Unit 9 Flashcards
1
Q
refers to the collection of rights that a person has in the ownership of real property.
A
Title
2
Q
the right to obtain full ownership of property, where another maintains legal title to the property.
A
Equitable title
3
Q
actual ownership of the property.
A
Legal title
4
Q
How do the equitable and legal titles pass to the buyer?
A
When a contract for the sale of land is executed, equitable title passes to the buyer. When the conditions on the sale contract have been met, legal title passes to the buyer in what is known as closing.
5
Q
How do legal and equitable title also arises in trust?
A
In a trust, one person may own the legal title, such as the trustees. Another may own the equitable title such as the beneficiary. When a seller of a property finances for the buyer, an equitable title may also be granted until the buyer pays the seller in full. An Equitable title may be homesteaded as if the owner had full title to the property.
6
Q
How is a transfer of ownership (of title) done?
A
By deed or operation of law. It is done voluntarily or involuntarily. When the deed is issued and all parts of it are properly executed, the new owner will have the same rights as the previous owner to the property.
7
Q
means transfer when used as a real estate term
A
alienation
8
Q
means the grantor (owner of the property) had a choice and made the decision to transfer his property to someone else
A
Voluntary alienation
9
Q
means the grantor (owner of the property) did not have a choice; that the law determined that the property would be transferred as in eminent domain or other government interferences
A
Involuntary alienation
10
Q
means the taking of private property for public good, such as the taking of a home so a new highway could be built. Eminent domain will be discussed in more detail later in the course
A
Eminent domain
11
Q
The two ways to voluntarily transfer real property:
A
By deed or by will
12
Q
How does a grantor transfer his property?
A
By deed when the property is sold or when the grantor wishes to give a gift of property to another. In order for a deed to be valid, the transfer must occur during the grantor’s lifetime.
13
Q
When a grantor conveys (transfers) his property to another through a will, the person making the will is called the:
A
testator
14
Q
If the transfer occurs after the death of the grantor, the transfer is made by:
A
will
15
Q
the person receiving the property is called
A
devisee
16
Q
Real property given in a will is a:
A
devise
17
Q
personal property in a will is a:
A
bequest
18
Q
The person receiving the bequest is a
A
beneficiary
19
Q
Describe the process when a grantor conveys (transfers) his property to another through a will.
A
Grantor gives to the Grantee a Deed
Testator makes a will
Devisor gives to a Devisee a Devise
Testator gives to a Beneficiary a Bequest.
20
Q
a written instrument (paper) that describes how the testator (will maker) wishes to have his world goods- real and personal property disbursed. It is considered by the court to be the testator’s final wishes for distribution
A
will
21
Q
If a person dies with a will he/she dies:
A
Testate
22
Q
If a person dies without a will he/she dies:
A
Intestate
23
Q
The maker of a will is a
A
testator
24
Q
Although not used as much in modern law, a female maker of a will is called a:
A
testatrix
25
In order for a will to be valid, certain items must be in place:
The testator must be of legal age. (18 or older)
The testator must be of sound mind.
The will must have the proper wording.
There can be no undue influence, menace or duress from others on the testator.
There must be the correct number of witnesses as determined by the state.
26
A will that is written, dated and signed in the testator's own handwriting but not witnessed. Are not valid in Florida.
holographic will
27
a formal court hearing to establish the validity of a will after the death of the individual. This is usually a lengthy and sometimes costly procedure
probate
28
The four ways that property is transferred by involuntary alienation
Foreclosure
Escheat
Eminent Domain
Adverse possession
29
When a person dies without a will, the state has established who will inherit the property. The term _________ means the hereditary succession of the property by operation of law- meaning the state has determined who the heirs will be.
Descent
30
The person who dies without a will dies Intestate. The state of Florida then takes over and establishes who the heirs will be by the probate courts establishing the line of descent and distribution. In other words, the courts determine who will inherit and in what order. When the phrase By Operation of Law is used, it means that the courts have intervened.
After the line of descent and distribution is established, the courts will then release the property to the heirs, usually with some type of deed with no promises of ownership to the heirs.
The person who dies without a will dies Intestate. The state of Florida then takes over and establishes who the heirs will be by the probate courts establishing the line of descent and distribution. In other words, the courts determine who will inherit and in what order. When the phrase By Operation of Law is used, it means that the courts have intervened.
After the line of descent and distribution is established, the courts will then release the property to the heirs, usually with some type of deed with no promises of ownership to the heirs. Pg. 5
31
What happens totheproperty if thereis no will or heir?
Because property must always belong to someone, the state of Florida has the legal authority to take ownership of the property if there is no will and no heirs. Only the state where the property is located can do this.
32
The government (State of Florida) has the power to act in certain areas within our private properties. What powers do they have in our properties?
P.E.T.E. = Police Power, Eminent Domain, Taxation, and Escheat powers
33
The constitutional authority and inherent power of a state to adopt and enforce laws and regulations to promote and support the public health, safety, morals and general welfare.
Police Power
34
The right of the government (both federal and state), public corporations, (school districts, sanitation districts),public utilities and public service corporations (railroads, power companies)to take private property for a necessary public use, with just compensation paid to the owner.
Eminent Domain
35
The right of the government to collect taxes on properties to support the cost of public services.
Taxation
36
If property owners die without a Will and with no heirs their property _________ or belongs to the state.
Escheat
37
Issued in those states which allow it to protect either the buyer or the lender or both for time previous to the closing date.
title insurance
38
A title policy made out for the price of the property at the time of closing. This policy is for protection against claims of others which may not have surfaced prior to closing. The value of the policy never goes down and may go up if there is an inflation clause added. There are some strict legal words in the policy so the buyer should read it carefully before purchasing.
Owner's Policy
39
The owner's policy is also called:
The Mortgagor's policy
40
This policy only protects the owner for the purchase price of the property and is NOT transferrable. Either the home seller or the home buyer may buy it. In many areas, sellers pay for these policies as part of their obligation to show good faith in granting a General Warranty Deed in the transfer of title to the home buyer.
Owner's policy
41
The lender also seeks protection against claims on the property so the buyer purchases a _____________ to protect the lender as a condition of obtaining the loan. The policy decreases in value as the loan amount goes down but the Mortgagor's policy does not. This policy is transferable and paid by the buyer in most cases.
Lender (Mortgagee's) policy
42
Document (instrument) which transfers ownership from the grantor to the grantee. This is a dated document and transfers property one time only. There are different types of deeds and the difference is primarily in the promises made by the grantor.
Deed
43
What are the basic types of deeds
General Warranty Deed; Special Warranty Deed; Bargain and Sale Deed; Quit Claim Deed
44
A deed is written in three parts. The names of the three parts are:
Premises, Habendum and Testimonium
45
The Premises of a deed must contain:
Name of the grantor (correct legal name),
Name of the grantee ( correct legal name),
Accurate legal description of the property (legal description on record).
46
The Habendum of a deed must contain:
Recitation of consideration "for one dollar and other valuable consideration"; Granting Clause; Habendum Clause; Designations of any limitations of ownership,
Exceptions and Reservations - references to any restrictions and covenants, etc., of a subdivision; and
Appurtenances
47
promises of the seller
Granting Clause
48
Defines ownership taken by the grantee. It clarifies the purpose of the deed with the phrase "to have and to hold".
Habendum Clause
49
The Testimonium of a deed must contain:
Signed wishes of the grantor (Acknowledgement) - where the grantor transfers the property of his own free will.
In Florida, signatures of two witnesses
Delivery by the grantor and acceptance by the grantee.
50
Legal transfer of a deed takes place when the deed is:
Voluntarily accepted by the grantee. Date is not required but is frequently in place if the deed is recorded in the county where the property is located.
51
The following must be in place for a deed to be valid:
The grantor must be of sound mind and of legal age to convey property: the grantee has no such restrictions to receive the property. If it can be proven that the grantor was not of sound mind, the deed can be voided. Words of conveyance must be used. Specific words have special meaning in each type of deed, for example "grant and convey" are usually used on a general warranty deed and "release, remit, and quitclaim" are used in a quit claim deed. A complete and accurate legal description must be used so that a reasonably competent surveyor could find the property. No two legal descriptions are the same. The legal description serves as a description of one specific property much the same as a social security number is assigned to one person in the United States.
The grantor must acknowledge the deed, which means the grantor must sign the deed indicating that he, the grantor, conveys the property of his own free will without duress, menace or undue influence. In Florida, two witnesses are required to validate the signing of the deed. Delivery and Acceptance takes place. The grantor delivers the deed to the grantee who must accept the deed. After the acceptance by the grantee the property legally is transferred. If the grantee refuses the deed, there is no transfer.
52
A promise exchanged for another promise, as well as a recitation of an amount of money
Consideration
53
True or False. A grantor may use any number of deeds to convey (transfer) property from one person to another.
True
54
The importance of each type of deed is based on:
The type of promises made from the grantor to the grantee in each.
55
The highest and best deed. This is the type most often used in residential transactions.
General Warranty Deed
56
A general warranty deed promises the following:
The Covenant of Seisen; The Covenant against Encumbrances; The Covenant of quiet enjoyment; The Covenant of Further Assurance; and The Covenant of Warranty Forever
57
This promises that the seller owns the property and has the right to convey it to another.
The Covenant of Seisen
58
"that belonging to the property."
seisen
59
A burden on the property such a lien or a tax.
encumbrance
60
The grantor assures the grantee that there are no encumbrances against the property unless they are spelled out in the deed. This means that the grantor assures the grantee that he (the grantor) has not sold the water rights or given an unknown right away that is not listed in the written public record. If there is a violation of this covenant, the grantee can sue the grantor.
The Covenant against Encumbrances
61
Means that the grantee can live in peace without any other claims on his property disturbing him. Usually, through the purchase of owners’ title insurance, the seller would guarantee this covenant. Specifically, this deals with anyone who may have a Color on the Title or claim on the property. All of these claims should be disposed of before the grantee gets the property.
The Covenant of quiet enjoyment
62
Is given by the Grantor to assure the grantee that should further paperwork or legal work need to be done to correct the title, the grantor will provide.
The Covenant of Further Assurance
63
The grantor will defend and protect the title for any defects that were created during the grantor's ownership of the property or before.
The Covenant of Warranty Forever
64
Limits the time frame of the covenants to the time that the seller actually owned the property. Any color or Cloud of Title previous to the grantor's ownership is up to the grantee to settle. This type of deed is usually used by large corporations in business real estate or banks that have foreclosed on a property.
A Special Warranty Deed
65
Indicates the grantor has ownership of the property - and that's all. No other covenants are made. This type of deed is given for properties which have been auctioned. Trustees, fiduciaries and officers of the court often use this deed.
A Bargain and Sale Deed
66
Says that the grantor "quits" or releases any interest that he may have had in the property, if he had an interest. There are no covenants made in this deed. It uses the granting words of "release, remit and quitclaim" to convey the property. This deed is commonly used to correct spelling of a grantor's or grantee's name or other mistakes made in another deed. While it is a deed of conveyance and used commonly, it will send a 'red flag' message to anyone examining the title to study the ownership more carefully. This is further the result of a Quiet Suit to title.
A Quit Claim Deed
67
These deeds are all used in financing
Deed of Trust, Deed of Reconveyance, and Deed of Release
68
Are given by the court, trustees, or the sheriff and are similar to a bargain and sale deed. These do not have any promises other than that the owner owned the property.
Special Purpose deeds
69
Zoning laws regulate:
use of land; lot sizes; types of structures permitted
building heights; setback lines (how far from the street an improvement can be built); density (how much land to improvement ratio or people per acre); and types of animals that are permitted
70
A violation of zoning requirements makes a title ______________.
unmarketable
71
If the seller or a broker misrepresents the actual permitted zoning use of a property, a buyer may:
Rescind (take back) the transaction, based on misrepresentation.
72
_________________ are designed to provide minimum standards. The goal is to safeguard the health, safety, and welfare of the public by regulating and controlling the design, construction, quality, use and occupancy, location and maintenance of all buildings and structures.
Building codes
73
How are building codes enforced?
By the issuing of building permits and certificates of occupancy, and by inspections, with fines being imposed on violators.
74
Some examples of police power are:
Zoning laws; Building codes; Environmental Protection Laws
75
Set up by the federal EPA and state departments of health to regulate air, water, and noise pollution, as well as other environmental conditions, including the cleanup of hazardous substances.
Environmental protection standards
76
What are some examples of environmental issues that concern real estate licensees and consumers?
Asbestos, lead based paint and other lead hazards, radon, formaldehyde, mold, carbon monoxide, electromagnetic fields, groundwater contamination, underground storage tanks, and waste disposal sites.
77
What are the characteristics of Eminent Domain?
Process is called Judicial Condemnation; Owner must be compensated; Must be for public good; Owner must have due process
78
__________ a law suit if owner feels it is not for public good.
Taking
79
The right the government has to collect funds to pay for public services. These taxes will take priority in the sale of a home and need not be recorded to be valid.
Taxation
80
What are the two types of taxation?
Special Assessment and Ad Valorem
81
Are used for a "one-time" fee for something that affects one piece of property at a time.
Special Assessment Taxes
82
Give examples of Special Assessment Taxes.
If new curbs and gutters are installed by the city in front of a home, the owner will be assessed a special assessment tax to pay for these improvements. The tax will be based on a frontage foot basis, rather than by value. When the special need is paid for the tax is dropped.
83
"Value added tax" but these are always real estate taxes, based on actual value of the home, assessed value of the home, and the year's tax rate per hundred dollars of assessed value. The taxes are based on the city and/or county needs for services such as fire, water and police protection as well as schools, libraries and ambulance districts.
Ad Valorem
84
All property must have an owner. When an owner dies without a WILL and without HEIRS, the property reverts back to the state. Similarly, if the property is abandoned (through lack of paying taxes), the ownership of the property goes to the state.
Escheat
NO WILL+ NO HEIRS= ESCHEAT to the STATE
85
anything that burdens or limits the title of a property
encumbrance
86
Give examples of encumbrances.
Deed Restrictions; Easements; Leases; Liens; Encroachments; Licenses
87
A grantor making the deed may make certain restrictions on the use of the property. For example, the owner may say that no alcohol can be served on the premises, or that only certain types of homes can be built. These exist in many Homeowner’s Associations and Condominiums.
Deed Restrictions
88
Most of the deed restrictions are called:
Restrictive Covenants
89
Restrictive covenants run with the land forever, unless some legal remedy is sought to remove them. Typical restrictive covenants deal with:
subdivision requirements and may limit housing to certain types and sizes; may prohibit above ground pools; may limit the number of pets or parked cars, etc.
90
True or False. A buyer has a right to know about any covenant which would be limiting to him prior to closing and it should be disclosed.
True.
91
What are the two types of deed restrictions:
Limiting restrictions
92
State things you can never do (No fences, no dog runs etc.)
Limiting restrictions
93
State things you must abide by. (Set back requirements, minimum square footage, front of house must be brick etc.
Affirmative restrictions
94
Who can enforce deed restrictions?
Enforcement of restrictions is always done by a court of law.
95
Who can bring an action asking for enforcement?
Anyone who is under the same restrictions who feels there has been a violation.
96
Name Unenforceable Deed Restrictions.
Any restriction that violates public policy (state or Federal law) or is discriminatory is not enforceable. Any restriction that limits the new owner's right to sell at a future date. Restrictions that have not been enforced in a timely manner. (Neighbor put up a fence years ago in violation of the restrictions and no one complained.) The courts may say the Statute of Limitations would not allow enforcement now. Any restriction that limits the protected classes under Federal Fair Housing.
97
All restrictions are placed on the public record, recorded in the county where the property is located for _____________.
constructive notice
98
A new restriction can be placed on a property by ____________ in a new subdivision and that restriction would be enforceable.
a vote of trustee
99
An example of an encumbrance. Gives someone else (dominant estate) the right to USE a part of the property while the owner (servient estate) retains the ownership rights. These are non-possessory rights, just the right of ingress (enter) and egress (exit). For that reason, it is said to be an interest (claim) on the property, but not an estate.
Easements
100
An easement is created by:
Implication; Reservation; Necessity; Condemnation; Express Agreement;
101
A burden on the property. All easements are these but not all of these are easements.
Encumbrance
102
An easement created by a court of law in cases of justice and if necessity dictates it, especially in a case of landlocked property.
Necessity
103
An easement arising by implication from the acts of conducts of the parties. For example a person acquiring mineral rights on a property also acquires an implied easement to enter the property for the purposes of removing minerals.
Implication
104
Exists when the parties state the terms and show their intentions in words. Can either be oral or written. Like all real estate contracts, these should be reduced to writing to be enforceable in a court of law.
Express Agreement
105
The creation of a new right or requirement retained by the grantor after the property transfer. A reservation or reservations are rights to use the granted property by the grantor in the future. For example, if a grantor deeded 40 acres, but retained the right to cross the land to get to a family cemetery: this is a reservation.
Reservation
106
A judicial or administrative proceeding to exercise the power of eminent domain. The agency taking the property is the condemnor, and the person whose property is being taken is the condemnee. When private property is taken for public good, a fee simple estate or other reduced interest like an easement, may be acquired. A common example is obtaining owner access to a street entrance when the county builds a highway.
Condemnation
107
The four types of easements are:
Appurtenant; In gross; Necessity; Prescription
108
Easements for adjacent properties. These easements run with the land and can't be sold separately.
Appurtenant Easement
109
Name the two parties of an appurtenant easement.
dominant tenement and servient tenement
110
the property benefiting from the easement
dominant tenement
111
the property burdened by the easement.
servient tenement
112
NOT tied to any land, but are instead owned by a person or company. For that reason, they are considered a personal interest. They are usually commercial in nature and can be sold to others. A utility easement is an example.
Gross easements
113
(Operation of Law) are also sometimes referred to as "easement by implication" and are created by a court of law. Would be granted to a landlocked property to provide egress. An example is a farmer sells 80 acres of ground between his barns and the road. The court would say that the farmer has the right to an easement by necessity to get feed to his animals from the main road.
easement by necessity
114
An easement by adverse possession. The claimant has used the property for the time period set by law. (Under Florida Law it is 20 years). If the time element has been fulfilled, the claimant can go to court to get the right to use the land forever.
Easement by Prescription
115
Requirements to create Prescriptive Easements:
Possession -an individual must be in possession of the property or have used the property for the prescribed time period required by the state where the property is located.
Open - the individual must make "open use" that is, everyone must be able to see what the person is doing. (No underground tunnels etc.)
Actual: similar to actual notice, the person must be in possession use of the property for the prescribed time for everyone to see.
Continuous: for the statutory time period.
Hostile: in violation of the owner's legal description by using the owner's property and claiming as one's own.
116
Easements can be terminated by:
The purpose of the easement no longer exists. (a new road is built, etc.). The holder of the easement abandons it for the statutory time period. A merger of the properties occurs so an easement is not needed. Destruction of the property or the easement (such as being at the bottom of a new dam filled with water.)
The owner of the easement issues a Quit Claim deed back to the property owner that granted the easement.
Excessive use occurs as determined by the courts.
117
A possessory, non-freehold, interest in land, created without ownership. The parties to it are the lessor and the lessee. A contract between the lessor and the lessee,
lease
118
Means either the lessor or lessee may have the right to transfer the interest each has to another, should they chose to do so. The assignee takes the place of the first person in all parts and conditions of the contract and is required to perform accordingly.
An assignment
119
Define the lessor
landlord
120
Define the lessee
tenant
121
Define the assignee
the third party
122
created when the lessee grants a portion of time or a portion of space to another. The original lessee retains the liability to the lessor for payment of rent.
sublease
123
Name the types of Commercial Leases:
Sale to subject lease; gross lease; net lease; percentage lease; ground lease; index lease or variable index lease
124
Occurs when a buyer purchases a property that is currently leased. The lessee retains his rights to the property until the end of his lease regardless of who owns the property. The lessor will change with the owner and all deposits and rents will be transferred to the new owner, but the lease will remain until its expiration.
A sale Subject to lease
125
requires a tenant to pay only rent, usually on a square foot basis while the landlord pays all of the other expenses like taxes, insurance etc.
gross lease
126
requires the tenant to pay rent plus a portion or all of other expenses such as taxes and insurance. Often referred to as a net net, net net net, or a triple net lease depending on the amount of expenses paid by the lessee, this lease may not only refer to a commercial property but may also be charged on a residential property.
A net lease
127
requires the tenant to pay rent based on a percentage of his gross profits and is usually used in start-up business. The rent will increase as the business has more sales.
A percentage lease
128
gives the tenant the right to build or use the land for a specific time period, up to 99 years. This provides the lessor an avenue to maintain ownership of the land but allows someone else to use it for a long time period. A large portion of Hawaii homes are built on these.
ground lease
129
a lease that goes up or down, based on a specific index such as the Federal Reserve’s cost of funds, as agreed to by the parties.
An index lease or variable index lease
130
has gradual increases built in so that the lessee has increased rent payment as time progresses.
A graduated lease
131
a debt or charge against the property. It is a form of security interest granted over an item of property to secure the payment of a debt or performance of some other obligation.
lien
132
The owner of the property, who grants the lien, is referred to as the:
lienee
133
The person who has the benefit of the lien is referred to as the lienor or lien holder.
lienor or lien holder
134
Name the two types of Liens;
Voluntary and Involuntary
135
lien where the owner was willing to place on the property such as a mortgage lien or to secure building upon a property.
voluntary lien
136
A Statutory Lien that governs construction liens. The purpose of this lien is to protect contractors, subcontractors, suppliers and homeowners. Its purpose is to provide a method to assure full payment to a contractor who builds on a property. For owner’s, Florida’s mechanic’s lien statute requires subcontractors to provide notice of possible liens, which allows owners to avoid double payment to a contractor, subcontractor, material supplier or laborer, for the same services or materials.
mechanics lien
137
A lien that is based on state, local and federal written laws and is a lien that cannot be automatically discharged through bankruptcy. It can be based upon taxes, rent, maintenance services, construction, a mortgage, or usage.
Statutory lien
138
A lien that was placed on the property without the owner's consent or willingness. All liens except a mortgage lien are involuntary - such as special assessment liens, mechanic's liens etc.
Involuntary lien
139
Liens that are a result of losing a judgment case. A general lien is against all the assets of the person who lost the law suit and effects all real and personal property. (car, boat, house, or business).
General liens
140
A lien that is always either a judgment lien or a mortgage lien and is based on a doctrine of fairness and a written contract.
Equitable lien
141
A lien that is a general lien because income tax is initially based on a person. If that person does not pay his taxes, the IRS sues to get a judgment; then the court awards a judgment against all the assets of the individual including his property.
Income Tax lien
142
liens that are applied to a specific piece of property and affect only that piece of property.
specific liens
143
Specific liens are most often found by _____________ when listing or selling a property.
sales associates
144
What is the best way to ensure no surprises are encountered at time of closing?
The , sales associates should make it a point to have a “preliminary title search” on a property that they list to ensure no liens exist on the property.
145
In Florida, property taxes become a lien on a property in:
January of the tax year after they are due. In April, those taxes become delinquent.
146
In order to pay for items budgeted for local schools and services, these taxes become certificates for others to purchase in order to ensure that government services are not shut down.
property taxes
147
When an owner does not pay his or her taxes, and those taxes are sold through certificates, that owner must:
pay those taxes to remove the lien on their property, but also for up to 18% interest to be paid to those who bought their tax certificates for any year.
148
Why is the priority of liens in foreclosure important?
It indicates who gets paid first.
149
Describe the priority of liens.
1. Cost of the sale (paid to the county for advertising, legal fees etc.)
2. Property taxes (These do not have to be recorded.)
Ad Valorem Taxes
Special Assessment Taxes
3. First mortgage or Deed of Trust
4. All other mortgages and other types of liens recorded with priority established by date of recording including mechanic and materialman's liens.
150
What if there is not enough money for all the liens to be paid?
the court may issue a deficiency judgment against the borrower. The total assets of the borrower are then available for collection by the debt holder. Everything is available to the debt holder including cars, boats, campers, airplanes etc.
151
A legal document used to make the claim of one party junior to (or inferior to) a claim in favor of another. It is generally used to allow first lien status to a lienholder who would otherwise be secondary to another party, with the approval of the party that would otherwise have first lien.
Subordination agreement
152
When does subordination normally arise?
When there are two existing mortgages, a first mortgage and a second mortgage, and the mortgagor intends to refinance the first mortgage. If the holder of the second mortgage does not subordinate the lien of its mortgage to the new mortgage, the new lender will not refinance the first mortgage. However, the second mortgage holder does not want to release its mortgage and re-file, due to additional costs and priority problems, so it will subordinate its lien to the lien of the replacement mortgage.
153
A listing agreement for the sale of commercial real estate will entitle the broker to a lien on:
the net proceeds from the sale.
154
What are the requirements for placing a lien?
The broker must disclose before or at the time of executions of the agreement the broker's lien right using language prescribed in chapter 475. F.S.
The broker must deliver a commission notice to the owner and closing agent within 30 days of the time a commission is earned. The delivery must also be one day before the closing.
If there is no dispute from the owner within five days of closing, the owner confirms the commission and the closing agents will pay the broker from the owner's net proceeds.
155
A written brokerage agreement for the leasing of commercial real estate will attach a lien to the owner's interest in the commercial real estate.
Commercial Real Estate Leasing Commission Lien Act (Leasing act)
156
What are the requirements of Commercial Real Estate Leasing Commission Lien Act (Leasing act)?
Disclosure of lien must occur at the time the brokerage agreement is signed or prior to. Language must be substantially similar to 475.803(6), F.S.
No later than 90 days from the time a tenant takes possession, the broker must record a lien notice in the county or counties where the real estate is located.
The "lien notice" must be delivered to the owner within seven days.
The lien is effective for two years. If a renewal commission is earned, the lien is effective for 10 years. Extension provisions exit.
If the commission is not paid, the broker must foreclose the lien in a manner similar to a mortgage foreclosure.
157
a physical thing which is an unauthorized intrusion of the owner's legal title. In other words, the tree hangs over into the owner's space, as defined by his legal description of the property.
encroachment
158
Typical examples of encroachments are:
A fence placed on the wrong place on a property line
Tree limbs hanging over a property line
A roof of a garage over the neighbor's lot line
A concrete driveway placed on or over the neighbor's lot line.
159
How are encroachments discovered?
```
By physical inspection (actual notice)
A survey (constructive notice)
```
160
Why are encroachments important?
The encroachment can lead to a color or cloud on the title and a possible adverse possession suit if it is left for the statutory time period.
161
Permission to use the property of another for a specific purpose. It is not assignable. The person who gave the license has the right to revoke it at any time. Death of the parties terminates it.
A license
162
What are some examples of licenses?
Tickets to sporting events,
Hunting and fishing licenses,
Permission to use the property of another temporarily such as letting a neighbor go through the yard to put in a pool.
