Module 3 Flashcards
1
Q
The full bundle of rights, the maximum amount available in real property, is referred to as _______ simple.
A
fee
2
Q
What rights make up the Bundle of Rights - Remembered by the acronym PUTEE.
A
Possess (to own); Use (to control); Transfer (to sell, rent, transfer at will); Exclude (prevent others from using or entering); Encumber (mortgage, lien).
3
Q
Freehold estates are always one of two types:
Estates of inheritance, known as _____; and
Estates of non-inheritance, known as ______ _______.
A
fees
life estates
4
Q
Less than freehold estates are also known as ______ estates of tenancy
A
leasehold
5
Q
Freehold estates are also known as freehold estates of _______ or freehold ________ estates.
A
ownership
possessory
6
Q
name four classifications of leasehold estates of tenancy
A
estate for years
estate from period to period
estate at will
estate at sufferance
7
Q
name the two types of freehold estates of ownership
A
fee simple estate
life estate
8
Q
name the two classifications of a fee simple estate
A
fee simple absolute
fee simple qualified
9
Q
name the two classifications of a life estate
A
reversion
estate in remainder
10
Q
estates of inheritance are also called
A
fee estate or estate in fee
11
Q
A fee tail estate or entailed estate is an estate of inheritance usually limited to certain categories or classes of individuals, such as _______ _____.
A
family members
12
Q
In Oregon, all fee estates are fee ______
A
simple
13
Q
During the lifetime of the fee simple owner, the estate can be conveyed by ____ or ____ without restriction.
A
gift
sale
14
Q
In a fee _____ estate, this includes the right to will the estate.
A
simple
15
Q
In Oregon, all fee estates are fee ____ estates
A
simple
16
Q
____ ______ is an estate of inheritance, which means that the holder of the estate can transfer the property by a will.
A
Fee simple
17
Q
he fee simple estate can be voluntarily transferred, known as ________ _______, while the owner is still living and is of indefinite duration. Indefinite duration means ownership can continue for an undefined, unlimited period.
A
voluntary alienation
18
Q
_______ by the involuntary operation of law may be due to foreclosure, condemnation, etc. This is known as involuntary alienation.
A
Divestiture
19
Q
The vesting of title is accomplished using a ____
A
deed
20
Q
Fee simple defeasible estates are similar to fee simple absolute estates, but with the exception that the defeasible estate is transferred _________.
A
conditionally
Conditionally means the estate owner can be divested of title if the owner violates some condition of title that some previous owner created.
21
Q
Fee simple defeasible estates are similar to fee simple absolute estates, but with the exception that the defeasible estate is transferred _________.
A
conditionally
Conditionally means the estate owner can be divested of title if the owner violates some condition of title that some previous owner created.
22
Q
________ fee estate, meaning that the estate is not absolute in nature because it is conditioned upon the happening or nonhappening of an event.
A
qualified
23
Q
There are three basic fee simple defeasible estates:
A
- fee simple determinable;
- fee simple subject to a condition subsequent; and
- fee simple subject to an executory interest.
24
Q
If the estate conveyed is fee simple _______, the fee is granted “so long as” or “while” a specified use is made of the property.
A
determinable
25
The key to the fee simple determinable estate is the automatic ________ of the fee to the grantor or the grantor's heirs upon the violation of the condition.
reversion
26
the rights of ownership and possession of a freehold estate; responsibility for the property
Seizen
27
All owners are vested with seizin to the property. Owners have these 4 main responsibilities:
must pay the taxes;
are liable for damages to another caused by the land;
are responsible for seeing that the land is used for legal purposes; and
must abate any nuisance caused.
28
to transfer real estate to someone by will.
Devise
29
The deed that gives the buyer the most protection and most commonly used.
Warranty Deed
30
The deed generally used by executors to convey title on behalf of an estate.
Special Warranty Deed
31
The deed generally used when a land sale contract has been paid in full.
Bargain and Sale Deed
32
The deed generally executed for removal of a cloud on title only.
Quitclaim Deed
33
A deed used in California which has fewer covenants than warranty deed
Grant Deed
34
A security instrument which creates a lien against a property.
Trust Deed
35
The instrument executed, delivered, and recorded when a loan secured by a trust deed is paid in full.
Reconveyance Deed
36
A deed used by a delinquent borrower to deed property to a creditor rather than proceed to foreclosure.
Deed in Lieu of Foreclosure
37
A deed used to release a portion of property secured by a blanket encumbrance.
Partial Reconveyance Deed
38
_____ is the government's power to receive property when a person dies intestate (without a will), and without heirs, or when property is abandoned. This transfer makes the property available for use at the state's discretion.
Escheat
39
For the adverse possession claim to be successful, possession must be:
Tip - Remember this acronym: OCEAN-H
```
(O)pen (C)ontinuous
(E)xclusive
(A)ctual
(N)otorious
(H)ostile
```
40
_______ is the addition of land through human or natural causes.
Accession
41
_______ is the gradual and imperceptible addition of soil to a riparian property.
Accretion
42
_________ is the geological process by which soil is suddenly and violently removed from a property.
Avulsion
43
________ is the gradual increase in land by the recession of water.
Reliction
44
_____ ______ - any transfer of land from a government entity to a private party.
Public grant
45
______ - the making of a voluntary gift of land by a private owner to the public.
Dedication
46
The weakest form of dedication is nothing more than a grant to the public of a right to use a property.
Common-law dedication
47
_____ dedication occurs when a developer prepares a map showing the property that is to be dedicated to the public, such as streets or other public spaces, and then submits that map as a part of the approval process to the appropriate jurisdiction.
Statutory
48
Tenancy in severalty means that a property is owned by
one person
49
____ means Severed from others
Severalty
| Severalty has its origin in the word sever or to cut off from any other person.
50
TRUE OR FALSE
| Scott and Brian buy a home together and can take title as tenants in severalty.
FALSE
51
In Oregon, the possible vestings that can create a concurrent ownership can be:
a tenancy in common,
a tenancy by the entirety, or
a tenancy in partnership.
52
Undivided right of possession is also sometimes referred to as the
unity of possession.
53
Unity of ____ means that all co-tenants acquired their interest at the same time.
time
54
Unity of ____ `means that all co-tenants acquired their interest in the property through the same deed.
title
55
Unity of _____ means that all co-tenants have equal interests
interest
56
Unity of _____ means that all co-tenants have equal interests
interest
57
Oregon allows four types of co-ownership for real property:
Tenancy in common
Tenancy by the entirety
Survivorship, The Erickson Doctrine
Tenancy in Partnership
58
Oregon allows four types of co-ownership for real property:
Tenancy in common
Tenancy by the entirety
Survivorship, The Erickson Doctrine
Tenancy in Partnership
59
A _______ in common is created when two or more people have an undivided interest in the property.
tenancy
60
Unity of _____ - The co-tenants can take title to the property at different times.
time
61
Unity of _____ - The co-tenants can take title to the property under different deeds.
title
62
Unity of ______ - The interest of each co-tenant does not have to be equal.
interest
63
Right of ______ The will of each deceased co-tenant determines who inherits their individual interest. If a co-tenant dies intestate, that co-tenant's interest will be distributed under the laws of descent and distribution.
Right of Survivorship - A tenancy in common does not include the right of survivorship.
64
Tenants in common can be between two or more persons, do the individuals need to be related?
No they can be related or unrelated
65
TRUE or FALSE
| Ownership between co-tenants can be in equal or unequal shares
True
66
May a co-tenant transfer their interest with out the permission of the other co-tenant?
Yes
67
Does a co-tenant need the permission of other co-tenants to take out liens or create encumbrances against his/her individual interest
No
Each co-tenant can freely encumber their interest and liens can be filed against each co-tenant's interest independently of the other co-tenants.
68
Can one co-tenat exclude another co-tenant from possessing the property?
No
All co-tenants can possess the property or just one co-tenant can possess the property. However, no co-tenant can exclude another co-tenant from possessing the property.
69
Tenancy in _____: co-tenants individually own undivided interests; any ownership share is possible; no survivorship; can convey to outside parties.
common
Tenancy in common has common possessory rights.
70
enancy by the entirety, also known as tenancy by the entireties, is only available to persons who are legally ______ at the time they take title.
married
71
Tenancy by the entirety is characterized by the following 5 characteristics:
- Possessory Interest
- Unity of Time
- Unity of Title
- Unity of Interest
- Right of Survivorship
72
What can non married co-tenants use to create a deed with the right of survivorship
the Erickson Doctrine
73
Oregon has adopted the _____ _____ Act, which allows a partnership to hold title to real property.
Uniform Partnership
74
Why might lenders not want to loan to partnerships?
because the partnership interest can be sold freely, leaving the lender holding a mortgage loan with partners other than the original borrower
75
TRUE or FALSE
| Tenancy in common is limited to married persons with each having the right of survivorship.
FALSE
The tenancy in common is created when two or more people have an undivided interest in the property. Each co-tenant has the right to possess the entire property, not just a part or a separate piece of the whole property. The co-tenants do not need to be married to each other or otherwise related.
76
TRUE or FALSE
An unmarried couple in Oregon wanting the rights of survivorship would have the grantor pass title to the individuals "Not as tenants in common, but with rights of survivorship."
TRUE
Even though joint tenancy is not allowed in Oregon, the right of survivorship is possible for unmarried persons so long as the intention of the grantor is clear that the individuals want the right of survivorship. An unmarried couple in Oregon wanting the rights of survivorship could use the following deed language to accomplish this goal: "Not as tenants in common, but with rights of survivorship."
77
TRUE or FALSE
Dionne and Whitney are cousins who own 10 acres in Hillsboro, OR. Dionne owns 60% and Whitney owns 40%. Dionne and Whitney are tenants by the entirety.
FALSE
| Only married persons can hold title as tenants by the entirety.
78
TRUE or FALSE
Ray is a tenant in common with five other co-tenants. The other four co-tenants got together and told Ray that his use of the property is limited to the bedroom above the garage. Ray countered with that he is entitled to use the entire property. Ray's assertion is
True. He is entitled to use the entire property.
Ray is entitled to an undivided right of possession; all co-tenants have the undivided right of possession.
79
TRUE or FALSE
Michael and Jose are married and bought a new home in Salem, OR but didn't say how they wanted to take title. Most probably, they took title as tenants in common.
FALSE
Unless otherwise stipulated, a married couple will take title as tenants by the entirety. Only by stipulation would Michael and Jose take title as tenants in common.
80
TRUE or FALSE
| Oregon recognizes community property as a form of ownership for a married couple.
FALSE
| Oregon is not a community property state and does not recognize community property as a form of ownership.
81
What are two Co-Ownership types not permitted in Oregon?
Joint tenancy
| Community Property
82
For what two types of entities will the sate of Oregon permit Joint tenancy?
personal Representatives & trustees
83
What nine states permit community property?
| T.W.I.N.N.C.L.A.W
```
Texas
Wisconsin
Idaho
Nevada
New Mexico
California
Louisiana
Arizona
Washington
```
84
TRUE or FALSE
| In Oregon, joint tenancy is limited to personal representatives and trustees.
TRUE
| Joint tenancy is limited to personal representatives and trustees.
85
Business organizations can hold title to real property. The types of business organizations that are allowed in Oregon are:
T.C.L.P.S.S
- Trust
- Corporation
- LLC
- Partnership
- Sole Proprietorship
- Syndicated & Joint Venture
86
Business organizations can hold title to real property. The types of business organizations that are allowed in Oregon are:
T.C.L.P.S.S
- Trust
- Corporation
- LLC
- Partnership
- Sole Proprietorship
- Syndicated & Joint Venture
87
A limited partnership must be __________ with the Oregon Secretary of State to be a legal and valid entity.
registered
88
Tenancy in severalty means
title to property vests in one natural or legal person.
89
Co-tenancy means
title to property vests in two or more natural or legal persons.
90
When two or more persons are not married at the time they take title, the presumption is that the title is vested as tenants in
common
91
Special language in the deed can rebut this presumption to create a survivorship if the principles of the _______ case are followed.
Erickson
92
If spouses are the grantees, the presumption is that they will take title as tenants by the ________.
entirety
93
Unless specifically stated to the contrary, all interests are presumed _____
equal
94
Tenancy in common is created through:
Purchase by equal or unequal shares in a property OR
| Inheritance by more than one heir
95
Tenancy in ______ interests do not have to be equal, but Each interest is entitled to possession of the whole
Each interest is inheritable - there is no automatic right of survivorship
common
96
TRUE or FALSE
TENANCY IN COMMON
Sale by one co-tenant does not terminate the co-tenancy concerning the other co-tenants. If a buyer purchases one co-tenant's interest, the buyer assumes only the interest of the selling co-tenant.
TRUE
97
Each co-tenant has an ______ share in the whole property and is equally responsible for expenses and equally entitled to rents and profits.
undivided
98
TENANCY BY THE ENTIRETY
| Each spouse is entitled to possession of the _______
whole
99
TENANCY BY THE ENTIRETY
| A divorce converts the tenancy to a ______ __ ______
tenancy in common
100
TENANCY BY THE ENTIRETY
The death of a spouse automatically transfers the interest of the deceased spouse to the living spouse under the right of _________.
survivorship
101
TRUE or FALSE
| A tenancy by the entirety is automatically created when a property is deeded to a married couple.
TRUE
The "marriage" owns the whole property and is responsible for expenses and is entitled to all rents and profits.
No spouse can sell their interest; the right of survivorship cannot be defeated by an attempted sale by one spouse.
102
TRUE or FALSE
| Joint tenancy and community property forms of ownership are not available in Oregon.
TRUE
103
ERICKSON DOCTRINE - SURVIVORSHIP
Interests do not have to be equal but:
Each interest is entitled to possession of the whole
| Right of survivorship is key feature of the title held under the Erickson Doctrine
104
TRUE or FALSE
| A tenancy created under Erickson must be created on separate deed instruments.
FALSE
| A tenancy created under Erickson must be created in the same deed instrument.
105
Ownership in severalty can be :
a married person.
an unmarried person.
a corporation.
an LLC.
106
The ______ partners are liable for all the debts of the partnership
general
107
a ______ partner is a shareholder in the partnership and not liable for partnership debts
limited
108
_____ & _____ is a method of locating property boundaries by using terminal points and angles.
Metes and bounds
109
This method uses things like base lines and meridians.
rectangular survey method
110
This system uses lots and blocks to describe parcels in larger subdivided parcels of land.
lot and block system
The lot and block system, also known as the recorded plat method is used to describe properties in residential, commercial, and industrial subdivisions.
111
TRUE or FALSE
| The metes and bounds system describes the boundaries of a property starting and ending at a point of beginning.
TRUE
| A metes and bounds description begins and ends at the POB.
112
In Oregon, the beginning point for measuring townships and ranges is the ______ ______
Willamette Stone
The Willamette Stone is located off NW Skyline Boulevard, not far from its intersection with West Burnside in Portland's west hills in the Willamette Stone State Heritage Site.
113
The Willamette Meridian line runs north from the stone to the ________ border and straight south from the stone to the ________ border.
Canadian
| California
114
TRUE or FALSE
| Oregon's principal meridian is a north and south line that passes through the Willamette Stone.
TRUE
115
The ______ is an east-west line that passes through the beginning point, the Willamette Stone.
baseline
| It runs west to the Pacific Ocean and east to the Idaho border
116
The _______ is an east-west line that passes through the beginning point, the Willamette Stone.
baseline
117
TURE or FALSE
Townships are created by the intersection of range and township lines, which creates squares that are six miles by six miles.
TRUE
Townships are created by the intersection of range and township lines, which creates squares that are six miles by six miles.
118
A section is ____ _____ square
one mile
| or 5,280 feet per side.
119
north-south lines that are six miles apart
Meridians
120
east-west lines that are six miles apart
Parallels
121
a north-south strip of area between meridians
Range
122
east-west strip of area between parallels aka Township strip
Tier
123
a one-mile by one-mile square; one section equals 640 acres
Section
124
36 sections
Township
125
The lot and block system of legally describing property is used for
properties in a subdivision.
126
Are tax lot numbers adequate for use in a contract involving real property for an adequate property description.
NO
| Tax lot numbers can be repeated on various quarter-section maps and change without warning
127
Can a Previously recorded document be used as a reference for a legal description
YES
An enforceable description of the property in a listing or sale agreement can be created by referring to a seller's recorded deed and the county where it is recorded.
128
The legal description “the Northwest ¼ of the Southwest ¼ of Section 7, Township 2N, Range 3 West” is defective because there is no reference to a
meridian.
The government system that describes townships and ranges requires a principal meridian and baseline to reference its location.
129
TRUE or FLASE
| The lot and block property identification system is often considered the easiest to use.
TRUE
130
A section of land is:
1 mile wide
| or 5,280 feet per side.
131
how many feet are in a mile
5,280
132
A metes and bounds description must
| POB
commence and finish at the same identifiable point.
133
The number of townships in an area of 576 square miles is
16
| A township is 36 square miles. 576 sq. mi ÷ 36 sq. mi = 16
134
how many square miles are in a township
36
| A township is 6 miles by 6 miles, or 36 square miles. It contains 36 sections that total 23,040 acres.
135
The legal description method that uses a point of beginning and descriptive identifiers, such as "John Brown's Barn," is the
metes and bounds description.
A metes and bounds legal description means a property is identified by specifying the shape and boundaries using physical identifiers.
136
What is the acreage in a parcel of land described as "SE ¼ of NW ¼ and N ½ of SW ¼ of NE ¼ of Section 21?"
60 acres
137
Under a government rectangular survey, a correction line is required because of
the curvature of the earth
138
Under the rectangular survey system, the legal description of a particular land unit is based on
The rectangular survey system is based on one prime meridian and one baseline, with the intersection being the beginning point.
139
How would the section directly south of Section 16 be numbered?
21
Section numbering begins in the northeast corner of the township, then count westward by 6 until the end of the section, then move south by 1 section and starts counting east.
140
In what corner of a township would you find Section 1?
Northeast corner
141
A township contains
| how many sections?
36
142
North and south boundaries of townships are created by
township lines.
143
What method of locating property boundaries typically uses a principal meridian?
Government Survey
144
A acre contains how many SQFT
43,560 square feet.
145
What is Oregon's property tax system called
Ad Valorem System
146
What does Ad Valorem mean
taxes are determined according to the value of the property
147
define Appraisal
the process of identifying taxable property and assigning a value to it.
148
what types of property are subject to taxation
all privately owned real property, which includes land, buildings, fixed machinery and equipment, manufactured homes, and personal property used in business.
149
define real market value
.the amount in cash that could reasonably be expected to be paid by an informed buyer to an informed seller, each acting without compulsion in an arm's length transaction occurring as of the assessment date for the year
150
due to ballot measure 50 what is the percentage that the Maximum Assessed Value (MAV) is allowed to increase each year
3%
151
Define
| Real Market Value (RVM)
the amount the property could be expected to bring when sold
152
Define
| Maximum Assessed Value (MAV)
the maximum assessed value that can be used to compute property taxes
