Ch-1-MCQ-Easements and Leases Quiz

Study Notes

Easements and Leases

Easements and leases are interests in land, crucial for transactions.
Easements impact almost every transaction, while leases affect most commercial properties and residential co-ops.
Easements and leases can be Schedule B exceptions or insured interests.

Types of Easements and Insurance

Easements are non-possessory, meaning the holder cannot occupy the land.
Easements permit specific uses, like ingress/egress, but not improvements.
Easements are created by deeds, plats, declarations, etc.
Appurtenant easements, benefiting adjacent land, are insurable.
Certain encroachments (e.g., concrete) are insurable (Form 9).
Non-insurable encroachments (e.g., a pool) are exceptions (Schedule B2)

Dealing with Encroachments

Encroachments, especially buildings, are a key issue, particularly in lender requirements.
A clean Form 9 document is required by lenders, insuring against damage from easements.
Encroachments are noted on surveys. Form 9 coverage varies based on the encroachment type.
Concrete encroachments are often covered, but pool encroachments typically aren't.
Exceptions in Schedule B2 are maintained even with Form 9 coverage.
Form 9 coverage doesn't delete encroachment exceptions; it clarifies the coverage of the exception.
The exclusion of the general survey exception in Schedule B must be avoided if not supported by a proper, adequate survey.

Legal Cases and Easements

Kitzinger v. Gulf Power: A case involving a utility easement and encroachment.
Minor encroachments, even in long-standing easements, might be tolerated if not materially impacting the easement's function.
Courts consider the impact on current and future utility easements.
Encroachment agreements can be negotiated as alternatives.
Parties don't always act reasonably; disputes over minor encroachments are common.
A property's use affecting it (e.g., road, ditch) is a potential prescriptive easement issue.

Appurtenant Easements

Appurtenant easements belong to a larger parcel, like a dominant estate.
An appurtenant easement benefits one lot over another (servient).
Discontinuous easements or gaps in legally described areas invalidate the easement.
Appurtenant easements are insurable assets, especially in lot-and-block transactions.
Dominant estate benefits from the easement, servient estate is burdened.

Description

Test your knowledge on easements and leases, critical interests in land transactions. Understand the different types of easements, their insurability, and how to deal with encroachments that can affect property use. This quiz will enhance your grasp of real estate concepts and legal implications.