Unit 2 Review
Card Set Information
Unit 2 Review
NC Real Estate Unit
Unit 2 Review
What does Police Power do?
Allows the right to enact and enforce land use controls. Determines how land can be used
What is Eminent Domain?
The Right to "take" private land for public use, involuntary alienation
What is the process exercised in Eminent Domain?
What priority does Real Property Taxes Have?
Priority over all other liens
How do you find the NC tax rate?
$XX / $100
Property taxes are at what?
Ad valorem (at assessed value)
What is mills rate?
$XX / $1000
What is a special assessment?
Charges against a specific property that benefit from a public improvement (sewer drain, electricity, roads)
How are special assessments often charged?
often charged on front footage basis
What priority does special assessment liens have?
Above all others except real property tax lien
What does Escheat mean?
Government has the right to assume ownership of the property when it has been abandoned or left intestate with no heirs
What does PETE stand for?
The NC Machinery act governs what?
All taxation including ad valorem taxes
At time of assessment, the assessed value must be equal to what under the machinery act?
The market value
A reappraisal is required every how many years?
How often can tax rates be adjusted?
What is the real property tax formula?
Annual Tax = Assessed Value X Tax Rate
What is the assessed value formula?
Assessed value = Actual value X Assessment rate
Freehold estate is ownership for a ______ duration?
Leasehold estate is ownership for a _______ term
What is fee simple absolute?
maximum or greatest control/ownership
Transferrable or inheritable
A fee estate is always what?
Transferrable and Inheritable
What is a deed condition?
A condition that the deed specifies must be met or the property will revert back to grantor
The life tenant of a Life estate is also the what?
Upon the death of the life tenant, the life estate reverts back to what type of estate?
Fee simple absolute
A life estate is transferreable but never what?
In a leasehold estate, the leasee has the right to ?
Posses the land
Upon termination of a leasehold estate, what happens when the lease expires?
It reverts back to the landlord
In leasehold estates, the statute of frauds states that all transfers of an interest in real estate must be in writing to be enforceable except for leases of what?
3 years or less
An estate for years has a definite what?
In an estate for years, the death of the lessor or lessee does not necessarily do what?
Terminate the lease
A periodic estate does what?
renews automatically for set period upon payment of rent. Example, month to month
An estate at will has what type of duration?
Indefinate. Occupies at landlords discretion.
An estate at sufferance has a what type of tennant?
If an owner accepts rent in an estate at sufferance, the estate then becomes a what?
What are the 3 types of freehold estates?
Fee simple absolute
Fee simple determinable
What are the 4 types of leasehold estates?
Estate for years
Estate at will
Estate at sufferance
What is the only type of freehold estate that is not transferrable?
A claim, right, or interest held by a party who is not the legal owner of the property is a what?
An encumbrance can typically do what to a title?
Any buyer with concerns of easements, liens, deed restrictions, or encroachments should do what?
Contact an attorney
The right to use the lands of another for specific purpose is called?
An easement does what when the property is sold?
Runs with the land and will be transferred
An easement in gross has no what?
A personal easement in gross cannot be what?
Assigned or inherited, meaning continues until the holder releases the easement or dies
A commercial easement in gross is given to a what?
An easement by necessity is remedy for what and given by who?
To give access to a landlocked property
What does prescription mean?
Acquiring interest in real property by using it without owners permission and openly for the time limits set forth by state law (think adverse possession)
A prescriptive easement is what?
An easement gained through adverse possession
An express easement is typically given and transferred how?
By deed since it has to deal with an interest in real property
Once an easement is created, it is no longer what?
Deed restrictions are privately created limitations on land use aimed at doing what?
protecting property value and the interest of property owners
Who typically creates the deed restrictions?
The land owner (usually a developer)
Deed restrictions are binding on who?
All present and future land owners (runs with the land)
What is a lien
Claim on land to secure payment of a debt
A recording of satisfaction does what?
Releases a recorded lien
What does a lien waiver do?
Releases an unrecorded lien
A mechanics lien dates back to when?
The date when materials were delivered or work was begun
A writ of attachment is used to do what?
Create an encumbrance against a property
Homestead rights are designed to protect what?
An encroachment is a what?
Unauthorized use of another persons land
What are the two ways to find an encroachment?
Revocable permission to use another persons land is called a what?