Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Real Estate > Encumbrances > Flashcards

Encumbrances Flashcards

Chapter 8

1
Q

Encumbrances

A

claims, charges, or liabilities, that are binding on real estate. Something that stands in the way. May lessen the value or obstruct the use of property, but do not necessarily render title unmarketable. (Liens, Easements, Licenses, Encroachment, dedication, deed restrictions or covenants, leases, lis pendens

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Lien

A

a charge against property that provides a security for a debt. It establishes a debtor - creditor relationship. Liens provide security for a debt or obligation of the property owner, which if not repaid, may result in a court orders sale to obtain proceeds to satisfy them.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

General Liens

A

Affect all property of a debtor, both real and personal. Judgement, Estate & Inheritance Taxes, Debts of a Deceased Person, Internal Revenue Service and State Income Taxes, Corporation Franchise Taxes

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Judgement Lien

A

involuntary lien issued by the court at the end of a lawsuit and filed with the county recorder.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Writ of Attachment

A

prevents an owner from transferring title to real estate while a court suit is being decided. The court would retain custody of the property until the suit was settled

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Writ of Execution

A

Directs the sheriff to seize and sell as much property as necessary to pay the debt.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Satisfaction of judgement

A

obtained to clear the judgment lien after enough property is sold to cover the monetary amount

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Specific Liens

A

A lien against one specific parcel for real property. Property Tax Liens, Mortgage lien, Mechanics Lien, Special Assessment Lien, Vendors Lien, Vendees Lien, Priority of liens

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Estate and Inheritance Taxes & Debts of a Deceased Person

A

involuntary liens usually handled in probate court

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Internal Revenue Service (IRS) and State Income Taxes

A

liens against the property of a person who is delinquent in the payment of Federal IRS or state income taxes

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Corporation Franchise Taxes

A

State Governments levy taxes on corporations for allowing them to do business in the state

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Property Tax Lien

A

(General Real Estate or Ad Valorem Tax) “at value” of the property being taxed. Comprised of taxes levied on real estate by various governmental agencies and municipalities.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Mortgage Liens

A

voluntary liens on real estate given to a lender by a borrower as collateral

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Mechanics Lien

A

lien against property where work was done or supplies provided by contractors, subcontractors, architects, surveyors, laborers, etc. and payment not made. Both real and personal can be put up as collateral (involuntary). Person who filed the lien first would have priority over later liens. In SC, mechanics liens need to be recorded within 90 days of furnishing the last labor or materials.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Special Assessment Lien

A

placed against property for municipal improvements, (sidewalks, sewers, etc). Can be personal or public

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Vendors Lien

A

The Sellers claim against the buyer if the full purchase price is not received. If the seller was providing the buyer with financing ( loan) and the buyer defaults, the seller would have the right to file a lien against the property. May results in the property being sold to satisfy the sellers lien

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Vendee’s Lien

A

The buyers claim if the seller fails to deliver titles to the property that is purchased.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Priority of liens

A

real estate taxes and special assessments generally take priority over other liens and will be paid first if the court sells the property. Liens other than taxes and special assessment take priority according to the date of recording.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Easement

A

the right of one party to use the property of another for a particular purpose. IT is a non-possessory, incorporeal right, but it is not. an estate.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Types of Easements

A

Easement Appurtenant, Easement in Gross,

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Easement Appurtenant

A

burdens one parcel of land for the benefit of another parcel of lan. There should be two adjacent tracts owned by different parties. The tract over which the easement runs is the servant estate, the tract that benefits from the easement is the dominant estate. It “runs with the land”. When the dominant estate is transferred, the easement is automatically transferred with it

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Easement in Gross

A

a mere personal interest in, or the right to use another land and is not appurtenant. They can be personal or commercial

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Personal Easement in Gross

A

not assignable and ends with the death of the owner

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Commercial Easement in Gross

A

may be assigned, conveyed, or inherited. Typically these easements in gross involve utilities (railroad, right of ways, gas lines, sewer lines)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Ways to Obtain an Easement

A

by Necessity, by Prescription, Express Grant, Reservation, Agreement, Implication, Party wall easement, condemnation,

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

Easement by Necessity

A

arises when a property has no access to a street or public way (ingress and egress). It is implied

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

Easement by Prescription

A

arises when a claimant has used another land for a prescribed period of time - 10 years in SC. Proving continuous use to gain this easement would allow a person to use the land of another for a specified purpose. In order to successfully and legally achieve adverse possession the use must be open, notorious, visible and legally hostile.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

Express Grant

A

is an agreement to an easement in writing and initiated by the owner and conveyed by a deed of conveyance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

Reservation

A

an owner may sell al of the rights of ownership and a parcel of land but reserve an easement for him or herself in the deed.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

Agreement

A

parties get together and agree on the easement. Not initiated by the owner and conveyed by a deed of conveyance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

Implication

A

actions of the parties imply (indicate) that they need an easement

32
Q

Party wall easement

A

an exterior wall of a building that straddles the boundary line between two lots or it can be a common wall separating two connected properties. Each lot owners owns the half of the wall on his/her lot and has an appurtenant easement in the other half of the wall.

33
Q

Condemnation

A

acquired for public purpose through the power of eminent domain. The servant tenement must be compensated for any loss in property value

34
Q

Ways to Terminate an Easement

A

Agreement, Merger, Abandonment or Non-Use, Release, End of Purpose

35
Q

Agreement (easement)

A

quit claim deed from dominant estate owner extinguishes the easement

36
Q

Merger

A

when the owner of one becomes the owner of both

37
Q

Abandonment

A

no use of prescriptive easements by its owner can be in writing or by intent

38
Q

Release

A

an easement may be. terminated by written release (quitclaim deed) from the dominant estate owner to the servant estate owner

39
Q

End of Purpose

A

Easement ended once that purpose no longer exists

40
Q

License

A

is a privilege to enter another land for a specific purpose. Unlike an easement, it may be terminated or canceled by the licensor. It is usually created orally and is temporary in nature. (permission to park in a neighbors driveway) A license ceases upon the death of either party

41
Q

Encroachment

A

arises when there is an intrusion on the property of another by a building, a driveway, a fence, etc. Usually discovered by a survey rather than title evidence

42
Q

Dedication

A

involves the granting of private property for public use. (dedicating land for a school or park can be oral or written)

43
Q

Deed Restrictions

A

restrictions placed on the use of property by the owner, developer, or sub divider. They are listed and filed in public record. If violated, the owner can obtain a court injunction and the judge will issue a cease and desists order. “Run with the land” but have time restrictions.

44
Q

Covenant

A

a written agreement between two or more parties in which a party (or parties) pledge to perform or not perform specified acts in regard to property. Found in deeds, mortgages, leases and contracts for deeds

45
Q

Lease

A

A lease can obstruct the use of property for a period of time. The sale of property does not terminate a lease and therefore would prevent a new owner from gaining occupancy

46
Q

Lis Pendens

A

(litigation pending) a recorded legal document giving constructive notice that na action (lawsuit) affecting a particular property has been filed in state for federal court. It is a notice of a possible future lien.

47
Q

Public Encumbrances

A

Police Powers, License Laws, Zoning Laws, Zoning Appeals, Building Codes, Subdivision Regulations, Health and Sanitation Laws

48
Q

License Laws

A

all states (including the District of Columbia and Canada) have enacted these laws to provide the state with the authority to license and regulate the activities of real estate brokers an salespeople

49
Q

Zoning Laws

A

provides for the uniformity of property users. Usually divides the land into residential, commercial or industrial classifications. Regulate and affect the use of land, lot size, types of structure permitted, sq footage requirements etc. Zoning ordinance cannot dictate market value.

50
Q

Zoning Appeals

A

An owner who wants to do something to the property that is not permitted by the zoning law can appeal to the local zoning appeals board.

51
Q

Types of Zoning Appeals

A

Non-Conforming Use, Zoning Variance, Spot Zoning, Down Zoning, Buffer Zone

52
Q

Non-Conforming Use

A

where a building does not conform to zoning because it was erected prior to the enactment of the zoning law and is exempt from the new zoning ordinances. If the building is destroyed, abandoned, or transferred the non conforming use would terminate.

53
Q

Zoning Variance

A

where a zoning ordinance creates a hardship for a landowner, he/she can appeal for a zoning variance. (varying a setback by letting the owner build closer to the road because the back of the lot slopes steeply away from the road)

54
Q

Spot Zoning

A

certain areas or spots are zoned differently from areas around it (chemical factory in a residential neighborhood)

55
Q

Down Zoning

A

occurs when zoning is changed from higher-density uses to lower density uses. It regulates the number of units a building on the property may include the number of buildings that may be built on the tract of land. Often used to prevent the overloading of public services and infrastructure in that area.

56
Q

Buffer Zone

A

A strip of land that separates one land use classification from another. Typically consists of landscaped parks and playground to screen or separate residential zones from adjacent non residential zones.

57
Q

Building Codes

A

ordinances that specific minimum standards of construction for buildings in order to protect the public. 1. quality and strength of materials 2. sanitary equipment 3. electrical wiring 4. spacing of beams, girders, etc

58
Q

Subdivision Regulations

A

adopted by many communities as part of a master plan and regulate such things as the width of streets, sewer and water mains, minimum lot and block dimensions, setback lines, areas reserved for public use and easements and rights way.

59
Q

Health & Sanitation Laws

A

attempt to guarantee the health of the community by protecting water supplies and providing proper sewage or industrial waste into bodies of water.

60
Q

Environmental Protection Laws

A

Laws that attempt to improve and preserve Americas Natural Resources. Agents are NOT required to understand complicated environmental legislations.

61
Q

Environmental Protection Agency (EPA)

A

Federal laws enacted for the protection of the environment and substantial civil and criminal penalties. They establish environmental standard and complete impact studies.

62
Q

The Clean Air Act (1967, amended 1990)

A

Requires the EPA to establish and enforce air quality standards to protect human health and safety, as well as the environment

63
Q

The Clean Water Act (1972)

A

purpose is to restore and maintain the quality of the country’s water and protect the nations wetlands. They regulate the discharge of pollutants into US waters. A permit must be obtains for liquid waste discharge.

64
Q

The Comprehensive Environmental Response, Compensation and Liability Act of 1980 *(CERCLA)

A

“Superfund”, Superfund Amendment and Reauthorization Act of 1986 (SARA) and Resource Conservation and Recover Act (RCRA) and Clean Water Act, The Safe Drinking Water Act, The Clean Air Act and the Toxic Substance Control Act are the most important laws

65
Q

Asbestos

A

a fibrous material that has been used as construction material because it is a good fire retardant and efficient insulator. However, when inhaled it can cause fibrotic scarring in the lung, lung cancer, and mesothelioma. Use has been prohibited since 1978. Experts should remove asbestos.

66
Q

Formaldehyde

A

A colorless gaseous chemical compound that was used for home insulation until the early 80s. Most common was used as adhesive in pressed wood building materials. Found to cause cancer in animals, and breathing difficulties, rashes and other symptoms in humans

67
Q

Radon

A

a naturally occurring, orderless, tasteless radioactive gas. It is the second largest cause of lung cancer after cigarette smoking and is a group A carcinogen.

68
Q

Indoor Air Quality

A

A broader issue of indoor air quality in commercial and industrial buildings. Clients should be advised to consider hiring experts to perform indoor air quality surveys.

69
Q

Lead

A

can be found in drinking water or paint and is very dangerous especially to children. It can cause brain damage, convulsion and paralysis. It can become contaminated because it passes through lead pipes. Usually in sinks or kitchens. It was prohibited in 1978. December 1996 - congress passed legislation requiring real estate agents to disclose to the buyer the possibility of lead in pre-1978 housing.

70
Q

Underground Storage Tanks

A

Tanks 20 years or older are likely to leak because of corrosion, stresses, faulty construction and installation. EPA estimates about 40% are leaking or discharging gas, petroleum or other hazardous liquid.

71
Q

Polychlorinated Bi-phenols (PCBs)

A

used in electrical equipment and is considered a toxic waste. they may cause reproductive effects ,developmental toxicity, and tumor development in humans. They are used in electrical transformers, capacitors, heat and transfer and hydraulic systems.

72
Q

Electromagnetic Fields

A

generated by the movement of electric currents. Major concern involves high tension power lines. Presently, there is no scientific proof to support the allegations of harm by electromagnetic field exposure

73
Q

Mold

A

grows on almost any surface if there is sufficient moisture and temperature. Can cause destruction of the structure and can also produce toxins that can pose a serious health risk to humans. Most can be eliminated by a 10% bleach solution.

74
Q

Carbon Monoxide

A

an oderless, colorless gas occurring when fuels are burned. Furnaces, Fireplaces, space heaters and automobile exhaust all produce CO which can accumulate with improper ventilation and lead to dizziness, nausea and even death

75
Q

Common Requirements

A

ESA - environmental site assessments (often requested by a developer, buyer or lender, performed in phases.) Environmental Impact Statement - required if a developer before approval of the development is given to ensure that the proposed land projects do not adversely affect the environment

Real Estate (13 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions