unit 7 real estate exam

What are the four government powers affecting real estate?

Police power, eminent domain, taxation, and escheat.

What is police power?

The government's power to regulate property use to protect public health, safety, morals, and general welfare.

What is eminent domain?

The government's power to take private property for public use with required compensation.

What is taxation?

The government's power to impose taxes on real property.

What is escheat?

The transfer of property to the state or county when a person dies without a valid will and without heirs.

What is a freehold estate?

An estate of indeterminate duration.

What is a leasehold estate?

A limited-duration estate involving a landlord-tenant relationship.

What are the two major types of freehold estates?

Fee simple estates and life estates.

What is fee simple absolute?

The highest form of real estate ownership with the greatest ownership rights.

What is a defeasible fee?

A fee simple estate that can be terminated when a specified event or condition occurs.

What is fee simple determinable?

A defeasible fee that automatically ends when a stated condition is violated.

What is fee simple subject to condition subsequent?

A defeasible fee where the original owner must take legal action to regain the property after a condition is violated.

What is the difference between determinable and condition subsequent?

Determinable ends automatically; condition subsequent requires legal action.

What is a life estate?

An estate measured by the life of a person.

What is a conventional life estate?

A life estate created by an owner and measured by the life of a specified person.

What is a legal life estate?

A life estate created by law.

What replaced dower and curtesy in Illinois?

Spousal elective shares.

What is an encumbrance?

A claim, restriction, or interest affecting real property that does not necessarily transfer ownership.

What is an easement?

A right to use another person's real estate for a specific purpose.

What are the two major types of easements?

Easement appurtenant and easement in gross.

What is an easement appurtenant?

An easement involving two parcels where one benefits and the other is burdened.

What is the dominant tenement?

The parcel that benefits from an easement appurtenant.

What is the servient tenement?

The parcel over which the easement runs.

What is an easement in gross?

An easement benefiting an individual or company rather than another parcel.

What is a license?

Temporary permission to enter or use another person's property for a specific purpose.

What is the major difference between an easement and a license?

An easement is an interest in real estate; a license is generally temporary permission and can usually be revoked.

What are riparian rights?

Water rights belonging to owners whose land borders a watercourse.

What are littoral rights?

Water rights belonging to owners whose land borders a lake, sea, or ocean.

What is the Illinois prescriptive easement period?

20 years.

What is a quick-take?

A fast eminent-domain proceeding used to obtain title or possession quickly for a public project.