Chapter 10 - Interest in Real Estate - Key Terms

Lien

A claim against a property that provides security for the repayment of a debt or an obligation of the property owner.

Fee simple estate

Absolute ownership of real property; a person has this type of estate where the person is entitled to the entire property with unconditional power of disposition during the person's life and descending to the person's heirs or distributees.

Accession

An addition to property through the efforts of man or by natural forces.

Subordination Agreement

An agreement by the holder of an encumbrance against real property to permit that claim to take an inferior position to other encumbrances against the property.

Easement by Necessity

Exists when a landowner has no access to roads and is landlocked.

Servient Tenement

Land encumbered by an easement.

Easement by Prescription

Obtained by use of the land of another for the legally prescribed length of time.

Tax Rate

The amount of money needed by a municipality to meet budgetary requirements divided by the taxable assessed and nonexempt value of all real property within that jurisdiction.

Erosion

The eating away of a coastline or land by the action of water, ice, and/or wind, or wearing away of a surface by corrosion or traffic.

Alluvium

The gradual increase of earth on a shore of an ocean or bank of a stream resulting from the action of the water.

Accretion

The increasing in land area resulting from the deposit of soil by the natural action of the water.

Littoral Rights

The right of a property owner whose land borders on a body of water, such as a lake, ocean or sea, to reasonable use and enjoyment of the shore and water the property borders on.

Police Power

The right of any political body to enact laws and enforce them, for the order, safety, health, morals and general welfare of the public.

Air Rights

The rights in real property to the reasonable use of the air space above the surface of the land.

Encumbrance

A claim, charge, or liability that attaches to, and is binding on real estate.

Tax Levy

A form of action taken to impose a tax.

Life estate

A freehold estate created for the duration of the life or lives of certain named persons; a non-inheritable estate.

Easement by voluntary grant

A grantor conveys the right to use the grantor's land to a grantee for the purpose of ingress and egress.

Judgment Lien

A legal claim on all of the property of a judgment debtor which enables the judgment creditor to have the property sold for payment of the amount of the judgment.

Homestead

A legal life estate in land that is owned and occupied as a family home.

Involuntary lien

A lien imposed against property without consent of an owner (ex: taxes, special assessments, federal income tax liens, etc.).

General Lien

A lien on all the property of a debtor.

Specific Lien

A lien that attaches to one specific property only.

Remainderman

A person who inherits or is entitled to inherit property upon the termination of the estate of the former owner.

Easement

A right acquired by one party to use the land of another party for a special purpose.

Eminent Domain

A right of the government to acquire property for necessary public use by condemnation; the owner must be fairly compensated.

Easement Appurtenance

A right of use in the adjoining land of another that moves with the title to the property benefiting from the easement.

Easement in Gross

A right of use in the land of another without the requirement that the holder of the right own adjoining land.

Mechanic's Lien

A specific lien that gives security to persons or companies who perform labor or furnish material to improve real property.

Avulsion

A sudden and perceptible loss of land by the action of water as by a sudden change in the course of a river.

Assessed Valuation

A valuation placed upon a piece of property by a public authority as a basis for levying taxes on the property.

Tax Lien

An encumbrance against a property filed by the taxing jurisdiction for delinquency in paying real property taxes.

Freehold Estate

An estate of indeterminable duration, e.g., fee simple or life estate.

Fee simple determinable

An estate that will end automatically when the stated event or condition occurs. The interest will revert to the grantor or the heirs of the grantor.

Estate in Remainder

An estate which vests after the termination of the prior estate.

Fee simple absolute

An inheritable estate in land providing the greatest interest of any form of title.

Voluntary lien

Any lien placed on property with consent of, or as a result of, the voluntary act of the owner.

Alluvion

Increased soil, gravel, or sand on a stream bank resulting from flow or current of the water.

A legal claim on all of the property of a judgment debtor which enables the judgment creditor to have the property sold for payment of the amount of the judgment is known as a...? Mechanic's lien Voluntary lien Judgment lien Tax lien

Judgement lien

Dominant Tenement

Land benefiting from an easement appurtenant.

A specific lien that gives security to persons or companies who perform labor or furnish material to improve real property is known as a...? Judgment lien General lien Mechanic's lien Voluntary lien

Mechanic's lien

Devisor

One who disposes of real property by will.

Mortgage lenders typically require a...? Involuntary lien General lien Tax lien Preferred lien

Preferred lien

Estate in Reversion

Property or estate ownership that reverts back to the grantor after a temporary ownership period.

Condemnation

Taking private property for public use, with fair compensation to the owner; exercising the right of eminent domain.

Reversionary Interest

The interest which a person has in lands or other property, upon the termination of the preceding estate. A future interest.

Priority of Lien

The order in which liens are given legal precedence or preference.

Life Tenant

The owner of a life estate.

Attachment

The process by which real or personal property of a party to a lawsuit is seized and retained for payment of an existing note secured by a mortgage or deed of trust against the property, becoming a co-guarantor for the payment of a mortgage or deed of trust note.

Escheat

The reversion of the State of property in event the owner thereof abandons it or dies, without leaving a will and has no distributes to whom the property may pass by lawful descent.

Riparian Rights

The rights of a landowner or land occupier to use flowing water (such as a river) that is adjacent to the land.

Devisee

One who receives a gift of real property by will.

Restriction

A limitation on the use of real property.

Ground Water

Water under the earth's surface, below the saturation point.