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National Real Estate
Terms in this set (116)
air,water, land and everything affixed to it
Bundle of Rights
Transfer, Exchange, Exclude, Use, Possess (TEE UP)
physical characteristics of land
immobility, indestructibility, and heterogeneity
Economic Characteristics of Land
demand, utility, scarcity, transferability, situs (DUSTS)
Legal Concept of Real Estate
Land and all man-made structures affixed to it
anything of value that is owned or controlled
Land and everything permanently attached to it
All property not classified as real property
tangible property (corporeal)
Has physical presence; house, barn, trade fixtures, inventory
Property recognized by law even though it has no physical existence.
Types of Real Property
(1) Residential, (2) Commercial, (3) Industrial, (4) Agricultural, (5) Special Purpose (6) Recreational(ecological or educational)
Separation of Rights by Surface, Air, Subsurface
The right of a landowner to water adjoining or passing through property.
A legal right of a landowner who owns land next to a natural watercourse to reasonable use of whatever water flows past the property. (Moving waterways)
Unrestricted rights granted to owners whose land borders oceans and large, navigable lakes that have a tide.
Water under the earth's surface below the saturation point and used by a property owner through the rule of capture.
Land gain or loss due the action of water:
accretion, erosion, avulsion, reliction, alluvion.
An item of personal property that has been converted to real property by being permanently affixed to the realty.
Test for Fixtures (IRMA)
Intent of the parties
Relationship between parties
Method of annexation
Adaption of the article (or Functionality). IRMA or FIRM
Trees or crops that require human intervention and labor; the rights of a tenant to harvest the annual crop even after his tenancy has ended. Personal Property.
Conversion of real property to personal property.
Affixing, or attachment
is the act of converting personal property to real property by attaching it to the real estate, such as by assembling a pile of bricks into a barbecue pit, or constructing a boat dock from wood planks.
A system of land ownership which recognizes the right of individuals to own land independently of political superiors, but allows the government to retain the rights of eminent domain, police power, taxation and escheat.
Federal regulation in real estate
(HUD)Promote & Regulate home ownership, )(EPA) establishes protective usage restrictions and guidelines - Federal Flood Insurance, Fair Housing Act, ADA. No real estate taxes!
governs the real estate business; sets regional usage standards, defines how property may be owned transferred, encumbered and inherited. May levy real estate taxes.
levies real estate taxes (for services); controls specific usage, establishes rules for development, creates zoning regulations
Judicial regulation of real property
Rules on constitutionality of common law and case law with regard to property and rights.
A legal system based on custom and court rulings
Law passed by the U.S. Congress or state legislatures
Actions of an agency, board, or other government entity in which there are hearings, orders, judgments, or other activities similar to those of courts.
a characteristic of independent regulatory agencies that gives them legislative powers to issue regulations and administrative rules.
Legal description of property
A description of such certainty and accuracy that one can go to the ground and identify the land- a description prepared by a surveyor
Types of Legal Descriptions
Lot and Block System, Metes and Bounds System, Rectangular Survey System
Metes and Bounds
A method of land description which involves identifying distances and directions and makes use of both the physical boundaries and measurements of the land. Measure, Direction.
rectangular survey system
also called the Public Land Survey, the systems was used by the US Land Office Survey to parcel land west of the Appalachian Mountains. The systems divides land into a series of rectangular parcels using longitudinal and latitudinal directions called Ranges and Tiers or Townships.
A square normally 6 miles on a side. The Land Ordinance of 1785 divided much of the United States into a series of these.
a parcel or piece of land 1 mile squared. There are 36 in a township. Numbered within a township starting at the upper right hand corner and following in a snakelike pattern.
Fractions of a section
1 section = 640 acres; fractions of sections described by size and location within progressively larger quarters of section. Normally measured in quarters or halves from the smallest to the largest fraction.
Converting section fractions to acres
formula: multiply denominators of section fractions; divide product into 640
Recorded plat method
Lot and block system. Used to describe properties in residential commercial and Industrial subdivisions
A horizontal plane from which heights and depths are measured.
an adjustment to a township line to allow for curvature of the earth. A check is performed every 24 miles in a range.
An elevation marker for property
ownership by two or more persons that gives each the right to use the entire property
Estate in land (estate)
Ownership rights in real property; the bundle of legal rights that the owner has to possess, use, and enjoy the property
An estate in land in which ownership is for an indeterminate length of time, in contrast to a leasehold or less than Freehold estate.
Fee Simple Absolute
The maximum possible estate or right of ownership of real property, continuing forever.
Fee Simple Determinable
A fee simple defeasible estate qualified by a special limitation. Language used to describe limitation includes the words so long as, while, or during.
Fee Simple Defeasible Estate
"a fee estate that is qualified by some condition that, if violated, may "defeat" the estate and lead to its loss and reversion to the grantor."
fee simple conditional
A fee simple Defeasible estate that is subject to a condition or trigger event. Different than a determinable as the reversion of the estate to the original grantor is NOT automatic.
Freehold, Life Estate
An estate that is measured or limited by a specific person or persons life. A life tenant (where one persons life is the measuring life) or a life estate pur autre vie (french for another life) when the estate ends when the person not living in the house dies.
-remaining estate that reverts to the grantor after a grantor has conveyed a lesser estate
The ownership interest subsequent to a life estate which, upon the death of the life estate owner, becomes a fee simple absolute interest.
Conventional Life Estate
Created by grant from the owner of the fee simple estate. The owner retains a reversionary interest in the property or names a remainderman.
Ordinary Life Estate
Estate in which the property owner retains all rights of exclusive possession, use, and enjoyment for life while a subsequent owner holds a remainder interest that follows the life estate.
The principal residence protected against certain debts and creditors by statute
The rights that a wife acquires in her husband's fee simple property. If a Tenancy by the Entireties co-ownership exists this is not a consideration.
The rights that a husband acquires in the wife's property upon her death. If a Tenancy by the Entireties co-ownership exists this is not a consideration.
Provision that gives a surviving spouse a share of most of the wealth of the decedent.
Community Property States
States that classify all property acquired by either the husband or the wife during the marriage, with the exception of gifts or inheritance, as marital property to be equally distributed between the spouses at the time of the divorce.
Less than Freehold Estate
Estates in possession generally referred to as leaseholds. Considered to exist for a definite period of time, or successive periods, of time until terminated by notice; also know as non-freehold estates.
An interest in real property that gives a tenant a qualified right to possess and/or use the property for a limited time under a lease. Leasehold estates include estate or tenancy for years, (periodic estates or tenancy- some states), tenancy at will, tenancy at sufferance (estate and tenancy may be interchangeable in terminology)
Rights of Leasehold Estates
Includes the right to Exclude, to Use, and to Possess. These rights do not end at the sale or transfer of the property by the owner.
Owned by one person only. Sole ownership.
Tenancy in Common
A form of concurrent ownership where two or more persons hold separate titles in the same estate and acquire property at different times. May have equal or unequal shares. Undivided interest.
Right of partition. Property may pass to heirs.
Joint Tenancy with Right of Survivorship
a type of joint ownership for two or more in which the surviving owner/s receive equal shares in ownership as shared owners predecease each other. Same Title, Same Time, undivided interest, Terminated when any of the 4 unities of Time, Title, Interest, or Possession is broken. Last surviving owner will own in severalty.
Tenancy in Partnership
form of co-ownership by which the partners hold partnership property
Tenancy by the Entirety
The joint ownership, recognized in some states, of property acquired by husband and wife during marriage. Upon the death of one spouse, the survivor becomes the owner of the property. Each partner owns 100% of the property, Must have 4 unities like Joint Tenancy. Surviving Spouse would own in Severalty at the passing of the partner.
Estate in Trust
In an estate in trust, a fee owner- the grantor or trustor- transfers legal title to a fiduciary- the
trustee who holds and manages the estate for the benefit of another party, the beneficiary.
The trust may be created by a deed, will, or trust agreement.
A trust created by a property owner during his/ her life time for the purpose of providing financial care for the family or self. (may be revocable or irrevocable). Upon death of the trustor - becomes irrevocable. May involve personal property as well.
is a trust created by a will. It only comes into use when the person making the will dies. May involve personal property.
A trust in which the beneficiary retains control over the property held by the trustee. The trustee's duty is simply to sign at the beneficiary's request all documents which are necessary to convey, mortgage, or lease the property. The beneficiary is not on record, the term of the trust is limited. Does not involve personal property.
The beneficial interest of the owner of real property held in a land trust is considered what kind of property?
Personal Property (beneficiary Trust)
Transfer of Interest, Encumbering the property, Probating the property.
a form of direct ownership of an individual unit in a multi-unit, or single unit project in which the property owned is a unit or airspace within the building with a share of common property as described in its documents as a Tenant in Common.
Homeowners Association (HOA)
A nonprofit association of homeowners organized pursuant to a declaration of restrictions of protective covenants for a subdivision, PUD, or condominium (there are different terms and laws by state - confirm your state laws for these terms).
A form of ownership in which stockholders in a corporation occupy property owned by the corporation under a proprietary lease.
A right of occupancy in a time-share project (subdivision) which is coupled with an estate in the real property. These may be Freehold interests or interval usage.
An interest in real property held by someone other than the property owner
Types of Encumbrances
2. Deed Restrictions (private controls)
6. Deed Conditions
Clauses in a deed limiting the future uses of the property. Deed restrictions may impose a vast variety of limitations and conditions—for example, 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.
Deed conditions or restrictions
owner may restrict use of land so that it creates a defeasible fee (special limitation)
the right to use land for a specific and limited purpose
a right of use that continues from owner to owner that involves a relationship between two parcels of land: a dominant parcel that benefits from a servient parcel
Easement in Gross
An entity's personal right to use property. The receiver DOES NOT own the adjoining property. Example: utility easement
Affirmative Easement Appurtenant
Parcels without access to a public way may have an easement of access over adjacent land if crossing that land is absolutely necessary to reach the landlocked parcel and there has been some original intent to provide the lot with access.
Land on which an easement exists in favor of an adjacent property (called dominant estate); also called a servient estate.
A personal right to use another's property, granted by the owner; does not attach to the estate, and there are no dominant or servient tenements.
a legal document giving official permission to do something (example using a property
Easement by necessity
An easement allowed by law as necessary for the full enjoyment of a parcel of real estate; for example, a right of ingress and egress over a grantor's land.
Easement by Prescription
An easement acquired by continuous, open, and hostile use of the property for the period of time prescribed by state law.
Easement for Light and Air
A view easement, considered a negative easement. In the case of negative easement, the dominant tenement can prevent the subservient tenement from doing something on the land because it could impact the dominant land.
Party Wall Easement
An easement appurtenant where owners of two adjacent properties share an improvement along the property boundary. The parties agree not to perform acts that would adversely affect the other party's interest in the shared improvement.
Personal Easement in Gross
an easement that is for the lifetime of a person to whom it was granted, and will terminate upon death or transfer of title to the property.
Commercial Easement in Gross
A right to use the land of another. It does not benefit any particular property. The right is transferable and freely inheritable. Typical examples include utility easements, railroad right-of-ways and billboard easements.
Termination of Easements
E-End of necessity
a personal right that a property owner grants for a specific purpose. Not transferable and do not attach to the land. Cease at the death of either party.
A lien placed on property with the knowledge and consent of the property owner.
A lien placed on property without the consent of the property owner.
A lien that attaches to all property owned by an individual. Real and personal.
A lien affecting or attaching only to a certain, specific parcel of land or piece of property.
A lien whose priority is subordinate to that of a superior (tax) lien. Priority among inferior liens is established according to the time of recordation, with the exception of the mechanic's lien. Also called junior lien.
rank over junior liens; not ranked by recording date; real estate tax and assessment liens and inheritance taxes
a lien placed on property to settle a judgement from a lawsuit
Mortgage (trust deed)
A security instrument that secures for the repayment of a debt (Lien Theory)
A lien that belongs to a vendor for the unpaid purchase price of land, where the vendor has not taken any other lien or security beyond the personal obligation of the purchaser.
A statutory lien on the real property of another, created to ensure payment for work performed and materials furnished in the repair or improvement of real property, such as a building.
Held by the purchaser for the purchase price paid if the seller defaults on the delivery of the deed.
surety bail bond lien
Where a property may be put up instead of cash to pay bail. Homesteaded property cannot be used for a surety bond.
A lien ordered against all real and personal property of an employer who owes back wages to an employee
Ownership of property; for real estate, a lawful claim, supported by evidence of ownership.
The interest held by a vendee under a contract for deed or an installment contract; the equitable right to obtain absolute ownership to property when legal title is held in another's name.
an assertion of real property interests that is open, continuous, and apparent to all who examine the property
Notice given to the world by recorded documents. All people are charged with knowledge of such documents and their contents, whether or not they have actually examined them. Possession of property is also considered constructive notice that the person in possession has an interest in the property.
the legal term for the voluntary transfer of title
A transfer of title to real property without the owner's consent .
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