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RE Licensing Exam > Ownership, title transfer and etc > Flashcards

Ownership, title transfer and etc Flashcards

1
Q

Estate in severalty

A

ONE person owns the property

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2
Q

Tenancy in common

A

co-ownership where each person is entitled to possession of whole. ownership is inherited and doesn’t pass to other owners

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3
Q

Joint tenancy

A

Co-ownership where there is equal interest that requires unity of time, title, interest, and possession.
Joint tenancy includes the right of survivorship, which means that the surviving co-owner(s) will own the property if a joint tenant dies. Survivorship takes precedence over someone named in a will, as well as heirs named by laws of descent and distribution.

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4
Q

Trust deed

A

The trustor is the person who creates the trust.

The trustee is the person who manages the trust and ensures the terms of the trust are carried out.

The beneficiary receives income or proceeds from the trust.

The trust is created when the trustor conveys property to the trustee with instructions for holding and managing it
on behalf of the beneficiaries.

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5
Q

Living trust

A

Living trusts are created when the property owner is still alive, often (but not always) for the benefit of minor children.
Living trusts avoid probate

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6
Q

Testamentary trust

A

created according to the instructions in a deceased person’s will. These do NOT avoid probate.

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7
Q

Freehold estate

A

A freehold estate is interest in real property where the owner’s possession of the property is of indeterminate duration.

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8
Q

Fee simple absolute

A

Fee simple absolute is often referred to as just “fee simple.” It’s the most complete form of ownership and includes the
entire bundle of rights in real property.

Fee simple absolute estates may be limited by private restrictions, such as zoning laws or homeowner association
covenants.

Fee simple estates must pass through the probate process before legal distribution to heirs.
Survivorship and inherited rights vary according to state and local laws, and by how the title is held.
Some states offer dower and curtesy rights to widows and widowers, while others offer elective shares to spouses of the
deceased.

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9
Q

Fee simple defeasible estate

A

the property holder owns the property with all legal rights, but subject to a condition. If the condition is breached, the property may go back to the original owner.

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10
Q

fee simple determinable estate

A

one that ends automatically when the stated event or condition occurs. The original owner retains a possibility of reversion. Property is retained “while,” “during,” or “so long as” the condition occurs; this is the language most often seen in the deed.

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11
Q

fee simple subject to a condition subsequent

A

created when an estate is given on the condition that the owner
does or doesn’t take a specific action. The grantor has the right of reentry if the condition is violated. The estate doesn’t automatically revert to the original owner; it may require legal action on the part of the original owner.

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12
Q

Life estate

A

A life estate is a type of freehold estate in which ownership is limited to someone’s lifetime. The future owner is
established with the life estate

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13
Q

Types of life estate

A

Pur autre vie: A life estate based on the life of someone other than the holder of the life estate/life tenant.

Ordinary: A life estate based on the lifespan of the older of the life estate/life tenant.

Remainder: Ownership will pass to a remainderman instead of the party

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14
Q

Bundle of rights

A

Owning property also means owning the right to use the physical components of land, such as the surface, sub-surface,
and air rights.

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15
Q

Right of possession

A

the title holder may possess (be on) the property.

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16
Q

Right of control

A

owner control use of property

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17
Q

Right of exclusion

A

owner decide who may or may not access the property

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18
Q

Right of enjoyment

A

owner may use property in any legal matter

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19
Q

Right of disposition

A

right to sell or convey the property

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20
Q

Leasehold estates

A

A leasehold estate is possessory interest in a property that has a specified end date.

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21
Q

Estate for years

A

An estate for years is a lease that ends on a specific date.

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22
Q

Period estate

A

A period estate is a lease that’s automatically renewed at the end of its term. An example is a month-to-month lease.

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23
Q

Estate at will

A

lease without an established ending that can be terminated by either party.

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24
Q

estate at sufferance

A

one in which a holdover tenant didn’t leave when the lease expired.

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25
Q

Lessor and lessee

A

lessor is owner/landlord

lessee is tenant

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26
Q

Triple net lease

A

tenant pay all property charges

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27
Q

Net lease

A

tenant pay some or all of nets

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27
Q

Percent lease

A

the tenant pays a base rent plus an additional charge that is a percentage of the tenant’s
gross sales after the tenant reaches a break-even point. To calculate the break-even point, divide the monthly base rent by
the percentage established by the landlord.

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28
Q

Loft leases

A

ental of floor space for wide open loft spaces. The tenant may divide the space but can’t make
structural changes

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29
Q

general lien

A

affect real and personal property

judgement lien, federal tax lien, state tax lien, decedent’s debt

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30
Q

general lien

A

affect real and personal property

judgement lien, federal tax lien, state tax lien, decedent’s debt

31
Q

specific lien

A

affect specific real property attached by agreement or law

mortgage lien, real property tax liens, mechanic’s liens, special assessment liens, vendor and vendee liens, and HOA liens.

31
Q

specific lien

A

affect specific real property attached by agreement or law

mortgage lien, real property tax liens, mechanic’s liens, special assessment liens, vendor and vendee liens, and HOA liens.

32
Q

involuntary lien

A

without property owner’s consent

33
Q

attachment lien

A

the courts place an encumbrance on the property of a defendant in a lawsuit for monetary
damages

34
Q

HOA lien

A

Many states give HOA liens a statutory super lien status, meaning that HOA liens take priority over all other types.

35
Q

What happen after foreclosure sale

A

After a foreclosure sale, all liens and sale expenses are covered first. Any extra funds are given to the former owner. If
there aren’t enough funds to satisfy all of the liens, then the former owner may owe a debt to the lien holders.

36
Q

Mineral rights

A

the rights to drill or dig for minerals on the property (aka sub-surface rights).

37
Q

Air rights

A

right to use air in sky above property

38
Q

Riparian rights

A

moving water, such as a river or stream. Riparian rights are classified into categories based
on the type of water: navigable and non-navigable.

39
Q

littoral rights

A

static water, such as a pond, lake, or ocean. Owners with littoral rights don’t have the right
to divert or contain static water, but to use and enjoy it.

40
Q

Prior appropriation right

A

the first party to physically take water from a source and put it to beneficial household, agricultural, or industrial use will continue to have claim to the water.

41
Q

Accretion

A

process by which water carries rock, sand, and soil and causes land build-up.

42
Q

Erosion

A

gradual loss of land due to a natural force.

43
Q

Avulsion

A

a sudden loss of land by a sudden, large-scale change in water flow.

44
Q

Reliction

A

gradual receding of water, uncovering new land.

45
Q

Deed

A

written and signed legal instrument of conveyance. It’s document that legally convey title to real property from old owner to new owner.

Title officially change hand when grantor deliver deed to grantee and grantee accepts it.

46
Q

Elements of a valid deed

A

A specifically named and identified legally competent grantor (possesses mental capacity and is of legal age). The
grantor’s name must be exactly the same throughout the deed.

A specifically named grantee who can be identified based on the name in the deed.

Act of conveyance (the granting clause such as “…does hereby bargain, grant, deed, and convey…”) which
signifies the grantors intent to convey the property.

Named consideration, such as “for one dollar” or “for good and valuable consideration;” the consideration
indicates that the grantor received something of value in exchange for the title.

Legal description

Limitations or subject to clauses. This clause describes any interest that the grantor has reserved. It also describes
deed restrictions and encumbrances that “run with the land.”

Habendum clause, which defines the type of interest and rights the grantee will have. Not every deed needs the habendum clause, but if the interest is less than fee simple, this is generally where it is described.

Grantor’s signature
The signed deed must be delivered to and accepted by the grantee.

Deeds are acknowledged in order to be suitable for recording. Acknowledgement

47
Q

General warranty (type of deed)

A

also called a full covenant and warranty deed) offers the greatest warranty to buyers.

The seller
will defend all claims against the property’s title.

48
Q

special warranty deed

A

the seller warrants only those claims that stem from when he owned the property

49
Q

Quitclaim deed

A

no warranties to the grantee. It only releases any of the grantor’s property rights to the grantee. The quitclaim deed is typically used to clear up a simple cloud on title.

50
Q

Covenants

A

other word for promises usually under general warranty deed

51
Q

Covenant of seisin

A

The grantor holds title to the property.

52
Q

referee’s deed

A

foreclosures property

only has convenient of seisin

53
Q

Covenant of right to convey

A

The grantor has the legal capacity to convey title and has legal title to the property.

54
Q

Covenant against encumbrances

A

The grantor assures the grantee that no encumbrances exist other than those
identified in public records or the deed itself.

55
Q

Covenant of quiet enjoyment:

A

The grantor assures that the grantee’s use and enjoyment of the property won’t be burdened because of a title defect.

56
Q

Covenant of further assurance

A

The grantor promises to provide any additional assurances that the grantee reasonably requires and will do whatever necessary (within his power) to correct any title defects.

57
Q

Covenant of warranty or warranty forever

A

the grantor will warrant and defend

the title against the lawful claims of others.

58
Q

bargain and sale deal

A

used in tax sale or foreclosure sale. no expressed warranty against encumbrances. but imply warranty that grantor has title and right to convey.

59
Q

Voluntary alienation

A

transfer of property ownership with owner’s consent.

60
Q

Dedication by deed

A

owner give land to government without any consideration (money) for public use.

61
Q

Devise

A

real property conveyed through a will

62
Q

Involuntary alienation

A

transfer of property ownership without owner’s consent.

63
Q

Adverse possession

A

individual claims ownership of a property by using it as their own for an extended period
of time.

In TX, 10 years

64
Q

Escheat

A

The state can take property after a person dies intestate and neither heirs nor creditors exist.

65
Q

eminent domain

A

government take private land for public use

66
Q

constructive notice

A

the record is publicly available to anyone who does a records search

67
Q

actual notice

A

the parties have personal knowledge of the particular event

68
Q

title commitment

A

a promise to insure the

property as long as certain conditions are met.

69
Q

title abstract

A

summary of the property’s title history. Attorneys and title companies that prepare
abstracts research public records as well as other information to identify the title history.

70
Q

chain of title

A

path of property ownership from its first owner to the current owner. The chain begins with the current owner and works backwards.

71
Q

marketable title

A

one that is free of

encumbrance

72
Q

cloud on title

A

any encumbrance, such as a lien or inheritance claim, that prevents the seller from providing clear,
marketable title.

73
Q

how to remove complex clouds on a title?

A

quiet title suit, in which the property owner goes to court to attempt to remove (quiet) any claims to the property so that the title can be conveyed.

RE Licensing Exam (8 decks)

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