Chapter 5 Flashcards
Encumbrance
Any charge, claim, right, burden (otherwise called a cloud
on title), and/or interest in real property other than the owners, including
but not limited to, any restriction upon the title to real property, affecting
and/or limiting any interests or its use.
Lien
A form of encumbrance which usually makes specific property
security for the payment of a debt or discharge of an obligation (ex:
judgments, taxes, mortgages, deeds of trust, etc..).
Voluntary Lien
Any lien placed on property with consent of, or as a result
of, the voluntary act of the owner.
Involuntary Lien
A lien imposed against property without consent of an
owner (ex: taxes, special assessments, federal income tax liens, etc..).
Debt
That which is due from one person or another; obligation, liability.
Promissory Note
Following a loan commitment from the lender, the
borrower signs a note, promising to repay the loan under stipulated terms.
The promissory note establishes personal liability for its payment. The
evidence of the debt
Security Instrument
A contract whereby a debtor agrees to use property
as security or collateral for the repayment of debt.
Hypothecate
To pledge a thing as security without the necessity of giving
up possession of it.
Mortgage
A contract whereby a mortgagor agrees to use real property as
security for the repayment of debt.
Foreclosure
Procedure whereby property pledged for a debt is sold to pay
the debt in event of default in payments or terms.
Trustor
One who borrows money from a trust deed lender, then deeds
the real property securing the loan to a trustee to be held as security until
trustor has performed the obligation to the lender under terms of a deed of
trust.
Trustee
One who holds property in trust for another to secure the
performance of an obligation. Third party under a deed of trust.
Real Property Sales Contract
An agreement to convey title to real
property upon satisfaction of specified conditions which does not require
conveyance within one year of formation of the contract.
Vendor
A seller.
Vendee
A purchaser, buyer.
Deed in Lieu of Foreclosure
A deed to real property accepted by a lender
from a defaulting borrower to avoid the necessity of foreclosure
proceedings by the lender.
Mechanic’s Lien
A lien created by statute which exists against real
property in favor of persons who have performed work or furnished
materials for the improvement of the real property.
General Lien
A lien on all the property of a debtor.
Specific Lien
A lien that attaches to one specific property only.
Package Loan
A type of loan used in home financing covering real
property, improvements, and movable equipment/appliances.
Judgment Lien
A legal claim on all of the property of a judgment debtor
which enables the judgment creditor to have the property sold for payment
of the amount of the judgment.
Easement
A right, privilege or interest limited to a specific purpose which
one party has in the land of another.
Easement Appurtenance
A right of use in the adjoining land of another
that moves with the title to the property benefiting from the easement.
Easement in Gross
A right of use in the land of another without the
requirement that the holder of the right own adjoining land.
Servient Tenement
Land encumbered by an easement.
Dominant Tenement
Land benefiting from an easement appurtenant.
Easement by Voluntary Grant
A grantor conveys the right to use the
grantor’s land to a grantee for the purpose of ingress and egress.
Easement by Necessity
Exists when a landowner has no access to roads
and is landlocked.
Easement by Prescription
Obtained by use of the land of another for the
legally prescribed length of time.
Adverse Possession
A method of acquiring title to real property by
conforming to statutory requirements; a form of involuntary alienation of
title.
Anything which affects or limits the fee simple title to, or value of property, is known as a…?
Encumbrance
Encumbrances can be monetary or non-monetary…?
True
A form of encumbrance which usually makes specific property security for the payment of a debt or discharge of an obligation is known as a…?
lien
A lien is an example of a non-monetary encumbrance…?
False
Any lien placed on property with consent of, or as a result of, the voluntary act of the owner is known as a…?
Voluntary Lien
To pledge a thing as security without the necessity of giving up possession of it is known as…?
Hypothecate
Legal title equals…?
control
Equitable title equals…?
benefit
One who holds property in trust for another to secure the performance of an obligation is known as a…?
trustee
An agreement to convey title to real property upon satisfaction of specified conditions which does not require conveyance within one year of formation of the contract is known as…?
Real Property Sales Contract
A vendor is also known as the…?
seller
The vendee refers to the…?
buyer
A deed to real property accepted by a lender from a defaulting borrower to avoid the necessity of foreclosure proceedings by the lender is known as…?
Deed in Lieu of Foreclosure
A lien created by statute which exists against real property in favor of persons who have performed work or furnished materials for the improvement of the real property is known as…?
Mechanic’s Lien
A lien on all the property of a debtor is known as a…?
general lien
A lien that attaches to one specific property only is known as a…?
specific lien
A general lien is also called a…?
blanket encumbrance
A mechanic’s lien is an example of a/an…?
involuntary lien
The effective date of a mechanic’s lien is the date the work began or the date the materials were provided…?
true
The right to use the property of another generally for ingress and egress is known as a/an…?
easement
A right of use in the adjoining land of another that moves with the title to the property benefiting from the easement is known as a/an…?
Easement Appurtenance
A right of use in the land of another without the requirement that the holder of the right own adjoining land is known as…?
Easement in gross
The land encumbered by an easement is referred to as the…?
Servient Tenement
The land benefiting from an easement appurtenant is referred to as the…?
Dominant Tenement
This occurs when a grantor conveys the right to use the grantor’s land to a grantee for the purpose of ingress and egress…?
Easement by Voluntary Grant
This exists when a landowner has no access to roads and is landlocked…?
Easement by Necessity
This is obtained by use of the land of another for the legally prescribed length of time…?
Easement by Prescription
This is a form of involuntary alienation of title…?
Adverse Possession
An easement in gross is also known as a utility easement…?
True
The following is a third party under a deed of trust…?
Trustee
