Lesson 1 - Personal and Real Property Flashcards
Vocab
Chattel / Personal Property
Personal properties are any tangible/intangible objects that are moveable from one location to the other… anything that is not realty. ie, cars, money, livestock, mortgages, bond securities…
- Anything that is not realty (land)
- Transferred by Bill of Sale
- Emblement
Emblements
or any crop that is planted and grown by humans are considered personal property once the crop is harvested.
- Also called fructus industriales
What is Realty?
- Realty is a word with a broad definition that includes, land, real estate and real property.
- Transferred by a deed
Fructus Naturales
Any permanent naturally grown structures that are grown and attached to the land are referred to as fructus naturales. Includes tree’s, minerals, or water.
What is Real Estate?
Land Including:
- Improvements or fixtures
- Tangible or corporeal appurtenances
- Fructus Industriales ( crops planted by humans)
- Emblements ( fruit from the annual crops)
Fructus Industials
Human grown crops that are still attached to the vine are part of real estate.
What is Real Property?
Real property combines all the land and real estate and any legal rights and benefits that attach to the ownership.
- Intangible or incorporeal appurtenances know as bundle of rights
Bundle of Rights
Right of Possession
Right to Control
Right of Enjoyment or usage
Right to Exclude or prevent other’s from using or entering the property
Right of Disposal or to sell, transfer or encumber the property
Land
- starts from the core of earth upward in the shape of a cone including subsurface, surface, and airspace to infinity.
- any permanent “naturally” grown structures that are grown and attached are called fructus naturales and are part of the land.
What is a deed?
A deed is a written document by which a grantor conveys and transfers an ownership interest in real property to a grantee.
- Grantor is not always a seller
- Grantee is not always the buyer
Purpose of Deeds….
- Transfer must be in writing to be valid
- Recorded to give constructive notice to the world, but not required
- Transfer of deed takes place only if grantee accepts the deed
General Warranty Deed
- used in most states outside the far west
- considered the “best deed” because it provides the most protection to the grantee.
- usually contains phrases such as “convey and warrant or warrant generally”
- the grantor warrants certain rights to the grantee.
General Warranty Deed
- Warrants Seisen
- the grantor warrants the he/she owns the estate or interest he/she purports to convey. Grantor must have both title and possession at the time of the grant in order to to satisfy the covenant.
General Warranty Deed
- Warrants against encumbrances…
- encumbrances are any claim, lien, charge, or liability attached to and binding on real property that may lessen the value or burden, obstruct or impair the use of property, but not necessarily prevent transfer of title.
- can be judgements, mortgages, liens, or those that affect the physical condition of the property, such as restrictions, encroachments and easements.
- In the General Warranty Deed, the grantor warrants against encumbrances unless specifically stated in the deed.
General Warranty Deed
- Warrants enjoyment now and forever
- “Quiet Enjoyment” is the right of an owner or lessee legally in possession of property to uninterrupted use of the property without interference from the owner, lessor, or third party claiming superior title.
- Grantor warrants quiet enjoyment now and for anytime in the future.
General Warranty Deed
- Warrants further assurances
- the grantor will sign and deliver any documents to make sure the grantee receives good title.
General Warranty Deed
- Warrants forever warranty
- the grantor will pay the grantee for the loss should the title fail in the future.
Quit Claim Deed
The quit claim deed is used to convey only the grantor’s rights or interest in real property.
- offers the least protection to the grantee because the grantor does not carry any covenants or warranties and the deed does not state any nature of the rights.
- often used to remove a possible defect on title, or cloud, such as correcting a misspelled name on a warranty deed.
- another common use is during a divorce or between family members to remove or eliminate an interest of a spouse in the property.
- contains language like “remise, release, and quitclaim”
Deed of Trust / Trust Deed
- used in the far West of United States
- legal document in which title to property is transferred to a third party (trustee) such as a title company, as security for an obligation owed by the trustor (borrower) to a beneficiary (lender)
- similar to a mortgage
- buyer retains the ownership right of occupancy and the bundle of rights. Once obligation is paid off, title is transferred to the borrower by using a “Reconveyance Deed” and the transfer is recorded.
Sheriff’s Deed
Deed given by the court to effect the sale of property following a foreclosure in certain states or the outcome of a court hearing.
All Other Deeds
- Limited/Special Warranty - Seller will only guarantee what “they did” to Title, during their period of ownership.
- Less than a general warranty deed
- More warranties than a quitclaim deed
- The word before or after deed gives the promise the deed warrants.
- Should have Title Insurance
Title Insurance
Insurance policy protecting insured from financial loss caused by defect in title to real property.
CLTA ( California Land Title Association)
Protects the grantee
ALTA (American Land Title Association)
Protects the mortgagee or beneficiary.
Terms of Title
- Patent
Original conveyance of title from the government to an individual.
**very 1st transfer from gov’t to very 1st private owner
Terms of Title
- Root of Title
Beginning of ownership of realty by an individual
