UNIT 7: Interests in Real Estate

What is Police Power?

The power to enact a legislation to preserve order, protect the public health and safety and promote the general welfare of the citizens in the state

What are the 4 Governmental Powers?

Police power, Eminent domain, Taxation, Escheatment

What is an Eminent Domain?

The right of the government to acquire privately owned real estate for public use and private or economic development purposes

What is Condemnation?

The actual process of the Eminent Domain, when the state actually confiscates the property

What is an Encumbrance?

A claim, charge or liability that attaches to real estate. It is a right or an interest held by someone other than the property owner that affects the title to the real estate but doesn't necessarily prevent a transfer of title

What is Fee Simple Absolute Interest?

A type of estate that has the highest interest in real estate recognized by the law. The holder is entitled to all rights of the property

What is Fee Simple Determinable?

A fee simple defeasible estate that may be inherited and is qualified by a special limitation, either an occurrence or event

What is Escheatment?

A process by which the state acquires privately owned real or personal property. This happens most often when the owner dies and leaves no will or living trust that directs how that real estate is distributed

What is an Easement?

The right to use the land of another person for a particular reason

What is Easement by Prescription?

A claim that is created when one claimant has made use of another persons land or property for a certain period of time

What is Easement in Gross?

An individual or company interest in or right to use someone else's land

What is the Servient tenement?

A parcel of land that serves the other party

What is the Dominant tenement?

The neighboring parcel of land that is benefited by the easement

What is Pur Autre Vie?

A type of life estate that may be based on the lifetime of a person other than the life tenant (remember "for the life of another")

What is Encroachment?

Occurs when part of or all of a structure (typically a fence, building or driveway) illegally extends beyond the land of it's owner

What is a License?

A personal privilege (not a right) to enter the land of another person for a specific purpose

What is the main difference between an Easement and a License?

An Easement is a long term or permanent legal right to use someone else's land

A License is the temporary use of someone else's land and can be easily terminated or canceled

What are the reasons an Easement can be terminated for?

-When the need no longer exists

-When the owner of either the dominant or servient tenement becomes the owner of 2 or more properties

-The release of the right of easement to the owner of the servient tenement

-Intentionally abandoning an easement

-Destruction of the servient tenement

-A lawsuit against someone claiming an easement

What is the Doctrine of Prior Appropriation?

A legal principle granting the right to use water from a source to the first person who diverts it for a beneficial use

What is the Illinois Homestead Act/Exemption?

A legal life estate in real estate occupied as the family home. Once in effect, that home is protected from unsecured creditors during the occupants lifetime

What is a Deed restriction?

A private agreement that affects the use of land

What is Condition subsequent?

A future event that terminates the obligations of the parties once that event occurs