Unit 4 Interests in Real Estate

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Estate in Land
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Terms in this set (52)
What is the holder of a life estate called?a life tenantCan the life tenant's ownership be sold, mortgaged, or leased?yes but it is subject to the finate limitation of the life estateDefine pur autre vieWhen a life estate is based on the lifetime of a person other than the life tenant. THe life estate is on considered an inheritance, the life estate is considered a pur autre vie (for the life of another).What does pur autre vie provide?This provides for the inheritance of the property right by the life tenant's heirs, but right exists only until the death of the identified person or persons. This is often created for individuals who are physically or mentally handicapped.Remainder interestthe creator of the life estate may name a remainder man as the person whom the property will pass when the life estate endsReversionary interestThe creator of the life estate may choose not to name a remainderman. In this case, ownership returns to the original owner upon the end of the life estateWhat is a legal life estate?This is not created by a property owner but rather is created by state law.What are dower and curtesy?These provide a nonowning spouse with a means of support after the death of the owning spouse.What is dower?dower is the life estate of a wife in the real estate of her deceased husbandWhat is curtesy?curtesy is the life estate of a husband in the real estate of his deceased wifeWhat is UPCuniform probate codeWhat does the UPC do?The UPC gives a surviving spouse the right to an elective share on the death of the other spouse, if the surviving spouse is not satisfied with the decedent's disposition of the property by willWhat is homestead?is a legal life estate in real estate occupied as the family home. In effect the home (or most/some part) is protected from creditors during the occupants lifetime.How many homesteads can you have at one time?oneHow does a homestead exemption work?in most states a certain amount of money is reserved for the family in the amount of a court sale. In a few states the entire homestead is protected. Once the sale occurs, any debts secured by the home will be paid from the proceeds.encumbrancea type of interest in real estate that does not rise tot he level of ownership or possession, yet still an individual, business, or other entity some degree of use or control of the propertyWhat is covered in an encumbrance?1. easements and licenses which permit limited use of land 2. private restrictions found on property deeds, which cannot impose an illegal requirement 3. liens which give notice of a claim against the property 4. encroachments, which can result if a neighboring improvement extended beyond property boundrylienA lien is a charge against a property that provides security for a debt or an obligation of the property ownerWhat is a deed restriction?These are private and affect the use of real estate and are often found in the deed that conveys that title to the property. This will run with the land, limiting the use of the property by the current owner, as well as future owners to whom the property is subsequently transferred.Covenants, conditions, and restrictionsThese are also commonly referred to as CC&RsWhat specifically are CC&Rs?These are used by subdivision developers to maintain specific standards in a subdivision, such as requiring adherence to certain architectural or design specifications for improvements. CC&Rs are outlined in orig. dev. plans and filed in public record in the county where the property is locatedeasementthe right to use the land of another for a particular purpose. It may exist in any portion of the real estate, including the air space above or a right-of-way across the landeasement appurtnnantthis is attached to the ownership of real estate and allows the owner of that property the use of a neighbor's land.dominant tenementthis is the individual that benefits from the easement appurtenant.servient tenementthe parcel over which the easement runs through is known as the servient (serving)A party wallan exterior wall of a building that straddles the boundary line between two lots, or it can be a shared partition wall between two connected properties.easement in grossan individual or company interest in or right to use someone else's land. Generally an easement gross terminates on the death of the easement owner.How do you create an easement?An easement is created by a written agreement between the parties that establishes the easement right.Easement of necessityThis is a court ordered easement because the owner of the parcel of land has no legal access to a street or public way except over the seller's remaining landEasement by PrescriptionIf the claimant has made use of another's land for a certain period of time as defined by state law a prescriptive easement may be acquired. The period is generally 10-21 years.What are reasons to terminate an easement?1. the need for the easement does not exist 2. the owner (either) is unhappy 3.easement is abandoned 4. non-useWhat is a license?A license is a personal privilege to enter the land of another for a specific purpose. This differs from an easement. A license ends with the death of either party or with the sale of the land.EncroachmentWhen a building, fence, or driveway illegally extends beyond the boundaries of the land of its owner or legal building linesLis PendensLitigation pending; this means that a notice has been filed in the public record of a pending legal action affecting the title to or possession of the property.Governmental PowersFour Governmental Powers a. Police Power b. Eminent Domain c. Taxation d. EscheatPolice PowerEvery state has the power to enact legislation to preserve order, protect the health and safety and promote the general welfare of its citizens.Eminent DomainThe right of the government to acquire privately owned real estate for public usecondemnationThe process by which the government exercises this right, by either judicial or administrative proceedingstakingthe concept of taking of property for public use is found int he fifth amendment to the US Constitution, which rads "nor shall private property be taken for public use without just compensation" **Must pay you!!Inverse condemnationan action brought by a property owner seeking just compensation for land adjacent to land used for public purpose when the property's use and value have diminished **airporttaxationthe charge on real estate to raise funds to finance the operation of the government facilities and servicesEscheatthe process by which the state may acquire privately owned real or personal property. The intention is to prevent property from being ownerless or abandoned.