51 terms

NC Real Estate Exam Chapter 2

Modern Real Estate Practice in North Carolina Chapter 2
bundle of legal rights
right of disposition, enjoyment, exclusion, possession and control
a right or privilege that goes with teh ownership of land
surface rights
rights to use the surface of the earth
subsurface rights
rights to use the space below ground level and to extract the natural resources lying below the earth's surface
air rights
rights to use the air above the land
riparian rights
granted to owners of land located along the course of a river, stream or lake giving the owner unrestricted right to use the water, provided such use does not harm owners upstream or downstream
littoral rights
rights granted to owners whose land borders oceans and large, navigable lakes that have a tide. Unrestricted use + land up to the mean high-water mark.
increase in land resulting from the deposit of soil by water
reduction in land due to removal of soil due to flood or avalanche
new land acquired through water receeding or disappearing
lateral support
right to have adjacent property support the natural boundaries of the land
Plants (real property)
trees, perennial bushes, and grasses that do not require annual cultivation
emblements (personal property)
annual crops, such as wheat, corn, vegetables, and fruit
when personal property has become permanent improvements on the land
Total Circumstances Test
legal test applied by the courts to determine whether an item is a fixture
item that was once personal property but has been so affixed to land or a building that the law construes it to be part of the real estate
intention, relationship, method of annexation and adaptation to real estate
Four legal tests of a fixture
trade fixture
an article owned by a tenant and attached to a rented space or building for use in conducting a business
process by which trade fixtures that are not removed at the end of the lease become the real property of the landlord
agricultural fixtures
although they appear to be trade fixtures, these are considered real property rather than personal property
Uniform Commericial Code (UCC)
if a homeowner purchases an item on credit and gives the creditor a security agreement, that items remains personal property and may be removed by the creditor in the event of default
estate in land
amount and kind of interest that a person has in real property
the degree, quantity, nature, and extent of interest one has in real property
freehold estates
estate of indeterminable length, such as those existing for a lifetime or forever and include fee simple, defeasible fee, pur autre vie and ordinary conventional life estate with remainder or reversion
estates of inheritance
estates that continue for an indefinite period and are inheritable by the heirs of the owner
estate not of inheritance
estates that terminate on the death of the named person on whose life the estates are based
nonfreehold or leadhold, estates
include any estate that is not a freehold estate. Four types are: estate for years, from year to year, at will and at sufferance
fee simple estate
the highest type of interest in real estate recognized by law
fee simple absolute
a fee simple ownership on which there are no limitations (other than governmental restrictions)
fee simple defeasible
a fee simple ownership which may be lost (or defeated) on the occurrence or nonoccurrence of a specified event
fee simple subject to a condition subsequent
estat that dictates some action or activity that the new owner must NOT perform. Condition that some situation in the future does not happen
fee simple determinable
estate requires that a specified activity or land use continue "so long as" or "during the period". Based on time
future interests
the right of re-entry and the possibility of reversion
life estate
freehold estate in land that is limited in duration to the life of the owner or to the life or lives of some other designated person or persons (partial estate)
conventional life estate
created by grant from the owner of the fee simple estate
life tenant
owner of the life estate
pur autre vie
an estate known as an estate for the life of another. It is owned for the lifetime of some named third party, called the measuring life
remainder interest
grantor names someone other than the grantor to receive title to the property when the life estate terminates
the person(s) named as remainder interest
remainder interest
a nonpossessory estate - a future interest and can be sold
reversionary interest
grantor does not name a remainderman, then ownership returns to the grantor when the life estate terminates
when title to real estate is vested in (presently owned by) one person or a single entity, such as a corporation, or limited liability company (sole owner)
tenancy in common
a parcel of real estate owned by two or more people with an undivided interest and that each owner can sell, convey, mortgage or transfer that interest through the right of partitition. Does not pass to another tenant in death
Termination of co-ownership by partition suit
when a division among co-owners cannot be agreed on voluntarily, the division can be ordered by a court in a suit for partition
joint tenancy
property owned by two or more people whre the ownership shares are always equal with undivided possession. Tenants must purchase the property together at the same time. Includes the option for right of survivorship
tenancy by entirety
special form of tenancy in which the owners must be husband and wife. Each spouse has an equal, undivided interest and on the death of one, full title automatically passes to the surviving spouse
common interest community ownership
form of ownership which contains elements of both ownership in severalty and concurrent ownership
Planned Unit Development (PUD)
method of real estate development where the major feature is flexible zoning where buildings may be clustered together
any right to occupy a unit of real property during five or more separated time periods (usually consisting of one or two weeks) over a period of at least five years
group of two or three story units that are horizontally attached to each other. Each unit is individually owned Owner also owns the land on which that unit is built
where the owner holda fee simple title to the unit and also a specified share of indivisible parts of the building and land know as the common elements or common areas