Ch 7-8 Flashcards
A fee simple estate is:
(here, 3 adjectives)
- Inheritable
- Transferable
- Perpetual (indefinitely)
Examples of Partial Interest created by special situations:
- Life estates
- Leased fee estates
- Leasehold estates (formerly Life Estate)
There are some specialized forms of ownership in which you may own something in fee simple along with shared rights of certain common properties. What are the most common types?
- Condominiums
- Cooperatives
- PUDs
- Timeshares
The seller of a property is called the x. The buyer is called the x.
granter
grantee
(The Granter is Bigger since he got more money now.)
A deed is
“A written, legal instrument that conveys an estate or interest in real property when xxx
it is executed and delivered.”
Is a Deed valid without a Notary Public?
Yes.
What are the requirements for a Deed to be legally valid:
(long list)
- The deed must be in writing
- The granter and grantee must be clearly identified
- The granter must be legally capable (for example, not a minor or legally incapacitated)
- The property must be adequately described
- There must be a legally acceptable grantee clause
- Consideration (amount)
- Signed by the granter
- Delivered to the grantee
Which contracts have to be written?
Most contracts that cannot be completed within one year
Real Estate
Commercial contracts for goods worth in excess of $500
Grant Deed facts to remember:
A deed containing some but not all of the usual covenants
Title may not be clear
Grantor may not be owner
Quitclaim Deed facts to remember:
Without warranty of title
Weakest form of title
Usually for tax sales
Bargain and Sale Deed facts to remember:
Seller does hold title
No guarantee that it is a clear title
Sheriffs Deed at Court-ordered Sale
Tax Deed facts to remember:
Tax Sale
Like a Bargain and Sale Deed
Non-Payment of Taxes
Warranty Deed facts to remember:
Title Free and Clear
Best Type
Deed of Trust facts to remember:
Similar to Mortgage
Trustee holds title
Trustee is able to sell without foreclosure
Reconveyance:
Title goes back to borrower when amount is paid off
For Deed of Trust only
Express Contracts facts to remember:
Oral or written
Like listing agreements, Mortgages, Leases
Implied Contract facts to remember:
By Actions
Sitting down in a restaurant
Bilateral Contract facts to remember:
2 Parties make a promise
Unilateral Contract
One Party makes a Promise to induce another to do something
Real Estate option to sell
Executed Contract facts to remember:
Fully performed
Executory Contract facts to remember:
Not been fully performed
Listing of unsold property
Mortgage with outstanding balance
Valid Contract facts to remember:
Binding
Enforceable
Like a real estate purchase transaction that has cleared all the contingencies but has not yet closed escrow
Void Contract facts to remember:
No legal force
Illegal elements
Racial discrimination
Crime
Voidable Contract facts to remember:
Failure of the parties to meet legal requirements
Minor signs contract
Parties are not required to void the contract
Unenforceable Contract
Appears valid but would not be enforceable in court
Like a written contract was required
What are the 5 essential elements of a valid contract?
- Competent parties
- Mutual agreement
- Consideration
- Lawful objective
- In writing and signed
The parol evidence rule states that written contracts
take precedence over oral agreements.
Contracts can be discharged or terminated by?
- Agreement of the parties
- Performance of the contract
- Impossibility of performance (not legal anymore)
- Operation of law (bankruptcy)
What is Novation?
New contract which terminates the original agreement
What is Assignment?
Transferring an interest in property or some right such as contract benefits.
Time is of the essence clause is defined as
… grounds for canceling the agreement.
What is a Default
Breach of Contract
Failure to perform any term of contract without legal excuse
It does not relieve the obligations
If a seller defaults, a buyer may
- Rescind the contract and recover the earnest money deposit
- File a suit calling for specific performance, to force the seller to sell the property
- Sue the seller for compensatory damages
If a buyer defaults, a seller may
- Declare the contract forfeited . The right to forfeit is usually provided in the terms of the contract and the seller generally is entitled to retain the earnest money and any payments received from the buyer.
- Rescind the contract
- Sue for specific performance (this may require the seller to offer a valid deed to show readiness to perform)
- Sue for compensatory damages
Real property appraisers will develop their appraisals under STANDARD x and report them under STANDARD x. Personal property appraisers will develop their appraisals under STANDARD x and report them under STANDARD x.
1
2
7
8
What items of the URAR subject section can be found in the sales contract?
- Property address
- Borrower
- Owner of public record
- Legal description
- Map reference
- Assignment type
A flat rental lease is
same rent each period
most common type of lease
usually for short term
A gross lease is
landlord pays operating and fixed expenses
also called full-service lease
A net lease is
tenant pays all expenses
also called net/net lease
A graduated rental lease is
specified changes in rent like step up or step down or % adjustment
An index lease is
long term
periodic adjustments based on economic index
A revaluation lease is
periodic rent adjustments based on market rental rate
An Escalator lease is
lessor can seek reimbursement for operating expenses
e.g. lessor pays for 1st year, lessee will pay any increases after that
A Percentage lease is
rent is base on a % of volume of business, productivity
used for supermarkets
usually has a min. rent and an overage rent
Overage rent
% of rent paid over and above the guaranteed min rent.
% based on sales.
landlord shared in the business fortune of the tenant
