Chapter 9: Title, Deeds, & Ownership Restrictions Flashcards
Title to Real Property
Define title
Ownership; when a party owns property he/she has legal title; it is a ownership interest enforceable by law
Title to Real Property
Define equitable title
The right to gain ownership interest in the future; in grants a financial or “equitable” interest
Notice of Ownership
What are the two methods to provide evidence of ownership?
A & C
Actual and Constructive notice
Notice of Ownership
Ownership provide by physical possession describes what type of notice
Actual
Notice of Ownership
Ownership achieved by recording documents in public records aka legal notice describes what type of notice
Constructive
Protecting Title
Title in fee simple free from litigation and defect is said to be ___________, ___________, or ______ ______
Marketable, merchantable, or clear title
Abstracts
A _______ of ______ is created by a search of the public records that results in a timeline of recorded documents that links all past owners of land from root to present day
Chain of title
Methods of Acquiring Title
Transferring ownership from one party to another is called _____________ of ________.
Alienation of title
Methods of Acquiring Title/Transfer by Voluntary Alienation
List the two types of voluntary alienation
Deed (sold or conveyed as gift)
Will (transfer upon the death of individual who left a will aka testate)
Methods of Acquiring Title/Transfer by Involuntary Alienation
List the four types of involuntary alienation
DEEA
Descent and distribution
Escheat
Eminent domain
Adverse possession
Methods of Acquiring Title/Transfer by Involuntary Alienation
Transfer of title to legal heirs upon the death of an individual who dies intestate (without a will) describes which involuntary alienation?
Descent and distribution
Methods of Acquiring Title/Transfer by Involuntary Alienation
The reversion of property to the estate if someone dies intestate and has no heirs describes which involuntary alienation?
Escheat
Methods of Acquiring Title/Transfer by Involuntary Alienation
The government’s right to take private property, through process called condemnation, for public benefit describes which involuntary alienation?
Eminent domain
Methods of Acquiring Title/Transfer by Involuntary Alienation
Legal principles where an owner may lose title to another who has taken control of the property who claim ownership and enters into open, adverse, hostile and exclusive possess of the property for 7 continuous years describes which involuntary alienation?
Adverse possession
Deeds/Transferring Title
How is alienation of title accomplished?
By executing a deed
Deeds/Transferring Title
What are the requirements of a valid deed?
- Must be in writing
- Parties must be named
- Grantor must have legal capacity (age/right) to grant ownership
- Consideration must be described (sales price not required)
- Granting clause (words of conveyance) must be included
- Habendum clause must define quality of ownership interest (rights) conveyed
- Legal description
- Must be signed by grantor, witnessed by 2 people (grantee not required to sign)
- Voluntarily delivered AND accepted
Deeds/Transferring Title
True or False
Deeds must be acknowledged (notarized) and recorded in order to be valid.
False
Deeds DO NOT have to be acknowledged (notarized) OR recorded in order to be valid.
Clauses in Deeds
The three clauses in deeds include the _________ ________, ___________ __________, and the __________ ________.
Premises (granting) clause, habendum clause, and the reddendum clause
Clauses in Deeds
Also known as the granting clause, it is the only legally necessary clause required in a deed.
Premises or granting clause
Clauses in Deeds
This clause names the parties, contains word of conveyance, states a consideration, includes date of transfer, and provides legal description
Premises or granting clause
Clauses in Deeds
Also called the to-have-and-to-hold clause and specifies the legal rights being conveyed; it describes the portion of the bundle of rights being conveyed such as “fee simple forever” or “in a life estate”
Habendum clause
Clauses in Deeds
Used to “R”eserve a right in the title, not the land, such as a “R”emainder estate
Reddendum clause
Warrants or Covenants in Deeds
What is a warrant or covenant in a deed?
Clauses containing promises made by grantor (giver) to grantee (receiver)
Warrants or Covenants in Deeds
Name the 5 warrants/covenants that may appear in a deed.
SAE QE WF FA
Warrant of seisin
Warrant against encumbrances
Warrant of quiet enjoyment
Covenant of warranty forever
Warrant of further assurance
Warrants or Covenants in Deeds
Which warrant/covenant assures grantee the grantor has legal right to convey property?
Seisin
Warrants or Covenants in Deeds
Which warrant/covenant assures grantee there are no encumbrances (obligation or liability) against the property other than those disclosed in deed?
Against encumbrances
Warrants or Covenants in Deeds
Which warrant/covenant assures grantee they will not suffer hostile claims against ownership?
Quiet enjoyment
Warrants or Covenants in Deeds
Which warrant/covenant assures grantee they will enjoy possession and uninterrupted use of property?
Covenant of warranty forever
Warrants or Covenants in Deeds
Which warrant/covenant assures grantee they may take whatever action necessary to protect and defend title now and in the future
Further assurance
Types of Deeds
List the 4 different types of deeds
Q-SW-GW-BS
- Quitclaim
- Special warranty
- General warranty
- Bargain and sale
Types of Deeds
True or False
A quitclaim deed contains no warrants of any kind
True
Types of Deeds
Which type of deed is used to cure defects or clouds in titles and frequently used in divorces?
Quitclaim
Types of Deeds
In which deed does the grantor make no promise to defend title if problems arise later?
Bargain and sale
Types of Deeds
In the ________ _______ deed the grantor grants, bargains, and sells the property, but offers protection to grantee only for claims made by grantor?
Special warranty
Types of Deeds
The grantor promises to defend title against any and all claims; it is the most common and provides the best protection to grantee.
General warranty aka warranty deed
Curing Defect s in Title
What does it mean to cure a defect?
The elimination or resolution of a problem
Curing Defect s in Title
List the 3 ways defect in titles may be cured.
QD - STQ - MARTA
- Quitclaim deed
- Suit to quiet title
- Marketable Record Title to Real Property Act
Government Limitations on Private Property Ownership
The government is said to have sovereign powers. It allows the government to limit or control actions of citizens when necessary to protect _______, _______, and ________ of the public.
health, safety, and welfare
Government Limitations on Private Property Ownership
Lit the 4 basic governmental powers regarding limitations on private property ownership.
PP - ED - E-T
- Police power
- Eminent domain
- Escheat
- Taxation
Government Limitations on Private Property Ownership
Which government power allows the state to acquire ownership of property when the owner die intestate and no lawful heir can be found.
Escheat
Government Limitations on Private Property Ownership
what does eminent domain allow?
Local, state, or federal g-ment, railroads, public utilities, and public housing authorities to obtain ownership to pvt property.
Government Limitations on Private Property Ownership
When may the g-ment use eminent domain to take pvt property?
Use must be for public use, i.e. build highways, schools, railroads, or public projects
Government Limitations on Private Property Ownership
True or False
Under eminent domain an owner may negotiate with the condemning authority, reach an acceptable sales price or refuse to sell.
False
Under eminent domain an owner may negotiate with the condemning authority, reach an acceptable sales price BUT CANNOT refuse to sell.
Government Limitations on Private Property Ownership
This allows the g-ment to restrict the use of land to protect the health, safety, and welfare of citizens. It includes zoning and building and health codes
Police power
Leases
List the 6 different types of leases.
- Gross
- Ground
- Net
- Percentage
- Lease-option
- Sale-leaseback
Leases
This lease is defined as a lease in which tenant agrees to pay fixed rental amount while landlord pays expenses such as real estate tax, insurance, maintenance.
Gross
Leases
Under this type of long-term lease the tenant is permitted to develop the property during lease period; all expenses (taxes, maintenance, insurance etc.) are paid by tenant; at the end of the lease all structures and improvements revert to property owner
Ground
Leases
This lease is defined as a lease in which tenant pays fixed rent PLUS all or portion of operating costs such as real estate taxes, maintenance etc
Net
Leases
This lease is defined as a lease in which tenant pays monthly base rent PLUS percentage of annual or monthly gross sales
Percentage
Leases
This lease contains an option to but property within a period of time under specified conditions
Lease-option
Leases
This lease occurs when a property owner sells property to investor who immediately lease the property back to original seller who then becomes tenant; it free the equity the seller had in the property effectively providing 100% financing
Sale-leaseback
Superior Liens
List superior liens in order of priority
- Real estate property tax
- Special assessment
- Federal estate tax
Junior Liens
List junior liens in order of priority
- Mortgage
- Vendor
- Judgment
- Construction
- Federal income tax
- State corporate income tax
Broker’s Right to Record Documents Affecting Title
True or False
A broker cannot attempt to collect unpaid commission by filing a lien on any residential property that has been subject to his/her employment except under two exceptions: property owner may approve such filing in a listing agreement/sales contract or a broker may record judgment rendered by Florida court in the amount claimed
True
Broker’s Right to Record Documents Affecting Title
How many days does a broker have to record a lien notice in the county/counties where a property is located after a nonresidential transaction?
30 days after commission earned
