| Question | Answer |
| What is included in the bundle of rights? | **applies to all components - air, surface, and subsurface
Possession
Use
Transfer
Encumber
Exclude |
| What are the different kinds of leasehold estates? | 1.) Estate for Years
2.) Estate from period-to-period
3.) Estate at will
4.) Estate at sufferance |
| What are the different kinds of freehold estates? | Fee simple and Life (reversionary or remainder) |
| What are the different kinds of fee simple estates? | Absolute
Defeasible |
| What are the different kinds of defeasible fee simple estates? | Determinable
Condition subsequent |
| What are the different kinds of freehold life estates? | Conventional
Legal |
| What are the different kinds of conventional freehold life estates? | Ordinary
Pur Autre Vie |
| What are the different kinds of legal freehold life estates? | Homestead
Dower and curtesy
Elective share/community property |
| What is the differentiation criteria for real vs. personal property? | 1. Intent
2. Adaptation (custom or uniquely designed)
3. Functionality
4. Relationship to parties (installing a fixture to conduct business)
5. Sale or lease provisions |
| What are a life tenantâs responsibilities? | Constitutes true ownership of the property for the owner's life. |
| What does the legal concept of land encompass? | - the surface area of the earth, everything beneath the surface extending downward to its center
- all natural things permanently attached to the earth or in the ground, including minerals and water below the earthâs surface
- the air above the surface |
| What are the legal classifications of property? | 1. Real
2. Personal
3. Tangible
4. Intangible |
| What are the physical characteristics of land? | 1. Immobility - can't move it
2. Indescribable - cannot destroy it
3. Heterogeneous - only one like it |
| What does the legal concept of real estate encompass? | 1. Land
2. All man-made structures permanently attached to the land |
| What are the five economic characteristics of land? | DUSTS
Demand
Utility/use
Scarcity
Transferability
Situs/site |
| What do freehold vs. leasehold estates depend upon? | - length of time the holder may enjoy the right to possess the estate
- the relationship of parties owning the estate
- specific interests held in the estate |
| What are the five types of real property? | 1. Residential - homes
2. Industrial - warehouses, factories
3. Commercial - income producing; parking lots
4. Agricultural - farms, orchards, pastures, timber land
5. Special purpose - churches, hospitals, gov't buildings |
| What are the four different ways real property is regulated? | 1. Federal
2. State
3. Local
4. Judicial |
| What are the requirements for Eminent Domain? | 1. Property owner must be paid compensation for the property
2. Property must be used for the public good
3. Owner must have due process in the court system |
| What are the regulated aspects of real estate? | - bundle of rights
- legal description
- financing
- insurance
- inheritance
- taxation
- usage |
| What are the two general types of encumbrances? | 1. Those affecting the propertyâs use
2. Those affecting the legal ownership, value and transfer |
| What are the restrictions on a property use encumbrance? | - easements
- encroachments
- licenses
- deed restrictions |
| What are the restrictions on a legal ownership encumbrance? | - liens
- deed conditions |
| What are the two most common types of encumbrances? | 1. Easements
2. Liens |
| What are the two types of Easement in Gross? | 1. Personal - Granted for the grantee's lifetime
2. Commercial - granted to a business entity rather than a private party. The duration is not tied to anyone's lifetime. |
| How can an easement be created? | 1. Voluntary action
2. Necessity
3. Prescription
4. Adverse and hostile use
5. Open and notorious use
6. Continuous use (10 years) |
| What are three additional ways an easement may be created? | 1. Grant
2. Implication
3. Condemnation |
| What are the 7 ways easements terminate? | 1. Express release of the right
2. Merger
3. Purposeful abandonment
4. Condemnation
5. Change or cessation of the purpose
6. Destruction
7. Non-use |
| What are the two factors that primarily determine lien priority? | 1. The lien's categorization as superior or junior
2. The date the lien was recorded |
| What do deed restrictions typically apply to? | * The land use
* The size and type of structures that may be placed on the property
* Minimum costs of structures
* Engineering, architectural, and aesthetic standards, such as setbacks or specific standards of construction |
| What are the two types of deed restrictions? | Covenants
Conditions |
| What are the legal features of liens? | 1. Does not convey ownership, with one exception (a mortgage lien in a title-theory state).
2. Attaches to the property.
3. A property may be subject to multiple liens.
4. Terminates on payment of the debt and recording of the documents. |
| What is the ranking order of superior liens? | Real estate tax liens
Special assessment liens
Federal estate tax liens
State inheritance tax liens |
| What is the ranking order of inferior liens? | Federal income tax liens
State corporate income tax liens
State intangible tax liens
Judgment liens
Mortgage liens
Vendor's liens
Mechanic's liens (priority by date work was performed) |
| What are the two factors that primarily establish lien priority? | 1. the lien's categorization as superior or junior
2. the date of recordation of the lien |
