Real Estate Section 2

Agricultural Zoning (Zoning Classification)

Farmland for raising crops and animals. Non-agricultural zones will usually have restrictions on the types and amounts of animals allowed.

Master Plan

A written document created by the local planning board to guide the future growth and development of a community.

The person or company who benefits from an easement in gross is called the: A. primary party B. servient tenant C. licensee D. dominant tenant

D. dominant tenant

Jenny has the right to cross her neighbor's property in order to access the boat ramp, but the right ends if she sells her property to another person. What kind of easement does Jenny have? A. floating easement B. easement in gross C. dominant estate D. easement appurtenant

B. easement in gross

Actual Notice

That next level of notice; it means the buyer is actually aware of it.

Condemnation

The governmental act of seizing private land through exercise of the power of eminent domain. A type of involuntary alienation, or transfer of title to property without the owner's consent, usually carried out by operation of law. (Alienation is the transfer of ownership [title] to real property.)

Escheat

The legal doctrine by which the decedent's property will pass to the state without their consent if that individual dies without a will, a surviving spouse, lineal descendants, or other known heirs. **Can also be used if a property is abandoned by the owner.

Constructive Notice

The legal presumption that individuals will obtain information through due diligence.

Doctrine of Laches:

A legal principle used to bar dated claims. It's used in conjunction with an unreasonable delay or negligence in asserting or defending one's rights.

Leins

A lien is the claim made by a creditor against real or personal property pledged by a debtor as collateral. *Financial Encumbrance.

Encumbrance

A non-possessory interest in a property that burdens the title. * Encumbrances affect the property's clear title and may limit the use of the property by the fee title owner. * Encumbrances are attached to the title, not the owner of the property.

Encroachment

A physical property that crosses the boundary into a neighboring landowner's property. It is created when one person's property (such as a fence, tree, or driveway) crosses the property boundary into an adjacent property. It's a physical intrusion on someone else's property without direct permission.

Concurrency:

A policy utilized in land-use controls which requires developers to identify and mitigate the negative impacts of a development proactively during construction.

Probate

A process by which courts determine and grant the appropriate ownership interest of an estate to creditors, taxing entities, and heirs of an owner who dies intestate.

Deed Restrictions (definition)

A provision in a deed that restricts the land use of a property. It is attached to a deed, runs with the land, and applies to all future owners of the property.

The Laws of Descent and Distribution

A set of laws that sets out the process of passing an estate to heirs when the owner dies intestate.

Easement by Necessity

A type of easement by implication that occurs when the dominant tenement could not be used without an easement, even without a longstanding, apparent use. *Sometimes referred to as Easement of Necessity.

Nonconforming Use (zoning)

A use that was once legal in a zone, but became illegal when the zoning changed. For example: If a gas station owner had a gas station in a commercial zone that got changed to a residential zone, their gas station is now nonconforming. *When a nonconforming use is allowed to continue, it is called being "grandfathered in".

Use Variance

A variance that permits a use of land which is proscribed by the zoning regulations. Deals with the Types of use. Example: A restaurant that wanted to open up in a residential area would need a Use Variance.

Area Variance

A variance that permits the use of land in a manner which is not allowed by the dimensional or physical requirements of the applicable zoning regulations. Deals with the physical land. Example: A property that wanted to use a smaller-than-zoned-for setback would need an Area Variance.

Open & Notorious (Easement by Prescription)

A way of saying that the use of the property can't be a secret. It should be obvious to anyone who cares to serve the property. If the owner keeps an eye on the property, they would definitely know about it.

Commercial Zone (Zoning Classification)

A zone for commerce. Stores, shops, galleries, boutiques, emporiums, marts, and trading posts. Hotels, nail salons, grocery stores, restaurants, fancy outdoor malls, depressing strip malls, indoor malls being slowly murdered by millennials. Commercial enterprises.

Institutional Zone (Zoning Classification)

A zone for schools (especially university campuses), hospitals, courthouses, and prisons.

Which of these is an example of a constructive notice? A. Linda records a deed for a property she has purchased. B. Jeremy sends a certified letter to his landlord that his hot water heater is broken. C. Agent Sarah attends a closing with her client. D. Alexandra serves eviction papers to her tenant.

A. Linda records a deed for a property she has purchased.

Jonathan holds an interest in a property, but he does NOT have the right to occupy it. His interest in the property can be described as: A. non-possessory B. possessory C. encumbered D. unencumbered

A. non-possessory

What is the name of the process by which the government exercises its right of eminent domain? A. condemnation B. escheat C. appropriation D. reversal

A. condemnation

Which of the following is an example of encroachment? A. an owner who is behind on paying their property taxes B. a property owner granting their neighbor access to their property while retaining full ownership C. a driveway that partially crosses a neighbor's property boundary D. an HOA preventing members from planting cacti in their front yards

C. a driveway that partially crosses a neighbor's property boundary

Public Land-use Controls:

Government-issued land-use controls such as zoning ordinances, subdivision regulations, and building codes.

Easement by Prescription

Granted after the dominant estate has used the property in continuous and open manner for the prescribed period of time without the owner's permission. To be established, the area in question would ave to have been used continuously by the non-owner of the property for at least 10 years.

The Zoning Board of Appeals:

Hears from property owners who feel that a zoning ordinance is causing undue hardship or keeping them from realizing use or profit in their property. *If board agrees, they grant a variance.

Michigan's Land Division Act

In Michigan, subdividing is regulated by the Land Division Act, sometimes called the Plat Act. This law regulates land split into parcels smaller than 40 acres (a parcel larger than 40 acres is called an "exempt split.") Essentially, the law regulates how many pieces a "parent parcel" can be split into, depending on its size.

Restrictive Covenant

Is a limit on land use that is imposed by a property owner. Restrictive covenants put restrictions on a property's title, which may be a deed or may be a separate document.

Industrial Zone (Zoning Classification)

Manufacturing, including warehouses for storing manufactured goods.

Ad Velorem Taxes

Means they are based on the assessed value of a property.

Vacant Land Zone (Zoning Classification)

Unimproved land, or land that has uninhabited improvements. *this is different from open space*

Zoning

The division of land within a jurisdiction into separate districts within which uses are permitted, prohibited, or permitted with conditions. Zoning regulates the use of land.

3 Ways that Easements are usually created:

* By the deed. * By an agreement between the parties. * By the operation of Law.

Ways that a Deed Restriction or Restrictive Covenant can be ended:

* Many restrictions come with baked-in end dates, often 25 years. * The owner is released from the covenant, by a court, by the HOA or neighborhood association, or by the creator of the covenant. * If conditions change drastically and nobody is receiving benefit from the covenant, it can be terminated. * A law makes the covenant unenforceable. * The property is abandoned.

The use of the Easement by Prescription would have to be:

* Open * Notorious * Adverse * Hostile

Easement Appurtenant

*An easement that exists when two different parties own adjacent parcels of land and one owner has the ability to cross the other's land. **This type of easement transfers with the land and cannot be discontinued by a new property owner.

3 kinds of Variances that a Zoning Board of Appeals can grant:

1. A Use Variance. 2.

Types of Encumbrances

1. Easements 2. Leins 3. Deed Restrictions 4. Clouds on Titles

3 Types of Land-use Controls:

1. Private Land-use Controls 2. Public Land-use Controls 3. Public Ownership of Land

The four main types of land-use controls that fall under the scope of police power:

1. Zoning 2. Building codes 3. Private controls on land 4. Application of rules

Taxation:

A charge on real estate that is used to pay for services provided by the government. Property taxes are levied at the local level and fund municipal services like fire control, police, schools, roads, and local health initiatives.

Cloud on the Title

A dispute on an otherwise clear title. ⛈ Example: Consider a scenario in which a property owner dies. The home is inherited by a relative who wants to sell it. If the estate was not probated (the validity of the will was not established), the agent may have to assist the seller in locating others who may have a claim to the inheritance. Those other relatives and friends may have to sign off on the property, indicating that they don't expect anything from the estate before the sale can move forward.

An Easement can either be:

Affirmative - Allows someone to do something OR Negative - Restricts someone from doing something.

Special Use Permit

Allows specific kinds of uses in a zone that aren't the main use of that zone, as long as the property owner meets certain requirements. Example: A church in a residentially zoned area or a restaurant for workers in an industrially zoned area would need a Special Use Permit. *Allowed special uses are outlined in the zoning ordinance itself.

Easement by Express Grant:

An easement created when a property owner sells a portion of their land, but retains the right to cross it by formally stating that in the deed.

Right of Way Easement

An easement giving the holder the right to cross another's land.

Easement by Grant:

An easement that is granted to someone in a deed or other document.

Easement

An interest in, or a right to use, another individual's land or property, generally for a specific, limited purpose Example: Use of a shared driveway to access an otherwise landlocked parcel of land. ***Easements run with the land, meaning these rights of use y another will convey in the transfer of that deed or title.

The right of one party to access or use the land of another is a(n): A. encroachment B. easement C. lien D. assessment

B. easement

Easement in Gross

Applies to a person or entity, not the specific land. The person or company who benefits from an easement in gross is called the dominant tenant. They can sell or assign this easement to another company or person. Example: An electric company would have the right to e on someone's land to clear limbs from power lines thanks to an easement in gross.

Deed Restrictions

Are limitations that control the land's use. * Most commonly, deed restrictions are put into place by the land developer in order to fulfill aspects of the master plan. * They must be disclosed to parcel buyers in the sales contract.

Which of the following is NOT a police power? A. creating building codes B. landmark and historical recognition C. zoning D. the application of rules

B. Landmark and Historical recognition

The Lansing city council seizes Rachel's farmland to build a new power plant. They only paid the cost of moving her farm equipment. Why is this not a legal act of eminent domain? A. Farmland cannot be seized by eminent domain without a federal court order. B. They failed to provide just compensation for the land. C. Rachel was not given the opportunity to appeal the decision. D. A power plant is not in the public good.

B. They failed to provide just compensation for the land

What are the two ways private citizens can control how land is used? A. HOA bylaws and community standards B. zoning laws and lawsuits C. deed restrictions and restrictive covenants D. community board rulings and title controls

C - Deed restrictions and Restrictive Covenants.

Jim's family decided to sell one of their next-door brownstones, but still wanted to be able to use the next door driveway to access their parking spot. In the deed of the house they sold, they created an easement across the driveway. What kind of easement is it? A. easement by law B. easement by consensus C. easement by grant D. easement by agreement

C. Easement by Grant. More specifically, Easement by Express Grant.

Which of the following is an example of escheat? A. Marcela is not allowed by the city to build a guest house in her backyard. B. The city is taking 132 feet of Marcela's property in order to add a roundabout. C. Marcela passed away without a will and no known heirs, so the city now has the title to her estate. D. Marcela's subdivision requires her to park her vehicles inside her parking garage. Submit answer

C. Marcela passed away without a will and no known heirs, so the city now has the title to her estate.

Which of the following is NOT a type of encumbrance? A. easement B. cloud on the title C. possessory interest D. lien

C. Possessory Interest

What does a master plan do for a community? A. Creates subdivisions and plats B. Sets tax assessment levels and tax rates C. Sets out their urban planning goals and priorities D. Creates voting policies and procedures

C. Sets out their urban planning goals and priorities

Without permission, Betsy's neighbor built a fence that extends onto Betsy's property. What is the fence? A. an exchange B. an easement C. an encroachment D. an estate

C. an encroachment

Why are zoning classifications sometimes different across municipalities? A. because standardizing them would be too costly B. because they have roots in local history C. because they are created at the local level D. because they are assigned by region

C. because they are created at the local level

Jacqueline had a new fence put up. Her neighbor, Frank, realized it is actually on his property. What is NOT something Frank can legally do to remedy this encroachment? A. sell the slice of land the fence is on to Jacqueline B. take Jacqueline to court C. tear down the fence D. talk to Jacqueline and ask her to move the fence

C. tear down the fence

Easement by Implication (operation of law)

Created when land is divided and there is a longstanding, apparent use that is reasonably necessary. It's created by operation of law (not express grant or reservation). Some people also call this an implied easement.

Gary has a home built on a half-acre lot, which was appropriate for his zone when he bought the home. A few years later, zoning regulations changed and now the smallest buildable lot is his neighborhood is one acre. Gary was allowed to keep his home as it is. What is this an example of? A. a use variance B. an area variance C. a lot merger D. a legal nonconforming use

D. A legal nonconforming Use

Which of these is NOT a way that a deed restriction can be terminated? A. The deed restriction is rendered unenforceable by a law. B. The deed restriction is terminated by a court. C. The deed restriction reaches its stated end date. D. The deed restriction is dissolved when the house is sold.

D. The deed restriction is dissolved when the house is sold.

If a property has a conditional deed restriction, what happens if the property owner violates the deed restriction? A. They have to pay a fee. B. They are taken to court. C. They have to fix the problem. D. They lose the title to the property.

D. They lose the title to the property.

Frankenmuth, MI passes a zoning ordinance saying that structures can't be more than five stories high in residential areas. The developer of Frankenmuth subdivision Fancypants Oaks adds a deed restriction limiting homes to two stories. How high can homeowners in Fancypants Oak build? A. three stories B. five stories C. one story D. two stories

D. Two Stories

Which of these is NOT a kind of zoning exception? A. use variance B. area variance C. special use permit D. single variance

D. single variance

Conditional Deed Restrictions:

Deed restrictions that state that if the property owner violates the restriction, the title will revert to the previous owner.

What is the difference between an Easement in Gross and an Easement Appurtenance:

Easements in Gross are granted to a person, not a property. It will expire on the deal of the person (if granted to an individual), or when the property changes hands, unless renewed.

What are the 4 basic types of Public Land-use Controls?

PETE: P - Police Power E - Eminent Domain T - Taxation E - Escheat

Non-possessory Interest (in a property)

If it does NOT include the right to possess or occupy the property.

Possessory Interest (in a property)

If it includes the right to possess and occupy the property, now or in the future. This is the kind of interest you would have in your own home.

Negative Easement

If the easement does NOT allow a property owner to perform an otherwise legal activity, then it is considered Negative Easement. Example: When a property owner is prohibited from building a structure or planting a tree because it would block a neighboring property's view.

Affirmative Easement

If the easement gives the right for people to use personal property for a specific purpose, then it is an affirmative easement. ** Most common type of easement** Example: A right to access a public beach through a gate on private property.

Conservation Land Zone (Zoning Classification)

Land that has special use rules because it is a wetland, on a water recharge zone, or is home to protected wildlife.

Private Land-use Controls:

Land-use controls that are put into place by non-governmental entities, such as real estate developers. Most commonly, these come in the form of deed restrictions.

Zoning Ordinances

Local laws that control how land is used and what structures can be built in a designated district.

Variance (Zones)

Permission granted by the government so that property may be used in a manner not allowed buy the current zoning.

Covenants, Conditions, and Restrictions (CCRs):

Private restrictions established for condominium tenants to keep the property uniform and attractive

Appurtenances

Rights that are run with real property ownership. *Most often transferred with the property (such as with an easement appurtenant), but it's possible in some cases to sell appurtenances separately.

Building Codes:

Sets of regulations pertaining to building design, materials, safety, sanitation, and structure.

Police Power (Public Land-use Controls)

The government right to regulate and restrict land use in order to protect the public. The right includes the power to enforce zoning and building codes.

What is the most common example of Police Power in real estate?

The authority to control Zoning.

Assessment (Tax)

The determination of the market value of a property by a tax assessor. Essentially, a tax assessor decides how much a property is worth for tax purposes, then the city sends the property owner a bill based on the local tax rate.

Dominant Tenement (easement appurtenant)

The parcel of land that benefits fro an easement appurtenant by having the right to cross another owner's adjacent land.

Servient Tenement (easement appurtenant)

The parcel that must allow such crossing.

Public Ownership of Land

The role of government to own and maintain public land such as streets, highways, and parks.

Public Ownership of Land:

The role of government to own and maintain public land such as streets, highways, and parks.

Open Space Zone (Zoning Classification)

The zoning equivalent of "this page intentionally left blank" Forests, parks, and shorelines can be open space, but can also be recreational.

Application of Rules (Police Power)

This idea says that when there is a difference between a government restriction and a private restriction, the strictest restriction will be applied. For example, an HOA rule doesn't allow permanent structures to be placed within 10 feet of a shared fence, but local zoning laws allow it. So, in this case, the owner would not be allowed to place a permanent structure within 10 feet of a shared fence.

Inverse Condemnation

When the government appropriates a private property without compensating the property owner. In order to be compensated, the owner must then sue the government. In such cases, the owner is the plaintiff in the suit, and that is why the action is called inverse. In direct condemnation, the government is the plaintiff and sues a defendant-owner to take their property.

Easement by Mutual Agreement

When two parties come to an agreement to create the easement, whether it is for convenience or necessity. Example: Leanna would like to have an easement to cross Sarah's property. Sarah is cool with it, so the agreement is made.

Residential Zones (Zoning Classifications)

Where people live. Houses belong there. Houses can be anything from a 10,000-square foot manse to a studio in a giant high rise. Residential districts often permit non-residence "community facilities" like schools, medical facilities, and houses of worship.

Deed Restrictions

______ are: * attached to a deed * Runs with the land * Applies to all future Owners of the property.

Taking (as defined by the courts)

as defined by the courts is the power of government to seize private property for public use.