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Real Estate State Test > Chapter 9 > Flashcards

Chapter 9 Flashcards

(97 cards)

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1
Q

Legal title is ownership of a _________ estate

A

Freehold

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2
Q

A person who holds ownership rights in property is said to have ______ to the property

A

Title

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3
Q

Explain equitable title

A

Implies an individual will receive legal title at a future date.

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4
Q

When a buyer and seller execute the sale contract, the buyer receives ________ _______ in the property

A

Equitable title

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5
Q

True or false? A buyer with equitable title has no rights to the property and the seller may decide to sell the house to someone else if they desire.

A

False.

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6
Q

Define alienation

A

The act of transferring title, ownership, or an interest in real property from one person to another.

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7
Q

Define voluntary alienation

A

Transfer of title with the owners control and consent.

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8
Q

What are the two ways to transfer title by voluntary alienation.

A

Deed- written instrument used to convey legal title, used to sell or gift real property.
Will- legal instrument used to convey title of property after someone’s death.

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9
Q

What does to die testate and intestate mean

A

To die testate means you had a will, intestate means to die without a will

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10
Q

Deceased creators of will are referred to as ______(male) or _______(female)

A

Testator, testatrix

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11
Q

Explain involuntary alienation

A

Transfer of title to property without owners consent.

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12
Q

When a person dies intestate, with or without heirs the process used is called probate/Descent with hears and escheat without hears. who receives property?

A

With heirs while intestate, the heirs receive the property through probate/descent
Without heirs while intestate, the process of Escheat provides for a government, normally a state government, to take the property.

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13
Q

Transfer of deed by descent, by Escheat, by adverse possession, or by eminent domain are examples of ___________ __________.

A

Involuntary alienation

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14
Q

Explain adverse possession

A

When the true owner of record fails to maintain possession and the property is seized by another. If the true owner sleeps on his rights and does not use the legal means available to remove a hostile trespasser, the owner will lose the right to the property after a period of time

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15
Q

Conditions for alienation by adverse possession are

A

Hostile possession of the property to the exclusion of the true owner
Open possession/ no attempt to conceal
Texas paid on property by adverse possessor
Claim of title, even imperfect
Adverse possession for 7 consecutive years without consent of the owner
Notorious and flagrant public possession

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16
Q

Explain eminent domain and condemnation

A

Eminent domain- is the right of the government to take private property for fair or just compensation, for a public purpose
Condemnation- the judicial or administrative proceeding to exercise the power of eminent domain.

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17
Q

When exercising eminent domain, what does the government use to determine the just compensation for the owner

A

The appraised value of the property at the time the appraisal is accepted

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18
Q

Explain actual and constructive notice of legal title

A

Actual notice- direct knowledge acquired in the course of a transaction. Verbal disclosure
Constructive notice- accomplished by recording a document in the public records.

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19
Q

Although they have the same priority legally, which notice to legal title is easiest to prove.

A

Constructive

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20
Q

To be recorded, a deed must first be ________ by the grantor and the acknowledgment must be witnessed and certified by a notary public.

A

Acknowledged

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21
Q

_________________ is the formal declaration before a notary public declaring that signing the document is a voluntary act, and is necessary to record a deed.

A

Acknowledgement

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22
Q

True or false? The recording of a deed must include the signature of two witnesses

A

True

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23
Q

True or false? In Florida, a deed must be recorded

A

False

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24
Q

Explain Chain of title

A

Complete successive record of a property’s ownership.

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25
An _________ ___ ________ is a search of the recorded documents concerning a parcel of real property.
Abstract of title
26
What is an abstract of title used for?
To determine legal ownership of property as well as any mortgages, liens, judgements, unpaid taxes, or any other recorded documents.
27
An _______ __ _______ is executed by an attorney who has studied the abstract of title.l and will list any defects or clouds, such as Liens on the title, as well as the an opinion of whether the seller has a marketable title.
Opinion of title
28
Title insurance protects the policy holder from _______ on the title
Defects
29
True or false? Florida law does not require title insurance
False
30
What is a municipal lien search
Conducted to determine whether there are unrecorded special assessment liens, unrecorded liens existing by virtue of local ordinances, and unpaid waste fees payable to the county or municipality.
31
What is a municipality
a city or town that has corporate status and local government
32
Name and define the two types of title insurance
Owners policy- issued for the total purchase price of property to protect the new owner and heirs from unexpected risks such as forged deed signatures and damages for any text on the title Lenders policy- usually required as a condition of issuing a mortgage loan. Protects the lender against title defects.
33
What are the major differences between owners and lenders policy insurance?
Lenders policy- is transferable with the mortgage, will pay up to the loan balance, benefits lenders, and buyers typically pay this closing expense Owners policy- issued for purchase price, claims will pay up to the purchase price, benefits owner and heirs, is not transferable, and local customs determines who pays this closing expense.
34
True or false? Owners policy insurance can be transferred from one person to another
False
35
True or false? Real estate licensees are not qualified to render an opinion of title
True
36
If questions of an opinion of title arise, what must a licensee do?
Advise the buyer to either contact an attorney or a title insurance company.
37
Licensees must obtain a ______ _______ from an attorney before offering an opinion of title to a property that is marketable
Current opinion
38
Florida uses a standardized title insurance policy called the _______ ______ ______ __________.
American land title association (ALTA)
39
True or false? Real estate attorneys are further required to advice buyers to have their attorney to obtain an abstract(opinion of title) or obtain a title insurance policy.
True
40
If a licensee knows a title is not marketable or that liens exist, what is the licensee required to do?
Inform prospective buyers of all such conditions
41
Explain a Deed
A deed is a written instrument that conveys legal title to real property
42
A deed is an instrument of _________
Conveyance
43
The two parties to a deed are the ________ (owner giving title) and the _______ (new owner receiving title)
Grantor, grantee
44
Title passes at time of voluntary ________ and ________
Delivery and acceptance
45
The grantor of a deed must be ______ while the grantee does not have to be
Competent
46
True or false? A grantor, as well as the spouse of a grantor if the property is homestead, must sign the deed.
True
47
True or false? Although the grantees name is required on the deed, the grantees signature is not required.
True
48
__ witnesses must sign a deed to attest the grantor signed the deed
2
49
True or false? A deed must not be in writing
False, a deed must be in writing
50
What is the premises, consideration, granting clause, legal description, appurtenances, habendum clause , covenant of Seisin, Signature lines. in a general warranty deed
Premises- names the parties to a deed, marital status, of the parties, addresses of parties, and date of the deed Consideration- within premises section, anything of value being given in exchange for title. Granting clause- states grantors intention to transfer title to the grantee. Legal description- Description of property Appurtenances- right of privilege associated with property, ex. Parking space in multi unit building. Habendum clause- bundle of legal rights being conveyed to grantee Covenant of seisin- promise that grantor owns property and is conveying it to grantee Signature lines- must be signed by grantor and two witnesses
51
What elements are required for a deed to be valid?
In writing Name of grantor and grantee Grantor must be competent and of age Consideration must be described (ten dollars and more) Granting clause(word of conveyance) Legal description Property witnesses and signed by grantor Voluntary delivery and acceptance (can’t be forced)
52
Explain a statutory deed
A deed whose format is defined by state law.
53
Explain 3 of the 4 types of statutory deed, excluding general warranty deeds, and the words of conveyance used
Quitclaim deed- provides least protection to grantee, grantor makes no warranties about the quality or extent of the title being conveyed. Used to clear existing “clouds” on the title. Words of conveyance are “demise, release and quitclaim” Bargain and sale deed- grantor makes no guarantees about title being conveyed. Contains a seizen clause indicating the grantor has title to the property. Used words as “grants, bargain, and sale” Special warranty deed- contains seizen clause. Uses words “grants bargain and sale”, guarantees against title defects during the period of grantor ownership, but not against defects before that time.
54
Which type of deed does not contain a seisin clause, what does a seizen clause indicate?
Quitclaim deed, indicates the grantor has title to the property.
55
Which deed does not contain a hebendum clause, what does a hebendum clause declare
Quitclaim deed, declares the bundle of legal rights the grantor is transferring
56
True or false? In a quitclaim deed the grantor does not claim to hold title
True
57
Which deed provides all of the available covenants and warranties available and gives the buyer the greatest protection.
General warranty deed
58
What is the most commonly used deed in Florida
General warranty deed
59
Which deed contains a covenant of further assurance, quiet enjoyment, and warranty forever? What do these mean?
General warranty deed- assurance- grantor will sign and deliver any future legal instruments in the future that might be required to make good title Quiet enjoyment- peaceful possession un disturbed by hostile claim Warranty forever- grantor guarantees to forever warrant and defend the grantees
60
What is the personal representative in a personal representative deed?
An individual either appointed by will or by order of a court to settle the estate of a deceased person.
61
Explain a guardians deed
When authorized by the courts, used to legally convey property to a minor
62
Explain when a committee deed is used
When an owner is determined legally incompetent or is committed to an institution, all members of the committee must sign the deed and adhere to full disclosure requirements
63
Explain a tax deed
Used to convey title to property sold for non payment of taxes. No covenants are given and buyer assumed all risk of title defects.
64
What are the 5 covenant in a general warranty deed
Seisin, against encumbrances, of further assurance, quiet enjoyment, warranty forever
65
List the government and private restrictions on free hold estates and explain them.
Government; police power- broadest power of the government to limit or regulate the rights of property owner. eminent domain- taking for just compensation Right of taxation- Private; Deed restrictions- private restrictions placed in a deed that affect the use of a parcel of real property Easement- right to use the land of another for a specific and limited purpose Leases- an agreement between a landlord (lessor) and renter (lessee) Liens- claim to have a debt or other obligation satisfied out of property belonging to another
66
Leases should be prepared by an ________
Attorney
67
Explain The difference between easement by prescription. And adverse possession
Easement by prescription only acquires easement and not title. Adverse possession squires title. Easement by prescription is created after a period of 20 years while adverse possession is 7 years
68
Easement by necessity is used when 2 property’s are _________.
Landlocked
69
A deed ______ legal property
Conveys
70
In a _______ lease the tenant pays a fixed rent and the landlord pays all expenses such as taxes, utilities, and damages. Most residential and office buildings are these
Gross
71
A ____ lease the tenant pays fixed rent plus r property costs such as maintenance and operating expenses(taxes insurance utilities). Usually used in commercial property
Net
72
_________ lease, the tenant pays rent based on gross sales received by doing business. Common with large retail stores. Can be either net or gross
Percentage
73
______ lease the tenant pays specified rent increases at set future dates. Usually tied to an index such as consumer price index.
Variable
74
______ lease. Tenant leases land only and erects a building on the land. Long term lease up to 99 years
Ground
75
Math 217 218
76
A ______ is a claim to have a debt or other obligation satisfied out of property belonging to another
Lien
77
True or false? Liens can entitle the lien holder to have property sold regardless of the owner (lienee) wishes
True
78
Liens are usually recorded with the clerk of the ______ ______ in the county where property was located
Circuit court
79
A lien is an __________ in the real property
Encumbrance
80
Liens can be both voluntary and ___________
Involuntary
81
List the types of voluntary liens
Mortgage and venders liens
82
List the involuntary liens
Judgement lien, federal income tax liens, state intangible tax lien, federal estate tax lien, property tax lien, special assessment lien, construction lien
83
A _________ lien is not restricted to one property but may affect all property of the debtor within the county of the lien.
General
84
A _______ lien is an involuntary lien attaching to real property when a judgement is obtained against the owner
Judgement
85
__________ _____ lien is on all property owned by the taxpayer, and is for unpaid state taxes
Income tax
86
________ ____ lien is a federal tax on a deceased persons taxable asserts. Form of general lien
Estate tax lien
87
_________ liens apply only to specific property and not all the property owned by the debtor
Specific
88
___________ _______ ____ ______ _________ leans may be levied only against properties that benefit in value increase. They are ahead of private liens in priority and second only to real property tax liens
Property tax and special assessment
89
________ liens are used when a lender makes a loan using real estate as the security. Date the mortgage is filed and recorded by it’s the clerk of the circuit court established priority of the lien.
Mortgage
90
Any portion of the sale price remaining unpaid to the vendor creates a _______ lien and can only be placed on the party obtaining title from the vendor and not future parties
Vendors
91
A _________ lien is a statutory right of material suppliers or laborers to place a lien on property that has been improved by their suppliers or laborers. Must be filed with the clerk of circuit court within 90 days of the last delivery of supplies or use of labor
Construction
92
Once a lien has been fully satisfied, a _________ of lien should be recorded
Satisfaction
93
The 3 superior liens are
-Real estate (property) tax liens which become a lien January 1st each year -Special assessment lien -federal estate tax liens(at time of death)
94
The priority of ________ liens is based on the date of recording to public records. 4 important ones of these are mortgage, judgement, vendors, and income (irs) liens
Junior
95
Construction leans are also called _______ or _______ liens
Mechanic, labor or
96
A construction leans priority is based on the date the work was _______ performed
First
97
The priority of liens may be changed by a written agreement called a __________ agreement
Subordination

Real Estate State Test (18 decks)

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