Chapter 3 - Encumbrances & Transfer of Ownership Vocabulary

Question 1

abandonment

Answer 1

The obvious and intentional surrender of the easement.

Question 2

Abandonment

Answer 2

Non-payment of taxes.

Question 3

abandonment of homestead

Answer 3

A legal document that proves a homestead was abandoned. An owner must file an abandonment of homestead on the old property in order to obtain a homestead on a new property.

Question 4

abstract of judgment

Answer 4

A summary of a court decision.

Question 5

Abstract of Title

Answer 5

A brief, chronological summary of the recorded documents affecting title to a particular parcel of real property. Written summary of all useful documents discovered in a title search.

Question 6

Accession

Answer 6

The acquisition of title to land (additional land) or to improvements by its addition to real estate already owned, through human actions or natural processes. 1. result of natural causes such as alluvial deposits along the banks of streams by accretion. (2) A process by which there is an addition to property by the efforts of man or natural forces.

Question 7

Accretion

Answer 7

A gradual addition to dry land by the forces of nature, as when the tide deposits waterborne sediment onto shoreline property. A buildup of soil by natural causes on property bordering a river, lake, or ocean.

Question 8

acquisition

Answer 8

The act or process by which a person procures property.

Question 9

ADAM E. LEE

Answer 9

The mnemonic for the eight ways to terminate an easement: Abandonment, Destruction, Adverse possession, Merger, Express agreement, Lawsuit, Estoppel, and Excessive use.

Question 10

Administrator

Answer 10

A person appointed by the probate court to manage and distribute the estate of a deceased person when no executor is named in the will or there is no will. His or her duties include making an inventory of the assets, managing the property, paying the debts and expenses, filing necessary reports and tax returns, and distributing the assets as ordered by the probate court.

Question 11

Adverse Possession

Answer 11

The open, notorious, hostile, adverse, exclusive, and continuous possession of another person’s property for a statutory number of years, after which time the adverse possessor may seek to obtain title to the property. Must continued possession and payment of taxes.

Question 12

after-acquired title

Answer 12

Any benefits that come to a property after a sale must follow the sale and accrue to the new owner.

Question 13

Alienation

Answer 13

The transfer of ownership or an interest in property from one person to another, by any means. (1) To transfer, convey, or sell property to another. (2) The act of transferring ownership, title, or interest.

Question 14

Alienation Clause

Answer 14

A mortgage clause allowing the lender to demand the full and immediate payment of the mortgage because the owner transferred or pledged to transfer ownership of the property. Also called Due on Sale Clause.

Question 15

alluvial deposit

Answer 15

Sand or mud, carried by water and deposited on land.

Question 16

Alluvion

Answer 16

Solid material deposited along a shore by accretion. Also called Alluvium. Sand or mud, carried by water and deposited on land.

Question 17

Annexation

Answer 17

Attaching personal property to land so that it becomes a fixture and the law views it as part of the real property.

Question 18

Annexation, Actual

Answer 18

The process of physically attaching personal property to land, causing it to be a fixture.

Question 19

Annexation, Constructive

Answer 19

Personal property associated with real property in such a way that the law treats it as a fixture, even though it is not physically attached to the real property.

Question 20

Annexer

Answer 20

Person who owns an item as personal property and brings it onto real property, making it a part of the real property.

Question 21

attachment

Answer 21

The process by which the court holds the property of a defendant pending outcome of a lawsuit.

Question 22

Attachment Lien

Answer 22

A lien intended to prevent property transfer pending the outcome of litigation. (1) The process by which the court holds the real or personal property of a defendant as security for a possible judgment pending the outcome of a lawsuit. (2) Also known as writ of attachment

Question 23

Bad Title

Answer 23

Title with defects making it unmarketable.

Question 24

Bankruptcy

Answer 24

A court process that cancels some debt and provides some relief for creditors. Chapter 7, sometimes called straight bankruptcy, is a liquidation proceeding; Chapter 13, sometimes called a reorganization proceeding, is filed by individuals who want to pay off their debts over a period of three to five years.

Question 25

bequeath

Answer 25

To convey real or personal property by will.

Question 26

Bequest

Answer 26

A gift of personal property by will. (See legacy)

Question 27

CC&Rs

Answer 27

A declaration of covenants, conditions, and restrictions; usually recorded by a developer to create a general plan of private restrictions for a subdivision. Also called Deed Restrictions.

Question 28

Certificate of Purchase

Answer 28

A document that is given to the winning bidder of a real estate tax or foreclosure sale. Once the sale is confirmed, a deed will be issued to convey title.

Question 29

Chain of Title

Answer 29

The chain of deeds and other documents transferring title to a piece of property from one owner to the next, as disclosed in the public record. – A chronological history of property’s ownership.

Question 30

Civil Rights

Answer 30

Fundamental rights guaranteed to all persons by the law. The term primarily refers to constitutional and statutory protections against discrimination based on race, religion, sex, or national origin.

Question 31

Client

Answer 31

A person being represented by a licensee. Also called Principal.

Question 32

Cloud on the Title

Answer 32

A claim, encumbrance, or defect that could make the title to real property unmarketable. – Any condition that affects the clear title of real property or minor defect in the chain of title which needs to be removed.

Question 33

Code of Ethics

Answer 33

A set of principles and standards based on core values by which a group of professionals are expected to conduct themselves. – A set of rules and principles expressing a standard of accepted conduct for a professional group and governing the relationship of members to each other and to the organization.

Question 34

Codicil

Answer 34

A change in a will before the maker’s death.

Question 35

color of title

Answer 35

That which appears to be good title but which is not title in fact.

Question 36

common law

Answer 36

A body of unwritten law that was developed in England from the general customs and usage that was adopted in the United States.

Question 37

common law dedication

Answer 37

When a property owner implies through his or her conduct, the intent that the public use the land.

Question 38

Compensatory Damages

Answer 38

Damages award intended to compensate a plaintiff for harm caused by the defendant’s act or failure to act, including personal injuries, property damage, and financial loss. Competency The ability to do something successfully or efficiently.

Question 39

Complaint

Answer 39

A formal allegation, generally in writing, accusing someone of misdeeds, usually to formally begin a legal or administrative action.

Question 40

Condemnation

Answer 40

1. Taking private property for public use, through the government’s power of eminent domain. Also called Appropriation. (Condemnation is the action; eminent domain is the right.) 2. A declaration that a structure is unfit for occupancy and must be closed or demolished. – (1) The process by which the government acquires private property for public use, under its right of eminent domain. (2) The proceeding to exercise the power of the government to take private property from an owner for the public good, paying fair market value. (3) The proceeding to exercise the power of eminent domain.

Question 41

Condition

Answer 41

Provision in a deed or other document that makes the parties’ rights and obligations dependent on the occurrence or non-occurrence of some event. – Condition similar to a covenant, a promise to do or not to do something. The penalty for breaking a condition is return of the property to the grantor.

Question 42

condition precedent

Answer 42

A condition which requires something to occur before a transaction becomes absolute and enforceable; for example, a sale that is contingent on the buyer obtaining financing.

Question 43

condition subsequent

Answer 43

A condition which, if it occurs at some point in the future, can cause a property to revert to the grantor. For example, a requirement in a grant deed that a buyer must never use the property for anything other than a private residence.

Question 44

Consent Decree

Answer 44

A binding agreement reached before judgment in a court case by which the accused party consents to change its behavior without admitting wrongdoing.

Question 45

Consumer

Answer 45

A person or entity seeking or receiving licensed activities.

Question 46

contract date

Answer 46

The date the contract is created. The contract is created when the final acceptance was communicated back to the offeror.

Question 47

Convey

Answer 47

To transfer ownership or title.

Question 48

Conveyance

Answer 48

The act of transferring interest in property from one person to another. – The transfer of title to land by use of a written instrument.

Question 49

Correction Deed

Answer 49

A deed used to correct minor mistakes in an earlier deed, such as misspelled names or errors in the legal description of the property. Also called Deed of Correction or Deed of Confirmation.

Question 50

Covenant

Answer 50

A contract, promise, or a guarantee (express or implied) in a document such as a deed or lease. – A promise to do or not do certain things.

Question 51

Covenant Against Encumbrances

Answer 51

The assurance that no encumbrances other than those specified in the deed exist.

Question 52

Covenant of Further Assurance

Answer 52

A promise that the grantor will perform further acts reasonably necessary to correct any defects in the title or in the deed instrument.

Question 53

Covenant of Quiet Enjoyment

Answer 53

A guarantee that a buyer has the right to exclusive, undisturbed possession of an estate, and the right to be undisturbed by the previous owner or anyone else claiming an interest in the property.

Question 54

Covenant of Seisin

Answer 54

An assurance that the grantor has the exact estate in the quantity and quality which is being conveyed, i.e., “I own and I have the right to sell it.”

Question 55

Covenants, Conditions, and Restrictions (CC&Rs)

Answer 55

Restrictions are placed on certain types of real property and limit the activities of owners. Covenants and conditions are promises to do or not to do certain things. The consequence for breaking those promises may either be money damages in the case of covenants, or the return of the property to the grantor, in the case of conditions.

Question 56

Customer

Answer 56

A party to a transaction with whom a real estate licensee does not have a fiduciary duty or relationship, but with whom a licensee must be honest and fair. – A prospective buyer of real estate; not to be confused with a property seller, who is the listing broker’s client.

Question 57

debtor

Answer 57

A person who is in debt; the one owing money to another.

Question 58

Declaration of Homestead

Answer 58

The recorded document that protects a homeowner from foreclosure by certain judgment creditors.

Question 59

Declaration of Restrictions

Answer 59

A written legal document which lists covenants, conditions and restrictions (CC&Rs). This document gives each owner the right to enforce the CC&Rs.

Question 60

Decree

Answer 60

Court order.

Question 61

Deed

Answer 61

A written instrument transferring the grantor’s ownership of, or interest in, real property.

Question 62

Deed in Lieu of Foreclosure

Answer 62

Process by which the deed to a property is given by a borrower to the lender to avoid foreclosure.

Question 63

Deed of Release

Answer 63

A deed given by lien holders, remaindermen, or mortgagees to relinquish their claims on the property.

Question 64

Deed of Trust

Answer 64

A security instrument placing into the hands of a disinterested third party (a trustee) a specific financial interest in the title to real property as security for the payment of a note, making the lender the beneficiary. Also called Trust Deed.

Question 65

Deed Restriction

Answer 65

Limitations placed in a deed by a grantor that restrict the way in which the land may be used, improved, or maintained.

Question 66

Defeasance Clause

Answer 66

A clause used to defeat or cancel a certain right upon the occurrence of a specific event.

Question 67

Defeasible

Answer 67

Capable of being defeated. A defeasible estate is one that has a condition attached to the title, which if broken causes the termination of that estate.

Question 68

Defeasible Fee

Answer 68

A type of freehold estate conveying ownership interest that comes with a condition. Also called Qualified Fee.

Question 69

Defect in Title

Answer 69

Any lien, claim or encumbrance, on a particular piece of real estate, that has been properly recorded in the public records. Recorded defects impair clear title and may result in the title being unmarketable.

Question 70

delivery (of a deed)

Answer 70

The unconditional, irrevocable intent of a grantor immediately to divest (give up) an interest in real estate by a deed or other instrument.

Question 71

Delivery and Acceptance

Answer 71

A requirement for the legal transfer of property through a deed. Delivery refers to the grantor’s intention to transfer the property’s title and signing a deed; acceptance refers to the grantee’s receiving the deed while the grantor is alive. Deposit A sum of money placed or kept in a bank account.

Question 72

Descent

Answer 72

An operation of law when real property is transferred to an heir after the death of the owner who leaves no will (intestate).

Question 73

Devise

Answer 73

To transfer real property by will; real property transferred in a will.

Question 74

Doctrine of Part Performance

Answer 74

A legal doctrine that allows a court to enforce an oral agreement that should have been in writing, when one party has taken irrevocable steps to perform his or her side of the bargain, and failure to enforce the contract would result in an unjust benefit for the other party.

Question 75

Dominant Tenant

Answer 75

A person with easement rights on another’s property; either the owner of a dominant tenement or someone who has an easement in gross.

Question 76

Dominant Tenement

Answer 76

Property that receives the benefit of an appurtenant easement. Also called Dominant Estate. – The property that benefits from an easement.

Question 77

Easement

Answer 77

A nonpossessory interest and an encumbrance on property that grants the right to use another person’s real property for a particular purpose. – (1) An interest owned by one person in the land of another person, such as a right-of-way across a parcel of land. (2) The right to enter or use someone else’s land for a specified purpose.

Question 78

Easement Appurtenant

Answer 78

The right acquired by the owner of one parcel of land to use another’s adjacent land for a specific purpose. There must be two tracts of land; one becomes the dominant tenement (it benefits from the easement), and the other becomes the servient tenement. – An easement that enhances land; usually a right-of-way

Question 79

Easement by Implication

Answer 79

An easement that occurs because of necessity, such as the conveyance of a land–locked property.

Question 80

Easement by Prescription

Answer 80

An easement created by open and notorious, hostile, and adverse use of another person’s land for a specific period of time determined by state law. Prescriptive use does not have to be exclusive (the owner may be using the property, too), and the user does not acquire title to the property. Also called Prescriptive Easement. – Created by continuous and uninterrupted use, by a single party, for a period of five years. The use must be against the owner’s wishes and be open and notorious. No confrontation with the owner is required and property taxes do not have to be paid. The party wishing to obtain the prescriptive easement must have some reasonable claim to the use of the property.

Question 81

Easement in Gross

Answer 81

An easement that benefits a person or company, rather than benefiting another parcel of land. – An easement that is not appurtenant to any one parcel; for example, public utilities to install power lines.

Question 82

Egress

Answer 82

The right to exit from a property using an easement.

Question 83

Encroachment

Answer 83

A physical object intruding onto neighboring property, often due to a mistake regarding the boundary. – The unauthorized placement of permanent improvements that intrude on adjacent property owned by another.

Question 84

Encumbrance

Answer 84

Any claim, lien, charge, or liability that affects or limits the fee simple title to real property. - An interest in real property that is held by someone who is not the owner.

Question 85

Enforceable Contract

Answer 85

A contract that would be upheld by the courts. The requirements for an enforceable contract are capacity, mutual consent (offer and acceptance), lawful objective, and consideration. In addition, certain contracts must be in writing to be enforceable.

Question 86

Equitable Lien

Answer 86

A lien created when justice and fairness would require a court of equity to declare such a lien exists or when conduct of parties would imply that a lien was intended.

Question 87

Equitable Right of Redemption

Answer 87

The right of a debtor to redeem the property from foreclosure proceedings prior to confirmation of sale.

Question 88

Erosion

Answer 88

A gradual loss of soil due to the action of wind, water, or other forces.

Question 89

Errors and Omissions Insurance (E&O)

Answer 89

Insurance that protects real estate licensees from liability due to mistakes or negligence. It does not cover claims related to fraud or discrimination.

Question 90

Escheat

Answer 90

The reversion of property to the state (or, in some states, the county) after a person dies without leaving a valid will or having any heirs. – A legal process where property reverts to the state because the deceased left no will and has no legal heirs. The state must wait five years before trying to claim the property.

Question 91

Estoppel

Answer 91

A legal doctrine that prevents a person from asserting rights or facts that are inconsistent with his earlier actions or statements when he failed to object (or attempt to “stop”) another person’s actions. – (1) A legal doctrine which prevents a person from denying something to be true or a fact which is contrary to previous statements made by that same person. (2) Also known as an implied or ostensible agency.

Question 92

et al

Answer 92

And others.

Question 93

et ux

Answer 93

(1) Abbreviation for et uxor. (2) Means “and wife.”

Question 94

execution sale

Answer 94

The forced sale of a property to satisfy a money judgment.

Question 95

Executor

Answer 95

A person appointed in a will to carry out the provisions of the will. Sometimes called Executrix if female.

Question 96

Express Authority

Answer 96

Actual consent to represent intentionally given by agreement—either oral or written—by a principal to an agent.

Question 97

First Lien

Answer 97

Claim with highest priority against property; also known as a superior to the rights of subsequent lenders. (Recorded first)

Question 98

Forcible Entry and Detainer Action

Answer 98

A summary legal action to regain possession of real property; especially, a lawsuit filed by a landlord to evict a defaulting tenant and regain possession of property. Also called Unlawful Detainer Action.

Question 99

Foreclosure

Answer 99

The remedy a lienholder uses to force the sale of property, applying the proceeds of the sale toward debt satisfaction. – A legal procedure by which mortgaged property in which there has been default on the part of the borrower is sold to satisfy the debt.

Question 100

Foreclosure Action

Answer 100

A lawsuit filed by a creditor to begin foreclosure proceedings. – After a mechanic’s lien is recorded, the claimant has 90 days to bring foreclosure action to enforce the lien. If he or she does not bring action, the lien will be terminated and the claimant loses the right to foreclose.

Question 101

foreclosure sale

Answer 101

A sale where property is sold to satisfy a debt.

Question 102

General Lien

Answer 102

A lien against all property of a debtor, instead of a particular piece of property. – A lien on all the property of a debtor.

Question 103

Genuine Assent

Answer 103

Consent given freely to create a binding contract. If offer or acceptance is given as a result of fraud, undue influence, duress, or mistake, then the contract is voidable by the victimized party.

Question 104

gift deed

Answer 104

Used to make a gift of property to a grantee, usually a close friend or relative.

Question 105

good consideration

Answer 105

Gifts such as real property based solely on love and affection. – Love and affection.

Question 106

Good Title

Answer 106

One which is free from encumbrances such as liens, pending litigation and other such defects.

Question 107

grandfather clause

Answer 107

An expression used in law that permits the continuation of a use or business to proceed because the current law denies permission. – Creating an exemption from application of a new law due to previously existing circumstances; nonconforming use.

Question 108

Grant

Answer 108

Transferring real estate by means of a deed. – (1) A technical legal term in a deed of conveyance bestowing an interest in real property on another. (2) The words convey and transfer have the same effect.

Question 109

grant deed

Answer 109

A type of deed in which the grantor warrants that he or she has not previously conveyed the property being granted, has not encumbered the property except as disclosed, and will convey to the grantee any title to the property acquired later.

Question 110

Grantee

Answer 110

Person receiving a grant of real property.

Question 111

Granting Clause

Answer 111

A deed clause stating a grantor’s intent to transfer an interest in real property.

Question 112

Grantor

Answer 112

The person conveying or transferring their interest in the property.

Question 113

Guardian’s Deed

Answer 113

A deed authorized by a guardian, which is a person assigned by the court to handle the affairs of an incapacitated person.

Question 114

heir

Answer 114

One who inherits property at the death of the owner or if the owner has died without a will (intestate).

Question 115

holographic will

Answer 115

Written in the maker’s own handwriting, dated and signed by the maker.

Question 116

Homestead

Answer 116

A statutory or legal life estate recognized in some states that protects the estate belonging to a deceased person for the use of a surviving spouse and minor children. – A piece of land that is owned and occupied as a family home.

Question 117

Ingress

Answer 117

The right to enter onto a property using an easement.

Question 118

Inheritable

Answer 118

An interest in land that can be passed to a relative upon the death of the owner. Injunction A court-ordered prohibition against a particular act, as opposed to a judgment for money. Also called Injunctive Relief. Injunctive Relief A court-ordered prohibition against a specific act or conduct, as opposed to a judgment for money. Also called Injunction.

Question 119

injunction

Answer 119

A court order forcing a person to do or not do an act.

Question 120

instrument

Answer 120

A formal legal document such as a contract, deed or will.

Question 121

interpleader action

Answer 121

A court proceeding initiated by the stakeholder of property who claims no proprietary interest in it for the purpose of deciding who among claimants is legally entitled to the property.

Question 122

Intestate

Answer 122

The state of dying without making a will, causing the decedent’s estate to pass on according to the state laws of descent and distribution.

Question 123

inverse condemnation

Answer 123

When a private party forces the government to pay just compensation, if the property value or use has been diminished by a public entity.

Question 124

Involuntary Lien

Answer 124

A lien that arises by operation of law, without the consent of the property owner. – When the owner does not pay taxes or the debt owed, a lien may be placed against his or her property without permission.

Question 125

Judgment

Answer 125

The final legal decision of a judge in a court of law regarding the legal rights of parties to disputes.

Question 126

Judgment Lien

Answer 126

A recorded claim against another for a wrongful act, as ordered by a court (often for money owed). The result of a judgment lien can be the forced public sale of real estate. – The final determination of the rights of parties in a lawsuit by the court.

Question 127

Judicial Foreclosure

Answer 127

A lawsuit filed by a lender or other creditor to foreclose on a mortgage or other lien; a court-ordered sheriff’s sale of the property to repay the debt. – Foreclosure by court action.

Question 128

Just Compensation

Answer 128

Generally, the fair market value for property; a requirement when the government exercises its constitutional power of eminent domain. – Fair and reasonable payment due to a private property owner when his or her property is condemned under eminent domain.

Question 129

Legacy

Answer 129

A gift of personal property by will.

Question 130

License

Answer 130

Revocable, non-assignable permission to enter another person’s land for a stated purpose. – (1) A permission granted by competent authority to engage in a business or occupation. (2) Permission to use a property, which may be revoked at any time.

Question 131

Licensee

Answer 131

A person licensed under state law to practice real estate.

Question 132

Lien

Answer 132

A non-possessory interest in property, giving a lienholder the right to foreclose if the owner does not pay a debt owed the lienholder. – (1) A claim on the property of another for the payment of a debt. (2) A legal obligation to pay.

Question 133

LIEN$

Answer 133

The mnemonic for the dollar sign and to show that lien$ involve money.

Question 134

Lis Pendens

Answer 134

A recorded notice stating that there is a lawsuit pending that may affect title to the defendant’s real estate. – (1) A recorded notice that indicates pending litigation affecting title on a property. (2) Also called a pendency of action. (Pronounced lis pendenz)

Question 135

Litigation

Answer 135

The process of taking legal action, such as filing a civil lawsuit.

Question 136

love and affection

Answer 136

Consideration used in a gift deed.

Question 137

Mechanic’s Lien

Answer 137

A specific lien claimed by someone who performed work on the property (construction, repairs, improvements, etc.) to secure the amount of the charges for services with interest and costs. This term is often used in a general sense, referring to broker’s liens or materialman’s liens as well as actual mechanic’s liens. – A lien placed against a property by anyone who supplies labor, services, or materials used for improvements on real property and did not receive payment for the improvements.

Question 138

Ministerial Act

Answer 138

Tasks that a licensee may perform for a customer that are informative or clerical in nature and do not rise to the level of active agency representation.

Question 139

money encumbrance

Answer 139

An encumbrance that affects the title.

Question 140

National Association of Realtors® (NAR®)

Answer 140

America’s largest trade association, representing members involved in all aspects of the residential and commercial real estate industries, including brokers, salespeople, property managers, appraisers, and counselors.

Question 141

no notice of completion

Answer 141

If the owner does not record a notice of completion when work is finished, all claimants have a maximum of 90 days from the day work was finished to record a mechanic’s lien.

Question 142

Nonjudicial Foreclosure

Answer 142

Foreclosure by a trustee under the power of sale clause in a deed of trust without the involvement of a court; not used in all states.

Question 143

notice of completion

Answer 143

A notice filed by the owner or general contractor after completion of work on improvements, limiting the time in which mechanic’s liens can be filed against the property.

Question 144

Notice of Foreclosure

Answer 144

The notification given by a lender to a borrower who has failed to repay a debt according to the terms of the loan, accelerating the due date of the debt to the present and requiring the borrower to repay the entire outstanding balance of the loan at once.

Question 145

notice of non-responsibility

Answer 145

When an owner discovers unauthorized work on the property, he or she must file a notice. This must be recorded and posted on the property to be valid. The notice states the owner is not responsible for work being done, and releases the owner from the liability for work done without permission.

Question 146

Operation of Law

Answer 146

Involuntary transfer of Real Property involving foreclosure, judgement, or lien.

Question 147

Order of Eviction

Answer 147

A court-ordered directive to a public officer (often the sheriff or marshal) to seize the property to regain possession for the owner.

Question 148

Ordinance

Answer 148

A statute enacted by the legislative branch of a local government.

Question 149

PANCHO

Answer 149

The mnemonic for the six requirements for adverse possession: Possession, Adverse, Notorious, Continuous, Hostile, and Open.

Question 150

Patent

Answer 150

The legal document that transmits real property from the state or federal government to a person.

Question 151

Planning Board

Answer 151

A local entity consisting of appointed members who hold public hearings, investigate solutions for the planning issues in the community, and make long-term recommendations; a planning board is also responsible for approving development projects in the community. Also called Planning Commission.

Question 152

Possession

Answer 152

The physical control of real property.

Question 153

Possessory Interest

Answer 153

An interest in property that entitles the holder to possess and occupy the property, now or in the future; an estate, which may be either a freehold or leasehold.

Question 154

preliminary notice

Answer 154

A written notice that must be given to the owner within 20 days of first furnishing labor or materials for a job by anyone eligible to file a mechanic’s lien.

Question 155

Prescription

Answer 155

The process of acquiring an interest, not ownership, in a certain property.

Question 156

Prescriptive Easement

Answer 156

An easement obtained by the open, notorious, hostile, and continuous use of the property belonging to someone else for a statutory period of time.

Question 157

private grant

Answer 157

The granting of private property to other private persons.

Question 158

Private Restriction

Answer 158

A restriction imposed on property by a previous owner or the subdivision developer; a restrictive covenant, or a condition in a deed. Created at the time of sale or in the general plan of a subdivision.

Question 159

public dedication

Answer 159

When private property is intended for public use. There are three types of public dedication: common law dedication, statutory dedication, or deed.

Question 160

public grant

Answer 160

The transfer of title by the government to a private individual.

Question 161

quiet title action

Answer 161

(1) A court proceeding to clear a cloud on the title of real property. (2) Also known as action to quiet title.

Question 162

Quitclaim Deed

Answer 162

A deed that grants any interest in property that the grantor may have without making any promises, including the promise that the grantor has any interest in the property being conveyed; often used to clear clouds on title. Transfers any interest the grantor may have at the time the deed is signed with no warranties of clear title.

Question 163

Real Estate Owned (REO)

Answer 163

Property acquired by a lending institution through foreclosure and held in inventory.

Question 164

Receiver

Answer 164

A court–appointed person who is charged with preserving a property, collecting rents, and doing anything necessary to maintain the property’s condition.

Question 165

Reciprocity

Answer 165

The recognition that states give whereby a licensee of one state can be involved in real estate transactions in other states.

Question 166

Redemption Period

Answer 166

The right of a mortgagor (borrower) to make good on a default within a specified time and receive the property back. A period of time established by state law during which a property owner has the right to recover real estate after a foreclosure or tax sale by paying the sales price plus interest and costs.

Question 167

Referee’s Deed

Answer 167

A deed issued by the court to a property buyer from a bankruptcy sale.

Question 168

Reformation

Answer 168

Changes or modifications to a contract by a court to reflect the true intention of the parties, such as to remedy a minor clerical error.

Question 169

Reliction

Answer 169

When a body of water gradually recedes, exposing land (because of alluvial deposits along the banks of streams) that was previously underwater.

Question 170

Remediation

Answer 170

The act of stopping or reversing something specific, often environmental damage.

Question 171

Restriction

Answer 171

A limitation placed on the use of property and may be placed by a private owner, a developer or the government. It is usually placed on property to assure that land use is consistent and uniform within a certain area.

Question 172

Restrictive Covenant

Answer 172

A restriction on real property use imposed by a former owner; promise to do or not do an act relating to real property; usually an owner’s promise to not use property in a particular way. May or may not run with the land.

Question 173

Right of Redemption

Answer 173

The legal ability to buy back one’s property within the time specified in each state after a judicial sale by paying the debt, interest, and certain costs.

Question 174

Right of Way (ROW)

Answer 174

An easement giving the holder the right to cross another person’s land.

Question 175

Satisfaction of Lien

Answer 175

The document a mortgagee gives the mortgagor acknowledging the debt has been paid in full and the mortgage is no longer a lien against the property. Also called Discharge of Mortgage, Satisfaction of Mortgage, or Release of Lien.

Question 176

Servient

Answer 176

Tenant The owner of a servient tenant, that is, someone whose property is burdened by an easement.

Question 177

Servient Tenement

Answer 177

Property burdened by an easement; the owner of the servient tenement (the servient tenant) is required to allow someone who has an easement (the dominant tenant) to use his property.

Question 178

Special Agent

Answer 178

An agent with limited authority to do a specific thing or conduct a specific transaction. Also called Limited Agent. A person employed to perform a specific task.

Question 179

Special Assessment

Answer 179

A tax levied only against properties that benefit from a public improvement (e.g., a sewer or streetlight) to cover the cost of the improvement; creates a special assessment lien (an involuntary, specific lien). Taxes used for specific local purposes.

Question 180

Specific Lien

Answer 180

A lien that attaches only to a particular parcel of property. Such as a mechanic’s lien, trust deed, attachment, property tax lien or lis pendens.

Question 181

specific plan

Answer 181

A particular development site or area of the general plan.

Question 182

Statutory

Answer 182

Regarding laws created by the enactment of legislation as opposed to law created by court decisions.

Question 183

Statutory Nonemployee

Answer 183

A real estate licensee who is treated as an independent contractor for tax purposes when specified conditions are met: proper licensing; compensation based on sales; and services performed under a written contract.

Question 184

Statutory Right of Redemption

Answer 184

Allows a mortgagor (debtor) to redeem property for a set timeframe after a foreclosure sale, regardless of the timing of other events. Time frames vary by state; not available in all states.

Question 185

Statutory Right of Reinstatement

Answer 185

A way for borrowers to cure the default by bringing the mortgage current—including all accumulated costs and fees—between the time they receive a notice of foreclosure and the time a foreclosure action is filed.

Question 186

Statutory Year

Answer 186

A year based on a monthly rate that considers each month to be 30 days. There are 360 days in a statutory year. Also called Banker’s Year.

Question 187

Strict Foreclosure

Answer 187

A foreclosure action where the court establishes a date by which the borrower must pay the balance in full; once the deadline passes, the lender is awarded title to the property. This type of foreclosure is uncommon.

Question 188

Subsurface Rights

Answer 188

The implication that an owner of land has rights to the land below the surface to the center of the earth, even though this part is not documented.

Question 189

Succession

Answer 189

The legal transfer of a person’s interest in real and personal property under the laws of descent.

Question 190

Suit

Answer 190

A court action to enforce a legal claim or right.

Question 191

Suit to Quiet Title

Answer 191

A lawsuit to determine who has title to a piece of property, or to remove a cloud from the title. Also called Quiet Title Action.

Question 192

Tacking

Answer 192

Successive periods of use or possession by more than one person that are added together to equal the number of years required under state law for easement by prescription or adverse possession.

Question 193

tax lien

Answer 193

When income or property taxes are not paid.

Question 194

Testate

Answer 194

Refers to someone who has died and left a valid will.

Question 195

testator / testatrix

Answer 195

A person who has made a will.

Question 196

Title Search

Answer 196

An inspection of the public record to determine all rights and encumbrances affecting title to a piece of property.

Question 197

Underwater

Answer 197

A home purchase loan that has a higher balance than the market value of the property. Being underwater may limit the homeowner’s options for refinancing and will prevent the homeowner from selling the property without having the assets to pay the difference needed to pay off the loan.

Question 198

Undivided Interest

Answer 198

A co-tenant’s interest, giving him the right to possession of the whole property, rather than a particular section of it.

Question 199

Unencumbered Property

Answer 199

Property that is free and clear of any liens.

Question 200

unjust enrichment

Answer 200

The situation where a person has received and keeps money or goods that belongs to another. A lawsuit may be necessary to get back the property.

Question 201

UPTEE

Answer 201

The mnemonic for the five ownership rights in the Bundle of Rights: Use, Possess, Transfer, Encumber, and Enjoy.

Question 202

Vendee’s Lien

Answer 202

A lien held by the purchaser for the purchase price paid if the seller defaults on the delivery of the deed.

Question 203

Vested

Answer 203

Owned by.

Question 204

View Easement

Answer 204

A negative easement that prevents a servient tenant from adding anything to their property that would affect the quality of the dominant tenant’s view. Also called Easement for Light and Air.

Question 205

Voluntary Lien

Answer 205

A lien placed against property with the consent of the owner, e.g., a mortgage or deed of trust.

Question 206

Warranty Deed

Answer 206

A deed in which the grantor fully warrants good and clear title to the property and agrees to defend the premises against the lawful claims of third parties. No longer used in California; a deed used to transfer title to property, guaranteeing that the title is clear and the grantor has the right to transfer it.

Question 207

Warranty Forever

Answer 207

A guarantee in a deed that the grantor promises to compensate the buyer if title is not good.

Question 208

WASTO

Answer 208

The mnemonic for five ways to acquire or convey property: Will, Accession, Succession, Transfer, or Occupancy.

Question 209

Will

Answer 209

A written instrument whereby a person makes a disposition of his or her property to take effect after their death.– An ecosystem where the land is permeated with water, which either lies on or near the surface of the land; an environment where specialized plants, aquatic species, and wildlife live.

Question 210

witnessed will

Answer 210

Will usually prepared by an attorney and signed by the maker and two witnesses. – A legal declaration in which a person disposes of property to take effect upon his or her death.

Question 211

Writ of Execution

Answer 211

A court order to an officer to carry out judicial decree. A legal document issued by a court forcing the sale of a property to satisfy a judgment. – A financing arrangement in which an existing loan on a property is retained while the lender gives the borrower another, larger loan.