Real Estate Unit 9

Front 1

Title

Back 1

The collection of rights that a person had in the ownership of real property

Front 2

Equitable title

Back 2

the right to obtain full ownership of the property, given to interested buyer when the contract for sale is executed

Front 3

Legal title

Back 3

The seller holds onto legal title of the property until closing

Front 4

Transfer of ownership is done by...

Back 4

deed or operation of law, can be voluntary or involuntary

Front 5

Alienation

Back 5

means transfer when used as a real estate term

Front 6

Voluntary alienation

Back 6

means the grantor had a choice and made the decision to transfer the property to someone else

Front 7

Involuntary alienation

Back 7

Means the grantor did not have a choice, the law determined that the property would be transferred as an eminent domain or other government interference

Front 8

Eminent domain

Back 8

means the taking of private property for public good

Front 9

What are the two ways to voluntarily transfer real property?

Back 9

by deed or by will

Front 10

The person who is making the will is called a...

Back 10

testator

Front 11

The person receiving the property is called the

Back 11

divisee

Front 12

Peron receiving personal property is called

Back 12

beneficiary

Front 13

Real property given in a will is a ______ and personal property in a will is a ______

Back 13

devise, bequest

Front 14

What is it called when someone makes a will? Doesn't make a will?

Back 14

testator, intestate

Front 15

What makes a valid will?

Back 15

1. must be 18 or older

2. must be of sound mind

3. must have proper wording

4. No influence, menace or duress from others

5. correct number of influences determined by the state

Front 16

Holographic will

Back 16

a will that is written, dated and signed in the testators handwriting but not witnessed, not valid in Florida

Front 17

Probate

Back 17

a formal court hearing to establish the validity of a will after the death of an individual

Front 18

What are the four ways property is transferred by involuntary alienation?

Back 18

1. foreclosure

2. escheat

3. eminent domain

4. adverse possession

Front 19

Transfer by descent

Back 19

When a person dies without a will and the state has established who will inherit the property

Front 20

Escheat

Back 20

when the state has the legal authority to take ownership of the property if there is not will and no heirs

Front 21

What three things must take place for eminent domain?

Back 21

1. the property owner must be paid just compensation for the property

2. the property must be for the public good

3. the owner must have due process in the courts

Front 22

Taking

Back 22

the government did not fulfill its obligation and that the land was taken illegally

Front 23

Condemntation

Back 23

is the court action used when the right of eminent domain is exercised, does not refer to deteriorating buildings

Front 24

Adverse possession

Back 24

When someone makes claim to someone elses property if the owner is not caring for it. Based on the common law that all owners should be aware and in possession of their property at all times

Front 25

O.P.A.T.C.H

Back 25

For adverse possession to take place

O- the claim must be open for all to see

P- Possession must be in the hands of the claimant

A- the claim must be actual

T- the claimant must have paid takes for the time of possession

C- The claim must be continuous for the statutory period of time

H- the claim must be hostile to the owners title, meaning that another person has encroached within the boundary of that portion of land

Front 26

Actual notice

Back 26

The buyer is charged with the responsibility of looking carefully at that which he is buying. When a deed is delivered and voluntarily accepted.

Front 27

Constructive notice

Back 27

public record, when something is found astray like an abstract of title or any judgements against the property the buyer is warned

Front 28

lis pendens

Back 28

pending litigation

Front 29

Opinion of title

Back 29

an attorney can provide an opinion of title stating that the title meets all ownership needs and has no questions in its history

Front 30

Can a sales associate or broker give an opinion of title?

Back 30

No, it is considered an unauthorized practice of law

Front 31

Abstractors

Back 31

title searchers who search the record to find the chain of title

Front 32

chain of title

Back 32

a series of owners in a row that have owned the property in the past

Front 33

Suit to quiet the title, quitclaim

Back 33

filed by an attorney to a special court when there is a break in the chain of title or there is a question about the title

Front 34

Color of title

Back 34

there is a claim against the title such as adverse possession, this must be cleared in courts before the property can be transferred

Front 35

A break in the chain of title

Back 35

the is an unexplained gap or break in the ownership of the property, must be corrected before the property can be transferred

Front 36

What are the two items that will cause a suit to quiet the title?

Back 36

1. Color of title

2. a break in the chain of title

Front 37

Certificate of title

Back 37

when all problems have been cleared and the title company can issue title insurance

Front 38

deed

Back 38

a document which transfers property from the grantor to the grantee

Front 39

what are the basic types of deeds?

Back 39

1. general warranty deed

2. special warranty deed

3. bargain and sale deed

4. quit claim deed

Front 40

What are the three parts of a deed?

Back 40

Premises, habendum and testimonium

Front 41

Premises

Back 41

1. name of the grantor

2. name of the grantee

3. accurate legal description of the property

Front 42

habendum

Back 42

1. recitation of consideration

2. granting clause, promises of seller

3. habendum clause, defines ownership taken by the grantee, to have and to hold

4. designations of any limitations of ownership

5. exceptions and reservations

6. appurtenances

Front 43

testimonium

Back 43

1. signed wishes of the grantor

2. in florida, signatures of two witnesses

3. delivery by the grantor and acceptance by the grantee

Front 44

The following must take place for a deed to be valid:

Back 44

1. the grantor must be of sound mind and legal age

2. Consideration, a promise to exchange for another promise

3. words of conveyance

4. a complete and accurate legal description of the property

5. the grantor must acknowledge the deed

6. in florida, two witnesses must sign

7. Delivery and acceptance takes place

Front 45

General warranty deed

Back 45

The highest and best deed, promises:

1. The covenant of Seisen, promises that the seller owns the property and has the right to convey it to another

2. Covenant against encumbrances, guarantees there is no burden on the property

3. Covenant of quiet enjoyment

4. Covenant of further assurance, if more paperwork or legal work needs to be done the grantor will provide

5. Covenant of warranty forever, the grantor will defend and protect the title for any defects that were created during the grantors ownership of the property or before

Front 46

Special warranty deed

Back 46

limits the time frame of the covenants to the time that the seller actually owned the property, anything that happened prior is up to the grantee to settle. Usually happens with foreclosure properties

Front 47

A bargain sale and deed

Back 47

Indicates that the grantor has ownership of the property and that is all, no other covenants are made. Usually used for properties that have been auctioned

Front 48

A quit claim deed

Back 48

says that the grantor quits or releases any interest that he may have had in the property, there are no covenants made in this deed. Uses the granting words of release, remit and quitclaim. Usually used to fix mistakes made in another deed

Front 49

Police power

Back 49

is the right of the local, state, and federal government to make laws for the good of all like zoning laws and building codes

Front 50

Zoning laws regulate...

Back 50

1. use of land

2. lot sizes

3. types of structures permitted

4. building heights

5. setback lines, how far from the street an improvement can be built

6. density, how much land to improvement ratio or people per acre

7. types of animals that are permitted

Front 51

Building codes

Back 51

designed to provide minimum standards for the health, safety and welfare of the public.

Front 52

Environmental protection laws

Back 52

Set up by the federal EPA and state departments of health to regulate air, water and noise pollution. Also the cleanup of hazardous substances

Front 53

Taxation

Back 53

is the right the government has to collect funds to pay for public services.

Front 54

What are the two types of taxation?

Back 54

1. Special assessment- a one time fee that affects one property at a time

2. ad valorem- value added tax, real estate taxes based on actual value of home, taxes are based on cities need for services

Front 55

Encumbrances

Back 55

anything that burdens or limits the title of a property

Front 56

Deed restrictions

Back 56

the grantor making the deed may make certain restrictions on the use of the property. Most are called restrictive covenants and they run with the land forever unless legal action is taken to remove them.

Front 57

A restriction is a ________, There are two types of restrictions:

Back 57

use encumbrance

limiting restrictions- state things you can never do

affirmative restrictions- state things you must abide by

Front 58

who can enforce these restrictions?

Back 58

the court of law

Front 59

who can bring an action asking for enforcement?

Back 59

anyone who is under the same restrictions who feels there has been a violation

Front 60

Unenforceable deed restrictions:

Back 60

1. Violates public property

2. discriminatory

3. limits the owners right to sell at a future date

4. restrictions have not been enforced in a timely manner

5. any restriction that limits the protected classes under the federal fair housing act

Front 61

Easement

Back 61

give someone else the right to use a part of the property while the owner retains the ownership rights, the right of ingress(enter) and egress(exit). all easements are encumbrances but not all encumbrances are easements

Front 62

An easement is created by:

Back 62

1. implication- an easement arising by implication from the acts of conducts of the parties

2. reservation- the creation of a new right or requirement retained by the grantor after the property transfers

3. necessity- created by court of law in cases of justice and if necessity dictates it

4. condemnation- a judicial or administrative proceeding to exercise the power of eminent domain

5. express agreement- when the parties state the terms and show their intentions in words or writing

Front 63

What are the four types of easements?

Back 63

1. appurtenant

2. in gross

3. necessity

4. prescription

Front 64

appurtenant easement

Back 64

easements for adjacent properties, run with the land and cannot be sold separately. The two parties are the dominant tenement and the servient tenement with one benefiting and one burdened

Front 65

Easements in gross

Back 65

Not tied to any land but instead owned by a person or company, considered a personal interest and can be sold

Front 66

Easement by necessity

Back 66

created by a court of law

Front 67

Easement by prescription

Back 67

an easement by adverse possession, if the claimant has used the property for the time period set by the law(20 years in florida) he can go to court to get the right to use the land forever

Front 68

Requirements to create prescriptive easements:

Back 68

1. Possession- must have been in possession or used the property for the required time

2. Open- the individual must make open use, everyone can see when they are doing

3. Actual- person must be in possession use of the property for the prescribed time for everyone to see

4. continuous- for the statutory period

5. hostile- in violation of the owners legal description by using the owners property ans claiming as ones own

Front 69

Easements can be terminated by:

Back 69

1. the purpose of the easement no longer exists

2. The holder abandons it for the statutory time period

3. A merger of the properties occurs

4. destruction of the property or the easement

5. A quit claim is issued back to the property owner that granted the easement

6. excessive use is determined by the courts

Front 70

A lease is a....

Back 70

possessory, non-freehold, interest in land, created without an ownership

Front 71

Assignment

Back 71

either the lessor or lessee may have the right to transfer the interest each has to another

Front 72

sublease

Back 72

when the lessee grants a portion of time or a portion of space to another

Front 73

Types of Commercial Leases

Back 73

1. gross lease- requires a tenant to pay only rent

2. net lease- requires tenant to pay rent plus a portion or all of other expenses

3. percentage lease- requires the tenant to pay a percentage based on his gross profits, start up business

4. ground lease- gives the tenant the right to build or use the land for a specific time period, up to 99 years

5. index lease- is a lease that goes up or down based on a specific index

6. graduated lease- has gradual increases built in so the lessee pays more as time progresses

7. subject to lease- when a buyer purchases a property that is currently leased, the lessee retains his rights until the the end of lease

Front 74

liens

Back 74

a debt or charge against the property

Front 75

Voluntary lien

Back 75

one that the owner was willing to place on the property such as a mortgage

1. mechanics lien- purpose is to protect contractors to assure payment on a property

2. statutory lien- based on state, local and federal written laws, cannot be automatically discharged through bankruptcy

Front 76

involuntary lien

Back 76

one that is placed on the property without the owners consent

1. general liens- result of losing a judgement case

2. equitable liens- always wither a judgement lien or a mortgage lien, based on doctrine of fairness

3. income take lien- is a general lien because income tax is initially based on a person

4. specific liens- applied to a specific piece of property and affect only that piece of property

Front 77

The priority of liens

Back 77

1. Cost of sale

2. Property taxes: ad valorem, special assessment

3. First mortgage or deed of trust

4. all other mortgages and other types of liens with priority established with date of recording

Front 78

Subordination agreement

Back 78

a legal document used to make the claim of one party inferior to the claim in favor of another

Front 79

Commercial real estate sales commission lien act, 475 F.S

Back 79

a listing agreement for sale of commercial real estate will entitle the broker to a lien on the net proceeds from the sale

Front 80

Commercial real estate leasing commission lien act, 475 F.S

Back 80

A written brokerage agreement for the leasing for the commercial real estate will attach a lien to the owners interest in the commercial real estate

Front 81

Enchroachment

Back 81

a physical thing which is an unauthorized intrusion of the owners legal title

Front 82

How are encroachments discovered?

Back 82

1. by physical inspection, actual notice

2. a survey, constructive notice

Front 83

license

Back 83

is permission to use the property of another for a specific purpose

Front 84

A mortgagee's title policy protects....

Back 84

the lender

Front 85

A person died intestate. His property would pass according to...

Back 85

decent and distribution

Front 86

An instrument that records the history of the property is called the...

Back 86

Abstract of title