Red Real Estate Dynamics Chapter 2

Front 1

Allodial System of land ownership

Back 1

Any individual who has the means can aquire rights of ownership and our government protects those rights.

Front 2

Possession

Back 2

The right to occupy your property and egress and ingress

Hint 2

Part of the Bundle of Legal Rights

Front 3

Control

Back 3

Includes the right to make a profit from the land, removing objects from it, building on it, farming it, mortgaging it, or granting easement or license to others

Hint 3

Part of the Bundle of Legal Rights

Front 4

Enjoyment

Back 4

Assures against interference from others or nuisances from neighbors. It includes some rights over the adjoining land such as the right to light, air water and lateral support

Hint 4

Part of the Bundle of Legal Rights

Front 5

Disposition

Back 5

Allows owner to sell the land, give it away or pass it on to heirs

Hint 5

Part of the Bundle of Legal Rights

Front 6

Encumbrances

Back 6

Physical characteristics, the rights that go with it and whatever limitations or restrictions that might have been placed on this rights. Used to determine the value of property

Front 7

An estate in land refers to:

Back 7

Refers to the quality, quantity, nature and extent of the ownership interest that a person holds in real property, not the physical quantity of the land one may own.
Not all interests in property are estates. In order for an interest to be an estate there must be a present or future right to possess (occupy) the property.

Front 8

What is a Possessory estate

Back 8

A person has the present right to occupy

Front 9

what is a non possessory estate

Back 9

The right to occupy is a future right.

Front 10

Freehold estates

Back 10

Estates that will last for an indefinate period of time. These include fee estates that have the potential of lasting indefinately (and are therefore inheritible) and life estates that will last a lifetime

Front 11

What is a Fee simple absolute estate

Back 11

An estate in which the owner possesses the entire bundle of rights. The owners right to possess, control, enjoy and dispose of the property are limited only by the inherent powers of goverment and by the rights of the other individuals who might have a legal interest in the land

Front 12

Conditional Fee

Back 12

Other types of Fee estates that do not include the complete rights of ownership because there are strings attached. Ownership is conditioned on the occurance or on the non occurrence of a certain event

Front 13

Fee simple determinable

Back 13

A conditional fee subject to a certain limitation based on time.

Hint 13

Conditional words nd phrases such as "for so long as," "during" or "until" are used in a deed to create this type of estate

Front 14

reverter clause

Back 14

A provision in a fee simple determinable estate that allows the the estate to revert to the grantor if the conditions are not met.

Front 15

Ownership of a fee simple on condition subsequent is?

Back 15

Subject to condition but there is no automatic reversion when the condition is not met. The estate can only be recovered through legal action.

Hint 15

Contains phrases such as "provided that" or "on the express condition"
No auto reversion. Must go to court.

Front 16

Life Estates

Back 16

A life estate is a freehold estate that is measured by a persons lifetime. It ends when the persons life ends and cannot be passed on to heirs

Front 17

Conventional life estate

Back 17

A life estate created by conveyance, usually through the use of a deed, a will or a trust. The reciever of the estate is called a life tenant.
When a life estate is created, a future (non possessory) estate is created at the same time. It must be specified whether at the end of the lifetime, the estate will revert to the original grantor or whether it will go back to someone else (a remainderman)

Front 18

Life tenant

Back 18

Owner of a conventional life estate. Entitles to posess and use the land for the duration of the lifetime. During that possession, the tenant is entitled to all profits, rent and other income that might be derived from the property and may sell, mortgage, lease or give away the estate. Disposition is not a fee estate and therefore anyone aquiring interest from the life tenant should understand that their interest ends when that life ends.

Front 19

Life estate pur autre vie

Back 19

When the lifetime of a life estate is measured by the life of someone other than the grantee

Front 20

Remainder Estate

Back 20

Created when the owner of a fee simple estate grants a lesser estate to someone and, at the same time, names a person other than himself/herself (the remainderman) who will recieve the fee simple estate when the lesser estate ends

Front 21

Contingent remainder estate

Back 21

Created when the grantor makes the "future rights" dependent on both the termination of a lesser estate and on the fulfillment of a condition.

Front 22

Reversionary Estates

Back 22

Created when the lesser estate is conveyed but the future rights are reserved for the grantor or heirs of the grantor

Front 23

Waste

Back 23

Waste occures when the tenant of a reversionary estate does not do their legal duty to pay property taxes and mortgage payments and not substantially alter the property from its intended use or allow it to deteriote in value by failing to make reasonable repairs

Front 24

Legal life estates

Back 24

Consist of dower and curtesy, future rights that become possessory upon the death of a spouse.

Hint 24

These ancient common law rights are now considered irrelevent and have been eliminated from the statutes of most states. Georgia no longer recognizes dower and curtesy

Front 25

Dower

Back 25

Typically a wife's right to a one-third life estate in any property her husband owns, transferable at the time of his death, assuming she does not pre-decease him

Front 26

inchoate dower

Back 26

A dower while the husband is alive

Front 27

consumate dower

Back 27

A dower after the husband dies

Front 28

Curtesy

Back 28

A husband's right to one third life estate in his wife's property that she owns at the time of her death

Front 29

Homestead protection

Back 29

A right that protects a family's residence from sale to satisfy the debts of a deceased breadwinner.

Hint 29

This protection is limited in most states either by the dollar amount or by acreage. It does not apply to taxes owed or to a mortgage loan.

Front 30

Leasehold estate

Back 30

not an estate of ownership. It consists of a tenant's (lessee's) rights, granted by a lease. In a lease, the landlord (lessor) conveys the exclusive right of possession to the tenant for a specified period of time in exchange for a payment called rent

Front 31

Estate of years

Back 31

Exists when there is a lease agreement that gives the tenant exclusive possession of a property for a specified period of time

Hint 31

The name is misleading. It suggests that the period be "years" but this term applies to any contractual agreement.

Front 32

Estate from Period to Period

Back 32

The tenants right to occupy the property is for the term covered by the first rent payment and, each time another payment is made, the right is automatically renewed for another period of equal length. Often called a month ot month tenancy but can be for any period

Front 33

Estate at will

Back 33

Estate at will or tenancy at will is usually a temporary arrangement in which the tenant can occupy the property for an unspecified period of time as long as the landlord gives permission

Front 34

An Estate at Sufferance is:

Back 34

An estate at sufferance or tenancy of sufferance arises when a tenant, who is legally renting the property, continues to remain in possession after the term of the lease expires.

Front 35

Holdover tenant

Back 35

Tenant in a estate at sufferance. Period to period tenant if the landlord accepts another rent check. Or the landlord can take steps to regain possession.

Front 36

Encumberances

Back 36

External limitations that restrict an owners's rights, use of the property or diminish its value.

Front 37

Police Power

Back 37

The right of local, state or national governments to enact and enforce laws that regulate the use of private property in order to provide for the safety, health, morals and general well being of the community

Hint 37

Examples, building codes, zoning restrictions environmental protection laws

Front 38

Eminent domain

Back 38

The governments power to take property, with or without the owner's consent, when it is needed for a public purpose such as a park, road or a public school.

Front 39

Condemnation

Back 39

The process the government uses to take property in cases of eminent domain

Front 40

Explain the right of Taxation

Back 40

The right of taxation gives local governments, and in some cases state governments, the right to levy taxes on real property according to its value (ad valorem)

Front 41

Escheat

Back 41

Escheat exists because property ownership is both a privilege and an obligation so all property must have an identifiable owner. The state government has the right to take over a property when it is abandoned or when the owner dies without a will and without heirs

Front 42

Lien

Back 42

A monetary claim a creditor has on the property of a debtor and the debtor's property is security for payment of the debt.

Front 43

Voluntary or involuntary liens

Back 43

depending on wheter they are recorded with the owner's consent (as in a mortgage lien) or without it (as in a tax lien)

Front 44

Statutory or equitable liens

Back 44

Depending on whether the right exists because of an act of the legislature (as in a mechanics lien) or whether it arises out of the justice and fair play (as in a vendee's lien)

Front 45

specific or general liens

Back 45

depending on whether the lien is attached to just one specific parcel of property (as in property tax lien) or in general any property the debtor has, real or personal (as in a judgement lien)

Front 46

Vendee's Lien

Back 46

A lien to protect a buyer for earnest money and additional cost during the sale of residential real estate. If the contract is recorded the the buyer has a vendee's lien for the amount of the deposit and related expenses in the event of default

Front 47

Attachment Lien

Back 47

grants the court custody of a specific property to prevent the owner from transferring ownership while a suit for damages is being decided.
It is the only lien that prevents a sale or any other conveyance of a property. it is an involuntary specific lien

Front 48

General Lien

Back 48

A lien that encumbers all real and personal property owned by a debtor, including properties owned before the lien was recorded or properties acquired after. The lien must be recorded in all counties where the debtor has property.
They are all voluntary

Front 49

Judgement Liens

Back 49

A lien that arises out of a lawsuit. If the plaintiff wins the lawsuit, the court awards a judgement in a specific dollar amount to establish the indebtedness. When recorded it becomes a general lien against any real or personal property owned by the defendent in that county

Front 50

Unpaid Federal and state income tax becomes what type of lien?

Back 50

Any unpaid federal or state income taxes become general liens against the taxpayer's real or personal property

Front 51

Federal or state inheritance tax liens

Back 51

Property owned by a decedant is subject to federal estate taxes after certain exemptions are allowed. If this is not paid, all property in the estate is encumbered by a general lien

Front 52

Decedent's debt liens

Back 52

When someone dies, existing liens on the decedents's property must be satisfied before the property passes to the heirs. Outstanding debts that cannot be paid out of personal property create a lien against real property and the real property can be sold to satisfy the remaining debts

Front 53

Easement

Back 53

An intangible right one person has to use another person's land in a specified manner and for a specified reason. The holder of the easement does not own or possess the land but only an interest, a right of use. The easement is an encumberance on the grantor of that right.

Front 54

Easement appurtenant

Back 54

To create an appurtenant easement there must be two separate properties, usually but not necessarily, adjacent to one another. They must have different owners. The owner granting the easement and therefore burdened by it is known as the servient estate, the owner that benefits from recieving this right is the dominant estate.
The appurtenant easement is said to "run the land". It is not just a contract between the two owners, but a relationship between the two parcels of land. When ownership of either parcel of land is transferred the easement is automatically transferred with it, wheter or not it is mentioned in the deed.

Hint 54

Two owners

Front 55

Easements in gross

Back 55

An easement in gross involves only one tract of land, the servient estate. It benefits a person rather than another parcel of land. It is a personal right to use the land of another and does not necessarily run the land.

Front 56

Personal easement in gross

Back 56

Easement granted by an individual. It is not transferable and will terminate with the death of the person to whom the easement is granted or upon the transfer of the title to the property

Front 57

Commercial easement in gross

Back 57

Utility easements, railroad right of way and rights to erect billboards, are more valuable interests and are freely transferable and inheritable

Front 58

An easement is created in any of the following ways:

Back 58

Grant - easements may be created by a deed in which an owner grants a specific right for another person to use the grantors land
Reservation - An owner might sell some land but reserve an easement in the deed.
Agreement - Parties may express their intent to create an easement in a written contract.
Necessity - an easement arises out of necessity when an owner sells land in such a way that deprives the buyer reasonable access. No written document is required. the owner has the right of egress and ingress to the landlocked property.
Prescription - An easement by prescription is acquired through the continous use of another persons property for a period of time prescribed by state law, usually ten to twenty years.
Implication - An implied easement is one created by the operation of law such as in the case of mineral rights.
Condemnation - Under the right of eminent domain the government can aquire an easement over privately owned land for a public purpose.

Hint 58

GRANPIC

Front 59

An easement can be terminated in any one of the following ways:

Back 59

Release - written release from the owner of the dominant estate to the owner of the servient estate
Merger - if both parties come under one ownership the easement no longer exists
Expiration of purpose - The purpose for the easement ends.
Abandonment - an easement can end when it has been abandoned. But non use is not abandonment. There must be positive action that shows the holder of the eastment no longer intends to use it.
Prescription - A prescriptive easement is terminated when the holder of the servient estate openly and continuosly prevents the easement holder from using the it for the statutory period of time, usually the same time as is required to create the easement.
Neccesity - Lasts only as long as the neccesity lasts
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REAPN

Hint 59

REAPN

Front 60

License

Back 60

A license grants the personal permission to use the land of another without creating an estate for the user. It is not a right but a personal priviledge and does not encumber the ownership of the land being used. It is not transferrable or inheritable.

Front 61

Private restrictions

Back 61

Limitations on the use of one's property in order to protect the rights of others. An owner can specify how a property can or cannot be used, either through contractual covenants or through conditions in a deed

Front 62

Covenenants

Back 62

A promise made in a sales contract, lease or deed that specifies that a property will or will not be used in a certain manner. The purpose is to perserve the property values by eastablishing standards with which the owner must comply

Front 63

Conditions (Deeds)

Back 63

Conditions are found in deeds. The condition might also specify the consequences if the deed is not met. Unlike a convenant this is not limited to a suit or injunction for damages, it could result in the property ownership reverting back to the original grantor.

Front 64

Encroachment

Back 64

Encroachment arises when an improvement, building or other attachment illegaly extends beyond the boundaries of its owners land onto adjoining land or into adjoining air space. Failure to have an encroachment moved in time could result in a prescriptive easement

Front 65

Chap 2 Ques 1
The governments right to make laws and regulations for the general welfare is known as:
A: Eminent domain
B: Police Power
C: escheat
D: Bundle of legal of rights

Back 65

B Police Power

Front 66

Chap 2 Ques 2
The City of Atlanta has condemned Nelson's land in order to extend it rapid transit services. This procedure is made possible because of the city's right of:
A: Entry
B: escheat
C: eminent domain
D: police power

Back 66

C: Eminent Domain

Front 67

Chap 2 Ques 3
A private landowner has the right to:
A: reject a claim of taxes
B: repudiate a zoning ordinance
C: disinherit heirs
D: refuse to sell the property or otherwise prevent the city from taking it for use as a street

Back 67

C: Disinherit heirs

Front 68

Chap 2 Ques 4
In order to be effective, a lien shoud be:
A: Recorded
B: published
C: renewed
D: delivered

Back 68

A: recorded

Front 69

Chap 2 Ques 5
The total collection of the rights that may be claimed by private ownership is best described as:
A: the fee simple system
B: an estate
C: freehold
D: the bundle of rights

Back 69

D: the bundle of rights

Front 70

Chap 2 Ques 6
In real estate law the word fee is closest in meaning to:
A: Possession
B: an estate of inheritance
C: a tax or assessment on land
D: a real estate commission

Back 70

B: an estate of inheritance

Front 71

Chap 2 Ques 7
Which of the following is correct about an estate:
A: It can simultaneously exist with another estate on the same property
B: Upon the death of the owner it can either go to the owners heirs or to the state by escheat
C: the owner is always assured of possession
D: its duration is either forever or fo a lifetime

Back 71

A: It can exist simultaneously with another estate in the same property

Front 72

Chap 2 Ques 8
Bob gives an estate to Jim for the life of Sue. Which of the following is true:
A: Jim has an estate pur autre vie
B: Bob has a posssessory estate
C: Sue is the person in remainder
D: Sue has a reversionary interest

Back 72

A: Jim has an estate pur autre vie

Front 73

Chap 2 Ques 9
A right or claim of a creditor to have the debt satisfied from the proceeds of the sale of the debtors property in the event of default is:
A: an attachment
B: a judgement
C: a writ of execution
D: a lien

Back 73

D: a lien

Front 74

Chap 2 Ques 10
Except for property tax liens and in some cases mechanics liens, priority of liens is determined by the:
A: amount of the debt
B: date of the default
C: date of recording
D: court at the time of foreclosure

Back 74

C: Date of recording

Front 75

Chap 2 Ques 11
Jones, a life tenant, grants Smith and easement across Jones land. Later, Jones dies. The easement will:
a: go to Jones heirs
B: terminate
C: remain Smiths
D: not be enforceable because a life tenant cannot grant an easement

Back 75

B: Terminate

Front 76

Chap 2 Ques 12
The Jones have purchased an acre of land in the Elite Acres subdivisdion and the are aware of the fact that the convenants might limit the ways in which they use their property. Which is true of private restrictions:
A: The convenant cannot restrict the type of architecture they use for their home.
B: There could be a restriction on selling the home within the first three years after it is constructed
C: If a covenant specifies one acre of land per dwelling but the local zoning permits two houses per acre, they can build two.
D: Covenants can be based on aesthetic considerations

Back 76

D: Covenants can be based on aesthetic considerations

Hint 76

Page 2 - 19
answer is not C because the stricter requirement always prevails

Front 77

Chap 2 Ques 13
Uauthorized intrusion of a building, improvement, or other attachment onto a neighboring land is:
A: an easement
B: an ecroachment
C: a lien
D: an estate

Back 77

B: an encroachment

Front 78

Chap 2 Ques 14
Smith signs an agreement with Jones to use and possess Jones land until May 1st. Their agreement creates:
A: a less-than-freehold estate for Jones
B: a periodic tenancy
C: an estate of years
D: a reversionary estate for Smith

Back 78

C: An estate of years

Front 79

Chap 2 Ques 15
All the following can be characteristic of and easement EXCEPT:
a: an easement creates an interest that may be protected from third party interferance
B: an easement can be created by conveyance
C: an easement is an incorporal right in the land of another
D: an easement may be revoked at will by the servient landowner

Back 79

D: An easement may be revoked at will by the servient landowner

Front 80

Chap 2 Ques 16
telephone lines are examples of:
A: an easement in gross
B: a legally valid encroachment
C: an easement appurtenant
D: a non revocable license

Back 80

A: an easement in gross

Front 81

Chap 2 Ques 17
The law allows a person furnishing labor or materials for the improvement of the real property to file a mechanic's lien against the property so if he/she is not paid. Which of the following is correct concerning such liens?
A: A mechanics lien takes priority over all other liens
B: A Mechanics lien is a general lien
C: A mechanics lien filed by a sub contractor is ineffective against the property owner who has proof that he paid the general contractor
D: A mechanic's lien will expire if the claimant does not take the necessary steps to enforce it.

Back 81

D: A mechanic's lien will expire if the claimant does not take the necessary steps to enforce it.

Front 82

Chap 2 Ques 18
All the following can be acceptable methods of terminating an easement EXCEPT:
A: abondonment of the easement by the owner of the dominant estate
B: The owner of the servient estate openly and continuously prevents the easement owner from exercising his/her right of use for a statutory period of time
C: express release to the owner of the servient estate by the owner of the dominant estate
D. Revocation of the easement by the owner of the servient estate

Back 82

D: revocation of the easement by the owner of the servient estate.

Front 83

Chap 2 Ques 19
Farmer Brown is deeding 165 acres of his farm to his son and keeping only 5 acres and a house for himself. He will need an easement across his son's land so he can get to his own. How is the easement created?
A; Through a reservation in the deed
B: By having his son sign a lease
C: By recording a new plat map survey
D: Through an exception in the deed

Back 83

A: By a reservation in the deed

Front 84

Chap 2 Ques 20
Which of the following is incorrect concerning a conventional life estate?
A: the owner is called a life tenant
B: the owner does not have to die for the estate to end
C: Life estates always pass to the remainderman
D. A life estate may be sold, leased or mortgaged

Back 84

C: Life estates always pass to the remainderman

Front 85

Chap 2 Ques 21
A "freehold estate" is defined as one that:
A: has a condition attached to it
B: includes an estate for years
C: is similar to a leasehold
D: will last indefinately

Back 85

D: will last indefinately

Front 86

Chap 2 Ques 22
A "homestead" might be defined as a family home. Some states have homestead Laws which afford some protection for the home from seizure to pay debts of a deceased owner/breadwinner. These laws are designed to protect:
A: the mortgage lender
B: the community
C: the breadwinner
D: the bereaved family

Back 86

D: The bereaved family

Front 87

Chap 2 Ques 23
Revocable permmision granted to hunt on anothers land is an example of:
A: an incorporal easement
B: a license
C: an easement by prescription
D: an easement appurtenant

Back 87

B: a license

Front 88

Chap 2 Ques 24
What do dower and curtesy rights have in common
A: Legal life estates
B: Possessory Estate
C: Leasehold estate
D: remainder Estate

Back 88

A: Legal life estates

Front 89

Chap 2 Ques 25
Which of the following phrases would be most typical of a fee simple determinable estate
A" provided that"
B: "on expressed condition"
C: "with the intention of"
D " For as long as"

Back 89

D: for as long as