Unit 3 real estate Flashcards


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1

Fee Simple

The highest interest in real estate recognized by law in which the holder is entitled to all rights to the property

2

Reversionary Interest

Ownership goes back to the original owner upon the end of the life estate

3

Life Estate

A freehold estate limited in duration to the life of the owner or the life of some other designated person or persons

4

Remainder interest

The person named by the creator of a life estate to receive the property when the life estate ends

5

Freehold estates last for a specified length of time, such as one year.

false

6

Unlike other freehold estates, a life estate is not inheritable. It passes to future owners according to the provisions of the life estate.

true

7

Does Bernardo have the right to use Debra's driveway?

No, because the easement he gave to Marissa is no longer valid.

8

What should Bernardo have done to have the right to use Debra's driveway?

Reserved an easement right over the original property when he sold it to Debra

9

What is Bernardo's BEST recourse at this point?

Build a new driveway that is on the property he now owns.

10

Encumberance

a claim, charge, or liability that attaches to real estate, and may or may not be monetary

11

deed restrictions

Private rule that limits the use of the property and is binding on all future grantees

12

easment

The right to use the land of another for a particular purpose, including the airspace above or a right-of-way across the land

13

lien

a charge against property providing security for a debt or an obligation of the owner

14

License

a personal privilege the enter the land of another for a specific purpose; differs from an easement in that it can be terminated or canceled

15

An encumbrance is not an estate, so it does NOT allow possession.

True

16

Covenants, conditions, and restrictions (CC&Rs) are police powers that affect land use.

False

17

Escheat

Transfer to the state when an owner dies and no heir can be found

18

Police power

Zoning, Building codes

19

Eminent domain

Taking private land through condemnation

20

Escheat is a process by which the state may acquire privately owned real or personal property.

True

21

Condemnation is the right of the government to acquire privately owned real estate for public use. Eminent domain is the process by which the government exercises this right, by either judicial or administrative proceedings.

False

22

The government's authority to appoint local citizens to serve on boards to govern compliance with zoning standards and building codes for their communities is an example of

police power

23

In order to prevent property from being ownerless or abandoned, the government acquires property through the process of

escheat.

24

An encroachment describes improvements that

extend over adjoining lot lines.

25

State environmental protection laws are examples of

police power.

26

The process whereby the government acquires privately owned property for public use is

condemnation.

27

Because a homeowner failed to pay the real estate taxes on time, the taxing authority imposed a claim against the homeowner's property. This claim is known as

a lien.

28

An owner conveys ownership of a residence to a church but reserves a life estate in the residence. The future interest held by the church is

a remainder.

29

A life estate that is not created by a property owner is

the legal life estate.

30

The new owner of a property installs a fence on the property. By mistake, the fence extends one foot over the lot line onto a neighbor's property. The fence is an example of

an encroachment.

31

A homestead exemption protects the property owner entitled to the exemption from

judgments for debts, but not those used to purchase or improve the homestead property.

32

A property on Main Street that was formerly a retail store will become the site of a new city hall, made possible by the government's power of

eminent domain.

33

Which of the following is NOT an encumbrance on real estate?

Fixture

34

A landowner has divided a large parcel of land into smaller parcels and has recently sold a tract near a nature preserve that is landlocked and cannot be entered except through one of the other tracts. The buyer of that property will probably be granted what type of easement by court action?

Easement by necessity

35

An easement appurtenant

runs with the land.

36

After negotiation and payment, the owner of a lot has granted a neighbor an easement, which was recorded. All of the following are true of the easement EXCEPT

it can be revoked.

37

The city wants to acquire private land for a park. The city can obtain the land by paying fair value under the right of

eminent domain.

38

A parcel of land that has no direct access to a street or public way, except over land of its previous owner, will benefit from

an easement by necessity.

39

A homestead is a legal life estate in real estate that is

occupied as the family home.

40

The owner of fee simple title to a vacant lot adjacent to a hospital decided to make a gift of the lot to the hospital. The deed conveyed ownership of the lot to the hospital "so long as it is used for hospital purposes." After completion of the gift, the hospital will own

a fee simple determinable.

41

A property owner dies without a will or lawful heirs. By what process does the property revert back to the government?

escheat

42

Which of the following is NOT a governmental power?

Condemnation

43

A person has permission from a property owner to hike on the owner's property during the autumn months. The hiker has

a license.