Unit 3-Ownership and Title transfer Flashcards
Ownership by an individual is known as an Estate in_______.
Severalty–upon death, property goes to heir’s or devisees
T or F: Legal Entities can own in severalty.
True–2 or more people or firms may join as an entity to own real estate(a syndication) i.e. corporation, trust, REIT(invest. trust)
In a ________ ___________, all partners have EQUAL say and liability.
General Partnership
In a ________ ___________, the limited partners’ liability is equal to their share of ownership.
Limited Partnership
In this form of ownership 2 or more people share ownership with UNDIVIDED interests. Because their share is fractional but undivided, they have equal rights of possession
Concurrent(multiple) Ownership/Co-ownership
Should RE professionals ever give legal advise to buyer’s on the most appropriate form of ownership?
NO, seek legal council
This form of co-ownership has no rights of survivorship to other owner’s, and is usually the default in most states unless otherwise stated in deed.
Tenancy in Common–interests go to heirs or devisees
T or F: Shares of ownership can be unequal in a Tenancy in common and is subject to probate
True
A partition lawsuit may help divide property amongst owners in a ________.
Tencancy in common
This form of co-ownership DOES have a right of survivorship to other owners.
Joint-Tenancy
To become a joint tenancy is must be specified in a __________.
Deed–and ownership shares MUST be equal in joint tenancy
In this form of co-ownership, interests go to co-owners without going through probate.
Joint Tenancy
T or F: Joint Tenancy overrides a will, and the joint tenancy affidavit must be recorded.
True
T or F: Four Unities of Possession, Interest, Title, and Time(PITT) must be present in joint tenancy.
True
Any property acquired by either spouse during marriage is considered _______ _________.
community property
Condos, cooperatives, and other forms of common interest ownership are often regulated under a state’s_______________________.
Common interest ownership act
T or F: Seller’s DO NOT have disclosure requirements to buyer’s related to the sale of common interest property.
False–usually some CCR’s, Covenants, Conditions, and Restrictions
Real estate ownership type where portions are designated for separate ownership and the remainder is designated for common ownership and use(common elements).
Condo-could be residential or commercial, uses common elements
T or F: Condos are created by a declaration, describing the legal and physical structure along with any restrictions on use.
True
Shared walls separating ownership interests are called _______ _______.
Party Walls, Declaration states these common and limited common elements
_________ elements are owned by all unit owners in a condo as tenants in common.
Common
Parking spaces, storage units, and balconies in a condo are considered __________common elements
Limited
T or F: Each Condo unit is a member of the OA or HOA can impose and collect assessments(association fees), which creates a foreclosable lien on the unit
True
HOA may set rules for rentals, hold meetings, collect fees but DO NOT _________ land.
Develop
Do Condos have separate Title and Taxation?
Yes–Deed transfers fee simple interest in unit plus undivided interest in common elements; all owners share ownership of common elements in tenants in common.
Town homes are similar to condos in unit ownership and HOAA, but usually include the land ________ and ________ the unit.
Under and Around
Owners are stockholders in this form of co ownership.
Cooperative
T or F: Cooperatives are owned by a corporation and the buyer receives a proprietary lease, no deed, no ownership.
True-stockholders/tenants pay assessments and association fees, the corporation owns the real estate
A __________is where a purchaser buys interest in real estate and receives a right to use property for certain periods of time.
time-share-usually a resort property
In a time share, purchasers own units as ____________.
Tenants in common
The act of conveying or transferring title of a real estate ownership(title) is referred to as _________.
Alienation
A _________grant is from individuals, using a deed.
Private
A _______ grant is from government to individuals, using a land patent.
Public
A ______________ is from individuals to the government.
Dedication
The two parties in conveying deeds are referred to as the _________and __________.
Grantor and Grantee
Purpose of the deed is the voluntary transfer of ________ between Grantor and Grantee.
Title
The ___________of real property will always be required to provide WRITTEN deed.
Seller
Deeds ____________guarantee or prove ownership.
DO NOT–they also don’t need to be recorded for title transfer; it passes upon acceptance by the grantee.
Acceptance by the grantee is when _______ transfers.
Title
A competent grantor is 18, sane, and _______.
Sober
A deed was only signed by 1 owner, is it conveyable?
No, must be signed by all owners
T or F: There are 7 essentials elements of a deed
True-Competent Grantor, execution by grantor, Identifiable Grantee, Delivery & Acceptance by Grantee, Legal Description, Consideration, Words of Conveyance
Earnest Money _________ consideration.
IS NOT
The words of conveyance are the ________ clause.
Granting
Consideration is _______ or something of value, one dollar and other good and valuable consideration.
Money
“to have and hold forever” would convey a _______ _______ estate.
Fee Simple Absolute estate
The habendum clause conveys the _______ estate
Freehold
The ________warranty deed provides the greatest protection for the grantee and includes the most promises or covenants
General
The _________ warranty has 5 covenants and warranties of title.
General
When a grantor owns and has the right to convey title, this is the Covenant of ___________.
Seisin
A warranty that the grantee will not be disturbed by others claiming an interest on title is known as the Covenant of _____________.
Quiet Enjoyment
T or F: The Covenant against encumbrances means there are no undisclosed encumbrances
True
When the grantor guarantees future cooperation in signing additional documents it is known as the Covenant of ________________.
Further assurances
T or F: A “warranty forever” guarantees defense of title against claims such as liens or easements
True–is in the General warranty
What 2 warranties does a special(limited) warranty contain?
Seisin(owns and can convey) and will protect against defects or encumbrances arising DURING the GRANTOR’s ownership period.
This type of deed is the best for the seller(grantor).
Quitclaim
In this type of deed, there are no covenants or warranties, “what I have, you now have”, usually used to clear title.
Quitclaim deed
This deed does NOT warranty against liens or encumbrances but WARRANTS the grantor’s right to convey title.
Bargain and Sale deed
This deed transfers title at the end of a foreclosure proceeding or statutory redemption period
Sheriff’s deed/trustee’s deed/certificate of sale
This deed is used when the borrower pays off a loan secured by a deed of trust.
Reconveyance deed
The process of distributing all of a deceased person’s assets is called ____________.
Probate
T or F: A will MUST go through probate in order for the devisee to receive real property.
True–the person who has a will is the testator,
The ACT of transferring a deceased person’s interest in real property to another deed is called ________.
Devise—the person receiving is the devisee
With a will, all heirs are known and there is no chance of ______.
Escheat
The act of transferring a deceased person’s interest in PERSONAL property to another in a bill of sale is a ____________.
Bequest
T or F: Intestate succession means the deceased has NO will.
True
If a person has no will, states will use ________to determine heirs/descendants for property to pass to.
State Laws of Descent
Adverse possession and easements by prescription are types of involuntary ___________.
Alienation
If all parties know of and agree on possession or use, it cannot be __________ possession.
Adverse
T or F: Owners who do not inspect their property regularly may lose rights of ownership if another possesses or uses the property for a statutory period of time.
True
T or F: ONCHA, adverse possession is recognized by courts after Open, Notorious(hostile), Continuous, and Actual possession for a set period of time.
True
This easement is recognized by the courts, OCEAN must be present as well, more with USE of one’s land.
Easement by prescription
Most states require a seller provide a seller’s property ___________.
Disclosure
_________, never the broker, must complete the disclosure to the best of their current knowledge.
Seller’s
A __________ ________or defect is one that, if known, may change a buying decision.
Material Fact
A ________ _________ is a hidden fact that is not easily discovered by an inspection.
Latent defect
Seller and _________ must disclose visible and latent material defects(facts)
Brokers
Upon discovery of a material defect, a ________must IMMEDIATELY disclose it to all parties to the transaction or potential transaction
Broker
The _________ will be held responsible if Broker visually inspects, found no obvious defects, and seller misrepresents a latent defect.
Seller
A form of concurrent ownership in which each tenant owns an undivided ownership share in the entire property and has no right of survivorship is __________.
Tenants in common
T or F: To be valid, a deed must have a property description.
True