SAEE Property Rights and Legal Considerations Flashcards

What is the 'bundle of rights' concept in real property?

Answer: The rights to possess, use, enjoy, exclude others, and dispose of property

The bundle of rights concept describes real property ownership as a collection of rights including possession, use, enjoyment, exclusion of others, and disposition (sale or transfer).

What is an encroachment in real property?

Answer: An intrusion of an improvement onto an adjacent property or right-of-way

An encroachment occurs when a structure, fence, or other improvement extends beyond the owner's property boundaries onto neighboring land or a public right-of-way.

What is the effect of a lis pendens on a property?

Answer: It provides public notice that a lawsuit affecting the property is pending

A lis pendens (Latin for 'suit pending') is a recorded notice warning potential buyers that the property's title is subject to pending litigation, which may cloud marketability.

In appraisal, what is a leased fee interest?

Answer: The landlord's ownership interest subject to an existing lease

The leased fee interest is the landlord's (owner's) position — the right to receive rent payments and to regain full possession when the lease expires.

What is an appurtenance in real property?

Answer: Rights, privileges, or improvements that are attached to and pass with the land

Appurtenances are rights or improvements attached to a parcel that legally transfer with the property upon sale, such as easements, outbuildings, and mineral rights.

What is the significance of police power in real property valuation?

Answer: It allows government to regulate land use without compensation, affecting property values

Police power enables governments to enact zoning, building codes, and environmental regulations that restrict property use without paying compensation, which can significantly impact appraised values.