Unit 9 Key Terms

Question 1

abstract of title

Answer 1

Condensed history of title to real property consisting of a summary of the links in the “chain of title” extracted from documents bearing on the title status.

Question 2

acknowledgment

Answer 2

Formal declaration before an authorized official, by the person who executed the instrument, that it is a free act.

Question 3

actual notice

Answer 3

Information a person has actually learned by reading, seeing, or hearing.

Question 4

adverse possession

Answer 4

A method of obtaining title to real property by occupying it in an open and hostile manner contrary to the interests of the owner.

Question 5

alienation

Answer 5

The act of transferring ownership, title, or an interest or estate in real property.

Question 6

appurtenance

Answer 6

A right or privilege associated with the property, such as a parking space in a multiunit building.

Question 7

assignment

Answer 7

Written instrument that serves to transfer the rights or interests of one person to another.

Question 8

chain of title

Answer 8

A successive listing of all previous holders of title (owners) back to an acceptable starting point.

Question 9

condemnation

Answer 9

The taking of private real property for a public purpose under the right of eminent domain for a fair price.

Question 10

constructive lien

Answer 10

A claim based on the principle of “unjust enrichment”; favors parties who have performed labor or delivered materials or supplies for the repair or building of an improvement to real property.

Question 11

constructive notice

Answer 11

The recording of a document or an instrument in the public records designed to give adequate notice to all.

Question 12

deed

Answer 12

A type of conveyance; a written instrument to transfer title to real property from one party to another.

Question 13

deed restrictions

Answer 13

Provision placed in deeds to control future uses of the property.

Question 14

easement

Answer 14

A right, privilege, or interest in real property that one individual has in lands belonging to another; a legal right to trespass; right-of-way authorizing access to or over land.

Question 15

easement appurtenant

Answer 15

An easement that runs with the land and benefits an adjacent parcel of land.

Question 16

easement by necessity

Answer 16

An easement created by a court of law in cases where justice and necessity dictate it, such as when property is landlocked.

Question 17

easement by prescription

Answer 17

A right acquired by an adverse user to use the land of another, created through a court of law after long and uninterrupted use.

Question 18

easement in gross

Answer 18

A type of easement that benefits an individual or business entity and is not related to a specific adjacent parcel, for example, utility easements.

Question 19

eminent domain

Answer 19

The constitutional right given to a unit of government to take private property involuntarily, if taken for public use and a fair price is paid to the owner.

Question 20

encroachment

Answer 20

Unauthorized use of another person’s property.

Question 21

equitable title

Answer 21

The beneficial interest in real estate that implies that an individual will receive legal title at a future date.

Question 22

escheat

Answer 22

Reversion of property to the state when an owner dies without leaving a will or any known heirs.

Question 23

further assurance

Answer 23

A provision in a deed containing a covenant or warranty to perform any further acts the grantee (buyer) might require to perfect title to the property.

Question 24

general lien

Answer 24

A claim that may affect all the properties of a debtor.

Question 25

general warranty deed

Answer 25

An instrument of conveyance containing the strongest and most comprehensive promises of further assurance possible for a grantor (seller) to convey to a grantee (buyer).

Question 26

grantee

Answer 26

Party who receives a deed or grant; buyer.

Question 27

granting clause

Answer 27

The provision in a deed that specifies the names of the parties involved, the words of conveyance, and ta description of the property.

Question 28

grantor

Answer 28

Party who signs and gives a deed; seller.

Question 29

gross lease

Answer 29

An agreement for the tenant to pay a fixed (base) rent with the landlord paying all the expenses associated with the property.

Question 30

ground lease

Answer 30

An agreement for the tenant to lease the land only and erect a building on the land.

Question 31

habendum clause

Answer 31

A provision in a deed to a real property that stipulates the estate or interest the grantee is to receive and the type of title conveyed.

Question 32

intestate

Answer 32

Without a will.

Question 33

involuntary alienation

Answer 33

When a person dies intestate and the property either descends to the decedent's heirs or transfers to the state through escheat.

Question 34

junior lien

Answer 34

Priority is based on the date of recording in the public records.

Question 35

legal title

Answer 35

Ownership of a freehold estate.

Question 36

lender's policy

Answer 36

Title insurance issued for the unpaid mortgage amount to protect the lender against title defects.

Question 37

mechanic's lien

Answer 37

Same as a construction lien.

Question 38

net lease

Answer 38

An agreement for the tenant to pay fixed rent plus property costs, such as taxes, insurance, and utilities.

Question 39

opinion of title

Answer 39

A formal statement by an attorney regarding the status of a title after examination of the chain of title.

Question 40

owner's policy

Answer 40

Title insurance issued for the total purchase price of the property to protect the new owner against unexpected risks.

Question 41

percentage lease

Answer 41

An agreement for the tenant to pay rent based on the gross sales received by doing business on the leased property.

Question 42

police power

Answer 42

The authority of government to protect the property, life, health, and welfare of its citizens.

Question 43

quiet enjoyment

Answer 43

A provision in a deed guaranteeing that the buyer may enjoy possession of the property in peace and without disturbance by reason of other claims on the title by the seller or anyone else.

Question 44

quitclaim deed

Answer 44

A type of deed that will effectively convey any present interest, claim, or title to real property that the seller (grantor) may own.

Question 45

restrictive covenants

Answer 45

Conditions placed by developers that affect how the land can be used in an entire subdivision.

Question 46

seisin

Answer 46

A covenant in a deed that warrants that the grantor (seller) holds the property by virtue of a fee simple title and has a complete right to dispose of same. Also called a seizin clause.

Question 47

specific lien

Answer 47

Claims that affect only the property designated in the lien instruments or agreements.

Question 48

sublease

Answer 48

A lessee leasing a property to a third party for a period of time less than the original lease. Also called subletting.

Question 49

superior lien

Answer 49

A lien that takes priority over all other liens.

Question 50

testate

Answer 50

Having left a will.

Question 51

title

Answer 51

Evidence of ownership of real property, such as a deed.

Question 52

title insurance

Answer 52

A policy of insurance that protects the holder from any loss resulting from defects in the title.

Question 53

variable lease

Answer 53

An agreement for the tenant to pay specified rent increases based on a predetermined index (CPI) at set future dates.

Question 54

voluntary alienation

Answer 54

The transfer of title is accomplished with the owner's control and consent.

Question 55

warranty forever

Answer 55

A provision in a deed guaranteeing that the seller will for all time defend the title and possession for the buyer.

Question 56

Condensed history of title to real property consisting of a summary of the links in the "chain of title" extracted from documents bearing on the title status.

Answer 56

abstract of title

Question 57

Formal declaration before an authorized official, by the person who executed the instrument, that it is a free act.

Answer 57

acknowledgment

Question 58

Information a person has actually learned by reading, seeing, or hearing.

Answer 58

actual notice

Question 59

A method of obtaining title to real property by occupying it in an open and hostile manner contrary to the interests of the owner.

Answer 59

adverse possession

Question 60

The act of transferring ownership, title, or an interest or estate in real property.

Answer 60

alienation

Question 61

A right or privilege associated with the property, such as a parking space in a multiunit building.

Answer 61

appurtenance

Question 62

Written instrument that serves to transfer the rights or interests of one person to another.

Answer 62

assignment

Question 63

A successive listing of all previous holders of title (owners) back to an acceptable starting point.

Answer 63

chain of title

Question 64

The taking of private real property for a public purpose under the right of eminent domain for a fair price.

Answer 64

condemnation

Question 65

A claim based on the principle of "unjust enrichment"; favors parties who have performed labor or delivered materials or supplies for the repair or building of an improvement to real property.

Answer 65

constructive lien

Question 66

The recording of a document or an instrument in the public records designed to give adequate notice to all.

Answer 66

constructive notice

Question 67

A type of conveyance; a written instrument to transfer title to real property from one party to another.

Answer 67

deed

Question 68

Provision placed in deeds to control future uses of the property.

Answer 68

deed restrictions

Question 69

A right, privilege, or interest in real property that one individual has in lands belonging to another; a legal right to trespass; right-of-way authorizing access to or over land.

Answer 69

easement

Question 70

An easement that runs with the land and benefits an adjacent parcel of land.

Answer 70

easement appurtenant

Question 71

An easement created by a court of law in cases where justice and necessity dictate it, such as when property is landlocked.

Answer 71

easement by necessity

Question 72

A right acquired by an adverse user to use the land of another, created through a court of law after long and uninterrupted use.

Answer 72

easement by prescription

Question 73

A type of easement that benefits an individual or business entity and is not related to a specific adjacent parcel, for example, utility easements.

Answer 73

easement in gross

Question 74

The constitutional right given to a unit of government to take private property involuntarily, if taken for public use and a fair price is paid to the owner.

Answer 74

eminent domain

Question 75

Unauthorized use of another person's property.

Answer 75

encroachment

Question 76

The beneficial interest in real estate that implies that an individual will receive legal title at a future date.

Answer 76

equitable title

Question 77

Reversion of property to the state when an owner dies without leaving a will or any known heirs.

Answer 77

escheat

Question 78

A provision in a deed containing a covenant or warranty to perform any further acts the grantee (buyer) might require to perfect title to the property.

Answer 78

further assurance

Question 79

A claim that may affect all the properties of a debtor.

Answer 79

general lien

Question 80

An instrument of conveyance containing the strongest and most comprehensive promises of further assurance possible for a grantor (seller) to convey to a grantee (buyer).

Answer 80

general warranty deed

Question 81

Party who receives a deed or grant; buyer.

Answer 81

grantee

Question 82

The provision in a deed that specifies the names of the parties involved, the words of conveyance, and ta description of the property.

Answer 82

granting clause

Question 83

Party who signs and gives a deed; seller.

Answer 83

grantor

Question 84

An agreement for the tenant to pay a fixed (base) rent with the landlord paying all the expenses associated with the property.

Answer 84

gross lease

Question 85

An agreement for the tenant to lease the land only and erect a building on the land.

Answer 85

ground lease

Question 86

A provision in a deed to a real property that stipulates the estate or interest the grantee is to receive and the type of title conveyed.

Answer 86

habendum clause

Question 87

Without a will.

Answer 87

intestate

Question 88

When a person dies intestate and the property either descends to the decedent's heirs or transfers to the state through escheat.

Answer 88

involuntary alienation

Question 89

Priority is based on the date of recording in the public records.

Answer 89

junior lien

Question 90

Ownership of a freehold estate.

Answer 90

legal title

Question 91

Title insurance issued for the unpaid mortgage amount to protect the lender against title defects.

Answer 91

lender's policy

Question 92

Same as a construction lien.

Answer 92

mechanic's lien

Question 93

An agreement for the tenant to pay fixed rent plus property costs, such as taxes, insurance, and utilities.

Answer 93

net lease

Question 94

A formal statement by an attorney regarding the status of a title after examination of the chain of title.

Answer 94

opinion of title

Question 95

Title insurance issued for the total purchase price of the property to protect the new owner against unexpected risks.

Answer 95

owner's policy

Question 96

An agreement for the tenant to pay rent based on the gross sales received by doing business on the leased property.

Answer 96

percentage lease

Question 97

The authority of government to protect the property, life, health, and welfare of its citizens.

Answer 97

police power

Question 98

A provision in a deed guaranteeing that the buyer may enjoy possession of the property in peace and without disturbance by reason of other claims on the title by the seller or anyone else.

Answer 98

quiet enjoyment

Question 99

A type of deed that will effectively convey any present interest, claim, or title to real property that the seller (grantor) may own.

Answer 99

quitclaim deed

Question 100

Conditions placed by developers that affect how the land can be used in an entire subdivision.

Answer 100

restrictive covenants

Question 101

A covenant in a deed that warrants that the grantor (seller) holds the property by virtue of a fee simple title and has a complete right to dispose of same. Also called a seizin clause.

Answer 101

seisin

Question 102

Claims that affect only the property designated in the lien instruments or agreements.

Answer 102

specific lien

Question 103

A lessee leasing a property to a third party for a period of time less than the original lease. Also called subletting.

Answer 103

sublease

Question 104

A lien that takes priority over all other liens.

Answer 104

superior lien

Question 105

Having left a will.

Answer 105

testate

Question 106

Evidence of ownership of real property, such as a deed.

Answer 106

title

Question 107

A policy of insurance that protects the holder from any loss resulting from defects in the title.

Answer 107

title insurance

Question 108

An agreement for the tenant to pay specified rent increases based on a predetermined index (CPI) at set future dates.

Answer 108

variable lease

Question 109

The transfer of title is accomplished with the owner's control and consent.

Answer 109

voluntary alienation

Question 110

A provision in a deed guaranteeing that the seller will for all time defend the title and possession for the buyer.

Answer 110

warranty forever