71
True or false
An easement is created by a written agreement between the parties that establishes the easement right. The creation of the easement always involves two separate parties; one party owns the land over which the easement runs and the other party benefits from the easement.
True
72
An easement that is created when an owner sells a parcel of land that has no legal access to a public way except over the seller’s remaining land is an ____.
Created by court order based on principle that owners must have the right to enter and exit their land — the right of ingress (enter) and egress (exit); they cannot be landlocked.
Easement by necessity
73
If the claimant has made use it another’s land for a certain period of time as defined by state law, an ____ may be acquired.
The owner must not be excluded from using the land. Generally runs from 10 to 21 years.
Easement of prescription (or prescriptive easement)
74
The 5 ways an easement terminates are
1. When the need no longer exists
2. When the owner of either dominant or servient tenement becomes sole owner of both properties
3. By release if the right of easement to the servient tenement
4. By abandonment of the easement
5. By the non use of a prescriptive easement
75
A ____ is a personal privilege to enter the land of another for a specific purpose. This differs from an easement in that it can be terminated or cancelled by the owner of the property.
License
76
True or false
A license ends with the death of either party or with the sale of the land.
True
77
When a building, fence, or driveway illegally extends beyond the boundaries of the land of its owner or legal building lines, an ____ occurs.
Encroachment
78
A ____ (Latin for litigation pending) is a notice filed in the public record of a pending legal action affecting the title to or possession of the property.
Lis pendens
79
Four governmental powers include
| PETE
1. Police power
2. Eminent domain
3. Taxation
4. Escheat
80
Every state has the power to enact legislation to preserve order, protect the public health and safety, and promote the general welfare of its citizens. This authority is know as a state’s ____.
Police power
81
True or false
The police power of government is used to enact environmental protection laws, zoning ordinances, and building codes.
These include regulations that govern the use, maximum occupancy size, location, and construction of real estate.
True
82
The state’s authority is passed on to municipalities and counties through legislation called ____.
Enabling acts
83
1. ____ is the government’s right to acquire private property for public use.
2. ____ is the actual process of taking property, by either judicial or administrative proceedings.
1. Eminent domain
| 2. Condemnation
84
The concept of taking property for public use is found in the ____ amendment to the US constitution, which reads “Nor shall private property be taken for public use, without just compensation”, meaning that when land is taken for public use through eminent domain, the owner must be compensated fairly.
Fifth amendment
85
____ is the action brought by a property owner seeking just compensation for land adjacent to land for a public purpose when the property’s use and value have been diminished.
Inverse condemnation
86
____ is a charge on real estate to raise funds to finance the operation of government facilities and services.
Taxation
87
Three taxes on real estate include
1. Annual property taxes to support school districts, transportation districts, and utility districts
2. Taxes on profit realized by individuals and corporations on the sale of real property
3. Special fees that may be levied to finance special projects, such as road or utility installation
88
____ is a process by which the state may acquire privately owned real or personal property.
State laws provide for ownership to transfer to the state when an owner dies and leaves no heirs and there is no will or living trust instrument that directs how the real estate is to be distributed.
Used to prevent property from being ownerless or abandoned.
Escheat
89
A ____ estate lasts for an indeterminable length of time.
____ is the highest estate recognized by law.
____ is an estate that is qualified because its subject to the occurrence or non-occurrence of a special event.
A ____ is based on the lifetime of the life tenant or someone else (pur autre vie).
1. Freehold estate
2. Fee simple
3. Fee simple defeasible
4. Life estate
90
1. An ____ is a claim, charge, or liability that attaches to real estate.
2. A ____ is a charge against property that provides security for a debt or obligation of the property owner.
3. ____ are private limitations on the use of land.
```
— CC&Rs
— encumbrance
— lien
— easement
— police power
— eminent domain
```
1. Encumbrance
2. Lien
3. Covenants, conditions, and restrictions (CC&Rs)
91
1. An ____ is the right to use land of another. Usually created by written agreement between the parties.
2. An ____ is said to run with the land when title is transferred.
3. The ____ tenement benefits from the easement, which runs over the ____ tenement.
1. Easement
2. Easement appurtenant
3. Dominant
4. Servient
92
1. An easement ____ is an individual or company interest in or right to use another’s land.
2. An easement ____ arises when land has no access to a street or public way.
3. An easement ____ is acquired when a claimant has used another’s land for the period required by law. Use must be continuous, nonexclusive, visible, open, and notorious.
1. Easement in gross
2. Easement by necessity
3. Easement by prescription
93
An easement is ____ when the need for it no longer exists, when the owner of either dominant tenement or servient tenement becomes the owner of both, when the owner of a dominant tenement ____ the right of the easement to the owner of the servient tenement, if the easement is ____, or by the ____ of a prescriptive easement.
Terminated
Releases
Abandoned
Nonuse
94
A ____ is a personal privilege to enter the land of another for a specific purpose.
License
95
An ____ occurs hen all or part of a structure illegally intrudes on the land of another or beyond legal building lines.
Encroachment
96
____ gives notice of litigation in progress that may affect title to property.
Lis pendens
97
Government powers (PETE)
1. ____ is the state’s authority to legislate to preserve order, protect public health and safety, and promote the general welfare of citizens.
2. ____ is the government’s right to acquire privately owned real estate for public or economically beneficial use through condemnation.
3. ____ can include a charge on real estate to provide funds to meet public needs.
4. ____ occurs when the state takes control of property after the owner dies leaving no will or lawful heirs.
1. Police power
2. Eminent domain
3. Taxation
4. Escheat
98
When ____ of a property occurs, the fifth amendment in the US constitution requires the owner be given just compensation.
A property owner may claim compensation under ____ if an adjacent public land use diminishes the value of the owner’s property but the property has not been condemned for public use.
1. Taking
| 2. Inverse condemnation
99
The right of a government body to take ownership of real estate for public use is called
A. Escheat
B. Eminent domain
C. Condemnation
D. Police power
B. Eminent domain
100
An owner conveys ownership of a residence to a church but reserves a life estate in the residence. The future interest held by the church is
A. A pur autre vie
B. A remainder
C. A reversion
D. A leasehold
B. Remainder
101
The type of easement that is a right-of-way for a utility company’s power lines is
A. An easement in gross
B. An easement in necessity
C. An easement by prescription
D. A nonassignable easement
A. Easement in gross
102
A landowner has divided a large parcel of ons into smaller parcels and has recently sold a tract near a nature preserve that is landlocked and cannot be entered except through one of the other tracts. The buyer of that property will probably be granted what type of easement by court action?
A. Easement by necessity
B. Easement in gross
C. Easement by prescription
D. Easement by condemnation
A. Easement by necessity
103
One who has ownership rights of real estate that could continue forever and which provide that no other person can claim to be the owner of or have any ownership control over the property has
A. Fee simple absolute
B. Life estate
C. Determinable fee
D. Condition subsequent
A. Fee simple absolute
104
The owner of a fee simple title to a vacant lot adjacent to a hospital decided to make a gift of the lot to the hospital. The deed conveyed ownership of the lot to the hospital “so long as it is used for hospital purposes”. After completion of the gift, the hospital will own
A. A fee simple absolute estate
B. A license
C. A fee simple determinable
D. A leasehold estate
C. A fee simple determinable
105
Your neighbors use your driveway to reach the garage on their property. Your attorney explains that the neighbor’s real estate includes an easement appurtenant giving them the right to do this. Your property is
A. A leasehold interest
B. A dominant tenement
C. A servient tenement
D. A license property
C. A servient tenement
106
A license is an example of
A. An easement appurtenant
B. An encroachment
C. A personal privilege
D. A restriction
C. A personal privilege
107
An easement appurtenant
A. Terminates with the sale of the property
B. Is a right-of-way for a utility company
C. Is revocable
D. Runs with the land
D. Runs with the land
108
A property in Main Street that was formerly a retail store will become the site of a new city hall, made possible by the government’s power of
A. Escheat
B. Possibility of reverter
C. Eminent domain
D. Taxation
C. Eminent domain
109
A property owner who has the legal right to use a neighbor’s land holds
A. An estate in land
B. An easement
C. A police power
D. An encroachment
B. An easement
110
Which of the following is a legal life estate?
A. Leasehold
B. Fee simple absolute
C. Homestead
D. Determinable fee
C. Homestead
111
The new owner of a property installs a fence on the property. By mistake, the fence extends one foot over the lot line into the neighbor’s property. The fence is an example of
A. A license
B. An encroachment
C. An easement by necessity
D. An easement by prescription
B. An encroachment
112
A homeowner may be allowed certain protection from judgements of creditors as a result of the state’s
A. Littoral rights
B. Curtesy rights
C. Homestead rights
D. Dower rights
C. Homestead rights
113
A person has permission from a property owner to hike on the owners property during the autumn months. This hiker has
A. An easement by necessity
B. An easement by condemnation
C. Riparian rights
D. A license
D. A license
114
A homestead is a legal life estate in real estate that is
A. Leased by renters
B. Occupied as the family home
C. Used as a vacation home
D. A secondary residence
B. Occupied as the family home
115
Because a homeowner failed to pay the real estate taxes on time, the racing authority imposed a claim against the homeowner’s property. This claim is known as
A. A deed restriction
B. A lien
C. An easement
D. A reversionary interest
B. A lien
116
The process by which government takes control of a property after the owner dies without a will or lawful heirs is
A. Escheat
B. Lis pendens
C. Condemnation
D. Taxation
A. Escheat
117
All of the following will terminate an easement except
A. When the need no longer exists
B. No use of a prescriptive easement
C. Abandonment of easement
D. Release of the right of easement to the dominant tenement
D. Release of the right of easement to the dominant tenement
