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chapter 2 Flashcards

1
Q

what is PERSONAL PROPERTY?

what is another name for PERSONAL PROPERTY?

A

PERSONAL PROPERTY is anything that is NOT REALTY.
PERSONAL PROPERTY are any tangible or intangible objects that are movable from one location to another.
Also known as CHATTEL.

Examples:
automobiles, money, livestock, art, mortgages, bond securities, emblements (annual crop=vegetables, wheat, corn)

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2
Q

what is chattel and what does it pertain to?
what is CHATTEL?
what is another word for CHATTEL?

A

______ALSO KNOWN A PERSONAL PROPERTY, CHATTEL IS ANYTHING BUT REALTY.
CHATTEL is something that is moveable from one location to the next.

example:
an automobile, emblements (annual crops).

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3
Q

what are EMBLEMENTS?

when are EMBLEMENTS considered PERSONAL PROPERTY?

A

EMBLEMENTS are annual crops or any crop that is PLANTED AND GROWN BY HUMANS.

EMBLEMENTS are considered PERSONAL PROPERTY once the crop is HARVESTED and severed (TAKEN) from the land.

RULES:
if the crop is the result from the tenant’s labor, and the harvest may not take place until after the tenancy expires, it is considered personal property ex: vegetables, corn, and wheat.
an annual crop or any crop that is PLANTED AND GROWN BY HUMANS = PERSONAL PROPERTY

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4
Q

what is a BILL OF SCALE?

AND

what does a BILL OF SCALE TRANSFER?

A

PERSONAL PROPERTIES ARE TRANSFERED with a BILL OF SCALE.

A BILL OF SCALE is a written document that evidences the change of ownership.

Example:
when you buy a car and need to register it at the DMV, you will need
to show the BILL OF SCALE to prove your ownership of the car

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5
Q

how are PERSONAL PROPERTIES transferred?

A

Personal Properties are transferred via a BILL OF SCALE.

BOS- evidence of a change of ownership for Personal Property.

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6
Q

what are EMBLEMENTS?

when are EMBLEMENETS considered REAL PROPERTY?

A

EMBLEMENTS are considered REAL PROPERTY when they are via the powers of the land without any harvesting methods.

They include:
fruit trees, berries growing on bushes, and hay growing spontaneously from perennial roots. They are considered REAL PROPERTY when they are NOT SEVERED from the land, but personal property when severed.

EX: apple trees in porters yard are REAL PROPERTY when have no apples on them…..and when they are picked and harvested they become PERSONAL PROPERTY.

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7
Q

what are FRUCTUS INSDUSTRIALES?

what TYPE OF PROPERTY DOES FRUCTUS INDUSTRIALES FALL UNDER?

A

Fructus Industriales, or emblements, are annual crops that are raised by yearly labor and OWE THEIR EXISTENCE TO HUMAN INTERVENTION AND CULTIVATION.
PERSONAL PROPERTY

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8
Q

what are two types of PROPERTY?

and

what do both properties include?

example of both…

A
  1. PERSONAL PROPERTY- movable from one location to another; anything that is NOT REALTY.
    Includes: EMBELMENTS (human harvested crops)
    example: human GROWN AND PLANTED crops HARVESTED.
  2. REALTY- a broad definition that includes LAND, REAL ESTATE, and REAL PROPERTY.

a. LAND- starts from the core of the earth upward in the shape of a cone including subsurface, surface and
airspace to infinity. Any PERMENENT, NATURALLY GROWN AND ATTACHED TO THE LAND.
include: FRUCTUS NATURALES - trees, minerals, or water.
Subsurface would include materials such as minerals, oil, and gas.

b. REAL ESTATE - includes LAND + any objects PERMENETLY ATTACHED TO THE LAND. Any artificial
additions to the land, or improvements, such as streets, sewers, or fences are part of real estate.
Human grown crops or fruits, or fructus industrials that are STILL ATTACHED TO THE VINE.are part of
real estate.

c. REAL PROPERTY - is the MOST COMPREHENSIVE FORM OF REALTY.
Real property COMBINES - all LAND + REAL ESTATE+ ANY LEGAL RIGHTS AND BENEFITS that attach to the ownership.
Also known as a BUNDLE OF RIGHTS.
Bundle of Rights, when the buyer purchases a real property the buyer actually buys the bundle
of rights previously held by the seller. The bundle of rights includes:
 Right of possession
 Right to control (within legal limitations)
 Right of enjoyment or usage (in a legal manner)
 Right to exclude or prevent others from using or entering the property
 Right of disposal or to sell, transfer or encumber the property

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9
Q

what is a BUNDLE OF RIGHTS and what kind of property does it pertain to?

A

BUNDLE OF RIGHTS - when the buyer purchases a REAL PROPERTY -( FORM OF REALTY) the buyer actually buys the bundle of rights PREVIOUSLY HELD BY THE SELLER. T
The BUNDLE OF RIGHTS includes:
 Right of possession
 Right to control (within legal limitations)
 Right of enjoyment or usage (in a legal manner)
 Right to exclude or prevent others from using or entering the property
 Right of disposal or to sell, transfer or encumber the property

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10
Q

what are INCORPOREAL APPURTENANCE?

give an example:

what type of property is it included in?

A

INCORPOREAL APPURTENANCE- is any intangible parts to the property that add greater enjoyment to the owner.

example: rights of way, water rights, easements that come along with the property -

incorporeal appurtenance is included under REAL PROPERTY

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11
Q

round up: what is PERSONAL PROPERTY?

A

PERSONAL PROPERTY are movable items that are not attached to realty, and are transferred by bill of sale.

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12
Q

round up: what is REALTY?

A

REALTY includes land, real estate, and real property. Ownership of realty is transferred through Deed.

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13
Q

what is a deed?

and

what is a DEED’S STEPS?

A

a DEED is a written document by which a GRANTOR conveys and transfers an ownership interest in REAL PROPERTY (realty) to a GRANTEE.

*neither the grantor or grantee are always seller and buyer. might be third party deal.

The deed is then RECORDED to give constructive notice to the world.
The deed would then be PART OF PUBLIC RECORD. *RULES: Transfer of title by deed is only valid when it is in
writing.

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14
Q

what is a GRANTOR in a DEED TRANSFER?

what is a GRANTEE in a DEED TRANSFER?A

A

a GRANTOR- is the person transferring the
realty

a GRANTEE- is the person receiving the realty

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15
Q

what are the MOST COMMON TYPES OF DEEDS?

at what point is a deed COMPLETE?

A 
The most common types of deeds are:
 General Warranty Deed
 Quitclaim Deed
 Deed of Trust/Trust Deed
 Sheriff’s Deed
 All other deeds

DEEDS ARE COMPLETE-

  1. in writing
  2. accepted by the grantee in form of writting. - transfer of the deed for real property which is included in realty.
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16
Q

what are two ways TRANSFERS OF DEEDS CAN BE CONDUCTED?

A
  1. voluntary ( VOLUNTARY ALIENATION), such as transfer by sale or gift.
  2. involuntary (INVOLUNTARY ALIENATION), such as transfer by court order during a foreclosure
    sale.
    ***Transfer of a deed is only complete if the grantee accepts the deed.

A DEED IS FOR TRANSFER OF OWNERSHIP FOR REALTY

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17
Q

how many deeds are there?

what are the differences between deeds?

A

There are many types of deeds. The differences between the deeds depend on the type of COVENANT
made by the grantor.

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18
Q

what is the GENERAL WARRANTY DEED

and what does it provide and to who?

A

GENERAL WARRANTY DEED is used in most states outside of the far West. (both NV and CA) The General Warranty Deed is considered the best deed because it PROVIDES THE MOST PROTECTION TO THE GRANTEE.

the GENERAL WARRANTY DEED includes:

  1. Warrants seisin
  2. WARRENTS AGAINST ENCUMBRANCES- (unless specifically stated in the deed.
  3. Warrants enjoyment now and forever (QUIET ENJOYMENT)
  4. Warrants further assurances
  5. Warrants a forever warranty
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19
Q

under the GENERAL WARRANTY DEED what does it mean to WARRANT SEISIN?

A

WARRANT SEISEN - the grantor warrants that he or she OWNS the estate or interest he or she
purports to convey. Grantor must have both TITLE and POSSESSION at the time of the grant in
order to satisfy the covenant.

Seisin means possession and the grantor warrants that they own the property and have the legal right to convey it

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20
Q

under the GENERAL WARRANTY DEED what does it mean to WARRANT AGAINST ENCUMRANCES?

A

WARRENTS AGAINST ENCUMRANCES- encumbrances are any claim, lien, charge or liability attached to and binding on real property that may LESSEN THE VALUE or burden, obstruct or IMPAIR THE USE of the property but NOT PREVENT TRANSFER OF TITILE.

(are no outstanding rights or interest to the estate conveyed or any part thereof which will diminish the value of the estate, but which are consistent with the passing of the estate.)

EXAMPLES: Encumbrances may be judgments, mortgages, liens, or THOSE THAT AFFECT THE PHYSICAL CONDITION OF THE PROPERTY, such as restrictions, encroachments and easements.

*RULES: In the General Warranty
Deed, the grantor warrants against encumbrances unless specifically stated in the deed.

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21
Q

under the GENERAL WARRANTY DEED what does it mean to WARRANT ENJOYMENT NOW AND FOREVER

ALSO what is QUIET ENJOYMENT?

A

quiet enjoyment is the right of an owner or lessee
legally in possession of property to uninterrupted use of the property without interference
from the former owner, lessor or any third party claiming superior title. The grantor
warrants quiet enjoyment now and for any time in the future.
-NO MORE VISITS FROM OLD OWNERS

22
Q

under the GENERAL WARRANTY DEED what does it mean to WARRANT FURTHER ASSURANCES?

A

the grantor will sign and deliver any document to make sure the grantee receives good title.

23
Q

under the GENERAL WARRANTY DEED what does it mean to WARRANT A FOREVER WARRANTY?

A

WARRANTS A FOREVER WARRANTY – the grantor will PAY the GRANTEE for the LOSS should the title
fail in the future

24
Q

what is an example of a COVENANT that may be FOUND IN A DEED?

A

There are up to six express covenants that may be found in a deed:

  1. the COVENANT OF SEISIN (possession)
  2. the COVENANT OF THE RIGHT TO CONVEY (have)
  3. the COVENANT AGAINST ENCUMBRANCES
  4. the COVENANT OF QUIET ENJOYMENT
  5. the COVENANT OF GENERAL WARRANTY
  6. the COVENANT OF FURTHER ASSURANCES
25
Q

what is a COVENANT?

A

a COVENANT is an agreement. A LAW AGREEMENT

Agree by lease, deed, or other legal contract.

26
Q

what does WARRANT mean?

A

to WARRANT is to put into action

27
Q

“grant and release,”

A

words in a DEED

28
Q

Quitclaim Deed

A

the QUIETCLAIM DEED - is used to convey ONLY THE GRANTOR’S rights or interest in REAL PROPERTY.
The Quitclaim deed OFFERS THE LEAST PROTECTION TO THE GRANTEE because the grantor does not
carry any covenants or warranties, and the deed does not state any nature of the rights.
It is often USED TO REMOVE a possible DEFECT ON TITLE, or CLOUD, such as correcting a misspelled
name on a warranty deed.

example: A DIVORCE-
or between family members to remove or eliminate an interest of a spouse in the property.

***QUIETCLAIM DEED- contains language such as “remise, release and quitclaim.”

29
Q

what is a DEED OF TRUST / TRUST DEED

A

DEED OF TRUST/TRUST DEED- a legal document in which TITLE TO PROPERTY is transferred to a third party (TRUSTEE)

A deed of trust is similar to a mortgage. The
BUYER RETAINS THE OWNERSHIP right of occupancy and the BUNDLE OF RIGHTS. Once the obligation is paid off, TITLE is transferred to the borrower by using a RECONVEYANCE DEED and
the transfer is recorded.

30
Q

what is a SHERRIFF’S DEED?

A

SHERIFF’S DEED- is GIVEN TO THE BUYER BY THE COURT to affect the sale of property following a
FORECLOSURE in certain states or the outcome of a court hearing to pay off a debt.

31
Q

what words gives the promise the deed warrants?

A

The words used BEFORE OR AFTER the word “deed” gives the promise the deed warrants.

32
Q

what are some other types of deeds?

other deeds include:

A

other deeds fall between the GENERAL WARRANTY DEED and QUIETCLAIM DEED usually offer less protection to the grantee.

other deeds include:
1. SPECIAL WARRANTY DEED- the seller of the property—known as the GRANTOR—warrants only against anything –known as ENCUMBRANCES—that occurred during THEIR physical ownership. In other words, the grantor DOESN’T GUARANTEE against any defects in clear title that existed before they took possession of the property
( grantor warrants against encumbrances only after the period the grantor obtains the property and not the former owners)
-COMMONLY USED IN COMMERCIAL transactions, by fiduciaries (trustees, executors etc) to PROTECT AGAINST ACTS OF FORMER OWNERS.

2.TRUSTEE’S DEED- used by the trustee to convey the property to another party other
than to the trustor.

3.BARGAIN AND SALE DEED- aka GRANT, BARGAIN AND SALE DEED - Grantor warrants that he or she
has the right to convey the property. It DOES NOT WARRANT AGAINST ENCUMBRANCES.
*MINIMAL LEGAL RECOURSE FOR THE GRANTEE->LESS PROTECTION DOWN THE LINE.

4.DEED IN LIEU OF FORECLOSURE- a deed to a lender VOLUNTARY GIVEN BY AN OWNER conveying
mortgaged property in which the MORTGAGE IS IN DEFAULT.
** It is commonly used as an ALTERNATIVE TO FORECLOSURE action but the DISADVANTAGE to the LENDER is that IT DOES NOT wipe out JUNIOR LIENS, which foreclosure would.

33
Q

what is a PATENT?

A

a PATENT- Original conveyance of TITLE– FROM THE GOVERNMENT TO AN INDIVIDUAL.
a government authority or license conferring a right or title FOR A SET PERIOD especially the sole right to exclude others from making, using, or selling an invention.

34
Q

what is ROOT OF TITLE?

A

ROOT OF TITLE- The beginning of ownership of realty by a private individual.

35
Q

what is ABSTRACT OF TITLE?

A

ABSTRACT OF TITLE- A chronological HISTORY of the REAL PROPERTY and the CURRENT STATUS of all grants,
conveyances, wills, public records and judicial proceedings AFFECTING TITLE to a SPECIFIC PARTY.

**Example: A title insurance company will compile an abstract of title with copies of all recorded
instruments affecting title prior to granting a title insurance policy.

36
Q

what is a CHAIN OF TITLE?

A

CHAIN OF TITLE– LISTS ALL SUCCESSFUL CHANGES OF OWNERSHIP OF REALTY SINCE THE PATENT. but DOES NOT list other activity such as liens, encumbrances or other activity.

The RECORDED HISTORY of matters that affect the title of a specific parcel of real property, such as
ownership, encumbrances and liens, usually beginning with the original recorded source of the title.
Example: The chain of title shows the successive changes of ownership, each ONE LINKED TO THE NEXT so
that a chain is formed.

37
Q

what is a CLOUD ON TITLE?

A

CLOUD ON TITLE- Any document, claim, unreleased lien or encumbrance that IMPAIR OR INJURE THE TITLE TO PROPERTY OR CAST DOUBT on the validity of the title.

Example: Clouds on title are usually revealed by a title search and MAY BE REMOVED FROM A RECORD BY A QUIETCLAIM DEED OR A QUIET TITLE PROCEEDING initiated by the owner.

38
Q

what is a GAP IN TITLE?

A

GAP IN TITLE– A missing link in the chain of title.

39
Q

what is DEDICATION?

A

DEDICATION - The transfer of PRIVATELY OWNED LAND TO THE PUBLIC without consideration, with the intent
that the land will be accepted and used for public purposes.
Example: A landowner may dedicate the entire fee simple interest or an easement such as a public right
of way across the landowners property

EX: merklebachs house to slaughterhouse canyon- we walk on the outside of the fence even though its her property.

40
Q

what is a VACATION?

A

VACATION– Government GIVING BACK REALTY to a private citizen.

41
Q

ROUNDUP: what is a DEED?

In order for a DEED to be VALID and ENFORCEABLE IT MUST be in …… and must specify the following details: **all must be present to have a valid DEED

A

A DEED is a written instrument USED TO TRANSFER THE OWNERSHIP FROM ONE PARTY TO ANOTHER.

DEED TO BE VALID AND ENFORCEABLE:

-MUST BE IN WRITING 
 Legally Competent Grantor
 Identifiable Grantee
 Granting Clause
 How title was taken (determined by the Grantee and specified in the deed)
 Consideration
 Exceptions and Restrictions
 Legal Address or Description
 Grantor’s Signature
 Delivery and acceptance by the grantee
42
Q

what is a GRANTING CLAUSE? and what WORDS must it contain?

A

the GRANTING CLAUSE- The DEED must contain the words that convey the property. The granting clause also DEFINES THE NATURE AND EXTENT OF OWNERSHIP RIGHTS AND EXTENT OF OWNERSHIP RIGHTS GRANTED.

Ownership rights may be a fee simple estate or some lesser
interest. Examples of a granting clause are phrases such as “to the party of the second part, his heirs or
assigns forever” or “do hereby grant and release…”

43
Q

what is a TITLE?

A

TITLE - the OWNERSHIP or REAL PROPERTY and the EVIDENCE to the ownership.
The deed specifies HOW THE GRANTEE on a deed HOLDS TITLE, such as a single individual or co ownership. Terms such as joint tenants,
tenancy in common, in severalty, etc., express the forms of ownership.
Titles can also be taken by non
legal entities or legal entities.

44
Q

what is CONSIDERATION in a DEED?

A

CONSIDERATION- is ANYTHING THAT HAS VALUE, such as money, services, and physical objects.

A deed specifies that the GRANTOF RECEIVED CONSIDERATION IN EXCHANGE FOR THE PROPERTY.

The most commonly expressed consideration is in dollars.
When a deed transfers real estate as a gift, love and affection may be
sufficient consideration. When title is conveyed between family members and does not involve any
money, often the deed will express at lease a minimum amount in consideration such as “for the sum of
$1 and other good and valuable consideration.”

45
Q

what words are used in a QUIETCLAIM DEED?

A

“remise, release and

quitclaim.”

46
Q

what is a LIEN?

A

Liens are commonly placed against property such as homes and cars so creditors can collect what is owed to them. Liens are removed, giving clear title to the property to the actual owner. Liens can be both voluntary and involuntary.

47
Q

what is a RECONVEYANCE DEED?

A

Once the obligation FROM A DEED OF TRUST is PAID OFF, the title is transferred to the borrower by using a RECONVEYANCE DEED, and the transfer is recorded.

48
Q

what is TITLE?

what does TITLE incorporte?

A

Title is
the ownership or the rights of ownership to real property. Title incorporates the entire bundle of rights
to the owner. Title also serves as evidence of the right to an estate. Simply put, if one owns the
property, he or she is said to have title to it. Title may be held by a single individual, or a group of coowners. Title may also be held under a non-legal entity such as a person or a group of people, or be
held under legal entities such as trust, partnership, or various corporate forms.

49
Q

what are 5 ways to hold TITLE through non-legal entities?

A 
Ways to hold title through non-legal entities:
 Title in severalty
 Joint tenancy
 Tenants in common
 Tenants by the entirety
 Community property
50
Q

what are 4 ways to hold TITLE through legal entities?

A 
Ways to hold title through legal entities:
 Trust
 Partnership
 Corporation
 Limited Liability Company (LLC)
51
Q

what is SEVERALTY (in title)

A

Severalty
Title in severalty refers to ownership by a single individual, alone as an unmarried person or a single
legal entity such as a corporation. The word severalty originates from the word “Severed”, or cut off
from others. The law regarding title on severalty may differ from state to state, however in general the
owner enjoys sole ownership and control of the property.

52
Q

what is SEVERALTY (in title)

A

Severalty
Title in severalty refers to ownership by a single individual, alone as an unmarried person or a single
legal entity such as a corporation. The word severalty originates from the word “Severed”, or cut off
from others. The law regarding title on severalty may differ from state to state, however in general the
owner enjoys sole ownership and control of the property.

real estate (5 decks)

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