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Property Ownership, Interests, and Rights Flashcards

Terms in this set (49)

Estates in land
The degree, quantity, nature, and extent of one's interest in the land; the measure of one's property rights in land
Freehold estate
An inheritable estate with absolute ownership
Fee simple absolute
An inheritable estate with absolute ownership; provides the most complete form of ownership and bundle of rights in real property
Fee simple defeasible
The property holder owns the property with all legal rights but subject to a condition; also known as a qualified fee estate
Life estate
A freehold estate granted for someone's lifetime
Remainderman
The person receiving title upon the death of the life tenant
Reversionary interest
Right of possession of the property by the owner after the end of the life estate
Leasehold estate
Defines the legal relationship between the parties who sign a lease; grants possession, but not ownership, to the tenant, and is for a limited period of time
Estate for years
A fixed-termination type of lease that may be for a day, week, month, year, several years, or any definite period of time; when the specified termination date occurs, the lease ends automatically
Periodic estate
Possessory interest that is automatically renewed at the end of each period specified in the lease
Estate at will
A leasehold estate in which the duration of the lease is unknown at the time it is created; may be terminated by either the lessor or the lessee at any time
Estate at sufferance
A type of possession in which a tenant stays after the right to possess has terminated
Estate in severalty
One person owns the property, and all other interests are severed
Tenancy in common
A form of concurrent ownership that includes an undivided interest in the property; owners may sell, convey, mortgage, or transfer their interest without the consent of co-owners
Joint tenancy
Property is owned by two or more persons; the death of one person raises others' stake in the property; called right of survivorship
Right of survivorship
A co-ownership position in which the death of one of the owners increases the interest of the others; ownership cannot be passed down to heirs
Tenancy by the entirety
A type of concurrent ownership in which the owners of property are married; each spouse has an equal and undivided interest in the property
Community property
The equal ownership of property in a marriage; recognized in Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin
Limited liability company (LLC)
A hybrid business formation that combines the limited liability features of a corporation with the tax efficiencies and operational flexibility of a partnership
Joint venture
A temporary organization of two or more people to carry out a single project
Real estate syndicate
Organization with many investors who jointly pool their money to participate in a real estate investment
Living trust
A legal document in which assets are placed by a trustor during the trust-maker's lifetime and then transferred to a designated beneficiary at the trust-maker death by a chosen representative, called a successor trustee
Testamentary trust
A trust established at the death of a will maker, by provisions made within the will; often used to create a trust for minor children
Land trust
A trust holding real property
Condominium
A form of ownership that consists of an individual interest in a unit (commercial, industrial, or residential) and an undivided interest in the project's common areas
Cooperative
Form of real property ownership in which the owner is a member of an association that owns the building and shares stock in that association
Planned unit development (PUD)
A mix of land uses, such as residential and commercial, in one contained development
Timeshare estate
The type of timeshare ownership that is a fee simple ownership
Bundle of rights
The tangible and intangible rights of ownership that come with owning real property; includes the right to sell individual "sticks" in the bundle separately from the land itself and includes the rights of possession, disposition, enjoyment, exclusion, and control
Surface rights
The right to use, or an ownership interest in, the surface of a property, including both land and water
Water rights
The right to use the water either on or adjacent to one's land
Doctrine of prior appropriation
A legal right to use water over subsequent users of that water
Riparian rights
Rights of the owners of a bordering property to use a flowing body of water, such as a river or creek
Air rights
Right to use the airspace above the land that may be sold or leased independently of the land itself
Police power
The authority of all levels of government to act to maintain the health, safety, and welfare of its citizens
Taking
Governmental appropriation of property; a taking may or may not use the power of eminent domain
Eminent domain
The power of the government to take private property for public use
Condemnation
The taking of a property under eminent domain
Inverse condemnation
The government takes private property but fails to compensate the owner; property owners are forced to file suit to obtain compensation
Escheat
The state's power to claim the estate of a deceased person who left no will, heirs, or creditors
Ad valorem
Related to the concept of property taxes; a Latin term that means "according to value"
Zoning
Establishing specific classifications of land that dictate how the land may be used
Encumbrance
A limitation on a property title, such as a lien or easement
Easement
The authorized use of another's property for a specific purpose; runs with the land
Easement appurtenant
Involves two landowners with adjoining property; one holds the dominant tenement or estate; the other the servient
Easement in gross
The easement owner does not own land adjacent to the property on which the easement applies; typically a governmental or a public utility easement
Encroachment
The illegal intrusion of some structure or object across a property boundary line
Deed restriction
A private control that limits the use or appearance of a given property
License
The temporary right to use another person's property
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