Morgan's (I-D) Flashcards
___ refers to both the ownership of something as well as to the legal evidence of ownership.
Title
What is a title free of restrictions that would limit its transfer?
Clear (or good) title
What is a title that a reasonable buyer would accept as a clear title?
Marketable title
____ title refers to the holder’s right to acquire ownership and formal legal title, as when a prospective buyer has entered into a valid, enforceable contract. Note that this title interest may be sold, assigned, or transferred by the prospective buyer.
Equitable
What type of title refers to the holder having apparent ownership but not full title, as when a seller has entered into a binding sales contract, thereby relinquishing equitable rights to the buyer, or when a lender requires the right to hold legal title during the loan period?
Legal (bare legal; naked) title
___ means that the individual is the sole owner of a property.
Sole ownership (tenancy in severalty; severalty)
___ refers to ownership by two or more parties at the same time.
Concurrent ownership (co-ownership)
List # types of concurrent ownership.
- Tenancy in common
2. Joint tenancy
In which type of concurrent ownership do parties hold an undivided fractional interest in the property?
Tenancy in common
For example, three family members may own a house together as equal 1/3 owners. Alternatively, two may own 25% each and the third owns the remaining 50%. This does NOT convey the use or ownership of separate portions of the property.
In which type of concurrent ownership do parties hold an undivided rather than uneven shares?
Joint tenancy
List the four unities (the set of legal requirements for creating joint tenancy).
- Unity of title
- Unity of time
- Unity of possession
- Unity of interest
Unity of ___ means all parties are named on the same deed.
Title
Unity of ___ means all parties took title at the same time.
Time
Unity of ___ means all parties have undivided possession and use rights.
Possession
Unity of ___ means all parties have an equal interest.
Interest
What does the right of survivorship mean in a joint tenancy?
As each individual joint tenant dies, the remaining tenant’s interests would increase until the last remaining person becomes the sole owner
What is tenancy by the entireties?
Type of marital property ownership rights which has the same unities as a joint tenancy but adds the concept that the couple owns the property as one indivisible legal unit (provides broad property protection against creditors)
What is community property?
Property acquired by married people during the marriage is owned by both, unless exempted (one party acquires it as separate property through gift, inheritance, etc.)
What is community property with rights of survivorship?
Strengthens estate transfer and tax benefits of the survivorship right of the remaining spouse
___ is a type of ownership that refers to multiple owners having an overlapping, inseparable interest in a property complex.
Common interest ownership
List 4 examples of common interest ownership.
- Condominiums
- Townhouses
- Coops
- Timeshares
Condominium ownership grants the owner what 2 things?
- Fee simple title to the unit
2. Undivided interest in the jointly owned common areas as tenants in common
When is condominium status achieved?
When a developer’s organizational plans (aka the declaration) are recorded
What is the name of a condominium developer’s organizational plans?
Declaration
Copy of the bylaws, legal descriptions and surveys, list of restrictive covenants
Condominium developers typically create a ___ for the self-governing of the property by the unit owners. This is responsible for ongoing upkeep and maintenance of common areas, which it funds by assessing and collecting each unit’s proportionate share of cost through ___.
Condominium owners’ association; association fees
In a condominium, who is responsible for unit taxes?
The unit owner
___ is defined as one of a row of homes sharing a common wall (party wall) with a neighbor on either side (except for end units) and no units above or below.
Townhouse (townhome; row home)
How do townhouses differ from condominiums?
In a townhouse, there is actual ownership of land from the ground up, sometimes with a small private yard
How is a cooperative ownership (co-op; coop) different from a condominium?
The occupant is a shareholder who own stock in the company that owns the complex. In exchange for agreeing to obey bylaws and pay the co-op’s fee, the occupant is granted a proprietary lease interest to occupy the specific unit.
Who is responsible for property taxes in a co-op?
The cooperative corporation (who then collects them from the owners through co-op fees)
___ ownership is typically characterized by fee simple ownership of interval occupancy of a specified unit.
Timeshare
In its broadest sense, what does estate refer to?
Everything one owns; both real and personal property
What is the difference between freehold estates and non-freehold estates?
Freehold = owned
Non-freehold AKA leasehold = leased
Freehold estates commonly imply fee simple - what does this mean and what are its synonyms?
Fee simple means absolute and complete ownership of real property - there are NO conditions on its use and/or transfer
Synonyms include fee, fee simple, fee simple absolute, or estate in fee simple
A ___ estate conveys an estate for the duration of the life of the life tenant.
Life estate
This type of life estate measures its duration by the life of someone other than the life tenant.
Life estate pure autre vie (means “for the life of another” in French)
___ refer to the right to acquire the estate upon its termination as a life estate.
Future interests
What are the two main types of future interests?
- Remainder (or remainder interest) 2. Reversion (or reversionary interest)
What is remainder interest?
Means the grantor of the life estate has named someone else to take title
(For example, when a parent leaves a spouse a life estate, the heirs are the remaindermen)
What is a reversionary interest?
Means the estate reverts to (is returned to) the grantor of the life estate
(This would be the case in the situation above about a university purchasing a property and granting a life estate)
___ refers to the property inheritance rights of widows.
Dower
___ refers to the property inheritance rights of widowers.
Curtesy
What is the parcel of land under consideration?
Lot (aka site)
What are the 2 general ways to determine lot size?
- Computing the area defined by the legal description in the deed
- By reviewing the taxing authority’s assessor’s data (found on the property’s field card)
What will determine the accurate location and dimensions of property boundary lines?
Survey
What is an acre?
43,560 square feet
The ___ will identify such basic property-use classification, such as whether the property is residential, commercial, or industrial, the minimum lot size required for new construction, and other basic usage restrictions and minimum setbacks from the lot lines.
Zoning code
Tenancy in ___ means there is sole ownership.
Severalty
What is the opposite of accretion?
Erosion
