real estate law

quiz questions from the CE shop real estate courses

possesion

the right to occupy or use a property

enjoyment

the right to use the property in any legal way the owner desires

exclusion

the right to refuse others entry to, or the use of, the property

control

the right to determine how the property will be used by the owner or anyone else

disposition

the right to dispose of any interest in the property (by sale, lien, easement, lease, etc.)

real property

real estate (+ interests), benefits, & rights automatically included w the real estate ownership

personal property

everything that isn’t real property

improvements/modifications

permanent, man-made attachments that include things like fencing, buildings, & walkways

exclusion

the right to refuse others access to your property

disposition

the right to determine how, when, & whether or not the property is to be sold, leased, mortgaged, or transferred

immobility

the land’s geographic location is fixed & can never be changed

indestructibility

while improvements may deteriorate over time, the land itself cannot be destroyed

uniqueness/non-homogeneity

one parcel (a piece of land) will not be exactly like another

scarcity

you can’t make more land! not all land is suitable or available for building. if the land is scarce, it’s value is greater than when it is plentiful

situs/area preference

property value is impacted by where it’s situated & how interested people are in buying or living in the area

permanence/fixity of investment

stable investments w relatively stable returns over time; such as roads, underground water, wastewater, natural gas, or electrical.

real estate is a long-term investment, warranting infrastructure investment

tenancy

a situation in which a tenant has the right to possess a property, excluding ownership

estate

a legal interest or right in real property.

alternatively, assets owned by someone deceased

interest in real estate

a right-to/claim-on a property that may be ownership or possessory interest

fee simple - absolute estate

an inheritable estate w absolute ownership, providing the most complete form of ownership—the complete bundle of rights in real property

fee

a form of property ownership

ownership

the legal right to possess & control property

freehold

interest in real property for an undetermined length of time

fee simple freehold

ownership is conveyed to heirs BY WILL after death.

• absolute: complete ownership

• defeasible: rights of ownership are conditional

(ownership, possession, & control for the owner’s lifetime)

life estates freehold

ownership conveyed BY DEED, not by will.

• conventional: created by agreement of the parties

• legal: created by operation of law

(ownership, possession, & control for the owner’s lifetime)

leasehold

interest in real property for a determined length of time

leasehold - estate for years

lease may be for a day, week, month, year(s), or any definite period of time. when the specified date occurs, the lease terminates automatically

leasehold - estate at will

the duration of this lease is unknown at the time it’s created & can be terminated by EITHER the lessor or lessee at any time

leasehold - estate at sufferance

a type of possession in which a tenant stays after the right to possess has terminated

leasehold - periodic estate

this involves possessory interest that is automatically renewed at the end of each period specified in the lease

freehold estate

refers to ownership & provides homeownership for an undetermined length of time

leasehold estate

refers to tenancy & provides an interest in real estate for a limited time

fee simple - estate

an inheritable freehold estate.

• fee simple estate: a form of ownership (not tenancy) so the owner of a fee simple state can will the property and/or a successor can inherit the property

(fee simple absolute estate: provides the most complete form of ownership & includes complete bundle of rights)

fee simple - defeasible/qualified-fee estate

one that permits the recovery of fee simple ownership if certain conditions aren’t met.

“defeasible” means that the grantor (seller) has placed a limitation on the deed

fee simple - determinable estate

a type of fee simple defeasible estate (& inheritable freehold estate) where the title remains w the new owner, as long as the conditions of ownership are being met.

if the buyer commits a specific prohibited act, title to the property may automatically be returned to the owner or the owner’s successors