Course Exam Prep Flashcards
Bundle of rights
Right of possession of the property, right of quiet enjoyment, right to depose of the property by gift, by sale, or by will; the right to control the use of the proerty within the limitits of the law
Fruits of the soil (Fructus Naturales)
Growing things that do not require plantin cultivating but grows naturally and are perennial.
Fruits of industry (Fructus industriales)
growing things that require planting and cultivation
Emblements
right of a tenant to reenter the property and harvest emblements after the termination of the tenancy
Appurtenance
any right or privilege which is said to “run with the land” subsurface, air, and riparian
mineral lease
permits the use of land fr mineral exploration and mining operations
air rights
ownership and the rights to the area above the surface of the earth
riparian rights
appurtenant rights of an owner of a property bordering a flowing body of water
Item of personal property that is a attached
Fixture
Seller must state intent of attached fixtures they are willing to take
True
Expect damage if removed in regard to fixtures
Real property (i.e. curtain rods)
Trade Fixtures
used in the course of business operating in leased property (it goes with the business if they leave)
Uniform Commercial Code (UCC)
Provides for the lender to retain a secuirty interest in a chattle until the lender is paid in full. Lender can remove item in the event the buyer defaults
Private improvement vs public improvement
Private: on the land
Public: to the land
Four powers of federal and local government
Eminent domain
Police Power
Taxation
Escheat
eminent domain
Gov power (right) to take private property
police power
power to fullfull safety standard (i.e. bulding codes zoning ordinance)
Escheat
if no will or heirs to receive property, the property goes to the state.
Taxes become a lien on any real property when
Jan 1
Taxes must be sent out and are payable in
September
Condemnation
The action the state takes when enforcing eminent domain
Estate Definition
in real property, is an interest in the property sufficient to give the owner of the estate the right to possession of the property
Freehold Estate
an interest in the land of at least a lifetime and is identifies as ownership
Fee simple absolute (inheritable)
Provides the greatest form of ownership available in real property
Fee Simple Determinable (Defeasible fee or qualified fee) (inheritable)
inheritable free hold estate but can be terminated if certain conditions are not met by the grantor
Fee simple subject to a condition (inheritable)
Can continue fr infinite period of time under conditions (i.e. land may never be used as landfill or church)
Esates Pur autre vie (life of another) (inheritable)
measured by the the lifetime of the person other than the person recieving the title. (son keeps land and can pass on to his heirs after his death until widowed mom dies. Then life estate terminates)
Conventional life estate (non-inheritable)
Life estate created only for the life of the tenant. reverting back to grantor if tenant dies. The grantor or his heirs will have REVERSIONARY INTEREST
Marital life estate (non-inheritable)
living spouse has a free hold estate. A will cannot defeat it,
Tenancy in common
type of shared ownership of property, where each owner owns a share of the property. Unlike in a joint tenancy, these shares can be of unequal size. NO RIGHT TO SURVIVORSHIP.
Tenancy By The Entirety
type of concurrent estate in real property that is unique in that it occurs where the owners of property are husband and wife. Each spouse has an equal and undivided interest in the property. In essence, each owns the entire estate.
Non-free hold estate or lease hold estate
a rental interest in a property.
Estate for years
(Non-free hold estate)is for any fixed period of time and automatically terminates at the end of that period
Estate from year to year
(Non-free hold estate) periodic estate the renews at the end of its period if the parties do not provide otherwise
Estate At Will
(Non-free hold estate) is for an indefinite time and may be terminated by either party instantaneously by giving notice to the other party
Estate at sufferance
not truly an estate, but a holdover situation created when the tenants lease has expired and she fails to evacuate the premises
Ownership in severalty
When the title to real property is held in the name of only one person
Co-ownership
simultaneous ownership of real property by twoor more people (concurrent)
Joint tenancy
has the same interest in the property, must receive title at the same time from the same source, and must have the same degree of undivided ownership. As opposed to tenancy in common where multiple parties can have unequal ownership
7 days to get earnest money. owns everything inside. Outside common areas are owned as tenants in common
Condominium
North Carolina Condominium act offers the following consumer protections
- Public offering statement
- Purchasers right to cancel
- Escrow of deposit (earnest money must be kept for 7 days)
- Resale certificates
- Warranties
Townhouse
provides ownership of unit and specific portion of the land which the individual is located. Different from condominiums in which townhouse common areas are owned by HOA members and condominium common areas are owned by the owners association
Ownership in a co-operative
ownership in shares of stock in a corporation that owns a building containing cooperative apartments
Encumbrances
Anything to diminish the bundle of rights in a property (i.e. charges, claims, restrictions
Lien
claim or a charge against the property that can reslust from the operation of law
specific liens
Mortgage/deed of trust liens
Real property tax liens
Mechanic’s lien
General liens
judgment liens
personal property tax liens
Income tax liens
Easements
nonpossessory right or interest in land owned by another. (provides a right of use in land and not right of possession
appurtenance
is somethine that has been added to something else and becomes an inherent part of the land
easement appurtenant
whenever the title holder conveys that title to another, the conveyance includes the easement since the easement is appurtenant to the title
easements in gross
usually a commercial easements
Granted to a person or corporation for life
Cannot be assigned or inherited except for commercial easements
Form of person, nonassignable, and uninheritable rights to use a property for a particular purpose or for the duration of the recipients life unless stated otherwise
Personal easements in gross
Creation of easements in transfer of real property must be
in writing
prescription easement
using anothers land for a prescribed period of time
Meridians
The government rectangular survey system which is based upon the longitude and latitude lines
sq ft per acre
43,560
metes and bounds
metes = distance bounds = direction
acres in section
640
Adverse possession
method of acquiring title to real property by conforming to statutory requirement. (use of the land is open and well known to others) ( without permission of owners)
Escheat
if no heirs property falls back to the state
Grantor
one conveying title…. Executes
Grantee
Acknowledges
2 things deeds do
convey title and convey warranty
Excise tax
NC law that debits the seller for the consideration of the recieved by the sale of the real property - $1 per $500 OF THE SALAES PRICE
Marketable Title Act
if a chain in title can be established for 30 years without conflicts, claims outside this chain are extinguished
Dangerous form of air born asbestos and how to treat
Friable: brakes down into particles and becomes airborne
Encapsulation is easier and more cost effective
Radon
Colorless odorless gas that occurs naturally from decaying uranium. Rocky areas. No requirement to test.
Levels beyond 4.0 is considered hazardous
Second leading cause of lung cancer
Formaldehyde
colorless gas emitted from construction materials and consumer products found in a house
Wit of attachment
issued by a court that seeks a judgment against a property owner to create a lien against the property
Lis Pendens
A deed Restriction (covenants): A notice to the public that litigation has not been settled and the new owner must accept the outcome
Express Easements must be
In writing
Necessity Easement
an implied easement. Seller conveys title that is landlocked or without access to the road
Landlocked owner using easement
Dominate Estate
Prescriptive Easement
Aquired through adverse use
Rules for prescriptive easement
Open use
Continuous use
Exclusive use (not shared)
Actual Use
Notorious (Hostile Intent)
(OCEAN)
Termination of easement
When purpose or time period ends
upon release by dominant easte
Upon abandonmnet
through purchase of one parcel by the other party
Encroachment
An improvement that crosses the boundary of the property on the other property… (fences driveway outbuilding)
Can cause the title of both properties to be unmarkable
Intestate
Die without a will. State decides where property goes
Adverse Possession
OCEAN
open (20years), continuous, exclusive, actual, notorious
Escheat
No will or Heirs - gov takes estate
Quit claim deed
Grantor gives up rights to the property.
No other warranties
Opinion of title
Attorney rendered - states their opinion of the quality of the title
Title insurance
a contract that agrees to compensate the insured (lender & buyer) for losses sustained as a result of defects in the title that are existent when the property becomes effective
Extraterritorial Juridiction
allows control of land use outside city limits
<10000 1 mile
10000 - 25000 - two miles
> 25000 three miles
Legal noncomforming use
use was in effect prior to the zoning change
Variance
used when a property owner has an undue hardship or inconvenience due to the zoning
Special use/conditional use
allow use because it benefits the area in a special way (school, library, church)
overlay zoning
imposes additional restrictions. (historical area within a commercially zoned area)
Subdivision def
two or more lots
purpose of sale or dev
includes new streets or change in current streets
Subdivision plat approval
plat must be approved prior to closing of the sale
Need priliminary approval to begin construction of the land
Public or private streets of a subdivision
developer must be issued a certificate of approval.
Another process is required to apply for sate maintenance
Building Codes
specific requirements in bilding standards for the saftey and wellbeing of the public
Unpermitted Space
is material fact and cannot be included in reported sq ft
Flood Insurance
Not covered din homeowners policy
Managed by FEMA
all federally related loans must have flood insurance on flood lands
Flood areas subject to land-use restrictions
Restrictive covenants
Can be for anything not illegal
Runs with the land (an appurtenance)
Private restrictions that are not enforced by the police or zoning boards, but by civil courts
Termination of convenants
expiration of time period
by vote of property owners
change in subdivision character
ignored violations (laches)
Lead based paint
used in residential properties prior to 1978
known presence must be disclosed
NC leaking petroleum underground storage tank clean up act
Owners by held liable of they did not instal tank and did not create the problem
Principal
Person who hired the agent. Also called the client
Sub agent
employed by a person already acting as a client.
All agents are sub agents of the seller unless representing the buyer
Facilitator/transaction broker
brokers the transaction without repping either party
Universal Agent
Empowered to do anything the principal can. no limitations
general agent
represents the prinicipal in a broad range of matters in a specific activity.
Special agent
respresents the principal in one specific area under specific instructions
priory to buyer agency, all agents represent the
seller in every case
Termination of agency
completion of the objective expiration of the contract mutual agreement breach y one party operation of the law death of either party
All agency agreement with seller must be in writing and have expiration date
with no auto extensions; with the exceptions of?
property management contracts
First substantial contact
PTM price terms motivation. (when there is a possibility of confidential information being disclosed
working with real estate agents brochure
Must be given to sellers and buyer at first substantial contact.
must be given to sellers immediately.
If first substantial contact takes place other than face to face
must make status verbally known. and followup by mail, email, fx within 3 calendar days.
Duties of agents to clients
LOADS
Loyalty Obedience Accounting Disclosures Skill, care, and diligence
Information that doesnt have to be disclosed
Criminal activity such a such as drug or gang rerlated activity
death on or near the property
Sex offenders
if asked, be truthful
Exceptions is AIDS - In which the agent is not to disclose
Buyer must be given RPOAD by
No later than the time of the offer
If the seller fails to provide buyer with RPOAD the buyer may rescind the contract by
3 calendar days after receipt
3 calendar days after contract formed
upon settlement
upon settlement of the lease with a option to purchase
Duties owed to agent by the principal
Good faith - show the house, open for inspections, ect.
Compensation - pay the agent when provisions are met
Discharge of contracts
Agreement of parties novation full performance impossiblility of performance operation of law
Assignment
Release of of contractual respponsibilies to another party
Parol evidence rule
What is written is bidding
no oral agreement shall overrule
Bilateral
2 parties mutually exchange of promise upon signing
Unilateral
Arises when one party makes a promise to the other and the second party returns an action in response to the promise
Essential Elements of a contract
Mutual Assent Offer and acceptance Counter Offer Termination of Offers Consideration Capacity of parties Lawful objective Realty of consent Auction sales Performance and dates
Contracts that have to be in writing according to the statute of frauds
contract to buy and sell real estate, option, land contracts, contracts for the exchange of real estate, and lease contracts exceeding three years
Mutual assent is defeated by and void by
misrepresentation, fraud, undue influence, and duress
elements of valid contract
competent parties mutual assest offer and acceptance consideration legality of object
Regulation Z
Informs borrowers of the true cost of borrowed funds
