FORMS OF OWNERSHIP, TRANSFER, & RECORDING OF TITLE Flashcards
What type of ownership requires only one signature on a lease or contract?
Estate in Severalty/Sole Ownership
True or false: Estate in Severalty can be ownership by one individual or one business entity such as a corporation or a partnership.
True
What is the most common type of joint ownership?
Tenancy in Common
True or false: Unequal shares aren’t permitted during Tenancy in Common
False they are but the title company will always assume tenancy in common with equal shares
What is multi-unit housing with individual ownership of apartments and tenancy in joint ownership of the common areas?
A Condominium
What is the Difference between Tenancy in Common and Joint Tenancy?
Tenancy in Common doesn’t have rights of survivorship, whereas Joint tenancy does have rights of survivorship.
What is considered a “Poor Mans Will” as it eliminates the need for a will ?
Joint Tenancy
In the case of a death where ownership is Tenancy in Common what is the process that allows your shares to go to your Heirs?
Probate
What are the four unities required for Joint tenancy to exist?
Time, Title, Intrest and Possesion
True or False: Joint tenancy is an Estate of Inheritance
False; it is NOT an estate of inheritance
What is the procedure to divide the co-tenants’ interests in real property that can be done by court action or by agreement of the parties?
Partition
True or False; Partition would end the Joint Tenancy agreement
True
What will happen in the event land can’t be physically divided?
the court will order the property sold, and the proceeds will be divided among the joint tenants
What is the Specific type of Joint Tenancy where the co-owners are married to one another and avoids probate?
Tenancy by the Entirety
When a property is held by one party, a trustee, for the benefit of another, where is it held?
In Trust
When two or more parties join together to create and operate a real estate investment, this is called?
Syndicate
What are 5 key factors to remember about TENANCY IN COMMON:
1.Most Common
2.”Willable”
3. Estate of Inheritance
4. Unequal Interest Allowed
5. Title Passes at Probate
What are 5 key factors to remember about JOINT TENANCY:
1.”Poor Man’s Will”
2.Right of Survivorship
3.Last Man Standing
4. Unity of Time, Title, Interest & Possession
5. Avoids Probate (Title Passes at Death)
Which type of ownership gives an individual part ownership of a property coupled with the right to exclusive use of it for a specified number of days per year, WITHOUT the responsibility of full ownership?
Time Shares
What are timeshares most often used for ?
resort or vacation properties
When land or buildings are oned by a corporation and are an investment for residents it is considered?
Cooperative (or “Co-ops”)
What must residents do in order to obtain a “proprietary lease” in a corporation ?
Must buy shares in the corporation in exchange for a “proprietary lease” on their unit.
What laws are Condominiums are established under?
Horizontal property acts
What is the difference between an Estate and a Freehold Estate?
An Estate is an INTREST in real property, while a Freehold Estate is OWNERSHIP of that property.
What are the legal rights that attach to the ownership of real property?
Bundle of Rights
What are the 7 bundle of rights?
- control
2.sell
3.exclusion
4.lease
5.develop
6.mortgage - possess
Which ownership has the greatest bundle of rights and is considered the best type of ownership?
Fee Simple, or Fee Simple Absolute
When there is fee simple ownership and the owner would like to pass it on to their heirs, is this permitted?
Yes, The owner has all the available rights to the property and can always pass it to his or her heirs.
Which ownership comes with conditions or terms, which, if violated, could cause the ownership interest to be defeated or terminated?
Fee Simple Defeasible
When the ownership is defeated during Fee Simple Defeasible what happens to the property?
it reverts or goes back to the original grantor or the grantor’s heirs automatically
What type of ownership is ownership for the duration of someone’s life, and the owner is considered a Life tenant?
Life Estate
True or false: The life tenant has all the rights and duties of an owner, EXCEPT the right to choose who will get the property upon his or her death.
True, the person who gets the property after the life estate is ended is the Remainderman and gets fee simple ownership.
If the life estate is set up so that at the end of the life estate, the property goes back to the original owner, this is called?
Life Estate with Reversion
What is Life Estate pur autre vie?
If the life estate is based on the life of someone other than the life tenant
What is the difference between Freehold Estates and Leasehold Estates?
Freehold - Owned
Leasehold- Rented
What are the 4 types of Leasehold Estates ?
1.Estate for Years
2.Periodic Tenancy
3.Estate at Will
4.Tenancy at Sufferance
What creates a Leasehold Estate?
Lease agreements
Fill in the Blanks: The lease is _________ property, but the right to possession that the lease gives is ______ property.
Personal, Real
What type of leasehold estate has a specific starting and ending date, survives death and/or the sale of the property, and requires no notice to terminate?
Estate for Years
What type of leasehold estate has a fixed period automatically renewed unless the tenant or landlord acts to terminate it ?
Periodic Tenancy
What is an example of an periodic tenancy?
A month-to-month lease
What Is usually required to terminate a Periodic tenancy?
Notice to terminate is usually required, typically 30 days’ notice.
What type of leasehold can be terminated by either party at will WITHOUT notice and a written agreement?
Estate at Will
What type of tenancy occurs when a lease expires, the tenant refuses to move out, and the landlord is NOT receiving rent?
Tenancy at Sufferance
If a landlord accepts money from a holdover tenant then what is created?
Holdover Tenancy
What type of lease does the landlord pay all the expenses of the property and the tenant pays only rent?
Gross Lease
When the tenant pays rent plus some of the expenses of the property this is considered what type of lease?
Net Lease
What type of lease is all or part of the rent amount based on the receipts of the tenant’s business and allows the landlord to participate in the tenant’s success?
Percentage Lease
A lease with scheduled rent increases often based on expected business growth is called?
Graduated Lease
What type of lease gives a tenant the right to purchase at a future date and is advantageous to the tenant-buyer?
Lease with Option to Buy
True or False: There is no Promulgated Form for lease with option to buy, and is attorney recommended
True
An agreement in which part of the rent payment is applicable toward a set purchase price, and Title is transferred when the owner receives the prearranged total price is called ?
Lease Purchase Agreement
What type of lease typically makes a long-term commitment and usually is for industrial or commercial land use?
Ground Lease
What type of lease gives the tenant the right to extract oil and gas from a specific property?
Oil and Gas Lease
Who regulates the National and state oil & gas leases?
Nationally- the EPA Environmental Protection Agency
Statewide- Texas Railroad Commission
What are the 4 Lease Clauses:
- Covenant of Quiet Enjoyment
2.Right of First Refusal
3.Subletting - Assignment
What is the Covenant of Quiet Enjoyment?
A landlord is usually prohibited from entering leased property unless there is a need for maintenance, inspections, or emergency response.
When the tenant has the right to match or better any offer before the property is sold to someone else this is called?
Right of First Refusal
When someone transfers some or all of the rights and leased space under a lease to another, and liability remains with the original tenant?
Subletting
What is the transfer of ALL rights and liabilities to a new tenant under an existing lease?
Assignment
What is the Legal term for eviction is?
Forcible Entry & Detainer
When the lease comes to the end of the negotiated term or lease period it is called what?
Expiration
When the time period on a lease ends or is cut short it is ?
Termination
When a lease is terminated by agreement of the parties and in the eyes of the law there is no default, no breach and no injured party this is considered?
Mutual Rescission
When a landlord is aware of a property’s condition and allows deterioration to the point that the building is uninhabitable and the tenants are forced to leave, is this called?
Constructive Eviction
If a property owner sells property to an investor or lender and then leases it back, this is called ?
Sale & Leaseback
What is a charge against property as security for a debt?
A lien
A _____ Lien attaches to one or more specific or named properties(Ex: a mortgage)
Specific
What type of lien attaches to ALL the property of the debtor that is not exempt from forced sale (Ex, a judgment or IRS lien)?
A General Lien
What is required for a judgment to become a lien?
Recording
When a lien is created by the lienee’s or borrower’s actions, like taking out a mortgage or home improvement loan, it’s considered?
A Voluntary Lien
When a lien is created by law, either statutory law (by legislation) or common law (from the courts), it is considered?
An involuntary lien
What liens come from common law, including seller (vendor) or buyer (vendee) liens (seller financing)?
Equitable Liens
What is a typical example of a vendee’s lien ?
at a foreclosure sale or in contract for deed
in the event a party wins a judgment and is unable to collect, that party can secure what from the courts to enforce payment of the lien?
Writ of Execution
Where does land begin ?
at the center of the earth and extends above the earth
True or False: Mineral, air and water rights are all part of real property and consist of rights to subsurface land and profits.
True
What type of rights consist of the right to use open space above your land and can be sold or leased?
Air Rights
What is the right to use water from a river or stream that borders your property?
Riparian rights
What is The right to use water from a lake or ocean?
Littoral rights
True or false: The flow of water CAN be interrupted, and the water CAN be contaminated
False it cannot do either of those
What would be a reason the state would refuse to grant water rights ?
a scarcity or shortage of water
The terms Riparian, Littoral, and Appropriative ALL refer to?
Water Rights
For non-navigable waterfront property, landowners may own _____________ of a body of water.
to the MIDDLE
For navigable waterfront property, landowners own to the ___________ and Building piers will ____ extend your property line.
Vegetation Line , NOT
Who owns all navigable water such as rivers, creeks, or streams?
The State
What right is a theory of water law based on the idea that “first in time is first in right” meaning The first landowner to claim water rights has the exclusive right to take all the water for specific beneficial uses?
Prior Appropriation
What is the term that refers to A change of ownership of real property?
Alienation
What are the six requirements of a valid deed?
- A Grantor & Grantee
- Consideration
- Words of Conveyance
- Execution
- Delivery
- Legal Description
What type of deed guarantee protects against defects and offers the buyer the best protection?
General Warranty Deeds
What is the Most common deed, it warrants title to the sovereignty of the soil and ensures that the seller is conveying good title?
General Warranty Deeds
What type of deed guarantees title only against defects arising under the grantor’s period of ownership and Defects existing before that time are not covered?
Special Warranty Deed
What type of deed gives no warranties or guarantees and offers the LEAST protection and can be used to to clear a cloud on the title?
Quitclaim Deeds
When one tenant in common owner sells their interest in a property using a quitclaim deed, the interest of the other tenants in common?
Remains the same
What deed only has ONE covenant, does not provide any warranties about the condition of the title, and only promises that the grantor has the right to convey the title?
BARGAIN & SALE DEEDS
What Refers to when the government transfers title to an individual?
Patent
What refers to when a developer turns over the streets in a subdivision to the local government and is accomplished by recording the plat plan?
Dedication
When an individual dies with a will what is this called ?
Testate
The person named in the will to settle the estate is called?
The executor
If a property is inherited then the individual has obtained their title …
Title by Devise
The property is the __________, and the heir is the _______.
Devise, Devisee
When a person dies Without a will it means they have died ?
Intestate
In the event someone dies Intestate who is appointed to settle their estate ?
An Administrator
In an Intestate Succession of a property the heirs will inherit the real property by?
according to the Laws of Descent and will have Title by Descent
Who has priority under laws of descent?
Spouse and Children
What is the judicial process to prove or confirm a will or to settle the estate of a party who dies intestate?
Probate
When title to real property transfers at probate the actual title is final in how many days ?
30 days
5 key things to know if someone dies WITH a will
- Testate
- Executors
- Title by Devise
- Heirs= Devisees
- Beneficiary
5 key things to know if someone dies WITHOUT a will
- Intestate
- Administrators
- Laws of Descent & Distribution
4.Title by Descent
5.Heirs = Descendants
What is the legal process instituted by a trustee, lien holder or creditor, after a debtor’s default on his or her payments?
Foreclosure
When a foreclosure happens any excess money left over from the forced sale is given to?
the Debtor
If there is a shortage, the lender may sue the borrower for a?
Deficiency Judgment
True or False: At foreclosure, all junior liens against the property are wiped out.
True
Deed In Lieu of Foreclosure is Also Known As
Friendly Foreclosure or Voluntary Deed
What is the fastest way for a lender to get title to a property, but the lender must also accept any junior liens on the property?
Deed In Lieu of Foreclosure
At any time up to the moment of the foreclosure, the borrower has the right to step in and pay what is owed and reclaim property forfeited due to mortgage default. What is this called ?
Redemption
What legal action must a lender do in the event of a foreclosure?
The lender must send the notice of foreclosure by certified mail 21 days before the foreclosure sale
WHen a foreclosure is pending this is means it is recoded as?
lis pendens
What is the difference between Judicial Vs. Non-Judicial Foreclosures?
With a Traditional Mortgage, foreclosure is Judicial, but with a Deed of Trust, it is Non-Judicial due to the Power of Sale Clause
What is a Short Sale ?
A sale of secured real property that produces less money than is owed the lender
True or false: A short sale will result in a negative note on the credit report of the defaulting borrower but is better than a foreclosure
True
What are REO or Real estate owned properties
They are properties owned by the lender, usually a bank, government agency, or government loan insurer – after an unsuccessful sale at a foreclosure auction.
When recording title what 5 things are needed?
- Deed Validity
- Constructive Notice of Ownership
- Location
- Acknowledgment
- Signature Verification
True or False: Recording is NOT necessary for a deed to be valid.
True
What is Constructive Notice of Ownership?
notice to the world of ownership and protects against fraudulent sale
Whis is recording ALWAYS done?
in the county where the property is located
True or false : A document must be acknowledged before it can be recorded. It must also be in English, Spanish or French.
False: It can only be acknowledged in English
What part of the recording must be a Free and Voluntary act?
The signature
What is both the ownership of something and the legal evidence of that ownership?
Title
A title needs to be _______ or ________ to be transferred to another.
Clear or Good
What is a Marketable Title?
A title that a reasonable buyer would accept as clear
What type of title is an interest created by a legal document, such as that held by a buyer with a signed sales contract who has not yet gone to closing?
Equitable Title
What does a title policy agree to do?
Compensate or reimburse the insured against any losses sustained as a result of defects in the title
How many times are premiums paid ?
Once
“When is a new title policy issued?”
when the property changes ownership or is refinanced
True or False: Title Insurance Protection is for the PAST, not the future!
True
What is the Title Policies Subrogation Clause?
This clause allows the title company to assume the rights of a buyer with respect to any claim against a seller if the title company has made payments to that buyer to satisfy that claim
The property owner __________ collect from both the title company and the seller for one problem
Cant
What is an Abstract of Title?
examination of public records complete history of title
What lists all owners from the first until today?
Chain of Title
What is considered a “snapshot of title at the present time”?
Title Report or Commitment
Payment of __________ will result in the ________ being issued
Premium, Policy
The owner’s policy will protect the buyer up to the _______________.
Purchase Price
The lender’s or mortgagee’s policy will protect the lender up to the _________________
Loan Balance
True or False: A license holder is required by law to recommend title insurance
True
What is any claim or encumbrance that may injure the title to a property or cast doubt on the title’s validity?
Cloud on the Title
True Or False: If there is Cloud on a Title it can still be conveyed
False it cant be conveyed as long as the cloud exists
What can be used to fix the problem of a cloud on title?
Quitclaim Deed
When no one is available to sign a quitclaim, what can be used and what is it called?
court procedure to cure or quiet the cloud ; Quiet Title Suit
