Real Property

Question 1

What is real property?

Answer 1

a legal term that encompasses land and any improvements or structures attached to the land

Question 2

Real property includes not only physical surface of the land but also

Answer 2

everything that is permanently attached to it such as buildings, trees, minerals, and other fixtures

Question 3

Key components of real property

Answer 3

land
improvements
fixtures
mineral rights

Question 4

What is land?

Answer 4

the surface of the earth including soil, rocks and any natural features

Question 5

What are improvements?

Answer 5

man-made additions or enhancements to the land. Buildings, houses, roads, fences

Question 6

What are fixtures?

Answer 6

items that were once personal property but have become permanently attached to the land or structures

Question 7

What are mineral rights?

Answer 7

minerals beneath the surface of the land

Question 8

Co-Tenancy

Answer 8

exists when two or more people have a right in the possession and use of the same property

In Maryland co-tenancy exists when property is owned as joint tenants, tenants in common or tenants by the entirety

Question 9

If no tenancy is recited in a deed with multiple owners there is a presumption that the

Answer 9

property is owned as tenants in common

Question 10

If no tenancy is recited in a deed and the grantees are married it is presumed that the property is held as

Answer 10

tenants by the entirety

Question 11

If there is a judgment against one tenant in an co-tenancy then

Answer 11

the tenancy is NOT destroyed

Question 12

A judgment against one tenant by the entirety…

Answer 12

does not attach to the property unless the tenancy is severed or lien is a federal tax lien

Question 13

Fee Simple

Answer 13

the highest form of ownership. It represents an ownership in property with the right of unconditional and full power during the owner’s lifetime

Owner possess unlimited duration, disposition and descendibility

Question 14

Life Estate

Answer 14

an interest created for the term of a person’s life. It ends at the death and interest is passed to a remainderman

Question 15

Two types of trusts

Answer 15

Revocable and irrevocable

Question 16

Revocable trust

Answer 16

also known as a living trust can be altered until the death of the individual for whom it was established (the grantor or settlor)

Question 17

Irrevocable trust

Answer 17

cannot be changed once it is finalized.

Question 18

Under a irrevocable trust the

Answer 18

trustee holds legal title while the beneficiary holds equitable interest

Question 19

What is a leasehold estate?

Answer 19

a possessory estate created by a lease agreement

Example: owner of a property in which there is a ground rent or an owner o an apartment building with tenants

Question 20

What is ground rent estate

Answer 20

a type of leasehold estate established on a lot and the improvements on it

Question 21

How long is a ground rent lease

Answer 21

It is usually for a term of 99 years and automatically renewable

Question 22

What is ground rent redemption

Answer 22

tenant to a property has a right to redeem the ground rent/purchase the reversionary interest in a property and convert the property to fee simple

Question 23

What is ground rent ejectment

Answer 23

maryland law provides a ground rent owner/landlord may seek ejectment if the ground rent lease is for a term of 99 years and six months of ground rent payments are past due

Question 24

The greatest protection against any claims to property is

Answer 24

to record

Question 25

Recording protects who

Answer 25

grantees against a party that may have actual notice and it gives constructive notice to the world that the purchaser or grantee has an interest in property

Question 26

Before an actual title examination begins it is helpful to

Answer 26

gather as much information as possible about the property being examined

Question 27

Once information is gathered from a title examination a

Answer 27

title search is ordered.

Question 28

Grantors

Answer 28

transferring the property

Question 29

Grantees

Answer 29

receiving the property

Question 30

What is the effective date of title search?

Answer 30

the last day which the title has been run

Question 31

Full search

Answer 31

to identify any potential issues or defects in the property

Question 31

Limited search

Answer 31

is for a period of time less than that of a full search. Generally conducted on refinance, loan assumptions or second mortgage transactions

Question 32

Chain of Title

Answer 32

reverse chronological order listing of the names of all people who have owned a parcel of land or property for a specific number of years

Question 33

Abstract of title

Answer 33

includes a report of title and any other written or electronically created or preserved representation of the state of title to property

Question 34

Certificate of title

Answer 34

affirms and certifies the status of the property through the date that the certificate is issued

Question 35

Race-Notice

Answer 35

a recording statute that govern the priority of interests in real property

Question 36

Race element

Answer 36

priority of conflicting interests is determined by the timing of recording. The first party to record a document at the recorder's office has priority regardless of whether they had actual notice of other claims

Question 37

Notice element

Answer 37

requires that a subsequent purchaser or mortgagee must have no notice of prior transaction or claim at the time of acquiring their interest. This notice can be actual notice, constructive notice, or implied notice

Question 38

Maryland is a race-notice state meaning that

Answer 38

the first in time to record has superiority over other recordings

Question 39

Exception to race-notice

Answer 39

a deed that is record first in time may be invalid if the grantee is no a good faith purchaser, does no purchase for value, has constructive notice

Question 40

Bona Fide Purchaser

Answer 40

one who has paid full value for a property and has no knowledge of any outstanding interest held by third parties