Chapter 10 - Interest in Real Estate

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...? $150 $1,500 $15,000 $100,000

$1,500

In Texas, what is the limitation on homesteads in urban areas...? 10 acres 15 acres 50 acres 100 acres

10 acres

In Texas, what is the limitation on homesteads of a family in rural areas...? 10 acres 50 acres 100 acres 200 acres

200 acres

Lien

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

Remainderman

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

Assessed Valuation

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

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

Accession

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

The taking of private property for public use, with fair compensation to the owner is known as...? Escheat Novation Condemnation Police Power

Condemnation

Servient Tenement

Land encumbered by an easement.

A lien that attaches to one specific property only is referred to as a...? General lien Universal lien Specific lien Special lien

Specific lien

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.

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.

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.

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.

Specific Lien

A lien that attaches to one specific property only.

Tax Lien

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

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...? Easement Grant Prescription Lien

Lien

Devisee

One who receives a gift of real property by will.

Life Tenant

The owner of a life estate.

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.

General Lien

A lien on all the property of a debtor.

Voluntary lien

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

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

Priority of Lien

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

Tax Levy

A form of action taken to impose a tax.

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.

Restrictive covenants are typically found in which of the following documents...? Mortgage Plot map Deed All of the above

Deed

A lien on all the property of a debtor is referred to as a...? Specific lien General lien Universal lien Special lien

General lien

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

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.

Condemnation

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

Accretion

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

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.

Riparian Rights

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

Life estate

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

Restriction

A limitation on the use of real 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.

Fee simple absolute

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

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 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 levy Yield rate Cap rate Tax rate

Tax rate

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

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

Judgment lien

Dominant Tenement

Land benefiting from an easement appurtenant.

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.).

Freehold Estate

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

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 Easement appurtenance Easement in gross Easement by prescription

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

Absolute ownership of real property is considered this type of estate...? Leasehold estate Land Estate Fee simple estate Estate in reversion

Fee simple estate

An estate of indeterminable duration is known as a...? Leasehold Estate Freehold Estate Land Estate All of the above

Freehold Estate

A legal life estate in land that is owned and occupied as a family home is known as a...? Easement Reversionary interest Homestead Fee simple determinable

Homestead

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

Which of the following acronyms can be used to describe government powers with regards to real property...? RESPA CATTL OLD CAR PETE

PETE

Estate in Reversion

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

A limitation on the use of real property is known as a...? Restriction Prescription Rescission Novation

Restriction

The land that is encumbered by an easement is referred to as the...? Servient tenement Devisee Dominant tenement Devisor

Servient tenement

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.

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 Involuntary lien Subordinate lien Owner lien

Voluntary lien

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.

An addition to property through the efforts of man or by natural forces is known as...? Accretion Accession Erosion Avulsion

Accession

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

Building codes are an example of...? Police Power Novation Escheat Eminent Domain

Police Power

A form of action taken to impose a tax is known as a...? Tax lien Tax proposal Tax levy Eminent domain

Tax levy

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.

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

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.

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.

A fee simple estate is an example of which of the following estates...? Freehold Estate Leasehold Estate All of the above Land Estate

Freehold Estate

P.E.T.E

Police Power, Eminent Domain, Taxation, Escheat 4 Primary government powers exercised over real estate.

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

Preferred lien

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

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

Which of the following acronyms describes the various ways a lien can be created...? VISE CATTL PETE OLD CAR

voluntary, involuntary, statutory, equitable VISE