Real Estate

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Author:
tismeinaz
ID:
155204
Filename:
Real Estate
Updated:
2012-05-27 02:38:08
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Real Estate Paralegal
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Real Estate
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  1. Seisin
    freehold estate in land
  2. Fee Simple
    Includes all the rights that possibly go with the land. "Maximum bundle of rights".
  3. Fee Tail
    estate can only be inherited by lineal descendants.
  4. Life Estate
    • Right to possess and use the land until death.
    • Eg. To A for Live / To A for the life of B
  5. Cestui que vie
    the measuring life
  6. Voluntary waste
    using the land in a way which results in an unreasonable reduction of the value that will be passed on.
  7. Permissive waste
    permitting the land to fall into disrepair resulting in reduced value.
  8. Ameliorative waste
    improvements made to the land which destroy the original condition of the land but which increase its value. (tear down house - build office bldg)
  9. Future Interest
    a future interest is a freehold, nonpossessory, present interest in land that is capable of becoming possessory. The interest exists now but cannot become possessory until a future time.
  10. Reversion
    a future interest retained by the grantor when land is conveyed by sale or by will.
  11. Possibility of Reverter
    • fee simple determinable - the possibility of reverter exists when land is conveyed.
    • Eg. to A as long as the land is used for religious purposes.
  12. Right of Entry
    fee simple subject to condition subsequent. Does not end automatically upon the occurrence of a prohibited use or event. Grantor or successors must take affirmative step to terminate the estate.
  13. Future Interests Conveyed to Third Persons
    A Future interest conveyed to someone other than the grantor or the grantee of the possessory estate, is classified as either a remainder or executory interest.
  14. Remainder
    a future interest that becomes possessory upon the natural termination of the preceding estate. Follows prior estate naturally.
  15. Contingent remainder
    exists when the identity of the remainderman is uncertain or when the remainderman's interest depends on the occurrence or nonoccurrence of an event.
  16. Executory Interest
    • similar to either a fee simple determinable or a fee simple subject to a condition subsequent.
    • Eg. To Bob and his heirs; but if Bob dies without leaving children surviving him, then to Carol and her heirs.
  17. Springing executory interest
    • a conveyance that springs from the grantor not shift from a third party.
    • Eg. to Bob and his heirs, Bob's interest to commence upon upon his attaining the age of 25 years.
  18. Statute Quia Emptores
    • Rule Against Restraints on Alienation. Cannot restrain the transfer of property.
    • Eg: To Alice and her heirs; but if Alice attempts to transfer the property, this conveyence shall be null and void.
  19. Rule Against Perpetuities
    No interest is good unless it must vest, if at all, not later than 21 yrs after some life in being at the creation of the interest.

    designed to prevent the hand of the dead from reaching out from the grave to control the living forever.
  20. The four unities
    • 1. Time (ownership created at the same time)
    • 2. Title (obtained from the same source)
    • 3. Interest (each owner has equal interest)
    • 4. Possession (each holds an undivided share)
  21. Concurrent Ownership
    requires the Four Unities - most common form of Concurrent Ownership - tenancy in common, joint tenancy, tenancy by the entirety.
  22. Tenancy in Common
    only the unity of possession must be present. No right of survivorship. Each owner has use of the full property but cannot use it in a way that interferes with or reduces the value of the other cotenants.
  23. Joint Tenancy
    • must be stated specifically in the document.
    • included all 4 of the unities
    • right of survivorship is inherent in joint tenancy and will be inferred even though not specifically stated.
    • only continues as long as the four unities continue
  24. Tenancy by the Entirety
    Special form of Joint Tenancy. Requires that the joint tenants be married.
  25. Marital Rights
    • When a married person owns land which is not also owned by the spouse, the spouse may have an interest in the land even though the their name is not on the deed.
    • Common law marital rights
    • statutory marital rights
    • community property rights
  26. Curtesy
    common law marital right that benefits the surviving husband. He inherits all the wife's property.
  27. Dower
    Common law marital right that benefits the surviving wife. If there are children, the wife gets 1/3 and the children 2/3 of the property. If there are no children, the surviving wife gets nothing.
  28. Exceptions to Community Property rights.
    • property individually owned by a spouse prior to the marriage.
    • property which comes to a spouse as an inheritance or gift after the marriage.
  29. Trusts, Cooperatives, and Condominiums.
    • Trust - fiducidary relationship where the trustee holds legal title and manages the property for the benefit of the beneficiary.
    • Co-op - residents own shares in a corp. which owns the bldg. Everyone leases a unit and shares public spaces because they all own - they are responsible for all payments.
    • Condo - each res. individually purchases a unit and all residents own the common areas as tenants in common.
  30. Nonfreehold Estates
    specific rights to possess and control land, to the exclusion of the true owner. Created by agreement, limited in time, and do not include any ownership interest. Leaseholds.
  31. Leaseholds
    • Tenancy for years
    • Tenancy from Period to Period
    • Tenancy at Will
    • Tenancy at Sufferance
  32. Remedies for Breach
    Remedies available to a residential landlord or tenant are covered in the Uniform Residential Landlord and Tenant Act. 15 States
  33. Rights in the Land of Others
    • Specific, limited rights in the lands of others.
    • easement
    • license
    • covenant
  34. Easement
    nonpossessory interest in another's land for limited and special purpose such as Rights-of-way: Driveways, roads, sidewalks.
  35. Easment appurtenant
    The right to use a neighbor's driveway is an easement appurtenant
  36. Easement in gross
    No dominant tenement. Eg: utility easement for cables or telephone poles etc.
  37. Creation of Easements
    • 1. Express Easement (by deed - either express grant or express reservation)
    • 2. Easement by Implication - presumed intention of the parties. (existing use or by necessity)
    • 3. Easement by Prescription - fee simple title.
    • 4. Eminent Domain - Gov't takes an easement for public use.
  38. Transfer of Easements
    may be transferred w/o regard to how they were created.
  39. Termination of Easement
    • When one party acquires both properties.
    • Dominant tenement can terminate either by writing or orally.
    • Servient takes back the easement by prescription.
  40. License
    The right to enter or perform acts on another's land without incurring liability as a trespasser.
  41. Covenants
    contractual promise concerning land use.
  42. Affirmative Covenant
    requires the promisor to do something to the land.
  43. Restrictive Covenant
    limits the permissible uses of the land or acts that can be performed upon it.
  44. Equitable Servitudes
    a covenant that can be enforced in equity (injunctive relief as opposed to damages)
  45. Limitations Upon the Use of Land
    landowner's right is limited by the rights of neighboring landowners and others who may be affected.
  46. Nuisance
    activity conducted on land or physical condition of land that is harmful or annoying to a neighboring landowners or to members of the public in general.
  47. Right to Support
    landowner can hold adjacent landowners accountable if they alter the terrain of their own lands in such a way that natural support of her land is removed, causing her land to collapse.
  48. Water Rights - riparian water rights
    landowner has the right to use water that flows across the land but not to obstruct the rights of other landowners who have the same rights in the same water.
  49. Airspace Rights
    Aircraft have a navigational servitude (right to cross airspace) above surface land. Landowners may have action for inverse condemnation if the noise of low-flying aircraft interfers substantially with their use of the surface land.
  50. Public Land Use Controls
    Governments can restrict land use via zoning laws.
  51. Eminent Domain
    Government taking private property for public use. Owner is compensated for land but not for particular use.
  52. Contract for Sale of Land
    contains the seller's promise to convey title to real estate to the buyer in exchange for the buyer's promise to pay the purchase price. Statute of Frauds in most states require land sale contracts be in writing. Must contain at least, the identity of the parties, description of the property, and the purchase price.
  53. Deed
    • the document used to convey the interest in the property.
    • Must be in writing
    • state the type of state conveyed (fee simple etc)
    • contain words of conveyance (transfer, sell etc)
    • contain a sufficient legal description
  54. Legal Description - types
    • Metes and Bounds (distance & directions)
    • rectangular survey system (adopted 1785 - used in 30 Sts.)
    • reference to a subdivision plat or map
  55. merchantable title
    free of defects, such as unsatisfied liens. (defective title = cloudy title)
  56. Execution of the Deed
    • Requirements:
    • Signature of the grantor(s).
    • Seal (No longer wax sealed but now the word Seal is printed on the form)
    • Delivery and Acceptance. (must be delivered to & accepted by the Grantee)
    • Attestation and Acknowledgement. ( Attestation: witnessed - 20% of states require) Acknowledgement: notarized)
  57. Deed poll
    Deed signed by grantor only. Most deeds are of this type.
  58. Indenture
    Deed signed by both grantor and grantee
  59. Warranty Deed
    most common type of deed used to convey title. Contains promises, called covenants of title, concerning the status of the grantor's title.
  60. Covenants of Seisin and Right to Convey
    mean the grantor owns the estate which is conveyed in the deed and has the right and power to transfer it.
  61. Covenant Against Encumbrances
    means the property is transferred free of encumbrances except those specifically stated in the deed.
  62. Encumbrance
    • Liens against the property for monetary obligations
    • Interests in the land - leaseholds and life estates
    • Restrictions on the use of the land such as easements or restrictive covenants
  63. Covenant of Quiet Enjoyment
    promises the grantee will enjoy peaceable possession (not ousted by a person holding a better title).
  64. Warranty and Further Assurances
    promises that the grantor will defend grantee's title against any lawful claims existing at the time of transfer and that the grantor will perfect the grantee's title if necessary.
  65. Limited or Special Warranty Deed
    contains all the same warranties as a general warranty deed but covers only defects that were created or came into existence while the grantor was owner.
  66. Quitclaim Deed
    Conveys grantors interest in the property and makes no warranties or promises.
  67. Merger
    buyer's acceptance extinguishes rights under the purchase contract. If a title proves defective, the buyer's recourse is for breach of covenants not for breach of the sale contracts.
  68. Recording Statutes
    provides reliable public information concerning the status of real estate titles.
  69. Title Search
    Examination of the chronological public record of transactions concerning a piece of property.
  70. Abstract of Title
    private abstract or title companies maintain a private duplicate set of real estate records. These are updated daily. This info is used to prepare an abstract of title - the chronological summary of the contents of all recorded instruments pertaining to that piece of land.
  71. Title Opinion/Title Insurance
    Opinion issued by attorney or insurance through a title co. Opinion lists any areas of concern as well as encumbrances. Title Ins. indemnifies against loss.
  72. Title Registration (Torrens)
    alternative recording statute involving registration of the Title rather than recording evidence of the title. The title is registered in a judicial proceeding in which all parties claiming an interest are notified and given the opportunity to present their claims. After a hearing, a certificate of title is issued to the owner. To transfer property, the deed and certificate are filed with the registrar of titles.
  73. Priority among Successive Purchasers.
    In the absence of a recording statute the common law rule - first in time, first in right - prevails. Recording statute - priority is determinted by the terms of the statute and not the time of conveyance.
  74. Pure Race Statute
    who records first is the buyer who prevails
  75. Mortgage
    interest in a specific real property that is created to secure performance of an obligation.
  76. Mortgagor
    creator of the Mortgage - owner/debtor
  77. Mortgagee
    lender/creditor
  78. Deed of Trust
    functional equivalent of a mortgage
  79. Priority of Mortgages
    multiple mortgages - 1st mortgage gets paid first, second gets paid second etc.
  80. Subordination
    when a mortgagee relinquishes a right to priority
  81. Acceleration Clause
    contractual provision that permits the mortgagee to declare the entire balance due and payable immediately.
  82. Default and Foreclosure
    The method by which the mortgages property is applied to satisfy the underlying debt.
  83. Escrow Agreement
    Escrow agent holds all deposited funds until performance of an event outlined in the escrow agreeement.
  84. Real Estate Settlement Procedures Act (RESPA)
    Federal Statute requires an advance, itemized disclosure of closing costs to the buyer of residential property.
  85. Closing Statement
    lists costs to either or both the seller and buyer.
  86. Adverse Possession
    method of acquiring property through the statute of limitations. If the rightful owner fails to file suit for recovery from the adverse possessor before the statute runs out, the owners claim is extinguished and the adverse possessor gains title to the property.
  87. Derivative Title
    Title derived from the original owner by sale, gift, will or intestate succession.
  88. Open and Notorious Possession
    To establish title by adverse possession, the occupation of the property must be sufficiently obvious to put the owner on notice of the possession. Not necessarily actual knowledge.
  89. Hostile, Exclusive, and Adverse Possession Under Claim of Right
    possession w/o the owner's permission, either express or implied.
  90. Continuous and Uninterrupted Possession for the Statutory Period
    When hostile and adverse, open and notorious possession occurs, the statute of limitations begins to run. It must be continuous and uninterrupted for the duration of the statutory period.
  91. Under Color of Title
    adverse possessor claims the land under an instrument purporting to pass title but which is ineffective to operate as a conveyance. In many states, the statute of limitations is shortened for this (property taxes must be paid also). Some states require the instrument be recorded.
  92. Ken conveys property to Mark for the life of Marin, then to Nora. At Mark's death, the property owner is:
    A. Marin
    B. Mark's heirs
    C. Ken
    D. Nora
    B. Mark's heirs
    (this multiple choice question has been scrambled)
  93. Mike and Kristin Hanson rent a house from Ron. The lease agreement does not indicate who is to make repairs to the house. Two weeks later the furnace dies.
    A. Common law rules that landlord pays
    B. Common law rules that tenants pay
    C. Statutes rule that landlord pays
    D. Statutes rule that tenants pay
    B. Common law rules that tenants pay
    (this multiple choice question has been scrambled)
  94. When a zoning plan is put into effect, any nonconforming use must be allowed to continue until title passes. T/F
    False
  95. An easement differs from a license in that:
    A license confers a personal privilege to do an act.
  96. If a parcel of land is landlocked, this means that it is surrounded by land on all contiguous sides. T/F
    False
  97. Jessica leases her roadside property to Lisa for a three-day craft fair. Lisa is a:
    A. Tenant for years.
    B. Tenant from period to period.
    C. Tenant at sufferance
    D. Tenant at will
    A. Tenant for years.
    (this multiple choice question has been scrambled)
  98. Amy needs more space for her garden, her neighbor will not lease her the land so she plants her tomatoes there anyway and continues to do so for a number of years. Amy has most likely established an:
    A. Easment by reclamation
    B. Easement by prescription
    C. Easement by necessity
    D. Easement by implication
    B. Easement by prescription
    (this multiple choice question has been scrambled)
  99. Foreclosure of a first mortgage generally will terminate a second mortgage lien on the secured real estate. T/F
    True
  100. Land upon which and easement is located is known as the burdened tenement. T/F
    True
  101. Deeds are attested:
    A. Because of ancient custom
    B. To make them binding on the Grantee
    C. To enable them to be recorded
    D. To establish legal capacity
    C. To enable them to be recorded
    (this multiple choice question has been scrambled)
  102. Under common law rules, the class of persons to whom a property owner owes the greatest duty of care against injury is:
    A. A tresspasser
    B. An invitee
    C. A guest
    D. All of the above
    B. An invitee
    (this multiple choice question has been scrambled)
  103. A lease agreement takes effect on the date the agreement is made. T/F
    True
  104. Which is not a future covenant in a general warranty deed?
    A. Further assurance
    B. warranty
    C. seisin
    D. quiet enjoyment
    C. seisin
    (this multiple choice question has been scrambled)

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