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0. RE TERMS I need to know to PASS
Terms in this set (62)
When one party passes responsibilities to another
giving up possession of a property
if landlord does something, or fails to perform duties that he/she is legally obligated do rendering the property uninhabitable
ex: the water does not work.
No heating when it's freezing outside
A "signed statement by a party certifying certain facts are correct which cannot be later contradicted the signer.
EX: a lease exists or that rent is paid to a certain date
is evidence of property transfer as opposed to title which shows ownership.
Think of it as like a receipt when you buy something from the store. It shows that sth was purchased and ownership transferred to another
a deed that includes2 implied warranties:
1. the grantor has not already given the title to another person
2. the estate has no undisclosed encumbrances
It is not necessary to record the deed. It is considered executed when signed by the grantor
something that limits the title. it could be anything from an easement to unpaid taxes or mechanic lien.
a deed that operates a release. It transfers property quickly, but without any warranties on the title of any kind.
It is typically used when you want to transfer ownership from EX: father to a son, or very close friends.
Money is not exchanged
a deed in which a property owner then transfers the title warrants that he owns the property free & clear of all liens. So it's saying no money is owed regarding this property
means that you owe money
Special Warranty Deed
A deed in which the grantor warrants, or guarantees, the title only against defects that occurred during their ownership of the property. And it does not provide any warranty or guarantee against any defects existing before they owned it.
Generally using the language, "by, through, or under the grantor but not otherwise."
General Warranty Deed
A deed in which the grantor or the seller fully warrants that he/ she holds good, clear title to the piece of real estate and has a right to sell. It is not limited to the time the grantor owned the property.
Used in most real estate deed transfers. It offers the greatest protection of any deed.
Bargain and Sale Deed
A deed conveying real property without covenants the grantor is implied to hold title of possession, but no warranty against encumbrances
a deed which indicates the borrower is released from a mortgage debt and transfers the property title from the lender or beneficiary to the borrower.
Most commonly issued when a mortgage has been paid in full.
So that means when you pay off your loan, you could receive this kind of deed which will be evidence that everything's paid off, and you don't owe anybody anything.
shows ownership of the bundle of rights of property, basically says that it is yours.
Chain of Title
the record of all previous owners of a particular parcel of land.
Abstract of Title
a summary provides details of the title deeds and documents that prove an owner's right to dispose of the land together with any encumbrances that relate to the property
Cloud on Title
shows defects in the title.
EX: an ureleased lien, or encumbrances that may invalidate or impair the title
quiet title action
A court action to remove a cloud on title or another claim that has been placed on title to property thus quieting any challenges or claims to the title. This type of proceeding would be conducted to transfer title to an adverse possessor.
Alienation of Title
a loss of title. It's the opposite of acquisition
insures any losses due to defects or problems with the title after it has been searched or examined.
It insures the buyer get the clean title. However, remember NO title policy covers everything.
EX: no policy is going to cover ZONING
Standard Policy of Title Insurance
an insurance policy most buyers get to protect themselves from forgery in the chain of title or defective delivery of a deed.
It does not cover a site inspection or a survey
Extended Policy of Title Insurance
an insurance policy with increased coverage from a standard policy plus defects found in a property inspection.
It helps with the dispute over property lines which are disclosed by a survey, and it covers improvements on an adjoining land. Or it could cover unrecorded rights of parties in possession, examination of survey, unrecorded liens, not known by a policy holder
Estate In Severalty (Sole Ownership)
Ownership by only one person, one corporation, or one partnership
ownership or possession of property by two or more people at the same time
A type of concurrent ownership with unities of time, title, interest, and possession by two or more parties.
It is the right to survivorship, meaning if one owner dies, the survivor(s) continuing to hold all such property and take the remaining interest.
EX: If Bob and Bill have this type of ownership together. When Bob dies, Bill gets the property. Bob can't will it to his heirs.
For that same reason, you should not take this type of ownership with a corporation because corporations don't die, so the writer survivorship theory would not really work well with a corporation
Tenancy in Common
A form of concurrent ownership with unity possession only. It does not have the other unities that joint tenancy has. There is no automatic writer survivorship, so you could wheelchair heirs
EX: If Bob took a property with Bill in this type of ownership. When Bob dies, Bod's heirs could get the property because Bill wouldn't have the right of survivorship
It would be a much more appropriate relationship if you're taking the property with a corporation
the right to use or enter someone else's land for a specific purposes within limits.
Land with it on. It is encumbered
the land enjoying the easement. They could terminate in easement by recording a quitclaim deed
the land burdened by the easement.
It is much larger than the dominent tenement
Easement by Prescription
An easement granted after someone has used or entered the land for a period of time. That is given a legal right to continue to do so
Bundle of Rights
The legal rights of ownership of real property, including the rights of possession, control, exclusion, enjoyment, and disposition of others from the property
- generally immovable.
- goes with the real estate
- EX: when you sell the home, those are the things that go with the home, such as; pool coverings, mailbox out in the front yard, the fence, the house itself
- generally movable
- goes with the person when the property is sold
- can be hypothecated, alienated, and become real property in the form of the fixture
- EX: couch, TV, things that do not go with the land when it is sold
Personal property that is now considered Real property because it is incorporated into the land.
- MARIA: method, adaptability, relationship, intention & agreement are the tests for it.
- you want to write what goes with the property and which does not in the purchase contract. But if it's not mentioned, the law will defer to that MARIA test to see if it goes with the land, if it is incorporated into the land
- EX: pool coverings, or a painting that has been nailed to the wall, or a chandelier that is attached to the roof as those things were once personal but they now are incorporated into land. They are considered real
- a type of fixture that is linked to a business. Even though they are attached to the land, they are considered personal property.
- EX: a hairdresser's chair, or a dentist chair. Although the chair is attached to the ground, it is not real property because it goes with that hairdresser, or that dentist. When they leave that property, it goes with the person because those chairs are a part of their business. Therefore, it does not run with the land
Rights an owner would have when they live alongside moving bodies of water, such as: River, Stream
Rights somebody would have when they live by a static body of water, such as: Lake, Sea, Ocean.
an increase in the actual amount of land due to natural causes
EX: from the gradual action of the ocean or rivers water receding
the sudden violent tearing away of land by water
EX: if a dam breaks, a water comes rushing down and strips away the land
Gradual recession of water leaving land permanently uncovered
Include easements, documents of water companies covenants, and minerals that are still on the ground. They are considered real property and run with the land.
If sth is a pertinent, it goes with the land
An estate where the ownership is held for an undefined length of time
Fee Simple Estate/ Fee Simple Absolute/ Estate Inheritance
- a type of freehold estate.
- it can be sold or inherited and is not free of encumbrances
- it is the most interest one can hold in the land
Fee Simple Defeasible
- puts conditions on the use of a property.
- EX: there could be a condition that no alcohol can be sold on the property. If that condition is violated, the owner can loose title. When you violate a condition that results in loss of ownership
- An interest in real property that lasts the length of someone's life
- It is a type of freehold estate because it is indefinite in duration. When the life tenant's life ends, title reverts to the original owner
Life Estate Pur Autre Vie
- an interest in a Real Property that lasts the length of someone's life who is not the life tenant
- It is a type of free estate because it is indefinite in duration.
- when the measuring life ends, title reverts to the original owner.
Less than Freehold Estate
- ownership where title is held for a defined length of time
Estate for years
- a less than freehold estate where an estate or a tenancy lasting a fixed period of time
- EX: a summer rental from Memorial Day to Labor Day weekend
- anything that has 2 dates attached to it because that's a fixed period of time. And because it's a fixed period of time, no notice of termination is needed as the notice termination was given at the moment you moved in
- a less than freehold estate where tenancy is renewed periodically
- EX: week to week, month to month, or even year to year
Estate at will
- a type of less than freehold estate that can be ended any time by the landlord or the tenant
Estate at Sufferance
- a type of less than freehold estate where a tenant continues to occupy the property after the lease or rental agreement has ended.
- this as having a deadbeat tenant
often refers to tangible, movable, personal property
Leases/ leasehold estate
- a contract between a lessor and lessee which gives possession, but not ownership to the lessee
- a tenant does not need to sign it to become a lessee acting as a lessee is enough.
- it's not real property. It is considered personal property
- a lease where the amount of rent paid by the lessee is a percentage of the gross income of the lessee's business.
- EX: a commercial parking lot
Net Lease (Triple Net Lease)
- a lease where the tenant pays for taxes, insurance, and maintenance in addition to other fees like rent & utilities.
- This is not common on your typical residential property. It's more common with commercial properties
a lease in which the tenant pay the fixed amount to the landlord. That is your standard in residential lease where somebody may just pay a thousand dollars a month
Sandwich Lease/ Subletting
- a kind of sublease
- a lease in which an existing tenant sublets the property to a third party. The lessee in this situation is also the lessor hints sandwiched there in the middle, they have a lessor above them but they also have a lessee below them
Sale Lease Back
- Somebody sells the property, and then they lease it back. They essentially become a tenant of the new owner. This works out well for a lot of people if they have a business and need immediate cash flow.
- They sell the cash flow. They take the money put into their business. They stay in the property, and they would deduct all the future rents as a business expense. Every wins. The owner gets a new tenant. The person who just sold it gets a lot of cash for their business.
- The seller, the vendor becomes the lessee.
Tenant Improvement Allowances
The amount a landlord is willing to spend, so the tenant can retrofit, or renovate a commercial space to be more approriate for whatever it is they are doing
voluntary giving up the rights and responsibilities of possession of a property
- when an existing tenant sublets the property to a third party. The lessee is also the lessor
- the other way to identify this is as a sandwich lease.
Sets with similar terms
Washington Real Estate Fundamentals - Ch. 3
BLS Ch 49 Real Property
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Chapter 3- part 2
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