Property, Mortgages, & Bankruptcy

Question 1

land title office

Answer 1

• a system of land title registration
• Torrens system
• government guaranteed
• priority of chronological registered
• one central on-line registry

Question 2

estate in fee simple

Answer 2

(always own)

• freehold

Question 3

life estate

Answer 3

(own until die)

• 80 year old remarried example, wife on farm example

Question 4

leasehold

Answer 4

(set time)

• 90 year lease example

Question 5

joint tenancy (owners)

Answer 5

• equal owners

- right of survivorship

Question 6

tenancy (owners) in common

Answer 6

• ownership need not be equal

- no right of survivorship

Question 7

encumbrances

Answer 7

• aka charges/liens

Question 8

easement

Answer 8

• access right over adjoining property
• Dominant Tenement -benefits
• Subservient Tenement -yields benefit

Question 9

statutory right of way

Answer 9

• access
• no dominant tenement
• governments and utilities

Question 10

restrictive covenant

Answer 10

• negative (wording)

Question 11

mortgage

Answer 11

• secured debt

- registered in land title office

Question 12

assignment of rents

Answer 12

• collect rent directly from tenants

Question 13

agreement of sale

Answer 13

• vendor financing

Question 14

option to purchase

Answer 14

• buy the right to buy

- a right to buy property at a pre-determined price

Question 15

right of first refusal

Answer 15

• price match
• usually a promise by the owner of property not to sell it without first offering it to the holder of the right on the same terms and conditions

Question 16

lease

Answer 16

• term
• right of term renewal
• base rent -square foot rent
  or
• gross rent -percentage rent -7%
  and
• additional rent -covers expenses, -property taxes, -insurances, -operating costs
• usage
• non competition clauses

assignment of lease
      sublease
      parking
      signage
      repairs
      tenant improvements

Question 17

mineral rights

Answer 17

• is the right of the owner to exploit, mine, and/or produce any or all of the minerals lying below the surface of the property

Question 18

land use contract

Answer 18

• a contract between a property owner and a local government that governs the use and development of the property such as land use, building siting and density.

Question 19

judgement

Answer 19

• 2 years

- renewable

Question 20

caveat

Answer 20

• short term freeze, 60 days

Question 21

certificate of pending litigation

Answer 21

• long term freeze

Question 22

land spouse protection act

Answer 22

• claim ties up property

Question 23

builder’s lien

Answer 23

• work, or materials
• 45 days of completion of project
• 10% holdback for 55 days

Question 24

notice of community charter

Answer 24

• violation

Question 25

important terms of a mortgage

Answer 25

most important:

• covenant to pay
• pledge of land
• to pay property taxes
• insurance-first lost payee
• good repair
• no illegal operations

payment
interest
term
penalty for prepayment

Question 26

foreclosure

Answer 26

Notice of Intention to Enforce Security -demand letter

Petition of Foreclosure -file, pay, serve

Order Nisi of Foreclosure -judgement -redemption period -6 months

Question 27

order of conduct of sale

Answer 27

• court ordered sale (judicial sale)
• claims extinquished
• accounting
  - property taxes -realtor commissions -legal cost -1st mortgage -other claims -surplus goes to owner -owner responsible for shortfall

Question 28

periodic tenancy

Answer 28

• tenancy that automatically renews by its rental period

termination of rent increase on one period notice

Question 29

distraint

Answer 29

• the seizure of someone’s property in order to obtain payment of money owed, especially rent

Question 30

Bankruptcy Act

Answer 30

• insolvent

bankruptcy happens through courts by:
-petitioned into bankruptcy
or
-voluntary assignment into bankruptcy

in bankruptcy for 9 months, then discharged

Question 31

trustree in bankruptcy

Answer 31

• turnover assets and liabilities

Exemptions to bankruptcy:

• fraud
• child abuse
• child support / alimony
• student loans (min 6 years)

Question 32

order of creditors paid

Answer 32

1) secured creditors paid first

2) preferred creditors
- government
- lawyer
- wages
- leases

3) general creditors
- banks

Question 33

intellectual property

Answer 33

Federal

Trademarks -registration
Patents -registration
Copyright -(C) on document

Question 34

order absolute of foreclosure

Answer 34

• mortgage holder becomes owner
• extinguishes all lower claims
• no accounting