Study Guide Chapter 9 - 11 Flashcards
Eminent Domain
The constitutional right given to a unit of government to take private proprety involuntarily if taken for public use and a fair price is paid to the owner
Process of Eminent Domain
Eminent domain gives government the right to take land from an owner through a legal process referred to as condemantion, as long as the taking is for public purpose.
The government must pay a fair price for any land taken under eminent domain.
The government may exercise this power (or delegate it to railroad and utility companies) regardless of whether the owenr wants to part with the property. Therefore, it is a form of involuntary alienation.
Define the Deed-permises section & clauses
The permises section of a deed names the parties to the deed and the date of the deed. The date should be the date of execution by the grantor.
The permises contains the granting clause witht he necessary words used to convey the property: grants, bargains, and sells, or similar words. Usually, the permises section also states that some consideration was given, but the entire amount of consideretaion need not be shown.
Blank lines are provided to insert the County and State information and space is provided for legal description.
Habendum Clause
“to have nad to hold”
Today, the habendum clause starts with the words “to have and to hold”. Then, usually, the word “foerver” follows if the estate is fee simple or the words “for the life of the grantee” if it is a life estate. Any other restriction or limitations on the property’s use, such as reservation by the seller to retain mineral rights to the land, are usually entered before or after the habbendum clause.
Seisin
The convenant of seisin (also seizin) is a promise that he grantor owns the property and has the right to convey title.
Quiclaim Deed
A deed which the grantor quitclaims unto the grantee all of the grantor’s rights, title, and interest to the property, if any. The grantor makes no warranties about the quality or extent of the title being conveyed.
This form of deed is useful for clearing existing or porential clouds on the title. A cloud might be some unreleased lien or encumbrance that may superficially impair or cast doubt on the tittle’s validity, such as a recorded mortgage that has been paid in full, but with no satisfaction of mortgage recorded.
To clear the title of these possible trouble spots, the grantor releases any claim or interest in the property. Intead of the usual wording grants. bargains, and sells, the quitclaim deed uses the words remises, release, adn quitclaim.
The quitclaim deed does not contain a covenant of seisin. This allows the grantor to sign a deed transferring any and all interests, without claiming ownership of any right of title whatsoever.
When a quitclaim deed cannot be acquired, a suite to quite title, usually produces a clear title.
Bargain and Sale Deed
Normally, a bargain and sale deed consists of granting clause, habendum clause, and convenat of seisin. However, in the bargain and sale deed, the grantor does not convenant or warrant to defent the title against any future claims or attacks on the title.
The bragain and sale deed is sufficient to convey all the title the grantor has, but it does little to protect the grantee from clous or claims on the title.
A bragain and slae deed might be appropriate when an out-of-state property owenr desires to sell several parcels of land through a Florida Real Estate Auctioneer. Serious buyers who attend the action know that they must do their due deligence in advance of attending the auction if they intend to bid on any of the parcels. The buyers know that the seller will not be purchasing title insurance. In such situations the seller typically delivers to the buyer a bargain and sale deed. Also, officers of the court often convey the real property under their control by means of a bargian and sale deed.
Special Warranty Deed
Grantor does not warrant the title (assume any responsibility for the title) in any way or manner except agains acts by the grantor or the grantor’s representative.
In other words, the grantor guarantees that nothing have been done to encumber or cloud the title during the grantor’s ownership.
This type of deed that most large corporations use when selling property. Also used by lenders who have foreclosed on and have taken title to property.
The grantor (lender) only assumes title responsibility for the period that the property was owned by the lender thus avoiding title liability for the period prio to foreclosure.
General warranty deed
Sometimes referred to full convenant and warranty deed
Contains all the convenants and warranties available to give the grantee every possible future guaantee to title protection.
In addition to the convenant of seisin and the covenant against encumbrances, the general warrnty deed contains 3 unique covenants:
- Quite enjoyment guarantees peaceful possession undistrubed by claims of title
- Further assurance guarantees the grantor will sign and deliver any legal instrument that might be required to make the title good in the future
- Warranty foever guarantees the granto will foever warrant and defend the grantee’s title against all lawful claims.
When does transfer of title becom effective?
Transfer of title to property is not effective until the conveyance instrument (usually deed) is delivered to and accepted by the grantee.
Calculating rent owed for a variable lease
A variable lease feature rent that changes at set times as specified in the lease agreement. A variable lease (or sometimes index lease) provides for adjustments of rent according to changing in a price index.
(NEW INDEX PRICE ÷ OLD INDEX PRICE) X RENT PER SQ FT RATE = NEW RENT RATE
How advance rents and security deposits are handled when a property has been sold
Sale or transfer of title of rental property
When a lease property is sold, the lease is binding on the new owner.
The Florida Residential Landlord and Tenant Act provides that when a residental rental property is sold or the title of the rental property is otherwise transferred from one owner to another, the tenants’ security deposits and advance rents must be transferred to the new owner.
If the property owner changes the designated rental agent, all security deposits or advance rents being held by the former rental agent must be transferred to the new agent with an accounting showing the amount to be credited on each tentant’s behalf.
General Lien
A general Lien is not restricted to one property bu may affect all properties of a debtor. A general lien attaches to all of the lienee’s (debtor’s) real property located in the county where the lien is recorded.
General Lien includes:
- Judment Lien
- Income Tax (IRS) lien
- Estate Tax Lien
Specific Lien
Liens classied as specific do not affect all of the debtor’s property apply only to a certain specified property.
Specific liens includes:
- Property taxes and special assessment lien
- Mortgage Lien
- Vendor’s Lien
- Construction Lien
Vendor’s Lien
If a buyer of property (vendee) is unable to make the full down payment required, a seller (vendor) frequently will allow a purchase-money mortgage to make up the amount of money the buyer is unable to produce.
Actually, any portion of the sale price remaining unpaid to the vendor creates a vendor’s lien.
This is an equitable lien of the grantor (seller) on the land conveyed in the amount of the paid purchase price.
A vendor’s lien is enforceable only against the party obtaining title from the vendor. It does not apply against later purchasers unless a written mortgage has been executed and placed in the public records.
A valid vendor’s lien is enforceable by forclosure. Priority is established by the recording date of the purchase-money mortgage.
Directions in a metes-and-bounds description
Metes = distance
Bounds = direction
Used in both regular and irregular shaped parcels
The direction of a boundary line is expressed using a compass direction Distance are measured in feet, usually to the nearest one-hundredth of a foot.
The POB (point of beginning) and all turning points (corners of the parcel) should be regarded as being the exact center of the circle.
The number of degrees does not change, only the compass directions. The oppposite of S85ºW is N85ºE
