Unit 3: Interests in Real Estate

Pur Autre Vie

"For the life of another." A life estate pur autre vie is a life estate that is measured by the life of a person or persons other than the grantee.

License

(1) In real estate practice, the privilege or right granted to a person by a state to operate as a real estate broker or salesperson. (2) The revocable permission for a temporary use of land—a personal right that cannot be sold.

Inverse Condemnation

An action brought by a property owner seeking just compensation for diminished use and value of land because of an adjacent property's public use.

Easement By Prescription

An easement acquired by open, notorious, continuous, hostile and adverse use of the property for the period of time prescribed by state law.

Easement By Necessity

An easement allowed by law as necessary for the full enjoyment of a parcel of real estate (e.g., a right of ingress and egress over a grantor's land).

Easement In Gross

An easement that is not created for the benefit of any land owned by the owner of the easement but that attaches personally to the easement owner. For example, a right granted by a property owner to a friend to use a portion of the property for the rest of the friend's life would be an easement in gross.

Fee Simple Subject To A Condition Subsequent

An estate carrying the limitation that, if it is no longer used for the purpose conveyed, it reverts to the original grantor by the right of reentry.

Freehold Estate

An estate in land in which ownership is for an indeterminate length of time, in contrast to a leasehold estate.

Encumbrance

Anything—such as a mortgage, tax, or judgment lien; an easement; a restriction on the use of the land; or an outstanding dower right—that may diminish the value or use and enjoyment of a property.

The homestead exemption in a town is $15,000. Four years ago, a resident purchased a home for $58,000 and then experienced hard times. At a court-ordered sale, the property is purchased for $60,000. If the resident has an outstanding mortgage balance of $35,000 and credit card debts amounting to $24,360, how much is protected by the homestead exemption? A)$16,500 B)$15,000 C)$2,140

B)$15,000

The electric company has the right to extend its wires over 50 parcels of land. What right does the electric company have? A)Easement by necessity B)Easement in gross C)Easement by prescription D)Appurtenant easement

B)Easement in gross

Which of the following is NOT a governmental power? A)Police power B)Escheat C)Condemnation D)Eminent domain

C)Condemnation

Which of the following is a legal life estate? A)Determinable fee B)Fee simple absolute C)Homestead D)Leasehold

C)Homestead

The easement that can be terminated by nonuse is the easement A)by necessity. B)in gross. C)by prescription. D)appurtenant.

C)by prescription.

The city wants to acquire private land for a park. The city can obtain the land by paying fair value under the right of A)escheat. B)taxation. C)eminent domain. D)police power.

C)eminent domain.

Upon the death of a life tenant, the holder of the remainder estate will have which type of estate? A)Life estate B)Estate at will C)Estate for years D)Fee simple absolute estate

D)Fee simple absolute estate

A resident of Sunny Oaks owned two acres of land, sold one acre, and reserved an easement appurtenant for entrance and exit over that acre to reach the public road. The acre that was sold is A)capable of being cleared of the easement if the woman sells to a third party. B)subject to an easement in gross. C)the servient tenement. D)the dominant tenement.

D)the dominant tenement.

Future Interest

A person's present right to an interest in real property that will not result in possession or enjoyment until sometime in the future, such as a reversion or right of reentry.

Lien

A right given by law to certain creditors to have their debts paid out of the property of a defaulting debtor, usually by means of a court sale.

Easement

A right to use the land of another for a specific purpose, such as for a right-of-way or utilities; an incorporeal interest in land because it does not include a right of possession.

A landowner has divided a large parcel of land into smaller parcels and has recently sold a tract near a nature preserve that is landlocked and cannot be entered except through one of the other tracts. The buyer of that property will probably be granted what type of easement by court action? A)Easement by necessity B)Easement by prescription C)Easement in gross D)Easement by condemnation

A)Easement by necessity

For as long as anyone can remember, neighbor families have used a footpath to get to the river. Recently, the current owner of the footpath erected a fence across the path. Which of these easements might the neighbors claim would require the owner of the footpath to remove the fence? A)Easement by prescription B)Easement in gross C)Appurtenant easement D)Easement by necessity

A)Easement by prescription

Which of the following is TRUE about an estate in land? A)It land doesn't include possession. B)It defines an owner's interest in real property. C)All interests in real estate are estates in land. D)It must be measured according to value.

B)It defines an owner's interest in real property.

A patient died in a nursing home. The deceased left no will and had no heirs. What happens to the deceased's $250,000 estate? A)It can be paid over to the deceased's church. B)It escheats to the state or county. C)It will be split between the nursing home and the county. D)The nursing home gets to keep it.

B)It escheats to the state or county.

What are deed restrictions? A)Illegal land restrictions B)Private agreements affecting the use of the land C)Public land restrictions D)Informal agreements between neighbors

B)Private agreements affecting the use of the land

A deed restriction is considered A)a restraint on alienation because it may prevent the property from being sold. B)a private restriction, and it is conveyed in the deed to the current property owner. C)a quasi-public restriction because it can be used to benefit all property owners in a subdivision. D)a public restriction if it benefits other property owners.

B)a private restriction, and it is conveyed in the deed to the current property owner.

A parcel of land that has no direct access to a street or public way, except over land of its previous owner, will benefit from A)an easement appurtenant. B)an easement by necessity. C)an easement in gross. D)an easement by prescription.

B)an easement by necessity.

A claim against another's property is known as A)fee simple. B)an encumbrance. C)chattel. D)a license.

B)an encumbrance.

A state's authority to enact legislation to preserve order, protect the public health and safety, and promote the general welfare of its citizens can be passed on to municipalities and counties through legislation called A)preservation acts. B)enabling acts. C)delegations of authority. D)public health and safety acts.

B)enabling acts.

An encroachment describes improvements that A)does not comply with zoning. B)extend over adjoining lot lines. C)has not been recorded. D)is in need of deferred maintenance.

B)extend over adjoining lot lines.

The estate in land that is qualified by a special limitation is A)the fee simple absolute. B)the fee simple determinable. C)the reversionary interest. D)the fee simple subject to a condition subsequent.

B)the fee simple determinable.

Government powers include police power, eminent domain, taxation, and A)accretion. B)avulsion. C)escheat. D)reliction.

C)escheat.

Taking

Process of land being taken from a property owner for public use through eminent domain with the requirement that the owner be compensated fairly.

Encroachment

A building or some portion of it—a wall or fence, for instance—that extends beyond the land of the owner and illegally intrudes on the land of an adjoining owner or a public street or alley.

Fee Simple Determinable

A fee simple estate qualified by a special limitation. Language used to describe the limitation includes the words so long as, while, or during.

Legal Life Estate

A form of life estate established by state law, rather than created voluntarily by an owner. It becomes effective when certain events occur. See dower, curtesy, and homestead for legal life estates used in some states.

Which of the following is NOT an example of governmental power? A)Remainder B)Eminent domain C)Taxation D)Police power

A)Remainder

A tenant who rents an apartment from the owner of the property holds A)a leasehold interest. B)a freehold interest. C)an easement. D)a license.

A)a leasehold interest.

The right by which the government takes private lands for public use is A)eminent domain. B)foreclosure. C)condemnation. D)escheat.

A)eminent domain.

The process by which government takes control of a property after the owner dies without a will or lawful heirs is A)escheat. B)lis pendens. C)condemnation. D)taxation.

A)escheat.

One who has ownership rights of real estate that could continue forever and which provide that no other person can claim to be the owner of or have any ownership control over the property has A)fee simple absolute. B)condition subsequent. C)determinable fee. D)life estate.

A)fee simple absolute.

A statutory right that a family has in its residence is called A)homestead. B)curtesy. C)survivorship. D)entirety.

A)homestead.

Life Estate

An interest in real or personal property that is limited in duration to the lifetime of its owner or some other designated person or persons.

The state requires enough land to build a four-lane highway. For the state to acquire the needed land from a property owner, the state must do all of these EXCEPT A)pay a fair and just compensation to the owner. B)reimburse the property owner for the amount that the property owner paid for the land. C)demonstrate that the taking of the land is for the public good. D)allow the property owner the right to appeal any decision.

B)reimburse the property owner for the amount that the property owner paid for the land.

Your neighbors use your driveway to reach the garage on their property. Your attorney explains that the neighbors' real estate includes an easement appurtenant giving them the right to do this. Your property is A)the dominant tenement. B)the servient tenement. C)the license property. D)the leasehold interest.

B)the servient tenement.

Upon the death of the life tenant, the property returned to the grantor. The type of interest held by the grantor in the life estate must have been A)a remainder interest. B)a limited interest. C)a reversionary interest. D)a principal interest.

C)a reversionary interest.

If the government acquires privately owned real estate through a condemnation suit, it is exercising its power of A)reverter. B)defeasance. C)eminent domain. D)escheat.

C)eminent domain.

In order to prevent property from being ownerless or abandoned, the government acquires property through the process of A)police power. B)escheat. C)eminent domain. D)taxation.

C)eminent domain.

After negotiation and payment, the owner of a lot has granted a neighbor an easement, which was recorded. All of the following are true of the easement EXCEPT A)it can be revoked. B)it must be in writing and is often paid for. C)it will transfer with the property unless it is released by the holder. D)it is a right of use in another's land.

C)it will transfer with the property unless it is released by the holder.

All of the following will terminate an easement EXCEPT A)when the need no longer exists. B)abandonment of easement. C)release of the right of easement to the dominant tenement. D)nonuse of a prescriptive easement.

C)release of the right of easement to the dominant tenement.

If the dominant estate merges with the servient estate, which of these is TRUE? A)The new owner must bring a suit seeking severance of the easement from the combined properties. B)The easement is suspended but cannot be terminated. C)The easement remains in effect for the entire parcel. D)The easement is terminated.

D)The easement is terminated.

The owner of fee simple title to a vacant lot adjacent to a hospital decided to make a gift of the lot to the hospital. The deed conveyed ownership of the lot to the hospital "so long as it is used for hospital purposes." After completion of the gift, the hospital will own A)a license. B)a fee simple absolute estate. C)a leasehold estate. D)a fee simple determinable.

D)a fee simple determinable.

Because a homeowner failed to pay the real estate taxes on time, the taxing authority imposed a claim against the homeowner's property. This claim is known as A)a deed restriction. B)a reversionary interest. C)an easement. D)a lien.

D)a lien.

An owner conveys ownership of a residence to a church but reserves a life estate in the residence. The future interest held by the church is A)a leasehold. B)a pur autre vie. C)a reversion. D)a remainder.

D)a remainder.

The state's power to regulate land use is A)challengeable. B)absolute. C)temporary. D)effective until zoning ordinances have been established.

D)effective until zoning ordinances have been established.

Escheat is intended to prevent property being A)used illegally. B)unproductive. C)developed in violation of building codes or zoning restrictions. D)ownerless or abandoned.

D)ownerless or abandoned.

Every state has the power to enact legislation to preserve order, protect the public health and safety, and promote the general welfare of its citizens. That authority is known as a state's police A)presence. B)enforcement. C)authority. D)power.

D)power.

An easement appurtenant A)is revocable. B)terminates with the sale of the property. C)is a right-of-way for a utility company. D)runs with the land.

D)runs with the land.

Homestead

Land that is owned and occupied as the family home. In many states, a portion of the area or value of this land is protected or exempt from judgments for debts other than those secured by the property.

Covenants, Conditions, And Restrictions (CC&Rs)

Private agreements that affect land use. They may be enforced by an owner of real estate that benefits from them and can be included in the seller's deed to the buyer.

Estate In Land

The degree, quantity, nature, and extent of interest a person has in real property.

Police Power

The government's right to impose laws, statutes, and ordinances, including zoning ordinances and building codes, to protect the public health, safety, and welfare.

Fee Simple

The highest interest in real estate recognized by the law; the holder is entitled to all rights to the property.

Fee Simple Absolute

The maximum possible estate or right of ownership of real property, continuing forever.

Taxation

The process by which a government body raises monies to fund its operation.

Remainder Interest

The remnant of an estate that has been conveyed to take effect and be enjoyed after the termination of a prior estate, such as when an owner conveys a life estate to one party and the remainder to another.

Reversionary Interest

The remnant of an estate that the grantor holds after granting a life estate to another person.

Escheat

The reversion of property to the state or county, as provided by state law, in cases in which a decedent dies intestate without heirs capable of inheriting, or when the property is abandoned.

Eminent Domain

The right of a government or municipal quasi-public body to acquire property for public use through a court action called condemnation, in which the court decides that the use is a public use and determines the compensation to be paid to the owner.

Easement Appurtenant

An easement that follows along with the land.