(Q4) Property, Transfer of Real Property, Purchase of Real Property

Question 1

Personal Property

Answer 1

Property that is movable

Question 2

Real Property

Answer 2

• Property that can not be moved
• includes the land and any permanent improvements to the land like buildings, fences, landscaping, driveways, sewers, or drains.

Question 3

Fixtures

Answer 3

personal property permanently attached to the land or a permanent structure

Question 4

Tangible Property

Answer 4

Property that exists physically (i.e., you can touch it) and can be used or consumed

Question 5

Intangible Property

Answer 5

• Property without physical existence.

ex. patents, trade names

Question 6

Methods of Acquiring Property

Answer 6

• Purchase
• Inherit
• Gift
• Accession
• Creation
• Accretion

Question 7

Accession

Answer 7

• 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

Question 8

Creation

Answer 8

• You acquire property by creating it
• Inventions, music, books, paintings

Question 9

Accretion

Answer 9

• 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

Question 10

Lost Property

Answer 10

Property that the owner intends to find and recovery

Question 11

Is the finder of the lost property able to receive ownership

Answer 11

Finder has no right to ownership of lost property

Question 12

Abandoned Property

Answer 12

• Property that the owner has no intention of finding and/or recovering
• ownership depends on state laws

Question 13

Multiple Ownership Types

Answer 13

• Single
• Joint Tenancy
• Tenancy in Common
• Tenancy by the entirety

Question 14

Easement

Answer 14

• 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

Question 15

Single Owner

Answer 15

One owner of the property

Question 16

Joint Tenancy with Right of Survivorship

Answer 16

• Owned together equally, but if one dies, the survivor receives the entire property
• Joint tenancy overrides a will/probate

Question 17

Tenancy in Common

Answer 17

property is owned by multiple people, but if one dies, that persons heirs receive that part of the property

Question 18

Tenancy by the entirety

Answer 18

like joint tenancy, but for spouses only.
if one owner dies, the creditor can not go after the survivor who now owns the property

Question 19

Deeds

Answer 19

Transfers title to real property

Question 20

Bill of Sale

Answer 20

Transfers title to personal property

Question 21

Warranty Deed

Answer 21

• 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).

Question 22

Quitclaim Deed

Answer 22

• 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.)

Question 23

Trust Deed or Deed into a Trust

Answer 23

• Owners (trustors) put the deed (quitclaim) to the property in a trust but name themselves or others as beneficiaries

Question 24

Trustee’s Deed

Answer 24

A deed executed by a trustee.
- Transfers ownership from the trust to a third party

Question 25

Types of Ownership of Property

Answer 25

• Fee Simple
• Life estate
• Multiple Ownership

Question 26

Fee Simple

Answer 26

• 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

Question 27

Life Estate

Answer 27

• Type of ownership that is granted until the grantee dies.
• The title reverts back to the grantor after the grantee’s death

Question 28

Multiple Ownership

Answer 28

• Type of ownership where more than one person owns the property
• Joint tenancy, Tenancy in common, tenancy by the entirety, community property

Question 29

Community Property

Answer 29

Property bought during the marriage that both of spouses are entitled to

Question 30

Grantor

Answer 30

The person/entity who transfers title to property

Question 31

Grantee

Answer 31

The person who is receiving the title to property from the grantor

Question 32

Who signs a deed?

Answer 32

The grantor

Question 33

Provision in a Deed

Answer 33

• 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 “

Question 34

Title Insurance policy

Answer 34

Policy issued by the title company insuring that the grantee has good title to the property

Question 35

Abstract of Title

Answer 35

A statement of the history of the ownership, liens, encumbrances, easements, restrictions, etc.

Question 36

Mortgagor

Answer 36

the homeowner/purchaser, borrower, grantee

Question 37

Mortgagee

Answer 37

The pending institution (the bank)

Question 38

Real Estate Mortgage Note

Answer 38

The written promise of the mortgagor to pay back the loan

Question 39

Types of Mortgage Payments

Answer 39

• Severally (individually) responsible
• Joint responsible
• Jointly and severally responsible (liable for payment)