SAEE Property Rights and Legal Considerations Flashcards

In appraisal, what is a partial interest?

Answer: Any ownership interest less than fee simple absolute

A partial interest is any ownership interest that represents less than the full fee simple estate, such as a leasehold, easement, fractional ownership, or life estate.

What is eminent domain?

Answer: The government's power to take private property for public use with just compensation

Eminent domain allows government entities to acquire private property for public use, such as highways or utilities, provided the owner receives just compensation as required by the Fifth Amendment.

What is a deed restriction (restrictive covenant)?

Answer: A private limitation on land use imposed by a prior owner

Deed restrictions are private agreements recorded in deeds that limit how property can be used, such as prohibiting commercial activity in a residential subdivision.

What does 'just compensation' mean in the context of eminent domain?

Answer: Fair market value of the property taken, based on its highest and best use

Just compensation in eminent domain equals the fair market value of the property as if sold in the open market, reflecting its highest and best use at the time of taking.

What is a life estate in real property?

Answer: An ownership interest that terminates upon the death of a specified person

A life estate grants the holder (life tenant) the right to use and benefit from property for their lifetime, after which ownership reverts to the remainderman or grantor.

How does an easement appurtenant differ from an easement in gross?

Answer: An easement appurtenant benefits adjacent land; an easement in gross benefits a person or entity

An easement appurtenant runs with the land and benefits a neighboring parcel (dominant estate), while an easement in gross benefits a person or entity rather than adjacent land.