(Q4) Property, Transfer of Real Property, Purchase of Real Property Flashcards
Personal Property
Property that is movable
Real Property
- Property that can not be moved
- includes the land and any permanent improvements to the land like buildings, fences, landscaping, driveways, sewers, or drains.
Fixtures
personal property permanently attached to the land or a permanent structure
Tangible Property
Property that exists physically (i.e., you can touch it) and can be used or consumed
Intangible Property
- Property without physical existence.
ex. patents, trade names
Methods of Acquiring Property
- Purchase
- Inherit
- Gift
- Accession
- Creation
- Accretion
Accession
- the acquisition of land by its addition to already owned real estate through human or natural processes.
- ex. you build an addition to your house, so the house, along with the addition are considered yours
Creation
- You acquire property by creating it
- Inventions, music, books, paintings
Accretion
- Accretion is the process through which land surface grows and increases.
- Accretion occurs by gradually depositing soil by water deposits on a river bank or a beach.
ex. a home near a delta gradually acquires land on the edge of the property. That land that is being created by the delta is considered your property
Lost Property
Property that the owner intends to find and recovery
Is the finder of the lost property able to receive ownership
Finder has no right to ownership of lost property
Abandoned Property
- Property that the owner has no intention of finding and/or recovering
- ownership depends on state laws
Multiple Ownership Types
- Single
- Joint Tenancy
- Tenancy in Common
- Tenancy by the entirety
Easement
- The right to the use of another’s land intermittently without ownership
ex. Power company has the right to go into your yard to fix power lines
Single Owner
One owner of the property
Joint Tenancy with Right of Survivorship
- Owned together equally, but if one dies, the survivor receives the entire property
- Joint tenancy overrides a will/probate
Tenancy in Common
property is owned by multiple people, but if one dies, that persons heirs receive that part of the property
Tenancy by the entirety
like joint tenancy, but for spouses only.
if one owner dies, the creditor can not go after the survivor who now owns the property
Deeds
Transfers title to real property
Bill of Sale
Transfers title to personal property
Warranty Deed
- A deed that guarantees complete ownership of the property
- Best Deed to receive
- guaranteeing that they have a defensible ownership interest in the property and can therefore transfer their ownership interest to the other party (the buyer).
Quitclaim Deed
- Transfers whatever interest the grantor may have
- a quitclaim deed makes no ironclad promise about the title status of a property, or any liens against it or encumbrances.
- usually done between people who are related (husband and wife, siblings etc.)
Trust Deed or Deed into a Trust
- Owners (trustors) put the deed (quitclaim) to the property in a trust but name themselves or others as beneficiaries
Trustee’s Deed
A deed executed by a trustee.
- Transfers ownership from the trust to a third party
Types of Ownership of Property
- Fee Simple
- Life estate
- Multiple Ownership
Fee Simple
- Type of ownership that survives your death and becomes part of your estate
- If you die, the ownership goes to your heirs
- Best type of ownership to have
Life Estate
- Type of ownership that is granted until the grantee dies.
- The title reverts back to the grantor after the grantee’s death
Multiple Ownership
- Type of ownership where more than one person owns the property
- Joint tenancy, Tenancy in common, tenancy by the entirety, community property
Community Property
Property bought during the marriage that both of spouses are entitled to
Grantor
The person/entity who transfers title to property
Grantee
The person who is receiving the title to property from the grantor
Who signs a deed?
The grantor
Provision in a Deed
- Grantor’s signature
- Grantee’s name, and statement of how are they taking title
- covenants (promises),
- consideration (money to be paid), - legal description of property.
- Easements (if someone has right to use your property intermittently)
- notary or “acknowledgement “
Title Insurance policy
Policy issued by the title company insuring that the grantee has good title to the property
Abstract of Title
A statement of the history of the ownership, liens, encumbrances, easements, restrictions, etc.
Mortgagor
the homeowner/purchaser, borrower, grantee
Mortgagee
The pending institution (the bank)
Real Estate Mortgage Note
The written promise of the mortgagor to pay back the loan
Types of Mortgage Payments
- Severally (individually) responsible
- Joint responsible
- Jointly and severally responsible (liable for payment)
