TX law of contracts Flashcards
possessory interest
the present right to physically occupy land and to exclude others from that same land
non possessory interest
one that cannot be presently exercised today but will become possessory in the future
homestead
legal status of real property created by the texas constitution
estate
the quantity, quality, degree and nature of a persons interest in real property that may become possessory
freehold estate
an estate with indefinite duration or that is measured by the length of someones life
non freehold estate
an estate with a fixed or determinable duration is classified
fee simple absolute absolute estate
the most complete form of ownership of land under anglo American concept of real property ownership
perpetual state
an estate of inheritance
present possessory freehold estate
includes all the rights to sell, exclude others, finance, and do any other things that the laws allow
fee simple defeasible
what several freehold estates are known as collectively
fee simple determinible
a present possessory interest in a grantee with a reversionary interest in the grantor
fee simple subject to condition subsequent
any fee estate containing a condition
life estate
present possessory interest that gives the grantee a possessory interest for the length of a measuring life
life tenant
the person to whom a life estate is conveyed
tenancy at sufferance
occurs when the tenant originally obtained lawfully but right to retain has expired
tenancy at will
tenant obtains possession of the property with the owners permission, does not sign a lease or pay rent
hypothecation
a legal arrangement that allows a borrower to remain in possession of a property secured by a loan
equitable title
the right to obtain absolute ownership to property when legal title is held in another’s name
naked title
title that lacks the usual rights and privileges of ownership
deed of reconveyance
conveys title to the property from the trustee to the borrower (trustor)
abstract of judgement
one page document that contains information about the court judgement
duration of liens
good for 10 years
lis pendens
lawsuit pending
ad valorem
according to value
easement in gross
personal right of one person to use land owned by another
easement by grant
most straightforward; acquired by the express terms of the deed
easement by reservation
person sells land but retains an easement for personal use
easement by implication
property must be landlocked without an implied easment
mean vegetation line
the line where the grass stops growing at the edge of water
Riparian Doctrine
a person who owns land that borders a body of water/stream may use the surface water so long as it is reasonable to the use of others with riparian owners
profit-a-prendre
the right to enter another’s land to remove soil or substances of the soil
escheat
the process by which private property reverts to government when owner dies and has no heirs or will
chapter 212
Texas law regarding subdivisions in cities
chapter 232
Texas law regarding subdivisions in counties
alienation
the act of transferring/conveying title to another
title vesting
proof of ownership
deed
written instrument that is used to transfer title from one person to another
5 basic implied warranties
covenant of seizen, covenant against encumbrances, covenant of quiet enjoyment, covenant of further assurance, covenant of warranty forever
covenant against encumbrances
grantor guarantees that the property is free from any undisclosed encumbrances
covenant of seizen
grantor is the rightful owner with legal right to convey title
covenant of quiet enjoyment
grantor ensures that the property’s title can stand up to third party claimants
covenant of further assistance
grantor ensures delivery of any instrument required to remove any clouds on the title
covenant of warranty forever
guarantees the quality of the title against any future failure
quitclaim deed
the grantor only conveys the right, title and interest of the grantor
cloud on title
any condition that effects the clear title of real property or minor defect in the chain of title which needs to be removed
patent
document used by the government to transfer title to land instead of using a deed
contract for deed
conditional sales contract, aka land/installment contract
carry back
when the seller extends credit to a buyer by taking a promissory note
partition action
a court proceeding to settle a dispute between co-owners about dividing interest in property
financially insolvent
debts exceed assets and unable to pay current liabilities
intestate succession
when someone inherits a property without a will
color of title
the chain of transfers is irregular but ends with adverse possessor
accession
owners right to anything on the property that was placed there by man or natural forces
accretion
buildup of land due to avulsion
form T-1
owner policy
form T-IR
residential owner policy
form T-2
benefits the lender
table funding
the lenders ability to provide loan funds on the same day the transaction is signed by all parties
avulsion
sudden removal of land
reliction
receding of water through drought
primary purpose of a deed
transfer ownership
purpose money loan
when a seller carries the paper on the sale of their home
carryback financing
extension of credit by seller who takes back the note for a portion of the property
wraparound loan
used when seller acts as the lender for his/her own property
alienation
prohibits the transfer of a property to a new owner without the approval of the underlying lender
promissory note
evidence of a debt
usury
the act of charging a rate of interest in excess of that permitted by law
yield
interest earned on a loan
defeasance clause
paid in full
holder in due course
one who takes an instrument for value in good faith absent any notice that is overdue
straight note
calls for interest only payments for the term of the loan
installment note
requires periodic payments on the principal with interest payments made seperately
hypothecation
a legal arrangement that allows a borrower to remain in posession of a property secured by a loan
equitable title
the right to obtain absolute ownership to property when legal title is in another’s name
bare legal title
lacks the usual rights and privileges of ownership
deed of reconveyance
conveys title from the trustee to the borrower
