Home > Flashcards > Real Estate & Planning > Chapter 2

Details Title: Chapter 2 Description: Chapter 2 vocab Total Flash Cards: 67 Created: 08/24/2006 13:25:42	To study from this set of flash cards, or to create your own your own study flash cards, register HERE. If you are already a registered user, CLICK HERE.
Cards Term Tenancy By the Entirety Definition Owners are married. Both husband and wife have equal, undivided interest. Upon death of one spouse full title automatically passes to the surviving spouse through right of survivorship. One party cannot convey their half of the interest. No right to partition. Term Special Assessments Definition Improvement taxes to pay for improvements that benefit the property. EX: Sidewalks, street paving, sewer installation Term Reversionary Interest Definition If the grantor does not name a remainderman then the ownership returns to the grantor when the life estate terminates. If the grantor is deceased when the life estate terminates the property goes to the grantor's heirs or devisees. This interest or estate is also called a "reversion" and is also a future interest. Term Remainder Interest Definition The grantor names someone other than his or herself to receive title to the property when the life estate terminates. This is a nonposessory estate - future interest. This interest can be sold. Term Co-Owners or Concurrent Owners Definition When a title to real estate is owned by two or more persons or entities. Forms of Co-ownership: 1. Tenancy in common 2. Joint Tenancy 3. Tenancy by the entirety Term Condominium Ownership Definition Condominium Laws = horizontal property acts. Each owner holds a fee simple title to the unit also called "title to airspace". They also own a specified share of the invisible parts of the building and land called "common areas". Term Conventional Life Estate Definition Created by grant from the owner of the fee simple estate. The owner retains a reversionary interest in the property or names a remainderman that will ultimatly receive fee simple absolute title. Conventional life estate is limited to the lifetime of the owner of the life estate or the life tenant. An ordinary life estate ends with the death of the grantee. It is possible to have successive life estate. Term Bundle of legal rights (or Real Property) Definition When sold, Real Estate becomes REAL property. The bundle of legal rights include: * Right of posession * Right of control within the law * Right of enjoyment in any legal manner * Right of exclusion (keep others from entering) * Right of disposition (to sell, will, transfer, or encumver the property) D - Disposition E - Enjoy E - Exclude P - Posession C - Control Term Uniform Commercial COde (UCC) Definition If a homeowner purchases an item on credit (a dishwasher) and does not pay the item off before resell of the house the owner should take the item. If the item is left in the house, the new homeowner becomes responsible for the outstanding balance of that item. Term Fee Simple Absolute Definition The highest form of land ownership. A fee simple ownership in which there are no limitations (other than governmental powers). Term Estate in Land Definition The amount and kind of interest that a person has in real property Term Estate Definition The degree, quantity, nature, and extent of interest one has in real property. 1. Non Freehold Estate - involving tenants 2. Freehold Estate - involving ownership Term Freehold Estate Definition Estate of indeterminable length (lifetime or forever) - Fee Simple Estate (pass by inheritance) - Difeasible Fee Estate (pass by inheritance) - pur aurtre vie with remainderman reversion - ordinary conventional life estate with remainderman or reversion (no pass inheritance) Term Pur Autre Vie Definition "Estate for the life of another" Owned for the lifetime of some named third party called the measuring life. The measuring life has no present or future ownership but serves only as the yardstick for the term of the life tenants ownership. Upon death of the measuring life the estate would either revert back to the original owner or become the property of the named remainderman. Term Total Circumstances Test Definition Test applied by courts to determine whether an item is a fixture. 1. Intention of the annexor - useage? 2. Relationship of the parties - owner or tenant? 3. Method of annexation - perminently attached or removable? 4. Adaptation to real estate - custom built to the property? (I R M A) Term Waste Definition The legal term for any act that brings upon permanent injury or damage to land or property by a life tenant EX: Destroying an orchard Term Emblements Definition Annual crops, wheat, corn, vegetables, fruit Term Reliction Definition The acquiration of new land resulting from receding water Term Proprietary Lease Definition The lease held by a cooperative owner given for the life of the corporation Term Partition Definition Termination of co-ownership by partition suit. The act of dividing the interest in the land among the co-owners. When an agreement cannot be reached the decision can be ordered by a court in a suit for partition. The property may be divided into pro rata parcels or if this cannot be done the property may be sold and the proceeds divided proportionately among the owners. Term North Carolina Condominium Act of 1986 Definition Specifies that a condominium is created and established when a developer executes and records a declaration of its creation in the county where the property is located. The declaration must include covenants, conditions, and restrictions. Term Non Freehold (leasehold) estate Definition A tenants right to occupy real estate during the term of the lease, generally considered to be a personal property interest. Types of Non Freehold (leasehold) estates: 1. Estate for years 2. Estate from year to year 3. Estate at will 4. Estate at sufferance Term Mechanic's Leins Definition Gives security to those who perform labor or furnish material in the improvement of real property. Involuntary lien filed when the owner has not paid for work or when the general contractor has been paid but not the subcontractors. Must have a contract with the owner. Lien must be filed within 120 days after completion of labor. The action to enforce must come 180 days after the date of completion. Term Littoral Rights Definition Water rights of land owners whose property borders oceans and large navigable lakes that have high tides. Only have rights up to the mean high-water mark. All land below this point is owned by the government. Term Fee Simple Determinable Definition Requires that a specific activity or land use continue. The ownership is held "so long as" or "during the period" the condition or limitation is maintained. EX: Aunt Fran gives land to a church as long as the land is used for religious purposes. If not, the ownership reverts back to Aunt Fran or her heirs or successors. Term Fee Simple with Condition Subsiquent Definition Dictates some action or activity that the land owner must not perform. The former owner retains a right of re-entry called a reversionary right. Ownership reverts automatically to the original owner. EX: No consumption of alcohol. If consumed on property ownership can be re-acquired by original owner. Grantor required to go to court to assert right of re-entry (or grantor's heirs or successors) Term Fee Simple Defeasible (Defeasible fee Estate) Definition May be lost or defeated on the occurance or non-occurance of a specific event. Also known as a qualified fee estate. The owner must stay qualified to own the estate by obeying deed restrictions imposed by the previous owner. Whether it prohibits an activity or requires a specific land use will dictate which type of defeasible fee estate has been granted. Term Tenancy in Common Definition Real Estate owned by two or more people. Two important characteristics: 1. Ownership interst is undivided. EX: 5 owners - Each hold 1/5 share 2. Each owner holds individual interest in severalty and can sell, convey, or mortgage or transfer that interest through right of partition. Term Joint Tenancy Definition Owned by two or more people. Shares are always equal with undivided posession. Both names on the deed. The right of survivorship: upon the death of one owner the remaining interest is divided among the surviving owners. The last surviving joint tenant holds "sole ownership" Term Surface Rights Definition Ownership rights in a parcel of real estate that are limited to the surface of the property and do not include the air above it or the minerals below the surface. Term Subsurface Rights Definition The right to use the space below ground level and to extract the natural resources Term Sun Rights Definition Keep tall buildings from blocking sunlight from smaller, solar-powered buildings. Term Easement Appurtenant Definition An easement that is annexed to the ownership of one parcel of land and used for the benefit of another parcel of land. Two adjacent tracts of land must be owned by different parties. The tract over which the easement runs is the "servient tenement". The tract that benefits from the easement is the "dominant tenement". Term Severalty Definition When a title to real estate is vested in (presently owned by) one person or a single entity such as a corporation or LLC that person or entity is said to own the property in severalty. Also referred to as the "sole owner". Term Severance Definition The act of severing or separating something from the land making it personal property from real property EX: Owner cuts down a tree; by contract - orchard owner sells the apples while they are sitll on the tree. Term Riparian Rights Definition Water rights of land bordering a river, stream, or lake Lake - owner owns rights to up to the middle of the lake Stream/River - owner owns up to the bank of the body of water Term Remainderman Definition The person who holds remainder interest in an estate after the ownership of the life estate is terminated. Term Easement Definition The right to use land of another for a specific purpose. Not a form of ownership, but grants the use of the property. 2 Types: 1. Easement Appurtanent 2. Easement in gross Term Deed Restriction Definition Another type of encumbrance (covenents, conditions, or restrictions) private agreement placed in the public record that affect the use of land. Typically imposed by a developer or subdivider for the purpose of maintaining specific standards. Term Co-operative Definition Title to land and building is held by a corporation (or land trust). The building manager sets a price for each unit. Each purchaser of a unit receives stock in the corporation when he or she pays the agreed-on price for the apartmetn. The purchaser becomes a shareholder. Term Caisson Definition When a builder wants to build a tall structure they must purchase air rights as well as the land rights. Where the structure meets the ground is called a caisson. Term Trade Fixtures or Chattel Fixtures Definition An article owned by a tenant and attached to a rental space or building for use in conducting business. Trade fixtures are removable provided that the property is returned to its original condition. EX: Bowling alleys, store shelves, bars, restaruant equipment. Term Erosion Definition The gradual wearing of land caused by flowing water or other natural forces may cause land loss. Term Encumbrance Definition A claim, charge, or liability that attaches to and is binding on real estate. Anything that affects title to real estate. May affect the value of the property, but does not nescessarily prevent a transfer of title. Term Foreshore Definition The strip of land between high and low tide lines. Belongs to the state of North Carolina. Term Future interest Definition Because they will take effect only at some time in the future (if at all), the right of re-entry and the possibility of reversion are called future interest. Term Fixture Definition An item that was once personal property but that has been affixed to land or building that by law is considered to be Real Estate it becomes a fixture. EX: Heating Plants, elevator, radiators, kitchen cabinets, lights or plumbing fixtures Term Lien Definition A charge against property that provides security for a debt or an obligation of the property owner. If the obligation is not repaid the lein holder, or creditor, has the right to have it paid out of the debtor's property. Usually from the proceeds of a court sale. Voluntary lien: mortgage or lone Involuntary lien: tax lien Term Town House Definition Typically a group of two story or three story units that are horizontally attached to each other. Major difference from condominiums is that the owner of a townhome also owns the land which the townhouse was built. Term Time Share Definition Any right to occupy a unit of real property during five or more separate time periods (usually consisting of one or two weeks) over a period of fiver years Term Accretion Definition An increase in land resuting from the deposit of soil by water Term Encroachment Definition When an improvement such as a building (or some portion of it), a fence, or a driveway illegally extends beyond the land of its owner and covers some land of an adjoining owner, an street, or an alley. Term Easement in Gross Definition A mere personal interest in or right to use the land of another. Benefits a person or entity, not a percel of property EX: Utilities easement Term Planned Unit Development (PUD) Definition A method of real estate development. Major feature is flexible zoning. Rather than your typical subdivision PUD's are clustered together. Often times used for shopping malls or strip malls. EX: Birkdale Village Term Priority Definition Property and specialty taxes take priority over every other type of lien. In the event of a court sale property taxes will be paid off first. The remaining proceeds will go to pay off other liens in the order in which they were filed. This is known as the "Pure Race System" Term Party Walls Definition The wall that separates one Townhome unit from another Term Avulsion Definition An act of nature such as a flood suddenly removes soil Term Assessment Definition An official valuation of property for the purpose of establishing assessed value for tax purposes. Term Appurtenant Definition A right or privilege that goes along with the ownership of land. EX: Surface, air, subsurface, water rights These rights cannot be retained when property is sold. Term Annexation Definition The act of permanently affixing something to the land Term Air rights Definition The right to control building above property Term Agricultural Fixtures Definition Farm equipment installed in North Carolina are considered real property, not personal property or trade fixtures. They cannot be removed at the end of the lease. Term Ad Velorem Taxes Definition Ad Velorem means "according to the value". Takes priorety over all other liens. Begin to accumulate the 1st day of January every year. Term Mass Appraisal Definition Determines assessed value for all lands in a given area by applying an all over percentage increase or decrease. Term Lis Pendens Definition A judgement or decree usually associated with a foreclosure suit. Not a lien, but a notice that there is an action or lawsuit pending that may adversly affect the title. more like an encumbrance against the title. Term Life Tenant Definition Conventional life estate is limited to the owner of the life estate or the life tenant Term Life Estate Definition Estate in land that is limited by the life of the owner or the life or lives of some other designated person or persons occasionally called a partial estate because it does not last forever.