***Ch 5. Real Property Ownership*** Flashcards
Rights to real property can be voluntarily converted through the use of:
A. Deed
B. Will
C. Eminent domain
D. Both A and B
D. Both A and B
If a person dies with a valid will in effect, that person has died:
A. Testate
B. Intestate
C. In trust
D. In probate
A. Testate
If a person dies with no heirs or beneficiaries, their estate will pass to the state of Florida through the process of:
A. Inheritance
B. Escheat
C. Taxation
D. Probate
B. Escheat
If the government wishes to seize private land for the purpose of widening an existing road, they can acquire the land through:
A. Taxation
B. Escheat
C. Police Power
D. Eminent Domain
D. Eminent Domain
Recording a deed in the public records achieves:
A. Constructive notice
B. Actual notice
C. Probate
D. Judicial notice
A. Constructive notice
The type of title insurance that is non-transferable and typically has a face amount equal to the purchase price is the:
A. Owner’s policy
B. Lender’s policy
C. Mortgagee’s policy
D. None of the above
A. Owner’s policy
The words of conveyance in a deed are contained in the:
A. Habendum clause
B. Granting clause
C. Reddendum clause
D. Premises clause
B. Granting clause
Which type of statutory deed is used primarily to clear defects to title:
A. Quitclaim deed
B. Bargain and sale deed
C. Special warranty deed
D. General warranty deed
A. Quitclaim deed
Which type of deed offers the greatest protection for a buyer?
A. Quitclaim deed
B. Bargain and sale deed
C. Special warranty deed
D. General warranty deed
D. General warranty deed
The government has the right to enact laws and regulations to protect the health, safety, and welfare of the public through the exercise of its:
A. Sovereign immunity
B. Police powers
C. Executive privilege
D. Eminent domain
B. Police powers
Which of the following is a non-governmental limitation on title:
A. Zoning
B. Planning
C. Condemnation
D. Deed restriction
D. Deed restriction
Which type of lease provides that the tenant will pay a fixed rent plus the property’s cost (taxes)?
A. Net lease
B. Gross lease
C. Variable lease
D. Percentage lease
A. Net lease
Which of the following is an example of a voluntary lien?
A. Construction lien
B. Mortgage lien
C. Special Assessment Lien
D. Judgment lien
B. Mortgage lien
Real estate tax liens become effective on:
A. December 31st of the tax year
B. January 1st of the tax year
C. January 1st of the proceeding tax year
D. April 1st of the proceeding tax year
B. January 1st of the tax year
All of the following are considered to be a superior lien except:
A. IRS lien
B. Federal Estate tax lien
C. Special Assessment lien
D. Real estate tax lien
A. IRS lien
A compilation of the recorded documents relating to a parcel of land, from which an attorney may give an opinion as to the condition of the title (a history of title)
Abstract of Title
A written declaration by a person signing a document, given before an officer authorized to give an oath (notary public), stating that the signing is the person’s voluntary act
Acknowledgment
Giving oral or written notice, presenting a deed, giving verbal notice or physically moving into a property
Actual Notice
A method of acquiring title by possession under open, notorious, exclusive, and hostile conditions for seven more years. Taxes for property must be paid by “squatter”, and true owner could lose rights or interests.
Adverse possession
A transfer to another of any property, real or personal, or of any rights estates in said property. giving someone the rest of your lease term.
Assignment
The chronological order of title transfers from the original owner to the present owner
Chain of title
Utilized when the grantor is mentally incompetent
Committee’s deed
Notice given by publishing in a newspaper, public records, other method
Constructive notice
Any one of many conveyance or financing instruments, but generally a conveyance instrument given to pass title to property upon sale
Deed
Limitations on the use of property placed in a deed by a grantor which bind all future owners
Deed restrictions
The legal right that a party has to use another’s property
Easement
The legal right that government and quasi-government agencies have to take property individuals for public use
Eminent domain
A physical intrusion or trespass that can be detected by an up to date survey
Encroachment
Any condition (liens, deed restrictions, encroachments, unpaid property taxes, eta) of title that deviates from free and clear
Encumbrance
The grantor agrees to obtain and deliver any legal documents or instruments that might be required to clear title in the future
Further assurance
the person or party receiving the deed
Grantee
the person or party giving the deed
grantor
A lease which a tenant pays a specified rent payment and the landlord pays any operating expenses required for maintenance or repairs
Gross lease
a lease on the land only. tenants pays rent for ground only and builds upon the leased property.
ground lease
Utilized when the grantor is under 18 year of age
Guardians deed
The clause in which the type of estate is declared, for example the deed may state that the grantee is to “have and to hold in fee simple forever”
Habendum clause
When person dies without a will
Insestate
An encumbrance against a property for money, either voluntary or involuntary
Lien
If a continuous chain of title has existed for at least 30 years any potential title defect more than 30 years old is considered cured
Marketable record title act
A ease in which the tenant pays a specified rent to the landlord costs percentage of the income of the property generates (typically shopping centers)
percentage lease
Utilized when the grantor is deceased
Personal representatives deed
The grantor guarantees the grantee peaceful possession undisturbed by other claims of title
Quiet enjoyment
the grantor deeds property to the grantee, but provides no warranty of title or promise of ownership. Used to cure defects in title
Quitclaim Deed
A statement of ownership or title to real property
Seisen
A tenant that transfers less than the entire leasehold estate. only giving someone a portion of your lease term, space, or time ex. a tenant would like to rent out one of several bedrooms to another
Sublease
The evidence one has of ownership to real property
Title
The tenant pays rent based on pre-determined index
Variable lease
When real property is transferred according tot he actual desires and intent of the owner
Voluntary Alienation
What are the two ways to transfer a title, and which is the most common?
Deed- most common
Will
When a property is transferred without specific intent of the owner
Involuntary Alienation
What are the 4 methods to involuntarily transfer a title and which is the most common?
Descent and distribution- most common, when someone dies intestate and property goes to heirs
Escheat- No family or will, property goes to state
Adverse possession- (squatters) property owner allows others to take possession and not take legal action to have them removed.
Eminent Domain- right of gov’t, gov’t take property for use of public, but pays fair market value
What are the two methods that give notice that ownership or some other interest in real property has been acquired?
Actual Notice
Constructive notice
How do you achieve official ownership?
Constructive notice “make it public record”
Mortgagor’s policy, usually based n the purchase price and will pay for all claims made against the property, up to the face amount of the policy, is it transferable or non-transferable?
Owner’s policy/ non-transferable
Mortgagee’s policy required by the lender if a property is mortgaged and covers the lenders investment, is it transferable or non-transferable?
Lenders policy/ transferable
Describes any reservations or restrictions that run with land, such as a deed restriction
Reddendum clause
Type of deed that contains no warrants or covenants other than warrant of seisen
Bargain and sale deed
often used by banks for properties that have been taken back through foreclosure
Special warranty deed
In order to legally transfer title, the deed must be DELIVERED to and ACCEPTED by the grantee, a valid deed must be signed by who?
SIGNED by the grantor and 2 witnesses, a notarization is not required
Easement given when a property is landlocked with no means of ingress/egress
Easement by necessity
easement granted if the easement has been uninterrupted use for 20 years
Easement by prescription
All liens are involuntary except?
mortgage lien
if a property goes into foreclosure all liens go away except?
real estate taxes
Lien that is court judgments record in the public records
judgment lien
lien created when a person borrows money from a bank and pledges real estate as collateral for the loan
Mortgage lien
Liens are utilized whenever a party has work performed on a property and does not pay for that work or materials used ex. fence
Mechanics lien
liens that become effective Jan 1st of each year even though tax bill does not become due until Nov of the same year
Real estate tax lien
general tax lien and is levied anything and everything that a person owns for a non-payment of income tax
Federal tax lien IRS
one time tax levied pay the cost of a pubic improvement that directly benefits the assessed property
special assessment lien
What type of liens are not superior?
IRS liens
