Real Estate National Flashcards
1
Q
D: Deed Restriction
A
Limits the use of the property by the current owner, as well as future owners to whom the property is transferred to.
A deed restriction will run the with the land.
Can’t violate any law such as a fair housing law.
2
Q
D: Covenants, conditions, and restrictions (CC&Rs)
A
Private agreements that affect land use. They may be enforced by an owner of real estate that benefits from them and can be included in the seller’s deed to the buyer.
3
Q
How do subdivision developers use CC&Rs?
A
to maintain specific standards in a subdivision, such as by requiring adherence to certain architectural or design specifications for improvements.
4
Q
Fill in the Banks: Covenants, Conditions, & Restrictions (CC&Rs) are used by (1) developer to maintain specific (2) in a (3), such as requiring (4) to certain (5) or (6) (7) for (8).
A
1: subdivision
2: standards
3: subdivision
4: adherence
5: architectural
6: design
7: specifications
8: improvements
5
Q
CC&Rs are(1) in the original (2) (3) for the (4) that filled in the (5) (6) in the (7) where the property is (8) located, and they are (9) to in the (10) to (11) properties in the (12).
A
1: detailed
2: development
3: plans
4: subdivision
5: public
6: record
7: county
8: property
9: referred
10: deeds
11: individual
12: subdivision
6
Q
CC&Rs should be given to?
A
Future purchases of the property should be given a copy of the CC&Rs and should review them
7
Q
CC&Rs restrictions can be enforced by the developer as long as?
A
the developer maintains an interest in any part of the development, and then by any of the subsequent property owners.
8
Q
D: Easement
A
is the right to use the land of another for a particular purpose. It may exist in any portion of the real estate, including the airspace above or a right-of-way across the land. Does not include the right of possession.
9
Q
D: easement appurtenant
A
is attached to the ownership of the real estate and allows the owner of that property the use of a neighbor’s land.An easement appurtenant is part of the dominant tenement.
10
Q
easement appurtenant to exist ____
A
two adjacent parcels of land must be owned by two different parties.
11
Q
D: dominant tenement
A
The parcel that benefits from the easement
12
Q
D: servient tenement
A
he parcel over which the easement runs
13
Q
If the dominant tenement is conveyed to another party, the easement
A
transfers with the title
14
Q
easement appurtenant will transfer with the_____ unless__________
A
- dominant tenement forever
* the holder of the dominant tenement legally releases the right or it is terminated.
15
Q
D: Party Wall
A
can be an exterior wall of a building that straddles the boundary line between two lots, or it can be a shared partition wall between two connected properties. The individual lot owners own the half of the wall on their lot, and each has an easement appurtenant in the other half of the wall.
16
Q
D:cross easement
A
The reciprocal interest of each owner in the property of the other.
17
Q
A written party wall agreement must be used to create
A
the easement rights.
18
Q
D: easement in gross
A
An easement that is not created for the benefit of any land owned by the owner of the easement but that attaches personally to the easement owner. For example, a right granted by a property owner to a friend to use a portion of the property for the rest of the friend’s life would be an easement in gross.
19
Q
True or False: and if false explain why.
Commercial easements in gross may be assigned, conveyed, and but not inherited.
A
False: Commercial easements in gross may be assigned, conveyed, and inherited.
20
Q
True or False: and if false explain why.
Personal easements in gross are usually assignable. Generally, a personal easement in gross terminates on the death of the easement owner.
A
False:
Personal easements in gross are usually not assignable. Generally, a personal easement in gross terminates on the death of the easement owner.
21
Q
D: easement by necessity
A
An easement allowed by law as necessary for the full enjoyment of a parcel of real estate (e.g., a right of ingress and egress over a grantor’s land). Is created by necessity and not convenience.
22
Q
Easement by Necessity is created when?
A
- when an owner sells a parcel of land that has no legal access to a street or public way except over the seller’s remaining land.
- when an owner sells a parcel of land that has no legal access to a street or public way except over the seller’s remaining land.
23
Q
D: easement by prescription
A
AKA: prescriptive easement. An easement acquired by open, notorious, continuous, hostile and adverse use of the property for the period of time prescribed by state law.
24
Q
What casues an easement by prescription AKA prescriptive easement?
A
The claimant’s use must have been continuous, nonexclusive (the owner isn’t excluded from using that part of the property), and without the owner’s permission. The use must be visible, open, and notorious, and the owner must have been able to learn of it.
25
D: The Concept of Tacking
provides that successive periods of continuous occupation by different parties may be combined (tacked) to reach the required total number of years necessary to establish a claim for a prescriptive easement. To tack on one person's possession to that of another, the parties must have been successors in interest, such as a deceased individual and the deceased's heir, a landlord and a tenant, or a seller and a buyer.
26
An easement terminates when?
1. when the need no longer exists,
2. when the owner of either the dominant or the servient tenement becomes the sole owner of both properties,
3. by the release of the right of easement to the owner of the servient tenement,
4. by the abandonment of the easement (the intention of the parties is the determining factor), or
5. by the nonuse of a prescriptive easement.
* Note that an easement may not automatically terminate for these reasons.
27
D: License
(1) In real estate practice, the privilege or right granted to a person by a state to operate as a real estate broker or salesperson. (2) The revocable permission for a temporary use of land—a personal right that cannot be sold.
28
A license differs from an easement in what way?
A license differs from an easement in that it can be terminated or canceled by the owner of the property.
29
If the right to use another's property is given orally or informally, it generally is considered to be
a license rather than an easement.
30
A license ends with the (Hint: two parts)
death of either party or with the sale of the land.
31
What is the only way to truly know if there is an encroachment?
Is to get a survey done.
32
D: encroachment
A building or some portion of it—a wall or fence, for instance—that extends beyond the land of the owner and illegally intrudes on the land of an adjoining owner or a public street or alley.
33
D: lis pendens
is a notice filed in the public record of a pending legal action affecting the title to or possession of property.
34
Lis Pendens create a what on the title?
Cloud on the title.
35
If the lis pendens has been recorded without adequate evidence of a bona fide dispute, the property owner can
have the lis pendens expunged.
36
What does the acronym PETE stand for?
police power, eminent domain, taxation, and escheat
37
D: Police Power
The government’s right to impose laws, statutes, and ordinances, including zoning ordinances and building codes, to protect the public health, safety, and welfare.
38
The police power of the government is used to enact what?
environmental protection laws, zoning ordinances, and building codes. These include the regulations that govern the use, maximum occupancy, size, location, and construction of real estate.
39
D: Eminent domain
The right of a government or municipal quasi-public body to acquire property for public use through a court action called condemnation, in which the court decides that the use is a public use and determines the compensation to be paid to the owner.
Generally, states delegate their power of eminent domain to cities and counties or public entities for public services.
40
D: Inverse condemnation
An action brought by a property owner seeking just compensation for diminished use and value of land because of an adjacent property’s public use.
41
D: Escheat
The reversion of property to the state or county, as provided by state law, in cases in which a decedent dies intestate without heirs capable of inheriting, or when the property is abandoned.
n some states, real property escheats to the county where the land is located; in other states, it becomes the property of the state. Escheat is intended to prevent property from being ownerless or abandoned.
42
A Life estate that is not created by a property owner is?
The Legal life estate
43
Which of the following is a legal life estate?
A. Fee Simple Absolute
B. Determinable Fee
C. Leasehold
D. Homestead
D, Homestead
44
Upon the death of the life tenant, the property returned to the grantor. The type of interest held by the grantor in the life estate must have been?
A reversionary Interest
45
Which of these must exist for an appurtenant easement to exist?
A.Two adjacent parcels, one owner
B. Long-time unauthorized usage
C. Landlocked property that requires passage to the street
D. Two adjacent parcels, different owners
D. Two adjacent parcels, different owners
46
D: Ownership in severalty
when the property is owned by one individual, corporation, or other entity.
47
D: Severalty
Ownership of real property by one person only; also called sole ownership.
48
D: tenancy in common (TIC)
A form of co-ownership by which each owner holds an undivided interest in real property as if each were sole owner. Each individual owner has the right to partition. Unlike joint tenants, tenants in common have the right of inheritance.
It is the ownership interest, not the property, that is divided.
No individual tenant may transfer the ownership of the entire property.
49
D: Unity of Possession
meaning that each owner is entitled to possession and use of the entire property, even though each holds only a fractional ownership interest.
50
If the deed creating the tenancy in common is stated it is assumed that
the tenants are presumed to hold equal shares.
51
A share owned by a married couple can be transferred only with
the agreement of both parties.
52
Tenancy in Common: When one Co-Owner dies, the tenant's undivided interest passes how?
To the decedent's will, to the heirs ID by statute if there is no will, or by the terms of the decedent's living trust
53
Formation of a TIC requires use of what?
and attorney to clarify the terms of the ownership
54
D: joint tenancy
Ownership of real estate between two or more parties who have been named in one conveyance as joint tenants. Upon the death of a joint tenant, the decedent’s interest usually passes to the surviving joint tenant or tenants by the right of survivorship.
55
What is the distinguishing feature of joint in tenancy?
The right of Survivorship
56
D: The Right of Survivorship
Upon the death of a joint tenant, the deceased's interest transfers directly to the surviving joint tenant or tenants. No formal legal action is required, although the death certificate of the deceased owner should be made part of the public record and a copy retained by the surviving owner(s).
57
How does Joint Tenancy With Right of Survivorship with three people
If there are three or more joint tenants, at each successive joint tenant's death, the surviving owners acquire the deceased's interest. The last survivor takes title in severalty and has all the rights of sole ownership, including the right to pass the property to any heirs.
58
What are the four elements or unities are needed to create of Joint Tenancy.
PITT: Possession
Interest
time
title
59
D: the four elements needed for Joint Tenancy
Unity of possession—all joint tenants hold an undivided right to possession.
Unity of interest—all joint tenants hold an equal
ownership interest.
Unity of time—all joint tenants acquire their interests at the same time.
Unity of title—all joint tenants acquire their interests by the same document.
60
D: Partition
is a legal way to dissolve the relationship between co-owners of real estate when the parties do not voluntarily agree to its termination. If the court determines that the property cannot be divided physically into separate parcels without destroying its value, the court will order the real estate sold. The proceeds of the sale will then be divided among the co-owners according to their fractional interests.
61
D: Tenancy by the entirety
recognized in half of the states, is a special form of co-ownership used in some states that allows a spouse to inherit the other spouse's ownership interest upon death. In this form of ownership, each spouse has an equal, undivided interest in the property.
Spouses who are tenants by the entirety have the right of survivorship. During their lives, they can convey title only by a deed signed by both parties. One party cannot convey a one-half interest, and generally, they have no right to partition or divide the property.
62
D: Community Property
laws are based on the idea that spouses, rather than merging into one entity, are equal partners in the marriage. Under community property laws, any property acquired during a marriage is considered to be obtained by mutual effort.
Although community property law varies among the states that recognize it, all of them recognize two kinds of property: separate property and community property.
63
What nine states uphold the concept of community property?
1. Arizona
2. California
3. Idaho
4. Louisiana
5. Nevada
6. New Mexico
7. Texas
8. Washington
9. Wisconsin
64
D: Separate Property
generally is real or personal property that was owned solely by either spouse before the marriage, acquired by gift or inheritance by one spouse during the marriage, or purchased with separate funds during the marriage. Any income earned from a spouse's separate property remains part of that spouse's separate property. Separate property can be mortgaged or conveyed by the owning spouse without the signature of the non-owning spouse.
65
Community property consists of what during marriage?
real and personal property acquired by either spouse
66
D: Concurrent ownership
Co-Ownership by more than one person or entity. Two or more parties share ownership with undivided interests.
Their shares or interests are fractional but undivided.
Each has equal rights of possession to the entire property.
No co-owner has a right to any specific part of the property.
The form of Co-Ownership determines what happens upon the death of a co-owner.
Buyers should obtain legal advice to determine the most appropriate form of co-ownership.
Overrides a will. Death certificate and joint tenancy affidavit must be recorded.
67
With Concurrent Ownership Upon Death interests go to?
Co-owner(s) without going through probate.
68
Joint Tenants must be specified in?
In the Deed.
69
D: Tenants in Common
Co-ownership with no right of Survivorship. Deceased co-owner's interest goes to heirs or devisees. Unequal shares of ownership. Subject to probate.
Each co-owner will be responsible for the property taxes as an individual or group.
If the deed does not specify the type of co-ownership, the default will be tenants in common with equal shares.
Partition lawsuit can divide property among co-owners.
70
D: Tenancy by the entirety
Spouses each have an equal undivided interest in the property. Right of survivorship; conveys by a deed signed by both parties. One party can't convey one-half interest.
71
D: Community property
laws are based on the idea that spouses, rather than merging into one entity, are equal partners in the marriage.
Under community property laws, any property acquired during a marriage is considered to be obtained by mutual effort. Today, nine states (A uphold this concept. In addition.
spouses can will their half of the community property to whomever they desire, but upon the death of one spouse, the surviving spouse automatically owns one-half of the remaining property. If a spouse dies without a will, half of the community property already belongs to the surviving spouse, and the other half is inherited by the surviving spouse or by the decedent's other heirs, depending on state law. Community property does not provide the automatic right of survivorship that joint tenancy does.
72
D: Separate property
generally is real or personal property that was owned solely by either spouse before the marriage, acquired by gift or inheritance by one spouse during the marriage, or purchased with separate funds during the marriage.
Any income earned from a spouse's separate property remains part of that spouse's separate property. Separate property can be mortgaged or conveyed by the owning spouse without the signature of the non-owning spouse.
73
What 9 states still use Community Property?
(Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin and Alaska.
Alaska lets people choose between Community Property and Separate Property
74
List all forms of Co-Ownership
1. Tenancy In Common
2. Joint Tenancy
3. Tenants by the entirety
4. Community Property
75
True or False:
A joint tenancy can be created by conveying a deed or giving the property by will or living trust.
True
76
True or False:
In tenancy in common, each tenant holds a divided fractional interest in the property.
False
77
D: Trust
A fiduciary arrangement whereby property is conveyed to a person or an institution, called a trustee, to be held and administered on behalf of another person, called a beneficiary. The one who conveys the trust is called the trustee.
78
D: Trustor
The person who creates the trust.
79
D; Trustee
is the party who holds legal title to the property and is entrusted with carrying out the trustor's instructions regarding the purpose of the trust. The trustee is in the role of a fiduciary.
The trustee's power and authority are limited by the terms of the trust agreement.
80
When can a Trust be established?
A trust can be established during the trustor's lifetime, or by will to take effect at the trustor's death.
81
What are the two types of trusts?
1. Living Trust
| 2. Testamentary Trust
82
D: Living Trust
A trust that is created during the property owner's lifetime.
83
D: Testamentary Trust
A trust is established by a will after the owner's death,
84
How does a Living Trust work?
The property owner(Trustor, Grantor, or Settler)transfer ownership of real and personal property to a trustee.
The trustee is ofter the trustor.
This way the owner continues to control the assets of the trust.
The trustee may transfer property into and out of the trust, subject to the trust, subject to the trust agreement.
Upon the death of the trustee, the property passes to the beneficiary or beneficiaries with the need of probate.
In the case of community property, the spouses may transfer real and personal property into a trust and name themselves as joint trustees with rights of survivorship.
Upon the death of the surviving trustee, the estate is distributed to the beneficiary or beneficiaries.
85
D: Land Trust
The beneficiary is usually also the trustor.
While the beneficial interest is personal property, the beneficiary retains management and control of the real property and has the right of possession as well as the right to any income produced by the property or proceeds from its sale.
A land trust ordinarily continues for a definite term, such as 20 years.
86
What reasons are Land Trusts created?
Land trusts are frequently created for the conversation of farmland, forests and other wildlife habitats, coastal land, and scenic vistas.
A land trust may be used for secrecy when assembling separate parcels.
A beneficial interest can be transferred by assignment, making the formalities of a deed unnecessary.
Because the beneficiary's interest is personal, it passes at the beneficiary's death under the laws of the state in which the beneficiary resided. If the deceased owned property in several states, additional probate costs, and inheritance taxes can be avoided.
87
Land Trust usually do not name the _______.
Beneficiary.
88
What happens if the beneficiary does not extend the trust term when it expires?
The trustee is usually obligated to sell the real estate and return the net proceeds to the beneficiary.
89
D: general partnership
is an association of two or more persons who carry on a business for profit as co-owners.
all the partners participate in the operation and management of the business and share full liability for business losses and obligations.
90
D: Limited partnership
consists of one or more general partners, as well as limited partners. The business is run by the general partner or partners.
The limited partners are not legally permitted to participate, with the result that each can be held liable for business losses only to the amount invested.
The limited partnership is a popular method of organizing investors because it permits investors with small amounts of capital to participate in large real estate projects with minimum personal risk.
91
If a partner in a general partnership dies, withdraws, or goes bankrupt, in traditional common law would result in what?
Would be to dissolve the partnership, which could be reorganized as a partnership of the surviving partners in order to conduct business.
92
D: Corporation
is a legal entity—an artificial person—created under the authority of the laws of the state from which it receives its charter.
93
A corporation is managed and operated by its ________ ___ _____, who are selected by the _______ AKA _________ of the corporation
1. Board of Directors
2. owners
3. shareholders
94
What sets forth the powers that a corporation?
Charter
95
Corporations can own real estate in what two ways?
1. In Severalty
| 2. Tenant in common, with other natural or artificial persons.
96
D: Time-Share
Multiple purchasers buy interests in real estate—usually resort or hotel property. Each purchaser has right to use unit for set time each year or a number of usage points.
Time-share estate is a fee simple interest. Time-share use agreement is personal property that expires after a specified time period.
An interest in a time-share estate may be conveyed by deed or will by the owner. An interest in time-share use is personal property that may or may not be transferable according to the contract.
The developer governs this property.
97
D: Time-Share Use
Is a contract right under which the developer owns the real estate.
the owner of the time-share use has the right to occupy the facilities for the designated period each year, but only for a certain number of years. At the end of that time, the owner's rights in the property terminate.
Maintenance costs are an ongoing expense, even if the time-share is not used in a given year.
98
True or False:
The individual unit owners of a condominium own the common elements as tenants in common.
True
99
True or False:
Condominium laws are often called vertical property acts.
False
100
What does the abbreviation PITT stands for in conjunction with Joint Tenancy.
Possession
Interest (Unity of Interest)
Time ( Unity of Time)
Title ( Unity of Title)
101
Ture or False:
The three basic ways in which a fee simple estate may be held are in severalty, in co-ownership, and in trust.
False
102
Ture or False:
In a tenancy in common, property is owned by two or more owners with the right of survivorship.
False
103
True or False:
When all of the other owners' interests in a joint tenancy have passed to the sole surviving owner, that owner then holds title in entirety.
False
104
True or False:
When title to a single parcel of real estate is held by two or more individuals, the parties may be called concurrent owners.
False
105
True or False:
In a community property state, community property includes all property, both real and personal, acquired by either party prior to or during the marriage.
False
106
A married couple co-owns a farm and has the right of survivorship. This arrangement is MOST likely
A: Community Property
B: Severalty Ownership
C: An Estate by the Entirety
C: An Estate by the Entirety
107
A man owns one of 20 units in fee simple, along with a 5% ownership share in the parking facilities, recreation center, and grounds. What kind of property does he own?
Condominium
108
The person who creates a trust conveys real or personal property t
A Trustee
109
Two friends are buying a house together. One of them wants a local charity to inherit that share of the property. The friends should hold title as
Tenants in Common
110
Title to a property is held by two or more individuals; this property is held in?
Co-Ownership
111
Ownership of property by two people is considered
Concurrent ownership
112
A resident owns and lives year-round in a cottage in a lakefront community. The resident's ownership of the cottage is in fee simple. The resident also owns an undivided percentage interest in a parking lot, a golf course, and a swimming pool, all located in the development. Based on these facts alone, the resident's ownership is probably BEST described as?
Condominium
113
A house is owned by three joint tenants, and one of the owners, as permitted by state law, sells that interest to a new owner. The result is?
A Tenancy in common between the new owner and the remaining joint tenants.
114
Eight heirs are now the owners of a farm as tenants in common. This means that?
use of the property can be determined by agreement of all the owners.
115
Ownership in severalty means
a sole owner's interest is separate from any other property interest.
116
A married couple co-owns a farm and has the right of survivorship. This arrangement is MOST likely?
An Estate by the Entirety
117
Three people were concurrent owners of a parcel of real estate. When one of the owners died, that interest became part of the deceased's estate. The deceased was
a tenant in common.
118
When parties own property as tenants in common, each owner
has equal rights of possession with the other owners.
119
Real properties owned by public entities, such as cities, counties, states, and public agencies are generally owned in
severalty.
120
D; legal Description
is a detailed way of describing a parcel of land in a document that will be accepted in a court of law. The description is based on information collected through a survey.
121
D: Survey
The process by which boundaries are measured and land areas are determined; the on-site measurement of lot lines, dimensions, and position of a house on a lot, including the determination of any existing encroachments or easements.
122
What does it meant that land is legally sufficient?
Courts have stated that a description is legally sufficient if it allows a surveyor to locate the parcel. In this context, locate means that the surveyor must be able to define the exact boundaries of the property.
Several alternative systems of identification have been developed to express a legal description of real estate.
123
What are three basic methods currently used to describe real estate?
1. Metes and Bounds
2. Rectangular (or government) survey
3. Lot and black (recorded plat)
124
D: Metes and bounds method
A method used to describe a parcel of land that begins at a well-marked point and follows the property’s boundaries, using directions and distances around the tract, back to the place of beginning. A metes-and-bounds description starts at a designated place on the parcel, called the point of beginning (POB).
125
D: Point of beginning (POB)
In a metes-and-bounds legal description, the starting point of the survey, situated in one corner of the parcel; all metes-and-bounds descriptions must follow the boundaries of the parcel back to the point of beginning.
The POB is also the point at which the description ends.
126
D: Monuments
Are fixed natural or artificial objects used to identify the POB, all corners of the parcel or ends of boundary segments, and the location of intersecting boundaries.
The location of the monuments is more important then the distances between the.
The actual distance between monuments takes precedence over any linear measurements in the description.
Because monuments can be moved, surveyors give their final metes-and-bounds reference in terms of cardinal points and distance.
They include the statement "to the point of beginning (POB)" to ensure closure and to remove questions if an error in footage prevents closure.
127
D: Rectangular Survey System
AKA the government survey system, was established by Congress in 1785 to standardize the description of land acquired by the newly formed federal government.
By dividing the land into rectangles, the survey provided land descriptions by describing the rectangle(s) in which the land was located.
The system is based on two sets of intersecting lines: principal meridians and base lines.
The principal meridians run north and south, and the base lines run east and west. Both are located by reference to degrees of longitude and latitude.
Each principal meridian has a name or number and is crossed by a base line.
Each principal meridian and its corresponding base line are used to survey a definite area of land, indicated on the map by boundary lines.
There are 37 principal meridians in the United States and each is referenced by a name or meridian number.
Each principal meridian describes only specific areas of land by boundaries.
No parcel of land is described by reference to more than one principal meridian.
The meridian used may not necessarily be the nearest one.
128
D: Principal Meridians
The main imaginary line running north and south and crossing a base line at a definite point; used by surveyors for reference in locating and describing land under the rectangular (government) survey system of legal description.
129
D: Base Lines
The main imaginary line running east and west and crossing a principal meridian at a definite point; used by surveyors for reference in locating and describing land under the rectangular (government) survey system of legal description.
130
D: Township Lines
All the lines in a rectangular survey system that run east and west, parallel to the base line and six miles apart.
131
D: Ranges
The land on either side of a principal meridian is divided into six-mile-wide strips by lines that run north and south, parallel to the meridian.
These north-south strips of land are called ranges. (See Range Lines.) They are designated by consecutive numbers east or west of the principal meridian.
For example, Range 3 East would be a strip of land between 12 and 18 miles east of its principal meridian.
132
What does a township description includes?
1. Designation of the tier in which the township is located,
2. designation of the range
3. name or number of the principal meridian for that area.
133
D: Township
The principal unit of the rectangular (government) survey system. A township is a 6-mile square of 36 square miles.
134
D: Sections
A portion of a township under the rectangular (government) survey system. A township is divided into 36 sections, numbered 1 through 36. A section is a square with mile-long sides and an area of one square mile, or 640 acres.
Section 1 is always in the northeast, or upper right-hand, corner. The numbering proceeds right to left to the upper left-hand corner. From there, the numbers drop down to the next tier and continue from left to right, then back from right to left.
By law, each Section 16 was set aside for school purposes, and the sale or rental proceeds from this land were originally available for township school use.
The schoolhouse was usually located in this section so it would be centrally located for all the students in the township.
As a result, Section 16 is commonly called a school section.
135
What are the steps in Reading a Rectangular survey description, in the following example?
The S½ of the NW¼ of the SE¼ of Section 11, Township 8 North, Range 6 West of the Fourth Principal Meridian.
1. Search for the fourth principal meridian on a map of the USA and note its baseline.
2. On a regional map, find the township in which the property is located. By Counting six rang strips west of the 4th principal meridian a
3. Counting 8 townships north of its corresponding baseline.
4. After locating Section 11.
5. Divide the section into qtrs.
6. Then Divide the SE1/4 in to QTRs
7. Then the NW1/4 of that into halves.
8. The S1/2 of that NW1/4 contains the property in question.
136
What should Legal Descriptions always include and why?
Include
The name of the county and the state in which the land is located because the meridians often relate to more than one state and occasionally relate to two baselines.
137
Land in states that use the rectangular survey system may also require a metes-and-bounds description in what situations?
1. When describing an irregular tract.
2. When a tract is too small to be described by QTR-sections.
3. When a tract does not follow the lot or block lines of a recorded subdivision or section, QTR-section lines, or other fractional section lines.
138
D: Lot-and-Block (Recorded plat) Method
This system uses a lot and black numbers referred to in a plat map filed in the public records of the county where the land is located.
Some lot-and-block descriptions are not dependent on the government survey system and may refer simply to the plat recorded in the land records of the county.
139
D: Plat Map
is a map of a town, a section, or a subdivision, indicating the location and boundaries of individual properties. The lot-and-block method is used mostly in subdivisions and urban areas.
140
What are the two steps in a lot-and-black survey?
1. A large parcel of land is described either by the Metes-and-Bounds Method or by a rectangular survey.
2. Once the large parcel is surveyed, it is broken into smaller parcels.
141
What is the result of a large parcel of land is broken into smaller parcels when it comes to the Lot-and-block survey?
A Lot-and-Block description always refers to the prior metes-and-bounds or rectangular survey description.
142
what does the lot refer to in the Lot-and-Block method?
Lot refers to the numerical designation of any particular parcel.
143
what does the block refer to in the Lot-and-Block method?
The Block refers to the name of the subdivision under which the map is recorded.
144
Ture or False:
Does the plat become part of the legal description of a property?
True
145
What are the identifiers used in describing a lot from a recorded subdivision plat?
1. Lot and block number
2. Name or Number of the subdivision plat.
3. Name of the county and state.
146
What are the steps to find a property using the Lot-and-Block method for the following example?
Lot 71, Happy Valley Estates 2, located in a portion of the southeast quarter of Section 23, Township 7 North, Range 4 East of the Seward Principal Meridian in ____ County, ____ [state].
1. Start with the map of the Seward principal meridian to ID the township and range reference.
2. Then consult the township 7 North, Range 4 East, and the section map of Section 23.
3. From there one would look at the QTR-section map of the southeast QTR.
4. The QTR-Section map would refer to the plat map for the subdivision known as the 2n unit (2nd parcel subdivided) under the subdivision.
147
When is a survey referred to as a Spot Survey?
When a survey also shows the location, size, and shape of buildings on the lot.
148
D: Datum
is a point, line, or surface from which elevations are measured or indicated.
For the purpose of the United States Geological Survey (USGS), datum is defined as the mean sea level at New York Harbor.
But virtually all large cities have local official datum that is used instead of the USGS datum. A surveyor would use a datum in determining the height of a structure or establishing the grade of a street.
149
D: Benchmarks
are monuments that have been established as permanent reference points throughout the United States. They are usually embossed brass markers set into solid concrete or asphalt bases. While used to some degree for surface measurements, their principal reference use is for marking datums.
150
How many Ft, yards, and rods are in 1 mile?
5,280 Feet
1,760 Yards
320 rods
151
How many yards, feet, rods and chains are in one furlong?
220 yards
660 Feet
40 rods
10 chains
152
How many ft, rods, and links are in one chain?
66 feet
4 rods
100 links
153
How many feet and yards are equal to one rod?
16. 5 Feet
| 5. 50 yards
154
How many acres makeup one sq mile?
640 acres
155
How many Sqft make up one Acre?
43,560 SQFT
156
how many cubic feet in one Cubic Yard?
27 cubic feet
157
how many sqft in one sq yard?
9 sq feet
158
how many sq inches are in a sq foot?
144 sq inches.
159
How To calculate the cost of a parcel of land of three acres at $1.10 per square foot, convert the acreage to square feet before multiplying:
43,560 square feet per acre × 3 acres = 130,680 square feet
130,680 square feet × $1.10 per square foot = $143,748
To calculate the cost of a parcel of land of 17,500 square feet at $60,000 per acre, convert the cost per acre into the cost per square foot before multiplying by the number of square feet in the parcel:
$60,000 per acre ÷ 43,560 square feet per acre = $1.38 (rounded) per square foot
17,500 square feet × $1.38 per square foot = $24,150
160
How many acres are contained in a parcel described as follows: The NE ¼ of the NW ¼, and the S ½ of the NW ¼, and the NE ¼, of Section 10?
The answer is 280 acres. There are three parcels in this description.
The first: ¼ × 640 = 160, and ¼ x 160 = 40 acres
The second: ¼ × 640 = 160, and ½ x 160= 80 acres
The third: 640 × ¼ = 160
40 + 80 + 160 = 280 acres
161
A parcel of land is two acres. It sells for $1.18 per square foot. What is the total selling price for the parcel?
The answer is $102,801.60. An acre consists of 43,560 square feet.
43,560 × 2 = 87,120 total square feet.
87,120 × $1.18 = $102,801.60.
162
What is the shortest distance between Section 1 and Section 36 in the same township?
The answer is four miles. The shortest distance from Section 1 to Section 36 is from the bottom of Section 1 to the top of Section 36, or four miles.
163
The basic units of the rectangular survey system are
The answer is the townships. Townships are the basic units of the rectangular survey system. Principal meridians and base lines are the two sets of intersecting lines in the system. Ranges are the 6-mile strips of land on either side of a principal meridian.
164
What is the number of the sections in any township?
The answer is 36. Townships are subdivided into 36 sections.
165
A system of legal description that uses meridian, townships, and sections is
The answer is government survey. This method use meridians, base lines, townships, and sections.
166
As a legal description, "the northwest ¼ of the southwest ¼ of Section 6, Township 4 North, Range 7 West" is defective because it contains no reference to
The answer is a principal meridian. A property description based on the rectangular survey system must always make reference to the principal meridian and the base line of the survey system area in which the property lies. This description makes no reference to a principal meridian.
167
The location and dimensions of a parcel is identified on the survey
The answer is sketched. The location and dimensions of a parcel are identified on the survey sketch.
168
What is the shortest distance between Section 1 and Section 36 in the same township?
The answer is four miles. The shortest distance from Section 1 to Section 36 is from the bottom of Section 1 to the top of Section 36, or four miles.
169
The N½ of the SW¼ of a section contains how many acres?
The answer is 80. A section contains 640 acres. A ½ of ¼ of 640 equals 80 acres. Using decimals, the equation is 0.5 × 0.25 × 640 = 80.
170
in determining the height of a structure or establishing the grade of a street, a surveyor uses
The answer is a datum. In determining the height of a structure or establishing the grade of a street, a surveyor uses a datum.
171
In the rectangular survey system, a township is a square formed by
The answer is horizontal township lines and vertical range lines. Townships are the basic units of the rectangular survey system.
172
What is the square footage for this property described by the metes-and-bounds method?
Beginning at a point on the southerly side of Smith Street, 200 feet easterly from the corner formed by the intersection of the southerly side of Smith Street and the easterly side of Johnson Street; then east 200 feet; then south 100 feet; then west 200 feet; then north 100 feet to the POB.
The answer is 20,000 square feet. The property is 200 × 100 = 20,000 square feet.
173
n the rectangular survey system, a township is a square formed by
The answer is horizontal township lines and vertical range lines. Townships are the basic units of the rectangular survey system.
174
What are the two functions of title?
1. The right to ownership or the ownership of the land.
| 2. The evidence of ownership of land.
175
D: Voluntary Alienation
is the legal term for the transfer of title during the property owner's lifetime. An owner may transfer title by making a gift or by selling the property.
176
D: Deed
is a document by which an owner of real estate conveys the right, title, or interest owned in the parcel of real estate to someone else.
The statute of frauds, found in all states, requires that all deeds be in writing.
The owner who transfers the property is referred to as the grantor, and the person who receives the property is called the grantee.
A deed is executed (signed) by the grantor.
177
What are the general requirements that must a valid deed contain?
1. Grantor who the legal competency to execute the deed.
2. Grantee named with reasonable certainty to be ID.
3. Statement of consideration ( usually required for recording of the deed)
4. Granting clause (Words of Conveyance)
5. Habendum clause, which defines the ownership right received by the grantee.
6. Accurate legal description of the property conveyed.
7. Any relevant exceptions or reservations to the conveyance of full title.
8. Acknowledgment (notarization) of the signature of the grantor.
9. Delivery of the deed and acceptance by the grantee to pass title.
A deed may include a description of any limitation on the conveyance of full fee simple estate and a statement of any exceptions and reservations( AKA "Subject to" Claus) that affect title to the property.
178
D: Grantor of Title
1. Must be of legal age.
2. Must be legally competent
3. The Grantors name must be spelled correctly and consistently throughout the deed. If the grantor's name was changed after acquiring the title both names must be shown. EX. Mary Smith, formerly Mary Jones.
179
If a deed has more than one grantee the granting clause should specify what?
Should specify their individual rights in the property.
180
Consideration in a deed
Must contain a clause acknowledging that the grantor has received some form of consideration.
Generally, the amount of consideration is stated in dollars.
When a deed conveys real estate as a gift to a relative, love, and affection may be sufficient consideration.
In most states, it is customary to recite a nominal consideration, such as "$10 and other good and valuable consideration."
181
D: Granting Clause
Words in a deed of conveyance that state the grantor’s intention to convey the property at the present time.
This clause is generally worded as “convey and warrant”; “grant”; “grant, bargain, and sell”; or the like.
182
D: Hadendum Clause
That part of a deed beginning with the words “to have and to hold,” following the granting clause and defining the extent of ownership the grantor is conveying.
183
For a deed to be valid there must a Legal Description of real estate, the land is considered adequately described if what?
Land is considered adequately described if a professional surveyor can locate the property and accurately mark its boundaries using the description.
184
Title is said to pass only when?
A deed is delivered and accepted.
The effective date of the transfer of title from the grantor to the grantee is the date of delivery of the deed itself.
Delivery and acceptance are usually presumed if the deed has been examined and registered by the county clerk.
185
What are the two basic rules for conveying Corporation owned real estate?
1. A corporation can convey real estate only by the authority defined in its bylaws or on the basis of a resolution passed by its board of directors. If all or a substantial portion of a corporation's real estate is being conveyed, usually a resolution authorizing the sale must be secured from the shareholders.
2. A deed conveying corporation-owned real estate can be signed only by an authorized officer.
186
What are the most common deeds?
1. General Warranty deed.
2. Special Warranty Deed
3. Bargain and Sale Deed
4. Quitclaim Deed
5. Deed of Trust
6. Reconveyance Deed
7. Trustee's deed
8. Deed executed pursuant to a court order.
187
D: General Warranty Deed
Provides the greatest protection to the buyer because the grantor is legally bound by certain covenants or warranties.
In most states, the warranties are implied by the use of certain words specified by statute.
In some states, the grantor's warranties are expressly written into the deed itself.
Each state law should be examined, but some of the specific phrases include convey and warrant or warrant generally.
The covenants in a general warranty deed are not limited to matters that occurred during the time the grantor owned the property; they extend back to its origins. The grantor defends the title against defects the grantor created as well as defects created by all those who previously held the title.
188
What are the basic warranties?
1. Covenant of seisin
2. Covenant against encumbrances
3. Covenant of further assurances.
4. Covenant of quiet enjoyment
5. Covenant of warranty forever.
189
D: Covenant of Seisin
The Grantor warrants that he or she owns the property and has the right to convey title to it. The grantee may recover DMGs up to the full price if this covenant is broken.
190
D: Covenant against encumbrances
The grantor warrants that the property is free from liens or encumbrances, except for any specifically stated in the deed. Encumbrances generally include mortgages, mechanic's liens, and easements.
If this covenant is breached, the grantee may sue for the cost of removing the encumbrances.
191
D: Covenant of further assurances
The grantor promises to obtain and deliver any instrument needed to make the title good.
192
D: Covenant of quiet enjoyment
The grantor guarantees that the grantee's title will be good against any 3rd party who might bring a court action to establish superior title to the property.
If the grantee's title is found to be inferior, the grantor is liable for DMGs; that is the grantor will pay the grantee if the title is not good.
193
D; Covenant of Warranty forever
The grantor promises to compensate the grantee for the loss sustained if the title fails at any time in the future.
194
D: Special Warranty Deed
A deed in which the grantor warrants, or guarantees, the title only against defects arising during the period of the grantor's tenure and ownership of the property and not against defects existing before that time, generally using the language, “by, through, or under the grantor but not otherwise.”
May be used by fiduciaries. A special warranty deed is appropriate for fiduciaries because they lack the authority to warrant against acts of predecessors in the title ( the former owners).
A fiduciary may hold the title for a limited time without having a personal interest in the proceeds.
Sometimes a special warranty deed is used by a grantor who has acquired title at a tax sale.
195
D: Bargain and sale deed
contains no express warranties against encumbrances, but it does imply that the grantor holds title and possession of the property.
The granting clause usually states a person's or entity's name and the phrase grants and releases or grants, bargains, and sells.
Because the warranty is not specifically stated, the grantee has little legal recourse if title defects appear later.
In some areas, this deed is used in foreclosures and tax sales.
In some areas, this deed is used in foreclosures and tax sales. The buyer should purchase title insurance if it is not provided by the seller.
196
What is a Bargain and Sale Deed with covenant against the grantor's acts.
Is when a covenant against encumbrances initiated by the grantor may be added to a standard bargain and sale deed.
This deed is equal to a special warranty deed.
Warranties used in general warranty deeds may be inserted in a bargain and sale deed to give the grantee similar protection.
197
D: Quitclaim deed
Provides the grantee with the least protection of any deed.
It carries no covenants or warranties and generally conveys only whatever interest the grantor may have when the deed is delivered.
Can convey title as effectively as a warranty deed if the grantor has good title when the deed is delivered, but it provides non of the guarantees of a warranty deed.
The grantor only premises, releases, and quitclaims the grantor's interest in the property, if any.
198
D: Deed of Trust
AKA: Deed In Trust
Is the means by which a trustor conveys a real estate to a trustee for the benefit of a beneficiary. The real estate is held by the trustee to fulfill the purpose of the trust.
199
D: Reconveyance Deed
A deed used by a trustee under a deed of trust to return title to the trustor.
200
D: Trustee's Deed
is used when a trustee conveys real estate held in the trust to anyone other than the trustor. The trustee's deed must state that the trustee is executing the instrument in accordance with the powers and authority granted by the trust instrument.
201
D: Transfer Tax
also referred to in some states as a grantor's tax) on conveyances of real estate. In these states, the tax is usually payable when the deed is recorded. In some states, the taxpayer purchases stamps from the recorder of the county in which the deed is recorded and the stamps must be affixed to the deed before it can be recorded.
In other states, the clerk of the court or county recorder simply collects the appropriate transfer tax amount in accordance with state and local law.
The transfer tax may be paid by either the seller or the buyer, or split between them, depending on local custom or agreement in the sales contract.
202
D: Transfer Declaration form
AKA: Transfor Statement
AKA: Affidavit of Real Property Value
must be signed by both the buyer and the seller or their real estate professionals.
The Transfer Declaration States.
1. The Full Sales Price of the Property
2. Its Legal Description
3. The Type of Improvement
4. The address, date, and type of deed
5. Whether the Transfer is between relatives or in accordance with a court order
203
What deeds are exempted from Transfer Tax?
1. Gifts of Real Estate
2. Deeds not made in connection with a Sale
3. Conveyances to, from, or between government bodies.
4. Deeds by Charitable, religious, or educational institutions.
5. Deeds securing debts or releasing property as security for a debt
6. Partitions
7. Tax Deeds
8. Deeds pursuant to mergers of corporations
9. Deeds from subsidiary to parent corporations for cancellations of stock.
204
D: Adverse possession
The actual, open, notorious, hostile, and continuous possession of another’s land under a claim of title.
Possession for a statutory period may be a means of acquiring title.
The necessary period of uninterrupted possession is a matter of state law.
The statutory periods range from as few as 5 years in some states to as many as 30 years in others.
A shorter time period may be accompanied by the requirement for the adverse possessor to make all property tax payments.
A state may allow subsequent adverse owners to tack their years of possession together to create the necessary period of adverse use.
A subsequent adverse owner usually must take possession under a claim of right, or color of title, such as a deed from the prior adverse owner that purports to convey ownership of the property.
205
What does the abbreviation of ONCHA mean?
1. Open
2. Notorious
3. Continuous
4. Hostile
5. Adverse
206
D: Testate
Having made and left a valid will.
207
D: Intestate
The condition of a property owner who dies without leaving a valid will.
Title to the property will pass to the decedent’s heirs, as provided in the state law of descent.
208
When a person dies who does the real estate pass to?
1. The co-owner by virtue of a joint tenancy with rights of survivorship or a tenancy by the entirety.
2. The party or parties named in a valid will.
3. The statutory heirs determined by the state's law of descent and distribution.
209
D: Probate
A legal process by which a court determines who will inherit a decedent’s property and what the estate’s assets are.
210
D: Devise
A transfer of real property by will. The decedent is the devisor, and the recipient is the devisee.
211
The probate court does what?
1. Publishers required notices of the pending probate.
2. Proves or Confirms the validity of the will, including ruling on any challenges to the will.
3. Determines the precise assets in the estate of the deceased person.
4. Id's the people to whom the estate's assets are to pass.
212
True or False: and Why?
To be valid, a deed must include a recital of consideration, an identifiable grantee, and a recital of exceptions and reservations.
False
To be valid, a deed must include a recital of consideration and an identifiable grantee; a deed may contain a recital of exceptions and reservations.
213
True or False: and Why?
Real property of an owner who dies intestate is distributed according to the laws of the state in which the owner resided at the time of death.
The answer is false.
Real property of an owner who dies intestate is distributed according to the laws of the state in which the property is located.
214
The grantor is conveying an interest that is less than fee simple absolute. This explanation of the extent of ownership will be found in?
The habendum clause defines the extent of ownership that is being conveyed.
215
The verification that the grantor's signature is both genuine and voluntary is
The answer is an acknowledgment.
An acknowledgment is a formal declaration under oath that the person who signs a written document does so voluntarily, and that the signature is genuine.
216
The document that acts as security for a promissory note is
A deed of Trust
217
A deed states that the grantors are conveying all their rights and interests to the grantees to have and to hold. This is communicated in
The habendum clause defines or explains the ownership to be enjoyed by the grantee, and its provisions must agree with those stated in the granting clause.
The habendum clause begins with the words to have and to hold.
218
When a person dies, ownership of real estate?
The answer is to pass immediately.
When a person dies, ownership of real estate immediately passes either to the heirs by descent or to the persons named in the will.
Before full title and possession of the property may be taken, the estate must go through a judicial procedure called probate.
219
Every deed must be signed by
Either the grantor, or someone acting under the grantor's authority, must execute (sign) every deed, and the grantor must have legal capacity to do so.
220
The grantor of property transferred by deed promises to compensate the grantee for any future loss sustained by a defect in the title to the property by
The answer is the covenant of warranty forever.
With this covenant, the grantor promises to compensate the grantee for any loss sustained by the grantee if the title to the property fails at any time in the future.
221
A holdover from English common law, the statute of frauds that is found in all states requires that a deed
Be in writing.
222
Which party or parties must sign a deed to make it valid?
The grantor signs (executes) the deed.
223
Generally, where does a probate proceeding involving real property take place?
The answer is in both the county where the decedent resided and the county in which the property is located.
There will be two probates conducted: one in the county where the decedent resided and another in the county where the real estate is located.
224
The granting clause in a special warranty deed generally contains the words
"grantor remises, releases, alienates, and conveys."
The granting clause in a special warranty deed generally contains the words grantor remises, releases, alienates, and conveys.
225
In one state, the transfer tax is $0.80 per $500 or fraction thereof. There is no tax charged on the first $500 of the price. What tax must the seller pay if the property sells for $329,650?
The answer is $527.20. The seller must pay $527.20:
$329,650 – the $500 = $329,150
$329,150 ÷ $500 = 658.3, rounded up to 659 659 × $0.80 = $527.20
226
The primary heirs of the deceased are the surviving spouse and close blood relatives (such as children, parents, brothers, sisters, aunts, uncles, and, in some cases, first and second cousins) under?
state's law of descent and distribution.
The primary heirs of the deceased are the surviving spouse and close blood relatives (such as children, parents, brothers, sisters, aunts, uncles, and, in some cases, first and second cousins) identified under a state's law of descent and distribution.
227
In a special warranty deed, the grantor promises
The answer is to defend the title against any encumbrances during the grantor's period of ownership.
A special warranty deed promises that while the seller owned the property, the seller did not cloud the title. The seller only defends against clouds on title that may have occurred during the seller's ownership period.
228
A deed's words of conveyance appear in
granting clause.
The words of conveyance that are in the granting clause of a deed state the grantor's intention to convey the property.
229
To be valid, a deed must name
grantee.
230
When a person dies testate, title to real property transfers to
devisee.
A person who dies testate has died with a valid will. The gift of real property by will is known as a devise, and a person who receives real property by will is known as a devisee.
231
A modification to a will is called
codicil
Any modification to a previously executed will is contained in a separate document called a codicil.
Additional agreements attached to an agreement of sale are addenda; an amendment is a change to the existing content of a contract.
Probate is the process of determining the validity of a will.
