Chapter 10 - Interest in Real Estate
Pur Autre Vie
"For the life of another." A life estate that is measured by the life of a person other than the grantee. Ex: A person can have a property as long as they are caring for another person in the house. When the person dies, they no longer have the right.
If a property is assessed at $100,000, what would be the amount of taxes owed assuming a tax rate of $1.50 per 100 dollars of value...?
$1,500
In Texas, what is the limitation on homesteads in urban areas...?
10 acres
In Texas, what is the limitation on homesteads of a family in rural areas...
200 acres for a family (100 for an individual)
Lien
A claim against a property that provides security for the repayment of a debt or an obligation of the property owner.
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. Gives a creditor the right to take possession of a debtor's property if the debtor fails to fulfill his or her contractual obligations
General Lien
A lien on all the property of a debtor. (Ex: Judgements)
Specific Lien
A lien that attaches to one specific property only. (Ex: Mortgage)
Restriction
A limitation on the use of real property.
Remainderman
A person who inherits or is entitled to inherit property upon the termination of the estate of the former owner. Ex: When the grantee of a life estate dies, it goes back to this person.
Easement in Gross
A right of use in the land of another without the requirement that the holder of the right own adjoining land.
Assessed Valuation
A valuation placed upon a piece of property by a public authority as a basis for levying taxes on the property.
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.
An addition to property through the efforts of man or by natural forces is known as...? Accretion Accession Erosion Avulsion
Accession
The increasing in land area resulting from the deposit of soil by the natural action of the water is known as...? Accretion Avulsion Erosion Accession
Accretion
Which of the following is an example of a taxing entity...? Water districts Hospital districts School districts All of the above
All of the above
Real property ownership rights in the United States are based on this legal system...? Feudal system Allodial system Spanish system European system
Allodial system
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. Switching priorities of liens.
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.
Deed Restrictions (Restrictive Covenants)
Clauses in a deed limiting the future uses of the property.
The taking of private property for public use, with fair compensation to the owner is known as...? Escheat Novation Condemnation Police Power
Condemnation
Homestead rights can be terminated by
Death, selling of property, abandonment
Restrictive covenants are typically found in which of the following documents...?
Deed
The land benefiting from an easement is referred to as the...? Devisee Dominant tenement Devisor Servient tenement
Dominant tenement
This type of easement exists when a landowner has no access to roads and is landlocked...?
Easement by necessity
A right of the government to acquire property for necessary public use by condemnation is known as...? Escheat Police Power Eminent Domain Novation
Eminent Domain
A claim, charge, or liability that attaches to, and is binding on real estate is known as a...? Prescription Rescission Encumbrance Novation
Encumbrance
Easement by Necessity
Exists when a landowner has no access to roads and is landlocked.
An inheritable estate in land providing the greatest interest of any form of title is known as a/an...? Leasehold estate Estate in Remainder Fee simple absolute Fee simple determinable
Fee simple absolute
Absolute ownership of real property is considered this type of estate...? Leasehold estate Land Estate Fee simple estate Estate in reversion
Fee simple estate
A fee simple estate is an example of which of the following estates...?
Freehold Estate
A legal life estate in land that is owned and occupied as a family home is known as a...?
Homestead
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
Judgment lien
Dominant Tenement
Land benefiting from an easement appurtenant. (Beneficiary of easement)
A claim against a property that provides security for the repayment of a debt or an obligation of the property owner is known as a/an...?
Lien
Taxation
Money raised to provide services for the common good of the community/country
When the government exercises its power of eminent domain, the owner...? Will not be compensated Must be fairly compensated Will not be notified Must forfeit the property within 14 days
Must be fairly compensated
Easement by Prescription
Obtained by use of the land of another for the legally prescribed length of time.
Devisor
One who disposes of real property by will.
Devisee
One who receives a gift of real property by will.
Which of the following acronyms can be used to describe government powers with regards to real property...? RESPA CATTL OLD CAR PETE
PETE
Building codes are an example of...? Police Power Novation Escheat Eminent Domain
Police Power
P.E.T.E: 4 Primary government powers exercised over real estate.
Police Power, Eminent Domain, Taxation, Escheat
Mortgage lenders typically require a...?
Preferred lien
The order in which liens are given legal precedence or preference is known as...? Assessment of liens Lien ladder Rank of liens Priority of liens
Priority of liens
The land that is encumbered by an easement is referred to as the...? Servient tenement Devisee Dominant tenement Devisor
Servient tenement
A lien that attaches to one specific property only is referred to as a...? General lien Universal lien Specific lien Special lien
Specific lien
Enabling Acts
State legislation that confers zoning powers on municipal governments.
Condemnation
Taking private property for public use, with fair compensation to the owner; exercising the right of eminent domain.
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 is known as the...?
Tax rate
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. The land created by accretion.
Accretion
The increasing in land area resulting from the deposit of soil by the natural action of the water. (Opposite of erosion).
Priority of Lien
The order in which liens are given legal precedence or preference.
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.
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.
Riparian Rights (Rivers and streams)
The rights of a landowner or land occupier to use flowing water (such as a river) that is adjacent to the land.
Any lien placed on property with consent of, or as a result of, the voluntary act of the owner is referred to as a/an...?
Voluntary lien
Which of the following acronyms describes the various ways a lien can be created...?
voluntary, involuntary, statutory, equitable VISE
Tax Levy
A form of action taken to impose a tax.
The gradual increase of earth on a shore of an ocean or bank of a stream resulting from the action of the water is known as...? Accretion Erosion Avulsion Alluvium
Alluvium
Estate in Remainder
An estate which vests after the termination of the prior estate.
An estate of indeterminable duration is known as a...? Leasehold Estate Freehold Estate Land Estate All of the above
Freehold Estate
A lien on all the property of a debtor is referred to as a...? Specific lien General lien Universal lien Special lien
General lien
Alluvion
Increased soil, gravel, or sand on a stream bank resulting from flow or current of the water. (Opposite of avulsion)
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
A limitation on the use of real property is known as a...?
Restriction
A form of action taken to impose a tax is known as a...? Tax lien Tax proposal Tax levy Eminent domain
Tax levy
Exemptions to Protections Offered by Way of Homestead
Taxes owed on property, mortgages, liens, HOA liens, owelty liens, home equity loans, reverse mortgages, conversion and refinance of a personal property lien secured by manufactured home to a lien on real property.
Life Tenant
The owner of a life estate.
Ground Water
Water under the earth's surface, below the saturation point.
Encumbrance
A claim, charge, or liability that attaches to, and is binding on real estate. A right in the property held by someone who does not own the property. (Includes liens and other encumbrances: easements, restrictions, encroachment, etc.)
Deed of Trust
A deed to real property, which serves the same purpose as a mortgage, involving three parties instead of two. The third party holds naked title for the benefit of the lender. Beneficiary (Lender), Trustor (Borrower), Trustee (Third Party)
Life estate
A freehold estate created for the duration of the life or lives of certain named persons; a non-inheritable estate. When the grantee dies, the rights go back to the grantor or their descendants. Has two subsections: Ordinary with remainder or reversion & pur autre vie
Homestead
A legal life estate in land that is owned and occupied as a family home.
Statutory Lien
A lien by statutory law, (legislation) - taxes, judgments, etc
Involuntary lien
A lien imposed against property without consent of an owner (ex: taxes, special assessments, federal income tax liens, etc.). (Includes statutory and equitable)
Easement
A right acquired by one party to use the land of another party for a special purpose. (No ownership rights just usage)
Eminent Domain
A right of the government to acquire property for necessary public use by condemnation; the owner must be fairly compensated.
Easement Appurtenant
A right of use that continues from owner to owner that involves a relationship between two parcels of land: a dominant parcel that benefits from a servient parcel
Mechanic's Lien
A specific lien that gives security to persons or companies who perform labor or furnish material to improve real property. Typically used by subcontractors and suppliers when they haven't received payment for improvements they made to a property. They are a way to seek payment for the work done remodeling or improving a home.
Avulsion
A sudden and perceptible loss of land by the action of water as by a sudden change in the course of a river.
Remainder interest (Type of Future Interest)
A third party who has a future ownership interest in property after another heir dies. Non possessory estate: Not entitled to possession
power-of-sale provision
A trust deed provision authorizing the trustee to initiate a non-judicial foreclosure sale of the described property on instructions from the beneficiary. Not conducted by court.
Defeasible Fee Estate (Fee Simple Defeasible)
An estate that can be either partially or fully defeated (lost) at some future time. Includes Fee Simple Determinable aka Fee Simple Condition Precedent (Ends automatically) & Fee Simple Subject to a Condition Subsequent (Grantor must go to court to assert right of reentry)
Fee simple absolute (aka "fee simple" or "fee")
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. (Mortgage)
Texas Homestead Right
Constitutional protection from having homestead property sold to satisfy a debt. (Exemptions above)
Servient Tenement
Land encumbered by an easement. (Land being used)
A freehold estate created for the duration of the life, or lives, of certain named persons is known as a...? Life estate Leasehold estate Fee simple estate Land estate
Life estate
Estate in Reversion
Property or estate ownership that reverts back to the grantor after a temporary ownership period.
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.
Reversionary Interest (Type of Future Interest)
The interest which a person has in lands or other property, upon the termination of the preceding estate. Ownership goes back to grantor (or descendants) when grantee dies.
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. Prevents a debtor selling a property while a court suite is being decided.
Littoral Rights (Lands, Lakes, Oceans)
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. In TX, owners of land have rights to use water up to mean vegetation line.
Air Rights
The rights in real property to the reasonable use of the air space above the surface of the land.