Unit 2 Review

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Unit 2 Review
2013-06-21 09:02:27
NC Real Estate Unit

Unit 2 Review
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  1. What does Police Power do?
    Allows the right to enact and enforce land use controls. Determines how land can be used
  2. What is Eminent Domain?
    The Right to "take" private land for public use, involuntary alienation
  3. What is the process exercised in Eminent Domain?
  4. What priority does Real Property Taxes Have?
    Priority over all other liens
  5. How do you find the NC tax rate?
    $XX / $100
  6. Property taxes are at what?
    Ad valorem (at assessed value)
  7. What is mills rate?
    $XX / $1000
  8. What is a special assessment?
    Charges against a specific property that benefit from a public improvement (sewer drain, electricity, roads)
  9. How are special assessments often charged?
    often charged on front footage basis
  10. What priority does special assessment liens have?
    Above all others except real property tax lien
  11. 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
  12. What does PETE stand for?
    • Police Power
    • Eminent Domain
    • Taxation
    • Escheat
  13. The NC Machinery act governs what?
    All taxation including ad valorem taxes
  14. At time of assessment, the assessed value must be equal to what under the machinery act?
    The market value
  15. A reappraisal is required every how many years?
    8 years
  16. How often can tax rates be adjusted?
  17. What is the real property tax formula?
    Annual Tax = Assessed Value X Tax Rate
  18. What is the assessed value formula?
    Assessed value = Actual value X Assessment rate
  19. Freehold estate is ownership for a ______ duration?
  20. Leasehold estate is ownership for a _______ term
  21. What is fee simple absolute?
    • maximum or greatest control/ownership
    • Lasts forever
    • Transferrable or inheritable
  22. A fee estate is always what?
    Transferrable and Inheritable
  23. What is a deed condition?
    A condition that the deed specifies must be met or the property will revert back to grantor
  24. The life tenant of a Life estate is also the what?
  25. Upon the death of the life tenant, the life estate reverts back to what type of estate?
    Fee simple absolute
  26. A life estate is transferreable but never what?
  27. In a leasehold estate, the leasee has the right to ?
    Posses the land
  28. Upon termination of a leasehold estate, what happens when the lease expires?
    It reverts back to the landlord
  29. 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
  30. An estate for years has a definite what?
    Termination date
  31. In an estate for years, the death of the lessor or lessee does not necessarily do what?
    Terminate the lease
  32. A periodic estate does what?
    renews automatically for set period upon payment of rent. Example, month to month
  33. An estate at will has what type of duration?
    Indefinate. Occupies at landlords discretion.
  34. An estate at sufferance has a what type of tennant?
  35. If an owner accepts rent in an estate at sufferance, the estate then becomes a what?
    Periodic estate
  36. What are the 3 types of freehold estates?
    • Fee simple absolute
    • Fee simple determinable
    • Life estate
  37. What are the 4 types of leasehold estates?
    • Estate for years
    • Estate at will
    • Periodic estate
    • Estate at sufferance
  38. What is the only type of freehold estate that is not transferrable?
    Life Estate
  39. A claim, right, or interest held by a party who is not the legal owner of the property is a what?
  40. An encumbrance can typically do what to a title?
  41. Any buyer with concerns of easements, liens, deed restrictions, or encroachments should do what?
    Contact an attorney
  42. The right to use the lands of another for specific purpose is called?
  43. An easement does what when the property is sold?
    Runs with the land and will be transferred
  44. An easement in gross has no what?
    Dominant property
  45. A personal easement in gross cannot be what?
    Assigned or inherited, meaning continues until the holder releases the easement or dies
  46. A commercial easement in gross is given to a what?
    Commercial company
  47. An easement by necessity is remedy for what and given by who?
    • To give access to a landlocked property
    • Courts
  48. 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)
  49. A prescriptive easement is what?
    An easement gained through adverse possession
  50. An express easement is typically given and transferred how?
    By deed since it has to deal with an interest in real property
  51. Once an easement is created, it is no longer what?
  52. Deed restrictions are privately created limitations on land use aimed at doing what?
    protecting property value and the interest of property owners
  53. Who typically creates the deed restrictions?
    The land owner (usually a developer)
  54. Deed restrictions are binding on who?
    All present and future land owners (runs with the land)
  55. What is a lien
    Claim on land to secure payment of a debt
  56. A recording of satisfaction does what?
    Releases a recorded lien
  57. What does a lien waiver do?
    Releases an unrecorded lien
  58. A mechanics lien dates back to when?
    The date when materials were delivered or work was begun
  59. A writ of attachment is used to do what?
    Create an encumbrance against a property
  60. Homestead rights are designed to protect what?
    Primary residence
  61. An encroachment is a what?
    Unauthorized use of another persons land
  62. What are the two ways to find an encroachment?
    • Survey
    • ILC
  63. Revocable permission to use another persons land is called a what?