CH 4: Transfer of Interests: Instruments and Agreements Flashcards
1
Q
Deed
A
Written proof of title
2
Q
Title
A
actual lawful ownership, NOT a document
3
Q
Equitable title
A
actual title will be transferred at a future date
4
Q
essential deed elements
A
- competent grantor
- identifiable grantee
- Act (word) of conveyance
- consideration
- legal description
- habendum clause
- Limitations
- exceptions and reservations
- signatures
- delivery and acceptance
5
Q
Habendum Clause
A
“to have and to hold”
6
Q
General warranty deed
A
- grantor warrants the title against defects before or during grantor’s period of ownership
- “convey and warrant forever”
7
Q
Warranties included in a general warranty
A
covenant of seizen
covenant against encumbrances
covenant of quiet enjoyment
covenant of warranty forever
8
Q
covenant of seizen
A
assures the grantor holds title noted in deed being conveyed
9
Q
covenant against encumbrances
A
assures property is free of encumbrances (usually real property taxes that haven’t been assessed)
10
Q
covenant of quiet enjoyment
A
ensures grantee can possess land w/o claims of title from others
11
Q
covenant of warranty forever
A
provides grantor will defend the grantee’s interests against all unlawful claims of title
12
Q
Full covenant and Warranty Deed
A
- strongest guarantee
- covenant of right to convey
- covenant of further assurances
13
Q
covenant of right to convey
A
states grantor owns land and convey it
14
Q
covenant of further assurances
A
requires grantor to remedy any defects in title
15
Q
special warranty deed
A
- limited warranty
- bargain and sale deed w/ covenants
- grantor warrants title only against defects during the time the grantor owned property
16
Q
bargain and sale deed (judicial deed)
A
-grantor has right to convey property, but there are no warranties with it.
17
Q
Judicial deeds
A
executor's deed administrator's deed guardian's deed sheriff's deed referee's deed
18
Q
executor’s deed
A
executor of estate conveys property of the deceased
19
Q
administrator’s deed
A
court appoints person to convey property of deceased (usually no will)
20
Q
guardian’s deed
A
court-appointed rep uses a guardian’s deed to convey property by a court
21
Q
sheriff’s deed
A
a doc giving ownership rights in property to a buyer at a sheriff’s sale
22
Q
referee’s dead
A
doc giving ownership during a bankruptcy or foreclosure
23
Q
quitclaim deed (deed of release)
A
- no warranties
- conveys any interest
- used to remedy clouds on a title
24
Q
clouds on a title
A
when someone may have a claim on title, but terminates his interest
25
Methods of transferring Ownership
- Voluntary Alienation
- Involuntary Alienation
- devise or descent
26
ways of voluntary alienation
Sale of property
Gift of a Deed
Grant
27
Involuntary Alienation
Eminent Domain
Foreclosure
Adverse Possession
Accession
28
Adverse Possession
requires open, notorious, hostile, adverse, continuous, and exclusive use of another's land for a specified period of time - matures into title
29
accession
acquisition by it's addition to real estate already owned through human/natural processes
30
Accretion/alluvion
gradual addition to dry land by nature (lake depositing silt)
31
avulsion
land lost due to sudden acts of nature
32
reliction
body of water gradually recedes, exposing land that was underwater
33
devise vs descent
devise- transfer with a will
| descent - without a will
34
testate/intestate
dying testate = having a will
| dying intestate = not having a will
35
Elements of a contract
- voluntary
- competent parties
- lawful and possible objective
- consideration
- description
- mutual agreement
- written format and signatures
36
competent parties (contract elements)
- 18+ years (only minor can void a contract)
- mental competence
- proper authorization
37
severable contract (contract elements)
one part or provision can be held unenforceable w/o making the entire contract unenforceable
38
consideration/valuable consideration (contract elements)
anything of value given to induce another to enter into a contract
39
forberance
promise not to do something
40
Contract characteristics
- sufficient, not necessarily adequate consideration
- given freely
- not under fraud, undue influence, duress, mistake
- written format
- power of attorney
41
attorney in fact has to be an attorney T/F?
False - can be anyone
42
Breach of contract
one party fails to perform - non-defaulting party can take legal action
43
substantial performance/ substantial breach (discharge of contracts)
promisor doesn't perform all contractual obligations, but does enough so that the promisee is required to fulfill their obligation
44
material breach
breach on contract important enough to excuse the non-breaching party
45
"time is of the essence"
if deadline passes, contract is automatically voidable - material breech
- unless both parties agree to extend deadline
46
conditions/ contingency (discharge of contract)
party's rights/obligations depend on occurrence/nonoccurence of certain events
47
Discharge of contracts
- agreements of the parties
- partial performance
- full performance
- impossibility of performance
- operation of law
48
remedies for breach of contract
```
cancelation
compensatory damages
injunction
liquidated damages
reformation
recission
specific performance
```
49
(remedy for breach) cancelation
termination of contract w/o undoing what was performed under it
50
(remedy for breach) compensatory damages
compensate plaintiff for harm caused by defendant's act/failure to act
51
(remedy for breach) injunction
court order for party to do/not do certain acts as opposed to monetary reward
52
(remedy for breach) liquidated damages
amount of money specified in a contract to be awarded in the event the agreement is breached
53
(remedy for breach) reformation
a court/judge changes a contract to reflect true intent (usually when parties make clerical error)
54
(remedy for breach) recission
destruction, annulment, termination of contract and all parties must give back anything under it
55
(remedy for breach) specific performance
(forced sale) court orders breacher to perform as agreed rather than simply paying damages
56
(discharge of contract) partial performance
both parties agree to accept something different than original terms
57
(discharge of contract) full performance
all parties have fulfilled their obligations
58
(discharge of contract) impossibility of performance
obligation becomes illegal
59
(discharge of contract) operation of law
when rights/liabilities are changed by application of law
60
Assignment of contract
assignor transfers rights to another (assigned) person
61
Novation
substitution of a new contract for an earlier contract (new contracts cancel original)
62
Real estate sales contracts contain 3 things
1. buyers initial offer (and counter offers)
2. receipt of any earnest money deposit
3. contract between buyer and seller
63
termination of an offer
1. lapse of time
2. death/incapacity
3. revocation - must be made before offer is accepted
64
Requirements for acceptance of an offer
- "meeting of minds"
| - must be communicated to offerer directly
65
escape clause/ bump clause/ 72 hour clause
buyer has to sell his home in order to purchase the property... this clause allows other buyers and sellers some options
66
Option to purchase
contracts that give one party the right to do something w/o obligating them to do it
- usually renting w/ the option of buying
- inforcible by optionee
67
Right of First Refusal
right to have first chance to a lease property if owner decides to sell/lease it
68
Gross lease
- common for residential rentals
| - landlord pays for all expenses
69
modified-gross lease
lessor and lessee are sharing expenses
70
net-lease
leasee is paying some or all expenses
71
(Net-lease) single net
lessor pays for maint repairs and taxes/insurance
| lessee pays EITHER taxes/insurance
72
(Net-lease) double net - net/net
lessor pays maint/repair
| lessee pays BOTH taxes and insurance
73
(Net-lease) triple net
lessor pays for building repairs
| lessee pays taxes, insurance/maint
74
(Net-lease) absolute net
lessee pays everything
75
Flat lease / level payment lease
rent payments are consistent throughout lease
76
variable lease
payments made at regular interval but may change
77
step lease
rent amount changes a PERCENT over time at set interval
78
revaluation lease
payments change over time to allow market changes
79
annual increase lease
rent changes an AMOUNT specified over time at set interval
80
percentage lease
- usually business
| - paying base guaranteed minimum, plus a percent of the sales
81
T/F: leases are standardized and appraisers just need to know the type
False, appraisers have to look at each individual lease
82
Lease terms of interest to appraiser
- rent
- term of lease
- terms to change rent
- beginning and ending date of lease
- personal property included in lease
- expenses paid by landlord and tenant
- other services provided by landlord
83
Breakpoint rent / overage rent (percentage lease)
Breakpoint - minimum guaranteed rent
| overage rent- percent of sales
