Module 7 Vocab Flashcards
a type of involuntary transfer of property takes place when a party makes a property claim by taking possession over a period of years, and the owner fails to contest the possession. This type of transfer is allowed because the law recognizes that possession and use of the land is an essential component of ownership. The time required to obtain title legally by this process varies from state to state.
Requirements for this type of land transfer are:
- open (the possession and use is obvious to everyone)
- notorious (others know about it)
- continuous (possession and occupation)
- hostile (without the consent of the true landowner)
- adverse (to the true owner’s right of possession)
adverse possession
A ______ is something that is:
1) voluntary
2) an agreement or promise
3) involves legally competent parties
4) legal consideration is given
5) is a legal act
contract
a written, legal instrument that conveys an estate or interest in real property to someone else, assuming it is executed and delivered.
deed
a good faith deposit made by a purchaser as the consideration component of a binding contract. In real property transactions, this deposit is frequently applied to the buyer’s down payment.
earnest money
a covenant of warranty inserted in a deed that binds the grantor and heirs to defend the title conveyed to the grantee and his or her heirs against the lawful claims of a person.
general warranty deed
One of the two bases used to set up leases. This one is when the lessor (landlord) pays some or all of the operating expenses.
gross lease
a contract in which a purchaser of real estate agrees to pay a small portion of the purchase price when the contract is signed and additional sums, at intervals and in amounts specified in the contract, until the total purchase price is paid and the seller delivers the deed; used primarily to protect the seller’s interest in the unpaid balance because default can be exercised more quickly than it could be under a mortgage
land contract (aka: contract for deed or installment sale contract)
a legal contract, typically purchased for a stated consideration, that permits, but does not require the holder of the ____ to buy, sell, or lease real estate for a stipulated period of time in accordance with specified terms.
option contract
Note: a unilateral right of the optionee to exercise a privilege.
the grantor conveys any interest held in the property to the grantee without any warranty of title. It offers the least protection to the buyer. It is often used to clear a defect in the title when someone is thought to have an interest or right in a particular property.
quitclaim deed
a written document signed by a buyer and a seller who agree to transfer the ownership of real property
sale contract (aka agreement of sale or earnest money contract)
the combination of all elements that constitute proof of ownership. If a person has ____ to real estate, it means they have the ownership rights (i.e. bundle of rights) of real estate. It also serves as evidence of ownership but it is not a printed document that a landowner can show someonel.
title
State the 5 elements of a contract:
1) voluntary
2) an agreement or promise
3) involves legally competent parties
4) legal consideration is given
5) is a legal act
an agreement put into words (written or spoken) is an ____
express contract
an agreement that is presumed to exist because of the parties’ actions is an ____
implied contract.
A contract where only one of the parties is legally obligated to perform.
unilateral contract (ex: an option agreement)
