SAEE Property Rights and Legal Considerations Flashcards

A property owner builds a fence that encroaches 2 feet onto a neighbor's land. After 15 years of open, notorious, and continuous use without the neighbor's objection, the fence builder may acquire legal title through:

Answer: Adverse possession

Adverse possession allows a person to claim title to land they have openly and continuously occupied for the statutory period without the owner's permission.

Which type of deed provides the GREATEST protection to a buyer because the grantor warrants title against all defects, even those arising before the grantor owned the property?

Answer: General warranty deed

A general warranty deed guarantees the title against all defects and encumbrances throughout the entire chain of title, not just during the grantor's ownership.

A homeowner receives notice that the city plans to widen a road, requiring acquisition of a 10-foot strip of their front yard. The city must pay the owner fair market value under the legal principle of:

Answer: Just compensation

The Fifth Amendment requires the government to pay just compensation when taking private property for public use through eminent domain.

An appraiser discovers that a property has a recorded easement allowing a utility company to run power lines across the backyard. This type of encumbrance is BEST described as:

Answer: An easement in gross

An easement in gross benefits a specific entity (the utility company) rather than a neighboring property, making the company the holder regardless of land ownership.

Under USPAP, which of the following would constitute a 'departing from' assignment condition that an appraiser must disclose?

Answer: Limiting the scope of work at the client's request

When a client requests a limited scope of work that departs from USPAP's typical requirements, the appraiser must clearly disclose this limitation in the report.

A landlord and tenant sign a lease that does not specify an end date but requires monthly rent payments. This arrangement is classified as a:

Answer: Periodic tenancy

A periodic tenancy automatically renews for successive periods (month-to-month in this case) until either party provides proper notice to terminate.

Which legal concept describes the right of a mortgage lender to sell a mortgaged property through court action when the borrower defaults on the loan?

Answer: Judicial foreclosure

Judicial foreclosure is the court-supervised process by which a lender enforces its lien rights and sells the collateral property after a borrower's default.