Section 2 - Real Estate Title & Ownership Flashcards
abandonment
The voluntary act of surrendering possession of real property.
abstract of title
A condensed history of title; a written synopsis of all recorded documents affecting the property.
accession
The addition to land by man or nature.
adverse possession
A means by which title may be acquired, through the actual, hostile, open and notorious, exclusive and continuous occupancy by one who does not have title.
allodial system
System of possession of land based on individual ownership, as opposed to the Feudal System.
alluvion (also alluvium)
The results of the natural addition of soil to property by action of flowing water.
appropriation process
Enactment of the taxing body’s budget and sources of revenue into law.
bargain and sale deed
A deed containing no warranties; only implies that the grantor owns the property being conveyed, and has done nothing to cause a defect in title.
bill of sale
An instrument that transfers title to personal property. (Chattels)
caveat emptor
Let the buyer beware.
certificate of occupancy (CO)
A government issued document that states a structure meets local zoning and building code requirement and is ready to use.
certificate of title
A written document signed by a title examiner or attorney stating that in his opinion the seller has good title.
cloud on title
An outstanding claim or encumbrance, which if valid would affect or impair the owner’s title.
code of ethics
Standards of conduct pertaining to a realtor’s relation to his clients, other licensees, and the public that members of the National Association of Realtors endorse.
codicil
A written supplement or amendment to an existing will.
color of title
Apparent title; title that appears to be clear but in fact has a defect that makes it invalid.
community property
Property owned jointly by husband and wife.
concurrent ownership
Ownership by two or more persons at the same time.
conditional use
A land use that does not comply with the general zoning rules for the zone in which it is located, but is permitted there because it benefits the public.
constructive notice
The recording of documents in the public records.
contract for deed
A contract for the sale of real property in which the seller gives up possession of the property but retains title until the total of the purchase price is paid off
conveyance
An instrument used to transfer title to property from one person to another.
cooperative ownership
A system of ownership in which individuals have shares of stock in a corporation that has title to the property.
corporation
A joint business relationship that is regarded by the law as an artificial person. A corporation is owned by its stockholders, and managed by its directors, and operated by its officers. A corporate stockholder has limited liability (i.e. only to the extent of his investment).
decedent
A person who has died.
dedication
To convey private property over to public use.
deed restriction (restrictive covenant)
A clause in a deed limiting or controlling the future use of the property.
deed of reconveyance
The document the trustee gives the trustor when the debt secured by a deed of trust is paid off, releasing the property from the lien.
defeasance clause
A contract clause used to defeat or cancel a certain right upon the occurrence of specific event. A clause within a mortgage that legally binds the lender to release the lien from the title once the mortgage has been satisfied.
deficiency judgment
A general lien on all property of a defaulting debtor, issued when the security for a debt is insufficient to satisfy the debt. (In some states deficiency judgments cannot be obtained.)
delivery and acceptance
A necessary element in the execution of a deed.
devise, devisor, devisee
A gift of real property under a will. The devisor is the giver and the devisee is the recipient.
disclaimer deed
A document signed by a party to disavow any interest in a property.
dominant estate
The interest of the owner of land who has the right to use an appurtenant easement (see servient estate).
dower and curtesy
The legal right or interest that one spouse has in the property of the other spouse.
easement
A specified and limited right or privilege to use another’s property.
easement by prescription
An easement acquired through the open, uninterrupted, and adverse use of another’s real property.
eminent domain
The right of the government to acquire private property for public use.
encroachment
An unauthorized invasion or intrusion upon another’s property.
encumbrance
A legal right or interest held by another that reduces the value of one’s property. Examples: mortgages, leases, liens.
equitable title
Arises out of an agreement that some particular property shall be used as security for a debt or obligation . Examples: vendee’s lien, vendor’s lien.
escheat
Reversion of property to the state when a person dies intestate with no known heirs or when property is abandoned.
estate
Degree, quantity, nature, extent, duration of a person’s interest in real property.
estate for years
A leasehold with a specific starting and ending date - it survives death or the sale of the property
estoppel
A legal bar to a person alleging or denying a fact when his own previous actions have conclusively indicated the contrary.
flaw
Apparent gap or break in the chain of title.
fee, fee simple, fee absolute
The complete ownership of property, without condition. The largest and highest interest one can possess in real estate.
freehold
An interest in real property of a life estate or greater.
general lien
A lien that attaches to all property owned by an individual. Real and personal.
general warranty deed
Deed that offers the most protection in which grantor fully warrants good clear title to the premises.
grant deed
A deed using a granting clause assuring the grantee that the estate being conveyed is free from encumbrances placed on the property by the present owner and that the grantor has not previously conveyed the property to anyone else.
grant, grantee, grantor
To transfer the title to real property by deed. The grantor is the person making the transfer; the grantee is the recipient. Grantee/Grantor Index alphabetically lists documents in public recorder’s office according to grantees or grantors.
granting clause
Words in a deed of conveyance that state the grantor’s intention to convey the property at the present time.
habendum clause
The “to have and to hold” clause commonly found in a deed. It names the type of estate being granted.
homestead exemption
Statutory provision that protects a person’s homestead from the claims of creditors.
indefeasible title
Perfect title; title that cannot be defeated or voided.
ingress and egress (right of)
The permission to enter upon and exit from property. A form of easement.
intestate
A person who dies without leaving a will or who leaves an invalid will.
joint tenancy
Tenancy with right of survivorhip and various other characteristics.
junior lien
A lien whose claim upon the asset is subordinate to another lien. The order of priority is usually established according to date of recordation.
land-use control
A broad term describing any legal description that regulates how a parcel of land may be used.
leasehold
An interest less than a freehold, held by a lessee.
legatee
A person who receives personal property under a will.
lender’s policy
Issued for the benefit of the mortgage lender and the amount of the mortgage loan will determine the amount of coverage; title insurance policy.
lien
A claim against the property of another as security for a debt or charge.
lien theory state
A state where the mortgage lender has a lien on the property and the borrower has title
life estate
An estate or interest in real estate held during the term of a specified person’s life.
limited partnership
A partnership where the liability of some partners is limited to their investment.
lis pendens
(Latin) “Pending suit”; a notice of pending legal action that clouds title to real estate.
mechanic’s lien
A lien levied against specific property by those who furnish materials and/or labor for its construction, improvement, or repair.
naked title, bare title
Title that lacks the right and privileges usually associated with ownership.
non-conforming use (grandfathered)
A land use that does not comply with current zoning, but is allowed to remain as it was before the zoning ordinance was passed. Generally such properties cannot be remodeled or enlarged.
opinion of title
A written opinion by an attorney that evaluates the quality of title and notes the defects, if any.
partition
The legal process whereby jointly held property is divided among the owners.
planned unit development (PUD)
Individually owned houses coupled with membership in the Owners Association that holds title to the common areas.
probate (surrogate) court
A court of law with the authority to verify the legality of a will and carry out its instructions.
quiet title action
A court action brought to establish clear title; to remove a cloud on the title. It is used to determine who has rightful ownership in real property.
quiet title suit
A lawsuit to remove clouds and defects on title.
quitclaim deed
A form of deed without covenants or warrants of any type.
receiver
A court-appointed person who takes control and assumes the management of property under litigation or in bankruptcy.
release of lien
An instrument whereby a lienholder or potential lienholder renounces all claims as of a certain date.
remainder estate
A present right to future title; title is taken upon the termination of a life estate.
reservation
A right reserved to the grantor in a deed.
reversionary estate
An estate in which title returns (reverts) to the original grantor or his heirs upon termination of a life estate.
right of survivorship
The right whereby a surviving joint tenant gains sole title to the property.
right of way
The right to pass over another’s property; a special form of easement. It may be either public or private.
seisin
The actual possession and ownership of a freehold interest in real property.
sevient estate
The estate of the owner whose land is burdened by an appurtenant easement (see dominant estate).
setback ordinance
An ordinance establishing minimum distances by which buildings must be set back from streets or property lines.
severalty
Sole ownership.
severance damages
Compensation paid for loss in market value that results from splitting up a property in a condemnation proceeding.
special warranty deed
A deed in which the grantor warrants only against claims that arise from his ownership.
succession
The transfer of title to property under the law of Descent and Distribution.
testate, testator, testatrix
The condition of one who leaves a valid will at his death. One who makes a will is a testator (feminine: testatrix).
time-sharing
Part ownership of a property occupied with a right to exclusive use of it for a specified number of days per year.
title
The sum of all the facts upon which ownership is based.
title insurance
An insurance policy that protects the insured from loss resulting from defects in title.
title search
An examination of the public records to establish the chain of title and the condition of title for a property.
title theory state
A state where the mortgage lender has title to the property until the debt is repaid
torrens system
Method of registering land title that is similar to that of automobile ownership registration.
trust deed
An instrument held by a third party as security for the payment of a note. Also called a Deed of Trust.
variance
Allows an individual property owner to vary slightly from strict compliance of zoning requirements.
vested
That interest which has become a complete and consummated right; a present right of future enjoyment.
warrant
An assurance or guarantee that something is true as stated.
warranty deed
A deed in which grantor fully warrants good clear title to the property; contains five covenants.
