Unit #5 - Encumbrances Vocab

Question 1

Abstract of Judgment

Answer 1

Document stipulating the outcome of a legal action, which can be filed in any country where the judgment debtor has property.

Question 2

Attachment

Answer 2

At the plaintiff’s request, even before the outcome of the case is decided, the court may order that title to real or personal property of the defendant be “seized” and held by the court as security for satisfaction of the potential award to the plaintiff. Restricted to cases primarily involving business, trade or profession.

Question 3

Bankruptcy

Answer 3

Bankruptcy is a legal process through which people or other entities who cannot repay debts to creditors may seek relief from some or all of their debts. In most jurisdictions, bankruptcy is imposed by a court order, often initiated by the debtor.

Question 4

CC&R’s

Answer 4

Also referred to as “restrictions”. All serve to control land use. Commonly found in the declaration of Restrictions filed by a developer when a subdivision plan is recorded. The deed to each buyer of a subdivision lot will included CC&R’s

Question 5

Cloud on the title

Answer 5

This means that there is some reason why the owner’s interest is less than perfect. This means the property may not be marketable or it may be marketable only at a reduced price because of questionable title.

Question 6

Condition

Answer 6

Generally is enforceable by the person imposing the condition. In a sale transaction, that would be the seller.

Question 7

Covenant

Answer 7

An agreement/promise.

Question 8

Deed Restriction

Answer 8

A prohibition against a property use that is imposed in the grantee’s deed. HOA frequently make use of deed restrictions to ensure that the uniform appearance of the homes in a subdivision is maintained.

Question 9

Defendant

Answer 9

an individual, company, or institution sued or accused in a court of law.

Question 10

Dominant Tenement

Answer 10

An easement allows the owner of one parcel to travel over an adjoining parcel. The land benefited by the easment is the dominant tenement. EX: a driveway that drives over another persons property to get to yours.

Question 11

Easement

Answer 11

An easement allows the owner of one parcel to travel over an adjoining parcel.

Question 12

Easement by appurtenant

Answer 12

Sometimes called an “easement appurtenant.” An appurtenant easement benefits the holder in using a specified parcel of land, the benefited property.

Question 13

Easement by condemnation

Answer 13

Private property for public use through the
government’s power of an eminent domain.

A declaration that a structure is unfit for occupancy
and must be closed or demolished.

Question 14

Easement by implication of law

Answer 14

In some cases the law will imply an easement to travel over someone else’s land. If a subdivision plat map shows streets and easement to use those streets is an Easement by implication of law.

Question 15

Easement by necessity

Answer 15

If someone sells a parcel of land that is surrounded by land owned by someone else there will be an easement that allows driveway access to their home across someone’s property.

Question 16

Easement by prescription

Answer 16

Acquired in much the same way that ownership of land is acquired by adverse possession. The major difference is that to acquire an easement property taxes need not be paid.

Question 17

Easement in gross

Answer 17

gives a person the right to use the land of another person. He or she can use the land for as long as the other party owns the property or the holder of the easement is alive.

Question 18

Encroachment

Answer 18

Occurs when part of an improvement extends over the boundary line between properties without permission. Fences and buildings ae typical forms of encroachment.

Question 19

Encumbrance

Answer 19

Anything that has an effect on an owner’s

• fee simple title to real estate or
• use of the property

Question 20

Equity

Answer 20

the market value of the home less any liens and encumbrances. If the homeowner’s euity is greater than the amount of the exemption, the home could be sold at the court’s direction to satisfy any unpaid creditors.

Question 21

Express Grant

Answer 21

The granting of permission, by the owner of the land where the easement would lie. This grantor must be the sole and actual owner of that real property in order to grant the easement with rightful use of it.

A typical example an easement granted by express grant, would be an individual who requests access to build a walkway on his neighbor’s property. Perhaps the property of a neighbor A is situated somewhat in back of, and to the side of neighbor B.

Question 22

Express Reservation

Answer 22

An express easement created by express reservation is an easement that is created when the owner of one large piece of land splits the land into two or more pieces and places an easement on one or more of those pieces at the time that the land is split apart.

Question 23

General Lien

Answer 23

Applies to all property of the debtor. a right of a creditor to retain property, not merely for charges relating to it specifically, but for debts due on a general account.

Question 24

Homestead

Answer 24

State homestead laws allow homeowners to register part of their property as a homestead, which can offer property owners certain legal protections. Some state homestead laws can also mandate a maximum amount of property that can be claimed as well as the type of property.

Question 25

Homestead Exemption

Answer 25

Protects from 75,000 to 175,000 of the homeowner’s equity in the dwelling from unsecured creditors. Filing a declaration of Homestead offers the homeowner the greatest from the exemption.

Question 26

Injunction

Answer 26

An injunction is a writ or order requiring a person to refrain from a particular act. It may be granted by the court in which the action is brought, or by a judge thereof; and when granted by a judge, it may be enforced as an order of the court.

Question 27

Involuntary Lien

Answer 27

A lien that is imposed without the agreement of the property owner. Made possible my laws that prescribe ways in which unpaid debts can be used by creditors or gov agencies.

Question 28

Judgment

Answer 28

The party who wins a legal action may receive a judgment from the court that includes the award of money damages against the losing party.

Question 29

License

Answer 29

A permit from an authority to own or use something, do a particular thing, or carry on a trade

Question 30

Lien

Answer 30

An encumbrance (a mortgage or other charge on property or assets) that makes property security for the payment of a debt or discharge of an obligation.

Question 31

Lien Release

Answer 31

Should be filed with the county recorder to prevent a cloud on the owner’s title.

Question 32

Lien Release Bond

Answer 32

An “alternate security” for the lien liability. The Code allows the property owner, the contractor or design professional holding the lien or any party with an interest in the property, such as a mortgage bank or creditor that relies on the property as collateral to secure its extension of credit.

Question 33

Marketable Title

Answer 33

A property owner has a marketable title if the property is readily salable to a prudent purchaser.

Question 34

Mechanic’s Lien

Answer 34

Used to help secure payment for any labor, service, equipment, or materials used in the construction of improvements to real estate. An important protection rooted in the California Constitution.

This is how a mechanic ensures they are paid. The lien will go against the amount owed on the home creating a cloud on the title.

Question 35

Notice of Cessation

Answer 35

or “NOC” means a form used to notify the director, within a specified time, that a discharge or activity, or phase of discharge or activity has ceased.

Question 36

Notice of Completion

Answer 36

May be filed by the owner with the county recorder within 10 days after work is completed.

Question 37

Notice of Nonresponsibility

Answer 37

This is how the owner of real estate can create a paper trail of unauthorized work that has begun on their property. Owners can post a notice of non-responsibility in a conspicuous place on the land and record a copy of the notice with the county recorder. Must be posted within 10 days of learning of the construction, repair or other work.

Question 38

Payment Bond

Answer 38

How to guard against possible claims is to require that the contractor obtain a payment bond. The bonding company compensates the owner if the contractor defaults in the performance of contract obligations, such as the payments of workers and suppliers.

Question 39

Plaintiff

Answer 39

The person who files the lawsuit against a defendant.

Question 40

Power of Eminent Domain

Answer 40

Eminent domain refers to the power of the government to take private property and convert it into public use.

Question 41

Preliminary Notice

Answer 41

For a mechanic’s lien is to be filed, preliminary notice may be required to be given to the owner, the construction manager and the construction lender. Establish the starting and completion time of the work or materials supple.

Question 42

Priority of Claims

Answer 42

is the order in which creditors are paid. The priority of claims against a declared homestead has been established by law. Proceeds of a forced sale go to:

• Holders of liens and encumbrances on the homestead.
• Homeowner in the amount of the homestead exemption only
• The levying officer for reimbursement of costs for which an advance has not been made.
• Judgment creditors
• The homeowner.

Question 43

Restraint on Alienation

Answer 43

Any condition that prohibits a property owner from transferring title to the property. EX: Oliver Oldtimer sells his ranch to his son with the condition that title may never be transferred to anyone outside of the family.

Question 44

Restriction

Answer 44

A limitation on the use of land, The most common private restrictions are the covenants, conditions and restrictions found in the deed.

Question 45

Satisfaction

Answer 45

(payoff) A satisfaction of mortgage is a legal document indicating that a mortgage loan has been paid in full and all the adjacent obligations have been fulfilled. As a result, the lien attached to the property was removed.

Question 46

Servient Tenement

Answer 46

Property burdened by an easement. In other words, the owner of the servient tenement must allow someone who has an easement (the dominant tenement) to use the property.

Question 47

Six-month Rule

Answer 47

You must wait six months after your most recent closing (usually 180 days) to refinance if you’re taking cash-out to pay off creditors.

Question 48

Specific Lien

Answer 48

Applies only to identified property, such as a parcel of real estate.

Question 49

Starting Time

Answer 49

The date a construction project begins, this determines when or if a preliminary notice is given.

Question 50

Tax Lien

Answer 50

An involuntary lien that arises from a taxpayers obligation to pay

• real property taxes
• state income and estate taxes
• federal income, gift and estate taxes

Question 51

Trustee in Bankruptcy

Answer 51

Holds title to the debtors assets. The trustee is responsible for the sale of the assets as necessary and issues a trustee’s deed to the buyer of the real property.

Question 52

Trustee’s Deed

Answer 52

At the foreclosure sale, the trustee auctions the real estate and awards it to the highest qualified bidder. When the trustee receives the funds from the bidder, the trustee transfers title to the bidder by using a deed commonly referred to as a trustee’s deed upon sale.

Question 53

Voluntary Lien

Answer 53

One agreed to by the property owner. A mortgage or deed of trust that an owner of real estate gives to obtain financing.

Question 54

Writ of Execution

Answer 54

Any nonexempt property may be sold to pay a judgment debt. Directs the sheriff or other officer to sell the property.

Question 55

Zoning

Answer 55

Act of city or county government. Zoning laws or ordinances specify the possible uses of property in a defined area. Subject of many legal battles involving the extent to which public interests can take priority over private ones.