Section 9 Vocabulary

Question 1

Abstract of Title

Answer 1

An abstract of title is the search through recorded documents to find evidence of title transfer history and mortgages or other liens against the property including judgments and unpaid taxes.

Question 2

Acknowledgment

Answer 2

Acknowledgment is the formal declaration before a notary public declaring that the signing was voluntary.

Question 3

Actual Notice

Answer 3

Actual notice is when a party has awareness or direct notification of a specific fact or proceeding through reading, hearing, or seeing.

Question 4

Adverse Possession

Answer 4

Adverse possession is when someone other than the owner takes control of a property. This is a form of involuntary alienation as it is a method of acquiring title to real property by possession for a statutory period under certain conditions.

Question 5

Alienation

Answer 5

The word alienation is the actual act of transferring title or an interest in real property from one person to another.

Question 6

Assignment

Answer 6

Assignment of contract is a way for one party to be released from obligation to a contract without actually terminating the contract.

Question 7

Chain of Title

Answer 7

A chain of title is the “linking” of one owner to another as the property has been conveyed from one person to the next. Each person is connected through the ownership history and is said to form a “chain” of ownership.

Question 8

Condemnation

Answer 8

Governmental power to take land from an owner through the legal process is called condemnation.

Question 9

Construction Lien

Answer 9

A construction lien is an involuntary lien placed against a property for work performed to cover contracted work.

Question 10

Constructive Notice

Answer 10

Constructive Notice is knowledge which, according to law, a person is able to acquire by making normal and reasonable inquiries.

Question 11

Deed

Answer 11

A deed is the main form of title transfer that the licensee will interface with upon the closing of a sale and purchase agreement. A deed is broken down into three basic parts, which are the premises section, the operative part, and the conclusion.

Question 12

Deed Restrictions

Answer 12

Deed restrictions are created within the deed which limits how an owner can use a property. Deed restrictions include Restrictive Covenants which is placed within deeds of an entire development.

Question 13

Easement

Answer 13

Easements are a right to use a portion of an owner’s land for a specific purpose. Ownership of the property is not transferred, only the right of use—as limited by the language of the easement.

Question 14

Eminent Domain

Answer 14

Eminent domain is the governmental power to take land from an owner through the legal process called condemnation. This is a form of involuntary alienation.

Question 15

Encroachment

Answer 15

An encroachment is defined as being an unauthorized use of another’s property.

Question 16

Escheat

Answer 16

Provides for the property of a person who dies intestate and who has no known heirs to pass to the state.

Question 17

Further Assurance

Answer 17

Further assurance—grantor will deliver legal instrument if required to stand behind the transfer.

Question 18

General Warranty Deed

Answer 18

The general warranty deed is the most commonly used deed. It is the “default” deed that is used if a contract does not specifically state that another type of deed will be issued.

Question 19

Grantee

Answer 19

New owner receiving title granting clause.

Question 20

Granting Clause

Answer 20

A granting clause or words of conveyance must be included.

Question 21

Grantor

Answer 21

The person transferring title is the grantor of the deed.

Question 22

Gross Lease

Answer 22

Gross lease is the gross income that the landlord earns BEFORE he pays for expenses associated with the property.

Question 23

Ground Lease

Answer 23

In a ground lease, the tenant leases the land and erects a building upon the land.

Question 24

Habendum Clause

Answer 24

A habendum clause must define the quality of the ownership interest being conveyed.

Question 25

Intestate

Answer 25

A person who dies without a will died intestate.

Question 26

Lien

Answer 26

The right to retain the lawful possession of the property of another until the owner fulfills a legal duty to the person holding the property, such as the payment of lawful charges for work done on the property.

Question 27

Net Lease

Answer 27

With a net lease, the tenant pays a fixed rent amount plus they are responsible for the other expenses associated with the property. This includes utilities, property taxes, property insurance, and maintenance and repairs.

Question 28

Percentage Lease

Answer 28

A percentage lease is a lease that charges a base rent plus extra rent that is calculated as a percentage of gross sales.

Question 29

Police Power

Answer 29

Federal and State Constitutions apply restrictions to protect citizenry for health and safety reasons –Broadest Gov’t. Power.

Question 30

Quiet Enjoyment

Answer 30

Peaceful possession undisturbed by claims of title.

Question 31

Quitclaim Deed

Answer 31

The quitclaim deed is used when such a person agrees to “remise, release, or quitclaim” any claims on the property in the future.

Question 32

Seisin

Answer 32

Seisin promises grantor is the true owner and has right to convey title.

Question 33

Testate

Answer 33

Testate is the term meaning that a person died with a legal will in place.

Question 34

Title

Answer 34

In property law, title refers to all rights that can be secured and enjoyed under the law.

Question 35

Variable Lease

Answer 35

A variable lease, also called an index lease, is a rent amount that changes at a set time based on the terms of the lease and based on an INDEX.

Question 36

Warranty Forever

Answer 36

To defend grantee’s title against all lawful claims.