Certified Residential Appraiser Practice Exam

What term refers to a right to use another's land for a stated purpose?

1. Life estate

2. Leasehold interest

3. Easement in gross

4. Fee simple estate

The correct answer is: Easement in gross

The term that refers to a right to use another's land for a stated purpose is an easement in gross. An easement in gross specifically grants an individual or entity the right to use someone else's land for a particular purpose, without the attachment of that right to any specific piece of land owned by the easement holder. This type of easement is beneficial in various situations, such as allowing utility companies to run power lines or pipelines across private property. In contrast, other options represent different property interests or rights. A life estate entails the right to use and occupy property for the lifetime of the individual holding the estate but does not permit use of another's land. A leasehold interest involves a tenant's right to occupy a rental property, which does not inherently provide rights to use adjoining or another's land. Lastly, a fee simple estate represents full ownership of a property, including the right to use, sell, or develop it, without any conditions regarding usage of another's land. Understanding these distinctions helps clarify that an easement in gross specifically allows for usage of another's land, making it the correct choice in this context.