Flashcards in Real Estate Course Chapter 9 Deck (84)
A person who holds vested ownership rights in property is said to have
What is a deed
a written instrument used to convey an interest in real property. It conveys legal title
A transfer of title from any level of government to a private party is called a
a voluntary transfer of title from one private party to another private party is called a
title to real property is a legal concept signifying ...
ownership of the collection of rights called an estate
What is Equitable title
beneficial interest in real estate that implies that an individual will receive legal title at a future date
What is Alienation
the act of transferring ownership, title, or an interest in real property from one person to another. It can be voluntary or involuntary.
Is a Will an example of Voluntary Alienation?
To die testate or intestate indicates ...
The Decedent prepared a Will before death
or did not.
If the Decedant in a Will was a male he is considered the ...
If the Decedant in a Will was a female he is considered the ...
In a Will, a gift of REAL property is a ________ and the recipient of the gift is the _________.
In a Will, a gift of PERSONAL property is a ________ and the recipient of the gift is the _________.
What is meant by the term "Escheat"
Escheat provides for a government, normally a state government, to take the property of an owner who dies intestate and without any known heirs entitled to receive the property.
Adverse possession arises when ...
the true owner of record fails to maintain possession and the property is seized by another
What are the conditions for Adverse Possession?
H - Hostile possession of Property
O - Open Possession with no attempt to conceal occupancy
T - Taxes were paid during all years the adverse possessor was on the property
C - Claim of title, even an imperfect one exists
A - Adverse possession must continue for 7 or more consecutive years
N - Notorious and flagrant public possession of property
What is Eminent Domain
Referred to as a "taking for just compensation." It gives government the right to take land from an owner through a legal process referred to as condemnation, as long as the taking is for a public purpose
With respect to notice their are two types of notice that have legal priority. They are
Actual notice and Constructive notice.
What is actual notice
Actual notice is direct knowledge acquired in the course of a transaction
What is constructive notice
Constructive notice (or legal notice) is accomplished by recording the information in the public records.
What is a chain of title
Complete successive record of a property's ownership
What is a Lis Pendens
A notice recorded in the public records of a pending legal action that involves real estate
What is a suit to quiet title
It is a court action resulting from a gap in the chain of title to determine ownership.
What is an abstract of title
A summary report of what the title search found in the public record. A official summary of documents filed in the public records that affect, or may affect, title of a given tract or parcel.
State statute determines how far back into history the search must go. Florida's Marketable Record Titles Act limits the search to
What is the root of title
the original source of title going as back 30 years
Are Real Estate agent qualified to enter an opinion on title
What are the two types of Title Insurance
Owners policy and Lenders Policy
In Title insurance, which policy is transferable, the Owners policy or Lenders?
Lenders. Will protect the new lender up to the balance of the loan
Who is the grantor and grantee
Grantor (owner giving title) Grantee (new owner receiving title)
Certain elements must be present in a deed to spell out clearly the necessary intent and the property to which it applies. They are...
C - Consideration (valuable or good)
E - Execution (signed by a competent grantor/2
D - Description of property
D - Delivery and acceptance
I - Interest or estate being conveyed (habendum
N - Names of a grantee and grantor
G - Granting and other appropriate clauses
What is the PREMISES section of a deed?
names the parties to the deed and the date of the deed
What is the Habendum clause
the habendum clause starts with the words "to have and to hold." Then, usually, the word "forever" follows if the estate is fee simple or the words "for the life of the grantee" if it is a life estate
What is the covenant of seisin (seizin)?
On the deed. It is a promise that the grantor owns the property and has the right to convey title
What is the covenant against encumbrances?
states that the property is free from liens or other encumbrances except as noted in the deed. This clause gives the grantee notice of all encumbrances (liens, restrictions, and so forth) associated with the property
There are four types of statutory deeds. They are...
(1) quitclaim deed, (2) bargain and sale deed, (3) special warranty deed, and (4) general warranty deed
What is a Personal representative's deed?
A personal representative is an individual either appointed by will or by order of a court to settle the estate of a deceased person.
What is a Guardian's deed?
A guardian acts on behalf of a minor (or other ward) and is also a fiduciary
What is a Committee's deed?
One of the essentials of a valid deed is a competent grantor. When an owner is declared legally incompetent or is committed to an institution, a committee is often appointed by the court to administer the affairs of the incompetent
Name the 3 Special Purposes deeds?
Personal representative, Guardian, and Committee
The three most important subcategories of public or governmental limitations on ownership of real property are:
PET (1) police power, (2) eminent domain, and (3) right of taxation
Private limitations on ownership of real property usually include
DELL deed restrictions, easements, leases, and liens.
What is an easement?
An easement is a right to use a portion of an owner's land for a specific purpose
What is an Easement appurtenant?
An easement appurtenant allows an owner the use of a neighbor's property, such as the right to cross parcel A to reach parcel B
What is an Easement in gross?
This type of easement benefits an individual or a business entity and is not related to a specific adjacent parcel
What is an Easement by necessity?
If a landowner subdivides land, conveying part of it in a way that causes a parcel to be landlocked, the court may authorize creation of an easement by necessity to allow property owners to enter and exit their landlocked pro
What is an Easement by prescription?
This type of easement is created by longtime usage. Such easements are created and must be recognized after 20 years of open, continuous, uninterrupted use
What is an encroachment?
the unauthorized use of another's property
What is a lease?
an agreement between the landlord (lessor) and a renter (lessee) that grants the lessee the right of possession and use of the property for a specified time in return for compensation.
What is a lien?
A lien is a right or legal interest given to a creditor or a unit of government to have a debt satisfied out of some specific property belonging to a debtor
Is a lien an encumbrance on the title to real property?
Yes. However, not all encumbrances on property are liens. Encumbrances can also be easements, covenants, deed restrictions, encroachments, and governmental regulations.
Liens are classified as ...
Voluntary or involuntary. General or Specific
Is a general lien restricted to one property?
NO. It may affect all properties of a debtor. A general lien attaches to all of the lienee's (debtor's) real property located in the county where the lien is recorded. Example: tax liens, judgement liens
How do specific liens differ from general liens?
Liens classified as specific do not affect all of the debtor's property but apply only to certain specified property. Lien types: Property tax, mortgage,etc
The priority of liens may be changed by a written agreement known as ...
a subordination agreement. Under a subordination agreement, the holder of a prior lien (lien with an earlier recording date) agrees to allow a junior lien holder's interest to move ahead of the prior lien.
Adverse possession arises when the true owner of record fails to maintain possession and the property is seized by another
Constructive notice is direct knowledge acquired in the course of a transaction
The covenant of quiet enjoyment is found in a general warranty deed.
A broker must first obtain a current opinion from an attorney before quoting an opinion that title to a property is good or marketable
The statement is TRUE. When questions of title arise, brokers are required to advise prospective buyers to have their attorney examine the abstract or to obtain a title insurance policy
Title insurance will NOT protect an owner's heirs.
The statement is FALSE. The owner's title insurance policy helps to protect a new owner (and the owner's heirs) from title defects.
Which requirement does NOT have to be accomplished before a deed can be recorded?
A) Three witnesses (you only need two)
Which type of lien is a specific lien?
Which restriction is always a public restriction?
B)Lease by a government agency
D) EMINENT DOMAIN
A lease that provides for the lessee to pay a fixed rent plus some of the property's costs is which type of lease?
A tenant has six months remaining on her lease. The tenant assigns two of the remaining months to another person to use the property while she is on vacation in Europe. What is this called?
Which element is NOT an essential element of a deed?
B)Voluntary delivery and acceptance
C)Signed by a competent grantee
The answer is SIGNED BY A COMPETENT GRANTEE. The deed must be signed by a competent grantor (not grantee).
Which clause in a deed contains the necessary words to convey title?
Which type of deed is used when an individual is appointed by order of a court to settle the estate of a deceased individual?
A single person dies without a will. After a period of time, the state of Florida obtained title to the property of the deceased person. What power entitled the state government to acquire the deceased person's property?
A husband and wife have title to a property in both names. Which action is required to convey the title to the property?
A)Signed by the grantee
B)Signed by the husband and wife
B)Signed by the husband and wife
Which type of title insurance policy is transferable?
Utility easements are generally which type of easement?
Which type of notice is accomplished by recording in the public records?
In which type of deed does the grantor warrant to defend the title solely against acts by the grantor or the grantor's representative?
A)Bargain and sale
The answer is SPECIAL WARRANTY. In a special warranty deed, the grantor does not assume responsibility for the title in any way except against the acts by the grantor or the grantor's representative.
Which type of deed provides a new owner with the BEST protections?
A)Bargain and sale
The priority of liens may be changed by which written agreement?
A city wants to acquire land for a fair price for the purpose of building a new interstate ramp. The land is acquired through which legal process?
Which type of deed is used to clear title defects?
C)Bargain and sale
Which type of lease is based on income from the tenant business?
Which alienation is voluntary?
Which encumbrance is NOT a lien?
Which term describes an instrument that is filed to give notice of pending legal action involving a parcel of real estate?
Which promise is unique to a general warranty deed?
B)Promise of seisin
C)Promise to pay
The answer is D) FURTHER ASSURANCE. A general warranty deed contains three unique promises: (1) quiet enjoyment; (2) further assurance; and (3) warranty forever.