Lesson 3 - Legal Issues

Question 1

Bundle of Rights

Answer 1

• The premise that the ownership of real estate consists of the ownership of various rights associated with it. These rights include the right to use and/or occupy, the right to sell in whole or in part, the right to lease, the right to bequeath and the right to do none of the foregoing
• Includes the right to quiet enjoyment

Question 2

Littoral Rights

Answer 2

-The right of a property owner whose land borders on a body of water, such as a lake, ocean or sea, to reasonable use and enjoyment of the shore and water the property borders on.

Question 3

Riparian Rights

Answer 3

-The right of a property owner whose land borders a natural water course, such as a river, to reasonable use and enjoyment of the water that flows past the property. Riparian literally means “riverbank”.

Question 4

Specific Lien

Answer 4

-A lien that only binds to a specific asset or property

Question 5

Voluntary Lien

Answer 5

-A contractual or consensual lien that is created by an action taken by the debtor, such as a mortgage loan to buy real estate

Question 6

Tax Lien

Answer 6

-A lien imposed by law upon a property to secure the payment of taxes.

Question 7

Easement

Answer 7

-A right to cross or otherwise use someone else’s property for a specified purpose.

Question 8

Encumbrance

Answer 8

-Any right to or interest in the land interfering with its use or transfer, or subjecting it to an obligation.

Question 9

Affirmative Easement Appurtenant

Answer 9

-Parcels without access to a public way may have an easement of access over adjacent land if crossing that land is absolutely necessary to reach the landlocked parcel and there has been some original intent to provide the lot with access.

Question 10

Full Covenant and Warranty Deed

Answer 10

-A type of deed where the grantor guarantees that he or she holds clear title to a piece of real estate and has a right to sell it to the grantee. This type of deed contains the strongest guarantee of title.

Question 11

Quitclaim Deed

Answer 11

-A deed which conveys simply the grantor’s rights or interest in real estate, without any agreement or covenant as to the nature or extent of that interest, or any other covenants; usually used to remove a cloud from the title.

Question 12

Habendum Clause

Answer 12

-A clause in a deed or lease that defines the type of interest and rights to be enjoyed by the grantee or lessee. Also known as the “to have and to hold’” clause.

Question 13

Delivery and Acceptance

Answer 13

-Legal policy mandates that a deed to real property be a matter of public record; therefore, subsequent to delivery and acceptance, a deed must be properly recorded.

Question 14

Chain of Title

Answer 14

-The sequence of historical transfers of title to a property. It runs from the
present owner back to the original owner of the property.

Question 15

Title

Answer 15

-Legal term for a bundle of rights in a piece of property in which a party may own either a legal interest or equitable interest.

Question 16

Closing Statement

Answer 16

-A document commonly used in real estate transactions, detailing the fees, commissions, insurance, etc. that must be transacted for a successful transfer of ownership to take place.

Question 17

Fee Simple

Answer 17

-Fee simple absolute provides the most complete form of ownership.

Absolute ownership of real property; a person has this type of estate where the person is entitled to the entire property with unconditional power of disposition during the person’s life and descending to the person’s heirs or distributees.

Most properties in New York have a Fee Simple Absolute deed, unless specified otherwise!

Question 18

Ownership in Severalty

Answer 18

-When title to real estate is in the name of only one person or entity, it is an estate (ownership) in severalty.

Think of it as a single individual owns real estate, therefore, the ownership is ‘severed’ from all others.

Question 19

Joint Tenancy

Answer 19

-Joint tenancy is a form of co-ownership by two or more persons, each of whom has an undivided interest WITH the “right of survivorship”.

Question 20

Tenancy in common

Answer 20

-Tenancy is common is a form of co-ownership by two or more persons, each of whom has an undivided interest, WITHOUT the “right of survivorship”.

Remember: the difference between joint tenancy and tenancy in common is the “right of survivorship”.
A tenancy in common does NOT include the “right of survivorship”.

Question 21

Tenancy by the entirety

Answer 21

-This form of co-ownership is limited to married couples

Question 22

4 Unities of Co-Ownership

Answer 22

The 4 possible unities include:

1) Time
2) Title
3) Interest
4) Possession

Question 23

Estate for Years

Answer 23

-An estate for years exists for a fixed period of time. It can be as short as a day and as long as many years. Once the term of the lease ends, the rental agreement is automatically terminated.
Most residential leases are an estate for years.

Question 24

Periodic Estate

Answer 24

-A periodic lease automatically renews itself for another period at the end of each period unless one party gives notice to the other party at a time specified in the lease before the lease ends.

Question 25

Estate at Will

Answer 25

-The duration of an estate at will is for an unknown period of time. This is an open-ended estate.

Question 26

Easement in gross

Answer 26

-A right of use in the land of another without the requirement that the holder of the right own adjoining land. Also known as a commercial easement in gross. This type of easement is commonly used by utility companies.

Question 27

Easement by necessity

Answer 27

-Used when a property owner is landlocked and needs to cross an adjacent property to get access to their property.

Question 28

Easement by prescription

Answer 28

-Obtained by use of land without the owner’s permission for a legally prescribed length of time. In New York, the use must be open and obvious, and must continue uninterrupted for 10 years.

Question 29

Easement by implication

Answer 29

-This type of easement arises by implication from the conduct of the parties. For example, if a landowner sells mineral rights to a company, that company has an easement by implication to go onto the property to do mining.

Question 30

Encroachment

Answer 30

- An encroachment is a building, part of a building, or obstruction which intrudes upon the property of another. - In other words, a part of one’s property crosses over the property line of an adjoining property. Common encroachments include: - a fence that was partially built onto the neighbor’s property. - a tree that has grown to cantilever over the property line. - a deck that was built slightly over the property line. - a garage or shed, part of which was built over the neighbor’s property line.

Question 31

Mechanic Lien

Answer 31

-This type of lien applies to individuals or companies who have “supplied labor or materials that improve a property”. For example, if a roofing contractor does not get paid for work performed on a person’s property, they may file a mechanic’s lien against the property. A mechanic’s liens is a type of an involuntary, specific lien

Question 32

Deed

Answer 32

-A deed is also called an instrument of conveyance. - The Grantor is the Seller (conveys the deed). - The Grantee is the Buyer (receives the deed). - The grantor of a deed must be at least 18 years old and mentally competent.

Question 33

Conveyance

Answer 33

-The transfer of the title of land from one to another. The means or medium by which title of real estate is transferred. A deed is a document used to convey title legally to real property. A deed is also called an instrument of conveyance.

Question 34

Legal Description

Answer 34

-The deed must contain an adequate formal legal description. The legal description describes where the property is located and the size of the lot. There are 3 acceptable types of property descriptions: 1) Metes and bounds 2) Description by reference, lot and block 3) Monuments

Question 35

Survey

Answer 35

-A survey is a drawing prepared by a licensed surveyor, which shows the exact dimensions of a property and any improvements located on the property (including a garage, deck, fend, driveway). A survey is drawn using the metes and bounds method.

Question 36

Abstract of title

Answer 36

-An abstract of title is a condensed history of title. | It is a summary of all links in the chain of title.