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Real Estate State Test > Chapter 9 > Flashcards

Chapter 9 Flashcards

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
Q

An _________ ___ ________ is a search of the recorded documents concerning a parcel of real property.

A

Abstract of title

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26
Q

What is an abstract of title used for?

A

To determine legal ownership of property as well as any mortgages, liens, judgements, unpaid taxes, or any other recorded documents.

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27
Q

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.

A

Opinion of title

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28
Q

Title insurance protects the policy holder from _______ on the title

A

Defects

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29
Q

True or false? Florida law does not require title insurance

A

False

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30
Q

What is a municipal lien search

A

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.

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31
Q

What is a municipality

A

a city or town that has corporate status and local government

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32
Q

Name and define the two types of title insurance

A

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.

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33
Q

What are the major differences between owners and lenders policy insurance?

A

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.

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34
Q

True or false? Owners policy insurance can be transferred from one person to another

A

False

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35
Q

True or false? Real estate licensees are not qualified to render an opinion of title

A

True

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36
Q

If questions of an opinion of title arise, what must a licensee do?

A

Advise the buyer to either contact an attorney or a title insurance company.

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37
Q

Licensees must obtain a ______ _______ from an attorney before offering an opinion of title to a property that is marketable

A

Current opinion

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38
Q

Florida uses a standardized title insurance policy called the _______ ______ ______ __________.

A

American land title association (ALTA)

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39
Q

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.

A

True

40
Q

If a licensee knows a title is not marketable or that liens exist, what is the licensee required to do?

A

Inform prospective buyers of all such conditions

41
Q

Explain a Deed

A

A deed is a written instrument that conveys legal title to real property

42
Q

A deed is an instrument of _________

A

Conveyance

43
Q

The two parties to a deed are the ________ (owner giving title) and the _______ (new owner receiving title)

A

Grantor, grantee

44
Q

Title passes at time of voluntary ________ and ________

A

Delivery and acceptance

45
Q

The grantor of a deed must be ______ while the grantee does not have to be

A

Competent

46
Q

True or false? A grantor, as well as the spouse of a grantor if the property is homestead, must sign the deed.

A

True

47
Q

True or false? Although the grantees name is required on the deed, the grantees signature is not required.

A

True

48
Q

__ witnesses must sign a deed to attest the grantor signed the deed

A

2

49
Q

True or false? A deed must not be in writing

A

False, a deed must be in writing

50
Q

What is the premises, consideration, granting clause, legal description, appurtenances, habendum clause , covenant of Seisin, Signature lines. in a general warranty deed

A

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
Q

What elements are required for a deed to be valid?

A

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
Q

Explain a statutory deed

A

A deed whose format is defined by state law.

53
Q

Explain 3 of the 4 types of statutory deed, excluding general warranty deeds, and the words of conveyance used

A

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
Q

Which type of deed does not contain a seisin clause, what does a seizen clause indicate?

A

Quitclaim deed, indicates the grantor has title to the property.

55
Q

Which deed does not contain a hebendum clause, what does a hebendum clause declare

A

Quitclaim deed, declares the bundle of legal rights the grantor is transferring

56
Q

True or false? In a quitclaim deed the grantor does not claim to hold title

A

True

57
Q

Which deed provides all of the available covenants and warranties available and gives the buyer the greatest protection.

A

General warranty deed

58
Q

What is the most commonly used deed in Florida

A

General warranty deed

59
Q

Which deed contains a covenant of further assurance, quiet enjoyment, and warranty forever? What do these mean?

A

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
Q

What is the personal representative in a personal representative deed?

A

An individual either appointed by will or by order of a court to settle the estate of a deceased person.

61
Q

Explain a guardians deed

A

When authorized by the courts, used to legally convey property to a minor

62
Q

Explain when a committee deed is used

A

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
Q

Explain a tax deed

A

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
Q

What are the 5 covenant in a general warranty deed

A

Seisin, against encumbrances, of further assurance, quiet enjoyment, warranty forever

65
Q

List the government and private restrictions on free hold estates and explain them.

A

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
Q

Leases should be prepared by an ________

A

Attorney

67
Q

Explain The difference between easement by prescription. And adverse possession

A

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
Q

Easement by necessity is used when 2 property’s are _________.

A

Landlocked

69
Q

A deed ______ legal property

A

Conveys

70
Q

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

A

Gross

71
Q

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

A

Net

72
Q

_________ lease, the tenant pays rent based on gross sales received by doing business. Common with large retail stores. Can be either net or gross

A

Percentage

73
Q

______ lease the tenant pays specified rent increases at set future dates. Usually tied to an index such as consumer price index.

A

Variable

74
Q

______ lease. Tenant leases land only and erects a building on the land. Long term lease up to 99 years

A

Ground

75
Q

Math 217 218

A
76
Q

A ______ is a claim to have a debt or other obligation satisfied out of property belonging to another

A

Lien

77
Q

True or false? Liens can entitle the lien holder to have property sold regardless of the owner (lienee) wishes

A

True

78
Q

Liens are usually recorded with the clerk of the ______ ______ in the county where property was located

A

Circuit court

79
Q

A lien is an __________ in the real property

A

Encumbrance

80
Q

Liens can be both voluntary and ___________

A

Involuntary

81
Q

List the types of voluntary liens

A

Mortgage and venders liens

82
Q

List the involuntary liens

A

Judgement lien, federal income tax liens, state intangible tax lien, federal estate tax lien, property tax lien, special assessment lien, construction lien

83
Q

A _________ lien is not restricted to one property but may affect all property of the debtor within the county of the lien.

A

General

84
Q

A _______ lien is an involuntary lien attaching to real property when a judgement is obtained against the owner

A

Judgement

85
Q

__________ _____ lien is on all property owned by the taxpayer, and is for unpaid state taxes

A

Income tax

86
Q

________ ____ lien is a federal tax on a deceased persons taxable asserts. Form of general lien

A

Estate tax lien

87
Q

_________ liens apply only to specific property and not all the property owned by the debtor

A

Specific

88
Q

___________ _______ ____ ______ _________ 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

A

Property tax and special assessment

89
Q

________ 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.

A

Mortgage

90
Q

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

A

Vendors

91
Q

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

A

Construction

92
Q

Once a lien has been fully satisfied, a _________ of lien should be recorded

A

Satisfaction

93
Q

The 3 superior liens are

A

-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
Q

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

A

Junior

95
Q

Construction leans are also called _______ or _______ liens

A

Mechanic, labor or

96
Q

A construction leans priority is based on the date the work was _______ performed

A

First

97
Q

The priority of liens may be changed by a written agreement called a __________ agreement

A

Subordination

Real Estate State Test (18 decks)

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