Chapter 3: Interests in Real Estate

Define Pur Autre Vie.

"For the Life of Another" A life estate that is measured by the life of a person or persons other than the grantee.

Define Encroachment.

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

Define 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.

Define 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.

Define Condemnation.

A judicial or administrative proceeding to exercise the power of eminent domain, through which a government agency takes private property for public use and compensates the owner.

Define 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.

Define 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.

Define 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.

The type of easement that is a right-of-way for a utility company's power lines is A. an easement in gross B. an easement by necessity C. an easement by prescription D. a nonassignable easement

A. an easement in gross

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 in gross C. easement by prescription D. easement by condemnation

A. easement by necessity

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. life estate C. determinable fee D. condition subsequent

A. fee simple absolute

Which of the following is NOT an example of governmental power? A. remainder B. police power C. eminent domain D. taxation

A. remainder

Define 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.

Define Easement By Presceription.

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

Define Easement By Necessity.

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

Define Easement Appurtenant.

An easement that is annexed to the ownership of one parcel and allows the owner the use of the neighbour's land.

Define 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. (ex. 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).

Define 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.

Define Freehold Estate.

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

Define Fee Simple Defeasible (ie. Defeasible Fee Estate).

An estate in which the holder has a fee simple title that may be divested upon the occurrence or nonoccurence of a specified event. There are two categories of defeasible fee estates: fee simple on condition precedent (fee simple determinable) and fee simple on condition subsequent.

Define 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.

Define Encumbrance.

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

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 lien C. an easement D. a reversionary interest

B. a lien

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

B. a remainder

A property owner who has the legal right to use a neighbour's land holds A. an estate in land B. an easement C. a police power D. an encroachment

B. an easement

The new owner of a property installs a fence on the property. By mistake, the fence extends one foot over the lot line onto a neighbour's property. The fence is an example of A. a license B. an encroachment C. an easement by necessity D. an easement by prescription

B. an encroachment

The right of a government to take ownership of real estate for public use is called A. escheat B. eminent domain C. condemnation D. police power

B. eminent domain

A homestead is a legal life estate in real estate that is A. leased by renters B. occupied as the family home C. used as a vacation home D. a secondary residence

B. occupied as the family home

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 us used for hospital purposes." After completion of the gift, the hospital will own A. a fee simple absolute estate B. a license C. a fee simple determinable D. a leasehold estate

C. a fee simple determinable

A license is an example of A. an easement appurtenant B. an encroachment C. a personal privilege D. a restriction

C. a personal privilege

A property on Main Street that was formerly a retail store will become the site of a new city hall, made possible by the government's power of A. escheat B. possibility of reverter C. eminent domain D. taxation

C. eminent domain

Which of the following is a legal life estate? A. leasehold B. fee simple absolute C. homestead D. determinable fee

C. homestead

A homeowner may be allowed certain protection from judgments of creditors as a result of the state's A. littoral rights B. curtesy rights C. homestead rights D. dower rights

C. homestead rights

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

C. the servient tenement

Define Deed Restrictions.

Clauses in a deed limiting the future uses of the property. Deed restrictions may impose a vast variety of limitations and conditions (ex. they may limit the density of buildings, dictate the types of structures that can be erected, or prevent buildings from being used for specific purposes or even from being used at all.

A person has permission from a property owner to hike on the owner's property during the autumn months. The hiker has A. an easement by necessity B. an easement by condemnation C. riparian rights D. a license

D. a license

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

D. release of the right of easement to the dominant tenement

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

D. runs with the land

Define License.

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

Define Homestead.

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

Define Covenants, Conditions & 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.

Define Taking.

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

Define Estate In Land.

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

Define 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.

Define Fee Simple.

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

Define Fee Simple Absolute.

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

Define Taxation.

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

Define 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.

Define Reversionary Interest.

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

Define 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 if abandoned.

Define Eminent Domain.

The right of a government of 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.