Unit 3 Interests In Real Estate

Front 1

What are the 4 Government Rights in Land?

Back 1

Think PETE

P - Police Power

E - Eminent Domain

T - Taxation

E - Escheat

Front 2

What is police power?

Back 2

Public Control of land

1. Right to enact and enforce laws governing land use (ordinances)

2. Planning, zoning, building codes, permits, inspections, certifications of occupancy

3. Determine how land can be developed

Front 3

What is Eminent Domain?

Back 3

1. Right to take private land for public use

2. Process used is called Condemnation

*condemnation is NOT a right

Front 4

Condemnation

Back 4

The process used to take private land for public use (process for eminent domain)

Front 5

Taxation:

Property Taxes

Back 5

Paid to the county where the property is located

Front 6

Taxation:

Property taxes are enforced by...

Back 6

A tax forfeiture lien

* most powerful lien

Front 7

Taxation:

Special Assessments

Back 7

Charges against specific properties that benefit from a public improvement

Examples/ paving, curb, gutter, street lights

Front 8

What is escheat?

Back 8

Governments reversionary right to take property that has been abandoned

Front 9

When is Escheat exercised?

Back 9

When an owner dies with NO WILL and without heirs

Front 10

Estate

Back 10

An interest or right in real property that allows or will allow possession

Front 11

What are the 2 types of Estates?

Back 11

Freehold Estate

Leasehold Estate

Front 12

Freehold Estate

Back 12

Owner for an indefinite duration

Front 13

Leasehold Estate

Back 13

Possession for a fixed term

Front 14

3 types of freehold estates

Back 14

Fee simple absolute

Fee simple defeasible/qualified fee

Life Estate

Front 15

Fee simple absolute

Back 15

It’s is the most complete bundle of rights

1. Maximum ownership estate in real property

2. Lasts indefinitely

Front 16

Fee Simple Defeasible/Qualifies Fee

Back 16

1. Created with a deed condition; often a gift

2. Lasts as long as the deed condition is not violated

3. If deed condition is violated, may revert to grantor or heirs

Front 17

Life Estate

Back 17

1. Life tenant (grantee) is the property owner

2. Upon death of the life tenant, the estate returns to Fee Simple Absolute and reverts to either:

a) the grantor - reverter

b) a third party - remainderman

Front 18

Who holds a leasehold estate?

Back 18

Tenant/leasee

Front 19

Who holds a leased fee estate with a reversionary interest?

Back 19

Landlord/lessor

Front 20

The _________ of leased property obtains ownership ___________ the lease.

Back 20

Purchaser

“Subject to”

Front 21

4 types of leasehold estates?

Back 21

1. Estate for years

2. Periodic Estate

3. Estate at Will

4. Estate at sufferance

Front 22

Estate for years

Back 22

1. Specific termination date - NO NOTICE REQUIRED

2. Death of landlord or tenant does not terminate

3. Sales of property does not terminate

Front 23

Periodic Estimate

Back 23

1. Renews automatically upon landlord accepting rent for the period i.e month to month

2. Terminated by advance notice

Front 24

Estate (tenancy) at will

Back 24

1. Indefinite duration - tenant occupies at landlords discretion.

a) no agreement specifying terms and payment of rent

b) terminated by notice, death, or sale of the property

Front 25

Estate (tenancy) at sufferance

Back 25

1. Holdover after legal tenancy expires (lowest estate)

2. Owner may evict tenant or accept rent

Front 26

Encumbrance

Back 26

A nonpossessory interest in real property; right or interest held by someone other than the property owner, which may be a lien, an easement, or a restrictive covenant

Front 27

An encumbrance is an ___________ - attaches to and binds real property

Back 27

Appurtenance

Front 28

Easement

Back 28

The rights to use the land of another for a specific purpose

Front 29

How do easements transfer?

Back 29

By deed because easements attach to and run with the land

Front 30

Once easements are granted, they are __________.

Back 30

Not revocable

Front 31

Types of easements:

Appurtenant Easement has a dominant tenement and has a servient tenement. Explain each

Back 31

Dominant - the property receiving the benefit of the easement

Servient - which is the property encumbered by the easement

Front 32

How do appurtenant easements transfer?

Back 32

They transfer with the land

Front 33

Dominant holders do not own the land, but have rights to use the land. Give Examples.

Back 33

1. Driveway, crossing a neighbors land for ingress and egress

2. Party walls, shared driveways, lake access

Front 34

Easement in gross

Back 34

1. Commercial easement held by company, government, or person

2. Has no dominant property, only servient property

3. A person or entity benefits

Example: utility easement

Front 35

Easement by necessity is also know as

Back 35

Court ordered easement

Front 36

In what ways can an easement be terminated?

Back 36

1. merger - servient property acquires dominant property

2. Release - dominant interest releases rights to servient owner

3. Abandonment - not automatic must be proven in court

4. Unless terminated, easement will transfer with the land

Front 37

Deed restriction

Back 37

Privately created controls on land use

Examples: no RVs allowed in driveways, no fences in front yard, houses must be a certain size, brick siding required, prairie settings, etc

Front 38

Deed restrictions must be for ___________.

Back 38

Lawful purpose

Can not restrict property owners based on race or other protected groups

Front 39

Deed restrictions may be _________ than zoning.

Back 39

More Strict

Front 40

What lien only attaches to the real property?

Back 40

Specific liens like mortgage liens, property tax liens, or mechanics liens

Homestead exemption rights do not apply

Front 41

Liens

Back 41

A claim on land to secure payment of a debt

Front 42

A homestead exemption is created by state statue to ______________from unsecured creditors.

Back 42

Protect a primary residence

Front 43

Judgements are...

Back 43

General liens thy attach to everything the defendant owns

Front 44

In some states, what other legal rights are there?

Back 44

Dower, curtesy, marital, and community property

Front 45

Encroachment

Back 45

The unauthorized use of another persons land or a physical object intruding into neighboring property

Front 46

Can a survey be done if the buyer suspects an encroachment?

Back 46

Yes

Front 47

If an encroachment is found after closing, what is required?

Back 47

The help of an attorney

Front 48

What reveals encroachments?

Back 48

A survey

Front 49

What are licenses?

Back 49

Revocable permission that grants a privilege to use the property