National Ownership

What are the main elements of the Rectangular Survey system?

Longitudes, latitudes, township grids, ranges, tiers, sections, fractions of sections

Name the components of a description using the Recorded Plat method.

Lot number, block identifier, subdivision name, section location, township, county, state.

List the important reasons for creating and maintaining title records.

Maintain chain of title by listing previous owners and encumbrances; avoid ownership disputes; give notice of who owns the property and who has claims against it; reveal the marketability of the title; give notice of liens and establish lien priority.

What are the three phases of land use planning?

Master planning Plan administration Plan implementation—zoning, codes, permits.

No survivorship

- A deceased co-tenant's estate passes by probate to the decedent's heirs and devisees rather than to the other tenants in common. Any number of heirs can share in the ownership of the willed tenancy.

Transfer of interest-

- A joint tenant may transfer his or her interest in the property to an outside party, but only as a tenancy in common interest. Whoever acquires the interest co-owns the property as a tenant in common with the other joint tenants. The remaining joint tenants continue to own an undivided interest in the property, less the new cotenant's share.

Survivorship-

- In most states, joint tenants enjoy rights of survivorship: if a joint tenant dies, all interests and rights pass to the surviving joint tenants free from any claims of creditors or heirs.

Reliction-

- Increase in land due to the receding of water from the shore.

Equal ownership-

- Joint tenants own equal shares in the property, without exception. If there are four co-tenants, each owns 25% of the property. If there are ten co-tenants, each owns 10%.

Unity of ownership-

- Whereas tenants in common hold separate title to their individual interests, joint tenants together hold a single title to the property.

Erosion-

- a gradual loss of land caused by flowing water or the wind; the opposite of accretion.

Avulsion-

- a loss of land by a sudden and large-scale change in water flow (e.g. the ocean washes away the water front during a typhoon, or heavy rains change the flow of a stream). In either event the owner still owns the land underlying the water's previous location.

Resource Recovery Act (1970), the Resource Conservation and Recovery Act (1976), the Comprehensive Environmental Response, Compensation and Liability Act (Superfund, CERCLA) (1980), the Superfund Amendment and Reauthorization Act (1986) -

- addressed disposal of solid and toxic wastes and measures for managing waste. In addition, the Superfund act provided money for hazardous waste disposal and the authority to charge cleanup costs to responsible parties.

Water Quality Improvement Act (1970), the Water Pollution Control Act amendment (1972), the Clean Water Act Amendment (1977) -

- addressed standards to control water pollution and industrial wastes from the standpoints of future prevention, as well as remediation of existing pollution.

Warrant of quiet enjoyment -

- assures that the grantee will not be disturbed by third party title disputes

Warranty forever; warranty of title -

- assures that the grantee will receive good title, and that grantor will assist in defending any claims to the contrary

Warrant of seizen -

- assures that the grantor owns the estate to be conveyed, and has the right to do so

Warrant of further assurance -

- assures that the grantor will assist in clearing any title problems discovered later

Warrant of encumbrances -

- assures that there are no encumbrances on the property except those expressly named

Clean Air Amendment (1970) -

- authorized the EPA to establish air quality standards for industrial land uses, as well as for automobile and airplane emissions.

Lead-based paint ban (1978) and Residential Lead-based Paint Hazard Reduction Act (1992, 1996) -

- banned lead in the manufacture of paint and established disclosure requirements and guidelines for testing and remediation.

National Environmental Policy Act (1969) -

- created the Environmental Protection Agency (EPA) and the Council for Environmental Quality, giving them a mandate to establish environmental standards for land use planning. The act also required environmental impact surveys on large development projects.

State corporate income tax lien -

- filed against corporate property for failure to pay taxes

State intangible tax lien -

- filed for non-payment of taxes on intangible property

State Corporation Franchise Tax Lien -

- filed to ensure collection of fees to do business within a state

Fee simple defeasible

- ownership can continue indefinitely, provided the use of the property conforms to certain stated conditions. The defeasible fee estate is perpetual, provided the usage conforms to stated conditions. The types of fee simple defeasible are determinable and condition subsequent.

Fee simple absolute

- perpetual estate that is not conditioned by stipulated or restricted uses. It may be freely passed on to heirs.

Federal income tax lien -

- placed on a taxpayer's real and personal property for failure to pay income taxes

Warranty against grantor's acts -

- states the assurance of a trustee, acting as grantor on behalf of the owner, that nothing has been done to impair title during the fiduciary period

Alluvion-

- the actual soil, rock and other matter moved by flowing water which results in accretion.

Guardian's deed -

- used by a court-appointed guardian to transfer property of minors, or mentally incompetent persons.

Personal representative's deed -

- used by an executor to convey a decedent's estate; also called an executor's deed.

Partition deed -

- used to convey co-owned property in compliance with a court order resulting from a partition suit; a partition suit terminates an estate when one or more co-owners want to dissolve their relationship and are unable to do so without the assistance of a court.

Sheriff's deed -

- used to convey foreclosed property sold at public auction; usually executed pursuant to court order; Texas statute claims that the party which executes the deed is entitled to a sales fee or commission based on a percentage of the property.

Master deed -

- used to convey land to a condominium developer; accompanied by the condominium declaration when recorded

Tax deed -

- used to convey property sold at a tax sale.

Deed of trust -

- used to convey property to a third party trustee as collateral for a loan; on satisfaction of the loan terms, the trustee uses a reconveyance deed to convey the property back to the borrower.

Deed in trust -

- used to convey property to the trustee of a land trust. Not to be confused with deed of trust.

Patent deed -

- used to transfer government property to private parties.

Which would terminate an easement?

Merger of the two properties

What are the legal tests that determine if an item is a fixture?

Method of annexation (attachment) Adaptability Intention Existence of an agreement

What are two reasons for making land the basis of taxation?

1) The usual stability of land values makes land taxes predictable. 2) The attachment of taxes to land makes enforcement reliable. 3) Land is traditionally related to productivity and wealth; government takes its share

A tax rate of 4% might be expressed in any of the following ways EXCEPT

4 mills

How much time does a seller have to accept a buyer's offer if the offer does not have an expiration date?

A "reasonable" time, or until the expiration date on the offer

What is the difference between a bargain and sale deed and a general warranty deed?

A bargain and sale deed covenants valid title but may not warrant against encumbrances or promise to defend against claims. A general warranty deed is a bargain and sale deed that includes assurances of valid title, no encumbrances, and willingness to defend against all claims.

What is a tax deed?

A conveyance instrument for a property that is sold to enforce a tax lien.

What is a lien?

A creditor's claim

Explain how a datum or benchmark is used to describe the elevation of a property in a legal description.

A datum or benchmark has an established elevation. A property description will state that the property is a number of feet above or below the datum or benchmark.

How are the two types of deed restriction created?

A deed condition is created in the transfer documents. A deed covenant is created by mutual agreement of the owner and others.

What is a "block" in the Lot and Block system of description?

A group of lots in a subdivision

Which is NOT a conveyance clause?

A habanero clause.

What is a judgment lien and how long does it last?

A judgment lien results from a lawsuit. It attaches to real and personal property as a result of a money judgment issued by a court in favor of a creditor. It lasts for ten years, unless the period is extended as provided within the code.

What is a will?

A legal instrument for the voluntary transfer of real estate after death.

How is a license different from a personal easement in gross?

A license may be informal and is revocable at any time. Revocation of a personal easement in gross may require the death of the grantee or express release of the easement by the grantee.

How can the priority order of a junior lien be changed?

A lienor can change the priority of a junior lien by voluntarily agreeing to subordinate, or lower, the lien's position in the hierarchy.

How can a junior lien's priority be changed?

A lienor can voluntarily agree to subordinate its lien to another lien.

How is a life estate different from a fee simple estate?

A life estate is limited in duration to the life of the owner or other named person. When the life tenant dies, the estate passes to the original owner or another named party. The life tenant does not have the right to pass ownership to his or her heirs.

How does a special tax district differ from a permanent tax district?

A local government authority establishes a special tax district to pay for the cost of a specific improvement in a specific area. Special tax districts cease to exist once the costs of the specific project have been paid for, unlike permanent tax districts.

Most liens do not convey ownership. What is the one exception to that rule?

A mortgage lien conveys legal title to the lender.

What is the National Electric Code?

A national standard for the safe installation of electrical wiring and equipment voluntarily adopted by many states and municipalities.

What provision is required in a mortgage to allow a non-judicial foreclosure to force a sale without a foreclosure suit?

A power of sale clause.

Pur Autre Vie

A pur autre vie life estate endures over the lifetime of a third person, after which the property passes from the tenant holder to the original grantor (reversion) or a third party (remainderman).

The grantor of a life estate names a third party to receive the title when the life tenant dies. What will the third party hold?

A remainder estate.

What is the statute of limitations?

A set period of time during which an injured party can rescind a contract

What is a taxing district? Give several examples.

A taxing district is a governmentally-established entity, defined by a geographical boundary, that has the authority to collect taxes for specific purposes. Examples are school districts, library districts, and county bridge and highway departments.

Construction standards for the provision of building accessibility for elderly and disabled persons are mandated by the federal

Americans with Disabilities Act.

If a life tenant purposely damages or misuses a property it is known as what?

An act of waste

Neighbor Fred built a retaining wall that was 2 feet outside his property line. What has Fred created?

An encroachment

Define encroachment and give an example.

An encroachment is the unauthorized, physical intrusion of one owner's real property into that of another. An example would be a driveway extending beyond the lot line onto the neighbor's land.

Bob grants his sister Mary an estate for as long as she lives, but her heirs cannot inherit the estate. What kind of estate is it?

An ordinary life estate

What are some of the apparent advantages of a land trust as a way of owning property?

Anonymity; ease of transfer; ease of use as collateral; potential benefits in treatment of estate on death of beneficiary (grantor).

Describe the main features of the concept of community property.

Applies to legally married spouses; distinguishes between community property and separately-owned property; protects each spouse's ownership of the whole community property while spouses live; preserves half of community property for surviving spouse.

In the Rectangular Survey method, why is it necessary to have guide meridians, standard parallels, and quadrangles?

Because of the curvature of the earth, a rectangle drawn on the earth's surface using longitudinal lines as sides will be narrower on the side farther from the equator than on the side nearer the equator; thus, townships would become smaller and smaller as one moved farther north of the equator. The guide meridians, standard parallels, and quadrangles limit this variance caused by the earth being round.

How are private usage restrictions such as declaration restrictions enforced?

By injunction

Which of the following is NOT a legal property of liens?

Can only exist one at a time against the same property.

Name four common types of zone.

Common zones: residential commercial industrial agricultural public planned unit development (PUD)

What are the primary differences between a condominium and a cooperative as forms of ownership?

Condo owner actually owns real property-- airspace and share in common elements-- while co-op owner owns shares in a corporation and proprietary lease; condo unit can be transferred, encumbered or foreclosed as an entity, while co-op interest cannot be so handled, but only as an interest in the corporation; entire property is endangered by default of co-op shareholder, but only individual unit is endangered by default of a condo owner.

5 Economic Characteristics of Land

D - Demand U - Utility or Usefulness S - Scarcity: sells quickly if available T - Transferability: can be sold, willed, etc. S - Situs: location

Oak Hill subdivision only allows homes over 2,000 sq ft to be built. What is this an example of?

Deed restriction

What do deed restrictions do?

Deed restrictions place limits on how the property may be used.

What responsibilities does a seller's agent have as a result of the Lead-based Paint Act of 1992?

Disclose known lead problems in properties built before 1978; give the buyer or lessee a HUD booklet about lead; provide relevant records.

What is the primary distinction between a freehold estate and a leasehold estate?

Duration of the owner's rights. A leasehold is temporary, even if there is no specific term, while a freehold has an indeterminate duration.

What are the two basic types of easement and what is the difference?

Easement appurtenant -- attaches to the estate and transfers with it unless specifically stated otherwise in the transaction documents Easement in gross -- a personal right to use that does not attach to the grantor's estate.

If a tenant farmer's lease expired, but several months later he is able to go back and harvest the corn crop, the crops would be known as what?

Emblements

What does eminent domain allow a government to do?

Eminent domain allows a government entity to purchase a fee, leasehold, or easement interest in privately owned real property for the public good and for public use, regardless of the owner's desire to sell or otherwise transfer any interest. In exchange for the interest, the government must pay the owner "just compensation."

What are the differences between the two kinds of right of redemption and the right of reinstatement?

Equitable right of redemption gives the borrower the right to pay off loan amounts and reclaim a foreclosed property up until the completion of the foreclosure sale. Statutory right of redemption allows the borrower to pay the debt and reclaim the property for a statutory period which may go beyond the completion of the sale (up to a year, in some states). Statutory right of reinstatement allows the borrower to cure the default and reinstate the loan during a statutory period before the law suit is concluded.

Which of the following is a role of state government in land use regulation?

Establishment of real estate license laws

A lease agreement was signed for 8 months by the lessor and the lessee. What kind of lease is this?

Estate for years

Which type of leasehold estate is commonly referred to as a periodic tenancy?

Estate from period to period.

Give some examples of materials that are regulated as being harmful to air quality.

Examples are: asbestos, carbon monoxide, formaldehyde, lead, mold, radon

Give some examples of materials that are regulated as being harmful to soil and water quality.

Examples are: dioxins, lead, mercury, MTBE, PCB.

Describe the kinds of interests regulated at each level of government.

Federal: broad standards of usage, natural disaster, environment, discrimination, land description, lending State: licensing, regional usage, ownership and inheritance Local: specific land use control, taxation Judicial: case law and common law applications to ownership and use

In what kind of estate does ownership revert to the grantor of the estate if usage fails to conform to a stated condition in the grant?

Fee simple defeasible

What is the highest form of ownership interest one can acquire in real estate and why?

Fee simple estate. It includes the complete bundle of rights, and the tenancy is unlimited.

Of the following types of deeds, which provides the grantee with the best assurance of title?

General warranty

Which of the following is TRUE of a nuncupative will?

Generally, it is not valid for the transfer of real property.

What is a mechanic's lien?

If a property owner fails to pay for work performed or materials supplied, a worker or supplier can file a mechanic's lien to force the sale of the property and collect the debt.

Partition suit

If other co-owners will not buy the interests of a co-owner who wants to sell out, and no-one can be found to buy the shares, an individual shareholder co-owner can request that the courts sell either his/her share (seek an equitable distribution) or the whole property.

Discuss how the right of possession determines what kind of estate or interest a party has in real estate.

If the interest-holder enjoys the right of possession, the estate is an estate in land. If the interest-holder does not have the right of possession the interest is an encumbrance in the case of a private interest-holder, or some form of public interest in the case of a non-private (i.e., governmental) interest-holder.

Which of the following is NOT an economic characteristic of land?

Immobility

What happens to Joe's real estate in your state if Joe dies leaving: a) a wife, children, and a will; b) a wife and children, but no will; c) no legal heirs, and no will?

In general, a) after all claims have been satisfied (including those of legal life estates), the estate goes to the heirs according to the will; b) after all claims have been satisfied (including life estates), the estate goes to the heirs according to the state's laws of descent and distribution; c) after all claims have been satisfied (here, there can be no life estate), the estate goes to the state by escheat.

Which of the following tax liens is a junior lien?

Income tax lien

In a condominium ownership, who owns the individual condo units?

Individual owners

What is the purpose of an equalization factor in ad valorem taxation?

It adjusts assessments in a locality to make them more consistent with an average level for the state or other higher-level jurisdiction.

What is the function of a deed in lieu of foreclosure?

It avoids foreclosure by transferring legal title to the mortgagee.

What is the purpose of a deficiency judgment?

It enables a lienor to attach the personal and real property of a lienee when the foreclosure sale has not produced enough funds to pay what the lienor is owed.

Which of the following is TRUE of a successful eminent domain proceeding?

It extinguishes leases, liens, and other encumbrances on the property taken.

Which of the following best describes actual notice?

It is knowledge received or imparted through direct experience.

No unity of time

It is not necessary for tenants in common to acquire their interests at the same time. A new co-tenant may enter into a pre-existing tenancy in common.

Which of the following is the distinguishing characteristic of a special warranty deed?

It makes warranties only for the time the property was owned by the grantor.

What is a unique characteristic of a special assessment tax?

It only applies to properties that will benefit from the public improvement.

When a tenant in common dies, what happens to the tenant's interest in the estate?

It passes by probate to the deceased tenant's heirs.

What happens to the title to a foreclosed property in a strict foreclosure?

It transfers immediately to the lienholder.

What are the basic differences between the three types of foreclosure?

Judicial foreclosure: sale under court supervision Non-judicial foreclosure: sale without court supervision Strict foreclosure: no sale; immediate transfer to lienholder.

Immobility

Land is immobile since a parcel of land cannot be moved from one site to another. In other words, the geographical location of a tract of land is fixed and cannot be changed. One can transport portions of the land such as mined coal, dirt, or cut plants. However, as soon as such elements are detached from the land they are no longer considered land.

Indestructibility

Land is indestructible in the sense that one would have to remove a segment of the planet all the way to the core in order to destroy it. Even then, the portion extending upward to infinity would remain. For the same reason, land is considered to be permanent.

Heterogeneity

Land is non-homogeneous since no two parcels of land are exactly the same. Admittedly, two adjacent parcels may be very similar and have the same economic value. However, they are inherently different because each parcel has a unique location

Give an example of a legal and illegal nonconforming use.

Legal: A motel is situated in a residential area that no longer allows commercial activity. The zoning board rules that the motel may continue to operate until it is sold, destroyed or used for any other commercial purpose. Illegal: That same motel is sold, and the new owner continues to operate the property as a motel.

A homeowner wants to give a neighbor seasonal permission to cross her yard to reach a public basketball court. What kind of lien or encumbrance should she use?

License

What basically happens in a foreclosure?

Lienors force a property owner to give up title. This may involve either the lienors' forcing the owner to sell and pay off the creditors, or taking title directly.

Which of the following statements about liens is FALSE?

Liens always convey ownership.

What is the difference between littoral rights and riparian rights?

Littoral rights concern properties that border bodies of water that are not moving.Riparian rights concern properties that border moving water such as streams and rivers.

What do subdivision regulations usually cover?

Location, grading, surfacing, alignment and widths of streets and highways Sewer and water main installation Minimum dimensions of property lots Setback lines for structures Areas reserved for public use, such as parks and schools Public utility easements

Can an oral contract between a buyer and a seller to transfer real estate be enforced?

No, real estate sales contracts must be in writing.

When does a testamentary trust take effect?

On the death of the grantor.

How many owners can there be in a tenancy in severalty?

One

Why is "notice" important in determining who holds title to real estate?

Ownership is a function of evidence. The best evidence is a combination of actual and constructive notice. Actual = direct knowledge; constructive = "could-have-should-have-known" knowledge (especially, public records).

Which best describes ownership in severalty?

Ownership of a property by one person

Larry, Moe and Curly own an investment property as tenants in common. Because of a recent business disagreement, Curly wants to divest himself of the property. If the three owners cannot mutually agree on a plan to settle the matter, Curly may seek an equitable distribution of the property by filing what?

Partition suit

Which of the following actions is an expression of the public interest known as police power?

Passage of zoning ordinances to control land use

What are a tenant's primary obligations when leasing a property?

Pay the rent on time. Maintain the property's condition. Comply with the rules and regulations of the building.

How is a lien terminated?

Payment of the debt that is the subject of the lien and recording of the satisfaction

What is the primary criterion for determining whether an item is real or personal property?

Permanent (or otherwise) attachment to the land.

Which of the following is considered to be real property?

Permanent fixtures.

Which is the most common type of framing for residential construction?

Platform

List at least three goals of land use control.

Preserve property values Promote highest and best use Balance property rights with public good Control growth Involve community in planning process.

Why is it necessary for a complete legal description to include the county and state?

Principal meridians and base parallels extend through more than one county and state; naming the county and state in the description provides extra protection against misreading a description as applying to two different properties.

What happens to the sale proceeds in a judicial sale?

Proceeds are used to pay 1) costs of the sale; 2) special assessment and ad valorem taxes; 3) first mortgage; 4) other mortgages and liens in order of recording; 5) remainder to the borrower.

What are riparian rights concerned with?

Properties adjacent to flowing bodies of water.

The Recorded Plat method is used to describe what?

Properties in residential, commercial, and industrial subdivisions.

Which of the following is a benefit to the local taxing authorities to taxing property?

Property tax revenue is predictable.

Name some of the primary uses of legal descriptions.

Public recording, creating deeds and leases, mortgage documents, other legal documents

Which of the following areas in the Rectangular Survey System run north and south?

Range

Which of the following is a simple definition of real estate?

Real estate is that it is air, water, land, and everything affixed to the land.

What type of lien takes priority over all other liens?

Real property tax lien

What are the two forms of owner's title insurance?

Standard and Extended

Give a simple description of the Metes and Bounds method of description.

Starting at a point of beginning, it traces an enclosed space by following measured lines around an area and returning to the point of beginning.

Which of these types of wire would probably not be found in a residence?

Steel wire

Which type of foreclosure involves a court-ordered transfer of the mortgaged property to the lender?

Strict

In wood framing, what are the members called that frame the structure?

Studs

Which of the following is included in surface rights?

Surface water rights

Which of the following is NOT a feature of a living trust?

Takes effect when the trustor dies

Tax Rate (Millage Rate) =

Tax Requirements / Tax Base

What are the primary differences between tenancy by the entireties and joint tenancy?

Tenancy by the entireties requires co-owners to be married; tenancy by the entireties can have only two owners; a tenant by the entireties cannot convey his or her interest separately to an outside party.

Electable ownership shares

Tenants in common determine among themselves what share of the estate each party will own. For example, three co-tenants may own 40%, 35%, and 25% interests in a property, respectively. In the absence of stated ownership shares, it is assumed that each has a share equal to that of the others.

What guarantees the right of individual land ownership?

The United States Constitution

What are the conditions necessary for an involuntary transfer by adverse possession to occur?

The adverse possessor must show: a claim of right; possession without concealment; possession without consent; possession for a statutory period; possibly, payment of taxes.

What is a tax levy?

The amount of money the municipality must raise through the property tax.

What dictates the minimum and maximum pressures allowed for plumbing fixtures?

The building codes

Ownership of which of the following is used to define an "interest in real estate?"

The bundle of rights

A buyer has signed a contract to purchase a property but is uncertain of the condition of the title. Who is legally responsible for knowing the condition of the title?

The buyer

Give some examples of when one might own equitable title rather than legal title.

The buyer, during the period of contract contingency; a mortgagee who has the right to execute a strict foreclosure of the mortgage property (in a lien-theory state); a mortgagor (borrower) in a title-theory state; the buyer under a contract for deed purchase until the contract is fulfilled; the holder of an option to buy.

What date is used to establish lien priority for a mechanic's lien?

The date of beginning or ending the mechanic's work, per state law

What is the function of a deed?

The deed is a transaction document, not an ownership document. It conveys title, when properly delivered and accepted (and registered, in Torrens counties), then ceases to have any transfer function except as evidence that a conveyance occurred, and as evidence of the warrants the conveyor made.

Describe the main differences between deeded time-share ownership and vacation interval ownership as forms of ownership.

The deeded time-share owner owns real property; the interval owner owns personal property; the deeded owner acquires the rights to use (a unit at a specific time), rent, sell, exchange or bequeath the interest; the interval acquires a right-to-use (no particular unit, at a specific time) and may have other rights to sell, exchange, etc., if allowed by the resort owner.

Who decides how title to real estate will be held?

The grantee or buyer decides. The seller decides the type of estate transferred.

Who has the burden of proof for an assessment change when a homeowner appeals an assessment?

The homeowner

In a condominium, who is responsible for maintaining the internal systems of an individual unit?

The individual unit owner

Why are insurance policies called "aleatory" contracts?

The insurer performs the promised action only if a specified chance event occurs

How does a legal life estate differ from a conventional life estate?

The legal life estate is created by statute while the conventional life estate is created by a grant.

What power does a lender have if a mortgagor defaults in a state that allows non-judicial foreclosure and the mortgage document includes a "power of sale" clause?

The lender can give the borrower notice of the default and a chance to cure it, after which the lender may auction the property.

What factors determine lien priority?

The lien's categorization as superior or juniorThe date the lien was recorded

What is a common example of an easement by necessity?

The need for access to a property so that it is not landlocked.

What is the policy of concurrency?

The policy requires subdivision developers, at the same time as they are developing their projects, to make improvements that will minimize the negative impact of the project on municipal infrastructure.

What are the primary differences between tenancy in severalty and co-ownership?

The primary difference is the number of owners—one vs. two or more. Secondarily, the treatment of the estate on the death of an owner. In a severalty, the estate passes to heirs by probate. In a co-ownership, the estate may pass to heirs (tenancy in common) or to surviving co-owners (joint tenancy, tenancy by the entireties, tenancy in partnership) or to a combination (community property).

What is "escheat?"

The process by which ownership of real estate reverts to the state when there are no legal owners.

What are the essential characteristics of fee simple defeasible estates?

The property must be used for a certain purpose or under certain conditions. If the use changes or if prohibited conditions are present, the estate reverts to the previous grantor of the estate.

What conditions are necessary for a special exception to a zoning regulation?

The requested use must be beneficial or essential to the public welfare and may not materially impair other uses in the zone.

Define the "right to use" and describe its limitations.

The right to use a property refers to the right to use it in certain ways, such as mining, cultivating, landscaping and building on the property. The right is subject to the limitations of local zoning and the legality of the use. One's right to use may not infringe on the rights of others to use and enjoy their property.

Who owns the land under a navigable river?

The state.

A commercial tenant installed some ice cream coolers to sell ice cream. Which of the following statements best describes what happens to the coolers upon the expiration of the lease?

The tenant would be able to take the coolers prior to the expiration of the lease since they were trade fixtures that were installed by the tenant.

Which of the following is TRUE of a joint tenancy?

The tenants have an equal and indivisible ownership interest.

What is the primary consequence if a property use violates a zoning ordinance?

The title becomes unmarketable.

What is unregulated property use likely to jeopardize?

The value of properties within an area.

Al offered seller Tim $60,000 for a parcel of land, but Tim never responded to Al's offer. Two weeks later Tim sold the land for $58,000 to an out-of-state buyer. Neighbor Al has sued for breach of contract. What can be said about Al's actions?

There is no contract unless both parties have an agreement.

Which of the following statements about restrictive covenants is TRUE?

They take priority over less restrictive zoning ordinances

How many sections are there in a township, and what are their dimensions?

Thirty-six sections of one mile in length.

What is the Doctrine of Laches?

This doctrine states that if a property owner is lax in protecting his or her rights, the property owner may lose those rights.

What are the primary differences between tenancy in common and joint tenancy?

Title-- only one title in a joint tenancy, multiple titles in tenancy in common; ownership share-- equal shares in joint tenancy, electable in tenancy in common; transferability-- tenant in common may sell, encumber, etc., his or her share, but joint tenant's interest becomes a tenancy in common interest if sold; survivorship-- joint tenant's interest goes to other joint tenants on death, but tenant in common's interest goes to heirs; creation-- joint tenancy requires the four unities, otherwise a tenancy in common results.

What is the role of local tax districts?

To collect property taxes.

Why do taxing entities sometimes use an equalization process when assessing properties?

To level out the unevenness of valuations from one area to another

What is the purpose of Planned Unit Development zoning?

To promote an efficient land use design that maximizes open space when whole tracts are developed

Which of the following is NOT part of the bundle of rights?

To steal property.

Why do communities care about growth trends?

Too much growth of the wrong type or in the wrong place can overwhelm services and infrastructure.

Which would NOT be considered real property?

Trade fixtures

How are easements created?

Voluntary Action Necessity Prescriptive Operation of Law Grant or Reservation Implication Government Power of Eminent Domain (Condemnation)

How long after default does the foreclosure process begin?

Whatever length the lender customarily uses

Which best describes a tenancy at sufferance?

When the tenant stays beyond her lease without consent.

Define "undivided interest" in real estate.

When two or more owners share ownership, the interest of an individual owner is undivided and indivisible in the sense that it pertains to a fractional part of the entire estate, not to a physical portion of the real property.

What primarily distinguishes freehold estates from leasehold estates?

Whether an estate in land is a freehold or leasehold estate depends on the length of time the holder may enjoy the right to possess the estate, the relationship of parties owning the estate, and specific interests held in the estate. The duration of the owner's rights in a freehold cannot be determined: they may last for a lifetime, for less than a lifetime or for generations beyond the owner's lifetime. In a leasehold, they have a specific duration, as represented by the lease term.

The fee simple freehold estate is called the highest form of ownership interest, even though a fee simple defeasible carries some restriction on usage. Why are other estates less desirable?

With all other estates in land-- life, leasehold-- the holder of the estate cannot control what happens to the estate in the future. The life estate reverts or is remaindered; the leasehold terminates when the lease expires.

Where does a property owner file an assessment complaint?

With either the assessor or the board of assessment review.

Describe the four types of will.

Witnessed—written, two witnesses; holographic-handwritten or typed, signed by testator; approved-on a pre-printed form approved by the state; nuncupative-written by a witness from testator's oral statement; generally not valid for real estate transfer.

One difference between a condition and a covenant is that

a condition can be created only when there is a transfer of ownership.

In a strict foreclosure,

a lender takes title to the liened property directly.

Foreclosure is

a proceeding to enforce a lien by forcing sale or transfer of a secured property.

A taxpayer may redeem a foreclosed property after a tax sale if there is

a statutory right of redemption.

The right of a property owner to redeem his or her property after a tax sale is called

a statutory right of redemption.

An "improvement" is

a structure intended as a permanent attachment to the land.

Describe the four principal forms of title evidence.

a. Torrens certificate—a type of title certificate that also acts as a deed of conveyance; title and encumbrances are recorded on the certificate. b. title insurance policy—an insurance policy indemnifying the policy holder against losses from title defects; the insurer's "guaranty." c. attorney's opinion of abstract—a written statement from an attorney stating an opinion of marketability based on examination of the title abstract. d. title certificate—a statement of the condition of title as of the date of the certificate.

The first step in a judicial foreclosure is

acceleration of the loan.

Ventilation air is the air used for providing

acceptable indoor air quality.

The right to build a taller structure on top of an existing structure is an example of

air rights.

All property in the United States is owned under the

allodial system.

The system of ownership that allows individuals to own property is called

allodial.

If a tenant occupies a leased property without the consent of the landlord after a lease expires, the type of estate that results is called

an estate at sufferance.

Accretion

an increase of land created by deposits of soil by the natural flow of water.

An encumbrance is most broadly defined as

another's interest in a real property that limits the interests of the freehold property owner.

tax base =

assessed values - exemptions

A bilateral contract is one in which

both parties promise to do something in exchange for the other party's performance.

If a state allows for a cooling-period rescission in the contracting process, a party may

cancel a contract within a statutory period for any reason with no penalty.

The National Environmental Policy Act of 1969 requires developers of large projects to

conduct an environmental impact survey.

A contract that conveys an interest in real estate must

contain a legal description of the property.

The level of government that actually levies real estate taxes is the

county and local.

A lien is a

creditor's claim against property as security for a debt of the property owner.

Other than its categorization as inferior or superior, a lien's priority is generally determined by the

date of recordation.

The two documents that create a condominium are the

declaration and master deed.

The "bundle of rights" refers to a set of rights

enjoyed by the owner of a property.

Once a transaction closes, a contract is said to be

executed.

In calculating the tax base of an area,

exemptions are subtracted from assessed values.

Time-share "ownership" is

fee or leasehold ownership.

If an estate includes the complete bundle of rights and unlimited duration of tenancy, it is a

fee simple estate.

Included in the definition of "real estate" are

fences and roads on a parcel of land.

"Real estate" includes such things as

fences, sidewalks, and piers on a parcel of land.

A property is secured by a mortgage that does not contain a "power of sale" clause. To foreclose, the lien holder will have to

file a foreclosure suit.

The type of deed that offers the grantee the fullest protection against claims to the title is the

general warranty deed.

Deed restrictions generally concern

how a property may be used and what structures may be built on it.

In a sale transaction, all fixtures are

included in the sale unless named as exceptions.

A person sells a summer cottage appraised at $100,000 to a stranger for $50,000. The seller's family wants to challenge the validity of the sale contract. The most apparent weakness of the contract that they might be able to attack is the

insufficiency of the consideration exchanged for the property.

Adverse possession is a form of

involuntary title transfer.

A legal Rectangular Survey system description is not suitable if the property

is irregular in shape.

By definition, personal property

is ownership of anything that is not real estate.

A property may escheat to the state or county if

it is abandoned for a period prescribed by law.

A parcel's street address is an insufficient legal description because

it lacks permanence and sufficient data for a surveyor to locate it.

A kind of trust that can only be used with real property is the

land trust.

In general terms, a person who possesses the complete bundle of rights to a property owns

legal title.

Unlike a determinable estate, the grantor of a condition subsequent estate

may repossess the property within a limited time frame if restrictions are violated.

If a subdivision has a restrictive covenant, it

must be adhered to by all subdivision owners.

An adhesion contract

offers one party only the option of accepting or rejecting the contract.

special-purpose deed

one tailored to the requirements of specific parties, properties, and purposes.

A property owner has the right to transfer water rights

only if there are water rights attached to the property.

One of the conditions an adverse possessor must meet in order to obtain legal title to a property is

openly possessing and claiming the property without the owner's consent.

Bob can grant his sister Mary an estate for as long as she lives without the right to pass it to heirs by granting a(n)

ordinary life estate.

Personal property

ownership of anything that is not real estate, and the rights associated with owning the personal property item. Items of personal property are also called chattels or personalty. Chattels are transferred by means of a bill of sale. The Uniform Commercial Code regulates the transfer of chattels and the use of chattels as security for debts.

Real property

ownership of real estate and the bundle of rights associated with owning the real estate.

A general lien is a lien

placed against any and all property owned by an individual.

Name the five major rights included in the bundle of rights to real estate.

possess use transfer encumber exclude

Encumbrances are examples of

private interests.

The owner of a cooperative owns a(n)

proprietary lease.

To qualify for a homestead exemption, a property owner generally must

reside on the property.

One limitation on deed restrictions is that they may not

restrict ownership on the basis of race or religion.

A condominium owner can

sell or mortgage the condominium unit without hindrance from individual owners of neighboring units.

Real property can be converted into personal property through the process of

severance.

As part of the assessment process, taxing entities sometimes use an equalization process to

smooth out wide discrepancies of assessed values within the district.

A lien holder can change the priority of a junior lien by agreeing to

subordinate the lien.

The Environmental Protection Agency was created by

the National environmental Policy Act.

A special assessment creates a voluntary tax lien if

the affected property owners have requested the improvement.

Name the aspects of real property interests that are regulated by the government.

the bundle of rights legal descriptions financing insurance inheritance taxation

The first item to be paid out of foreclosure funds is

the costs of Sale - advertising, attorney fees, trustee fees, etc.

One of the major considerations in planning where to allow growth is

the effect of development on traffic patterns.

The part of the foundation that transmits loads directly to the soil is called

the footing.

The distinguishing feature of a condition subsequent estate is

the grantor must retake possession within a certain time frame if the grantee violates a restriction.

The owner of a condominium unit is responsible for maintaining

the internal systems of the unit.

The period of delinquency allowed before a lender begins foreclosure proceedings is determined by

the lender.

Private land use control is primarily exerted by

the owner of the controlled property via deed restrictions.

Even though it is attached to a structure, an item may be considered personal property rather than real property if

the owner originally intended to remove it after a period of time.

An implied contract may be deemed to exist if

the parties act as if there is a contract.

The level of government that is the primary regulator of the real estate business is

the state.

The legal description of a recorded plat is incomplete if it lacks

the subdivision's location in a section and township.

A full legal description in a recorded plat must include

the subdivision's location within a section, a township, a county, and a state.

In contrast to a tenancy in common, in a joint tenancy

there is a single title to the property.

The purpose of a homestead tax exemption is

to offer some amount of tax relief on an owner's principal residence.

Legal title to an estate in trust is held by the

trustee.

A range is defined by

two consecutive meridians.

The right to encumber a property means that the owner can

use the property as collateral for debt.

Leakage of underground storage tanks is a source of

water and soil pollution.

All of the following are guidelines usually provided by a state's Department of Health for the location of wells EXCEPT

well must not be located where the water table is less than 10 feet below the surface.

The question of who owns title to a property is generally a function of

who has the best evidence of ownership.