Unit 3: Interests in Real Estate- 2% Flashcards Preview

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Flashcards in Unit 3: Interests in Real Estate- 2% Deck (59)
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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, And Restrictions (CC&Rs)

A

Private agreements 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 uses of the 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 a right of possession.

5
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.

6
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 grantor’s land).

7
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.

8
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.

9
Q

Eminent Domain

A

The right of a government or municipal quasi-public body to acquire property for public use through a court action called condemnation, in which the court decides 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 a public street or alley

11
Q

Encumbrance

A

Anything—such as a mortgage, tax, or judgment 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

A

See defeasible fee estate.

Ownership that comes on a condition

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 an indeterminate length of time, in contrast to a leasehold estate.

20
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 or right of reentry.

21
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 judgments for debts other than those secured by the property

22
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.

23
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. See dower, curtesy, and homestead for legal life estates used in some states.

24
Q

License

A

(1) In real estate practice, the privilege or right granted to a person by a state to operate as a real estate broker or salesperson. (2) The revocable permission for a temporary use of land—a personal right that cannot be sold.

25
Q

Lien

A

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.

26
Q

Life Estate

A

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.

27
Q

Police Power

A

The government’s right to impose laws, statutes, and ordinances, including zoning ordinances and building codes, to protect the public health, safety, and welfare.

28
Q

Pur Autre Vie

A

“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.

29
Q

Remainder Interest

A

The remnant of an estate that has been conveyed to take effect 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.

30
Q

Reversionary Interest

A

The remnant of an estate that the grantor holds after granting a life estate to another person

31
Q

Taking

A

Process of land being taken from a property owner for public use through eminent domain with the requirement that the owner be compensated fairly

32
Q

Taxation

A

The process by which a government body raises monies to fund its operation.

33
Q

A property owner can seek compensation when the property’s value has been diminished because of an adjacent public use by claiming

A

inverse condemnation.

Even though property is not used when constructing an adjacent public improvement, such as a highway, its value may be significantly diminished because of the existence of the improvement.

34
Q

The owner of 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 determinable.

A determinable fee estate has a special limitation and may end automatically if there is noncompliance with that stipulation. Language such as so long as or while characterize this estate. The hospital’s ownership of the lot would come to an end if the property were to be no longer used for hospital purposes, and the lot would immediately become the property of the former owner or that owner’s heirs.

35
Q

A claim against another’s property is known as

A

an encumbrance.

An encumbrance is any right to, or claim against, property held by someone other than the property owner.

36
Q

A tenant who rents an apartment from the owner of the property holds

A

a leasehold interest.

The leasehold interest held by a tenant is not revocable like a license and lasts for a fixed period. It is less than a life estate and so is not a freehold, but unlike an easement, it gives its holder the right to possess the land.

37
Q

A patient died in a nursing home. The deceased left no will and had no heirs. What happens to the deceased’s $250,000 estate?

A

It escheats to the state or county.

Because the patient died without a will and there are no heirs, the $250,000 becomes the property of the state or county.

38
Q

Which of the following is NOT an encumbrance on real estate?

A

Fixture

An encumbrance is a right in, or claim against, property held by someone other than the property owner.

39
Q

The right of a government body to take ownership of real estate for public use is called

A

eminent domain.

The right is eminent domain; the process by which the right is exercised is condemnation. Escheat and police power are other examples of government limitations on rights of private ownership.

40
Q

The state’s authority to enact legislation to protect the public is passed through to municipalities and counties by

A

enabling acts

The state passes police power to local counties and municipalities by enabling acts. Licensing laws are an example of police power.

41
Q

The process by which government takes control of a property after the owner dies without a will or lawful heirs is

A

escheat

Escheat is a process by which the state may acquire privately owned real or personal property. State laws provide for ownership to transfer, or escheat, to the state when an owner dies and leaves no heirs (as defined by the law) and there is no will or living trust instrument that directs how the real estate is to be distributed.

42
Q

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

Fee simple is an absolute ownership—an inheritable interest “with no strings attached.” A life estate is noninheritable; fee on condition subsequent and determinable fees are both estates involving another person with an interest called “possibility of (either reverter or) re-entry.”

43
Q

A family owns a house across the street from a lake but has the right to use the lakefront homeowner’s driveway to access the lake because of the existence of

A

an easement.

An easement is the right to use the land of another for a particular purpose.

44
Q

A property on 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

eminent domain

Eminent domain is the right of the government to acquire privately owned real estate for public use.

45
Q

The new owner of a property installs a fence on the property. By mistake, the fence extends one foot over the lot line onto a neighbor’s property. The fence is an example of

A

an encroachment.

To build over a property line is to encroach on the property of another.

46
Q

What are deed restrictions?

A

Private agreements affecting the use of the land

Deed restrictions are private agreements written into a deed and are privately enforced. Examples of public restrictions include zoning and building codes.

47
Q

State environmental protection laws are examples of

A

police power.

The power to enact legislation to preserve order, protect the public health and safety, and promote the general welfare of citizens is police power.

48
Q

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. That authority is known as a state’s police

A

power.

Every state can enact legislation to preserve order, protect the public health and safety, and promote the general welfare of its citizens by the authority of its police power.

49
Q

Which of the following is NOT a governmental power?

A

Dedication

Governmental powers are police power, escheat, eminent domain, and taxation.

50
Q

Upon the death of the life tenant, the property returned to the grantor. The type of interest held by the grantor in the life estate must have been

A

a reversionary interest.

If the estate returns to the grantor, it is known as a reversionary interest. If the estate goes to another party, that party has a remainder interest.

51
Q

A claim against real property to secure repayment of a debt is

A

a lien

A lien secures payment of an indebtedness.

52
Q

A mortgage or deed of trust recorded against real property to secure the payment of a debt is

A

a lien

A lien secures payment of indebtedness.

53
Q

Government powers include police power, eminent domain, taxation, and

A

escheat.

A governing body is able to enact laws to protect the public’s welfare through its police power, take property for a public use by its right of eminent domain, enact taxes to provide for maintenance of public services, and take over ownership of property when an owner dies and no heir can be found.

54
Q

A state’s authority to enact legislation to preserve order, protect the public health and safety, and promote the general welfare of its citizens can be passed on to municipalities and counties through legislation called

A

enabling acts.

The state’s authority to enact legislation for the common good can be passed on to municipalities and counties by means of enabling acts.

55
Q

Which of the following is a legal life estate?

A

Homestead

Homestead rights are granted by statute in some states to provide some protection to debtors and their families against the execution of judgment liens on their homes by the action of unsecured creditors.

56
Q

A license is an example of

A

a personal privilege

A license is a personal, revocable right of use. It is temporary in that it can be withdrawn at will by the one who issued it.

57
Q

The holder of a right of reentry of real estate (or the holder’s heir or successor) can assert the righ

A

by bringing a legal action in court.

With a fee simple subject to a condition subsequent, the estate does not automatically terminate upon violation of the condition of ownership. The owner (or the owner’s heir or successor) has the right of reentry but must bring a legal action in court to assert the right.

58
Q

An individual’s or company’s interest in or right to use someone else’s land that is not adjacent to or near property of the individual or company is an easement

A

in gross.

Commercial easements in gross may be assigned, conveyed, and inherited. Person easements in gross are usually not assignable and terminate on the death of the easement owner.

59
Q

Condemnation is the process by which the government exercises the right of

A

eminent domain.

Condemnation is the process by which the government exercises the right of eminent domain to take possession of property that will be put to a public use, on payment of just compensation to the owner of the property.