Unit 9

Question 1

refers to the collection of rights that a person has in the ownership of real property.

Answer 1

Title

Question 2

the right to obtain full ownership of property, where another maintains legal title to the property.

Answer 2

Equitable title

Question 3

actual ownership of the property.

Answer 3

Legal title

Question 4

How do the equitable and legal titles pass to the buyer?

Answer 4

When a contract for the sale of land is executed, equitable title passes to the buyer. When the conditions on the sale contract have been met, legal title passes to the buyer in what is known as closing.

Question 5

How do legal and equitable title also arises in trust?

Answer 5

In a trust, one person may own the legal title, such as the trustees. Another may own the equitable title such as the beneficiary. When a seller of a property finances for the buyer, an equitable title may also be granted until the buyer pays the seller in full. An Equitable title may be homesteaded as if the owner had full title to the property.

Question 6

How is a transfer of ownership (of title) done?

Answer 6

By deed or operation of law. It is done voluntarily or involuntarily. When the deed is issued and all parts of it are properly executed, the new owner will have the same rights as the previous owner to the property.

Question 7

means transfer when used as a real estate term

Answer 7

alienation

Question 8

means the grantor (owner of the property) had a choice and made the decision to transfer his property to someone else

Answer 8

Voluntary alienation

Question 9

means the grantor (owner of the property) did not have a choice; that the law determined that the property would be transferred as in eminent domain or other government interferences

Answer 9

Involuntary alienation

Question 10

means the taking of private property for public good, such as the taking of a home so a new highway could be built. Eminent domain will be discussed in more detail later in the course

Answer 10

Eminent domain

Question 11

The two ways to voluntarily transfer real property:

Answer 11

By deed or by will

Question 12

How does a grantor transfer his property?

Answer 12

By deed when the property is sold or when the grantor wishes to give a gift of property to another. In order for a deed to be valid, the transfer must occur during the grantor’s lifetime.

Question 13

When a grantor conveys (transfers) his property to another through a will, the person making the will is called the:

Answer 13

testator

Question 14

If the transfer occurs after the death of the grantor, the transfer is made by:

Answer 14

will

Question 15

the person receiving the property is called

Answer 15

devisee

Question 16

Real property given in a will is a:

Answer 16

devise

Question 17

personal property in a will is a:

Answer 17

bequest

Question 18

The person receiving the bequest is a

Answer 18

beneficiary

Question 19

Describe the process when a grantor conveys (transfers) his property to another through a will.

Answer 19

Grantor gives to the Grantee a Deed
Testator makes a will
Devisor gives to a Devisee a Devise
Testator gives to a Beneficiary a Bequest.

Question 20

a written instrument (paper) that describes how the testator (will maker) wishes to have his world goods- real and personal property disbursed. It is considered by the court to be the testator’s final wishes for distribution

Answer 20

will

Question 21

If a person dies with a will he/she dies:

Answer 21

Testate

Question 22

If a person dies without a will he/she dies:

Answer 22

Intestate

Question 23

The maker of a will is a

Answer 23

testator

Question 24

Although not used as much in modern law, a female maker of a will is called a:

Answer 24

testatrix

Question 25

In order for a will to be valid, certain items must be in place:

Answer 25

The testator must be of legal age. (18 or older)
The testator must be of sound mind.
The will must have the proper wording.
There can be no undue influence, menace or duress from others on the testator.
There must be the correct number of witnesses as determined by the state.

Question 26

A will that is written, dated and signed in the testator’s own handwriting but not witnessed. Are not valid in Florida.

Answer 26

holographic will

Question 27

a formal court hearing to establish the validity of a will after the death of the individual. This is usually a lengthy and sometimes costly procedure

Answer 27

probate

Question 28

The four ways that property is transferred by involuntary alienation

Answer 28

Foreclosure
Escheat
Eminent Domain
Adverse possession

Question 29

When a person dies without a will, the state has established who will inherit the property. The term _________ means the hereditary succession of the property by operation of law- meaning the state has determined who the heirs will be.

Answer 29

Descent

Question 30

The person who dies without a will dies Intestate. The state of Florida then takes over and establishes who the heirs will be by the probate courts establishing the line of descent and distribution. In other words, the courts determine who will inherit and in what order. When the phrase By Operation of Law is used, it means that the courts have intervened.
After the line of descent and distribution is established, the courts will then release the property to the heirs, usually with some type of deed with no promises of ownership to the heirs.

Answer 30

The person who dies without a will dies Intestate. The state of Florida then takes over and establishes who the heirs will be by the probate courts establishing the line of descent and distribution. In other words, the courts determine who will inherit and in what order. When the phrase By Operation of Law is used, it means that the courts have intervened.
After the line of descent and distribution is established, the courts will then release the property to the heirs, usually with some type of deed with no promises of ownership to the heirs. Pg. 5

Question 31

What happens totheproperty if thereis no will or heir?

Answer 31

Because property must always belong to someone, the state of Florida has the legal authority to take ownership of the property if there is no will and no heirs. Only the state where the property is located can do this.

Question 32

The government (State of Florida) has the power to act in certain areas within our private properties. What powers do they have in our properties?

Answer 32

P.E.T.E. = Police Power, Eminent Domain, Taxation, and Escheat powers

Question 33

The constitutional authority and inherent power of a state to adopt and enforce laws and regulations to promote and support the public health, safety, morals and general welfare.

Answer 33

Police Power

Question 34

The right of the government (both federal and state), public corporations, (school districts, sanitation districts),public utilities and public service corporations (railroads, power companies)to take private property for a necessary public use, with just compensation paid to the owner.

Answer 34

Eminent Domain

Question 35

The right of the government to collect taxes on properties to support the cost of public services.

Answer 35

Taxation

Question 36

If property owners die without a Will and with no heirs their property _________ or belongs to the state.

Answer 36

Escheat

Question 37

Issued in those states which allow it to protect either the buyer or the lender or both for time previous to the closing date.

Answer 37

title insurance

Question 38

A title policy made out for the price of the property at the time of closing. This policy is for protection against claims of others which may not have surfaced prior to closing. The value of the policy never goes down and may go up if there is an inflation clause added. There are some strict legal words in the policy so the buyer should read it carefully before purchasing.

Answer 38

Owner’s Policy

Question 39

The owner’s policy is also called:

Answer 39

The Mortgagor’s policy

Question 40

This policy only protects the owner for the purchase price of the property and is NOT transferrable. Either the home seller or the home buyer may buy it. In many areas, sellers pay for these policies as part of their obligation to show good faith in granting a General Warranty Deed in the transfer of title to the home buyer.

Answer 40

Owner’s policy

Question 41

The lender also seeks protection against claims on the property so the buyer purchases a _____________ to protect the lender as a condition of obtaining the loan. The policy decreases in value as the loan amount goes down but the Mortgagor’s policy does not. This policy is transferable and paid by the buyer in most cases.

Answer 41

Lender (Mortgagee’s) policy

Question 42

Document (instrument) which transfers ownership from the grantor to the grantee. This is a dated document and transfers property one time only. There are different types of deeds and the difference is primarily in the promises made by the grantor.

Answer 42

Deed

Question 43

What are the basic types of deeds

Answer 43

General Warranty Deed; Special Warranty Deed; Bargain and Sale Deed; Quit Claim Deed

Question 44

A deed is written in three parts. The names of the three parts are:

Answer 44

Premises, Habendum and Testimonium

Question 45

The Premises of a deed must contain:

Answer 45

Name of the grantor (correct legal name),
Name of the grantee ( correct legal name),
Accurate legal description of the property (legal description on record).

Question 46

The Habendum of a deed must contain:

Answer 46

Recitation of consideration “for one dollar and other valuable consideration”; Granting Clause; Habendum Clause; Designations of any limitations of ownership,
Exceptions and Reservations - references to any restrictions and covenants, etc., of a subdivision; and
Appurtenances

Question 47

promises of the seller

Answer 47

Granting Clause

Question 48

Defines ownership taken by the grantee. It clarifies the purpose of the deed with the phrase “to have and to hold”.

Answer 48

Habendum Clause

Question 49

The Testimonium of a deed must contain:

Answer 49

Signed wishes of the grantor (Acknowledgement) - where the grantor transfers the property of his own free will.
In Florida, signatures of two witnesses
Delivery by the grantor and acceptance by the grantee.

Question 50

Legal transfer of a deed takes place when the deed is:

Answer 50

Voluntarily accepted by the grantee. Date is not required but is frequently in place if the deed is recorded in the county where the property is located.

Question 51

The following must be in place for a deed to be valid:

Answer 51

The grantor must be of sound mind and of legal age to convey property: the grantee has no such restrictions to receive the property. If it can be proven that the grantor was not of sound mind, the deed can be voided. Words of conveyance must be used. Specific words have special meaning in each type of deed, for example “grant and convey” are usually used on a general warranty deed and “release, remit, and quitclaim” are used in a quit claim deed. A complete and accurate legal description must be used so that a reasonably competent surveyor could find the property. No two legal descriptions are the same. The legal description serves as a description of one specific property much the same as a social security number is assigned to one person in the United States.
The grantor must acknowledge the deed, which means the grantor must sign the deed indicating that he, the grantor, conveys the property of his own free will without duress, menace or undue influence. In Florida, two witnesses are required to validate the signing of the deed. Delivery and Acceptance takes place. The grantor delivers the deed to the grantee who must accept the deed. After the acceptance by the grantee the property legally is transferred. If the grantee refuses the deed, there is no transfer.

Question 52

A promise exchanged for another promise, as well as a recitation of an amount of money

Answer 52

Consideration

Question 53

True or False. A grantor may use any number of deeds to convey (transfer) property from one person to another.

Answer 53

True

Question 54

The importance of each type of deed is based on:

Answer 54

The type of promises made from the grantor to the grantee in each.

Question 55

The highest and best deed. This is the type most often used in residential transactions.

Answer 55

General Warranty Deed

Question 56

A general warranty deed promises the following:

Answer 56

The Covenant of Seisen; The Covenant against Encumbrances; The Covenant of quiet enjoyment; The Covenant of Further Assurance; and The Covenant of Warranty Forever

Question 57

This promises that the seller owns the property and has the right to convey it to another.

Answer 57

The Covenant of Seisen

Question 58

“that belonging to the property.”

Answer 58

seisen

Question 59

A burden on the property such a lien or a tax.

Answer 59

encumbrance

Question 60

The grantor assures the grantee that there are no encumbrances against the property unless they are spelled out in the deed. This means that the grantor assures the grantee that he (the grantor) has not sold the water rights or given an unknown right away that is not listed in the written public record. If there is a violation of this covenant, the grantee can sue the grantor.

Answer 60

The Covenant against Encumbrances

Question 61

Means that the grantee can live in peace without any other claims on his property disturbing him. Usually, through the purchase of owners’ title insurance, the seller would guarantee this covenant. Specifically, this deals with anyone who may have a Color on the Title or claim on the property. All of these claims should be disposed of before the grantee gets the property.

Answer 61

The Covenant of quiet enjoyment

Question 62

Is given by the Grantor to assure the grantee that should further paperwork or legal work need to be done to correct the title, the grantor will provide.

Answer 62

The Covenant of Further Assurance

Question 63

The grantor will defend and protect the title for any defects that were created during the grantor’s ownership of the property or before.

Answer 63

The Covenant of Warranty Forever

Question 64

Limits the time frame of the covenants to the time that the seller actually owned the property. Any color or Cloud of Title previous to the grantor’s ownership is up to the grantee to settle. This type of deed is usually used by large corporations in business real estate or banks that have foreclosed on a property.

Answer 64

A Special Warranty Deed

Question 65

Indicates the grantor has ownership of the property - and that’s all. No other covenants are made. This type of deed is given for properties which have been auctioned. Trustees, fiduciaries and officers of the court often use this deed.

Answer 65

A Bargain and Sale Deed

Question 66

Says that the grantor “quits” or releases any interest that he may have had in the property, if he had an interest. There are no covenants made in this deed. It uses the granting words of “release, remit and quitclaim” to convey the property. This deed is commonly used to correct spelling of a grantor’s or grantee’s name or other mistakes made in another deed. While it is a deed of conveyance and used commonly, it will send a ‘red flag’ message to anyone examining the title to study the ownership more carefully. This is further the result of a Quiet Suit to title.

Answer 66

A Quit Claim Deed

Question 67

These deeds are all used in financing

Answer 67

Deed of Trust, Deed of Reconveyance, and Deed of Release

Question 68

Are given by the court, trustees, or the sheriff and are similar to a bargain and sale deed. These do not have any promises other than that the owner owned the property.

Answer 68

Special Purpose deeds

Question 69

Zoning laws regulate:

Answer 69

use of land; lot sizes; types of structures permitted
building heights; setback lines (how far from the street an improvement can be built); density (how much land to improvement ratio or people per acre); and types of animals that are permitted

Question 70

A violation of zoning requirements makes a title ______________.

Answer 70

unmarketable

Question 71

If the seller or a broker misrepresents the actual permitted zoning use of a property, a buyer may:

Answer 71

Rescind (take back) the transaction, based on misrepresentation.

Question 72

_________________ are designed to provide minimum standards. The goal is to safeguard the health, safety, and welfare of the public by regulating and controlling the design, construction, quality, use and occupancy, location and maintenance of all buildings and structures.

Answer 72

Building codes

Question 73

How are building codes enforced?

Answer 73

By the issuing of building permits and certificates of occupancy, and by inspections, with fines being imposed on violators.

Question 74

Some examples of police power are:

Answer 74

Zoning laws; Building codes; Environmental Protection Laws

Question 75

Set up by the federal EPA and state departments of health to regulate air, water, and noise pollution, as well as other environmental conditions, including the cleanup of hazardous substances.

Answer 75

Environmental protection standards

Question 76

What are some examples of environmental issues that concern real estate licensees and consumers?

Answer 76

Asbestos, lead based paint and other lead hazards, radon, formaldehyde, mold, carbon monoxide, electromagnetic fields, groundwater contamination, underground storage tanks, and waste disposal sites.

Question 77

What are the characteristics of Eminent Domain?

Answer 77

Process is called Judicial Condemnation; Owner must be compensated; Must be for public good; Owner must have due process

Question 78

__________ a law suit if owner feels it is not for public good.

Answer 78

Taking

Question 79

The right the government has to collect funds to pay for public services. These taxes will take priority in the sale of a home and need not be recorded to be valid.

Answer 79

Taxation

Question 80

What are the two types of taxation?

Answer 80

Special Assessment and Ad Valorem

Question 81

Are used for a “one-time” fee for something that affects one piece of property at a time.

Answer 81

Special Assessment Taxes

Question 82

Give examples of Special Assessment Taxes.

Answer 82

If new curbs and gutters are installed by the city in front of a home, the owner will be assessed a special assessment tax to pay for these improvements. The tax will be based on a frontage foot basis, rather than by value. When the special need is paid for the tax is dropped.

Question 83

“Value added tax” but these are always real estate taxes, based on actual value of the home, assessed value of the home, and the year’s tax rate per hundred dollars of assessed value. The taxes are based on the city and/or county needs for services such as fire, water and police protection as well as schools, libraries and ambulance districts.

Answer 83

Ad Valorem

Question 84

All property must have an owner. When an owner dies without a WILL and without HEIRS, the property reverts back to the state. Similarly, if the property is abandoned (through lack of paying taxes), the ownership of the property goes to the state.

Answer 84

Escheat

NO WILL+ NO HEIRS= ESCHEAT to the STATE

Question 85

anything that burdens or limits the title of a property

Answer 85

encumbrance

Question 86

Give examples of encumbrances.

Answer 86

Deed Restrictions; Easements; Leases; Liens; Encroachments; Licenses

Question 87

A grantor making the deed may make certain restrictions on the use of the property. For example, the owner may say that no alcohol can be served on the premises, or that only certain types of homes can be built. These exist in many Homeowner’s Associations and Condominiums.

Answer 87

Deed Restrictions

Question 88

Most of the deed restrictions are called:

Answer 88

Restrictive Covenants

Question 89

Restrictive covenants run with the land forever, unless some legal remedy is sought to remove them. Typical restrictive covenants deal with:

Answer 89

subdivision requirements and may limit housing to certain types and sizes; may prohibit above ground pools; may limit the number of pets or parked cars, etc.

Question 90

True or False. A buyer has a right to know about any covenant which would be limiting to him prior to closing and it should be disclosed.

Answer 90

True.

Question 91

What are the two types of deed restrictions:

Answer 91

Limiting restrictions

Question 92

State things you can never do (No fences, no dog runs etc.)

Answer 92

Limiting restrictions

Question 93

State things you must abide by. (Set back requirements, minimum square footage, front of house must be brick etc.

Answer 93

Affirmative restrictions

Question 94

Who can enforce deed restrictions?

Answer 94

Enforcement of restrictions is always done by a court of law.

Question 95

Who can bring an action asking for enforcement?

Answer 95

Anyone who is under the same restrictions who feels there has been a violation.

Question 96

Name Unenforceable Deed Restrictions.

Answer 96

Any restriction that violates public policy (state or Federal law) or is discriminatory is not enforceable. Any restriction that limits the new owner’s right to sell at a future date. Restrictions that have not been enforced in a timely manner. (Neighbor put up a fence years ago in violation of the restrictions and no one complained.) The courts may say the Statute of Limitations would not allow enforcement now. Any restriction that limits the protected classes under Federal Fair Housing.

Question 97

All restrictions are placed on the public record, recorded in the county where the property is located for _____________.

Answer 97

constructive notice

Question 98

A new restriction can be placed on a property by ____________ in a new subdivision and that restriction would be enforceable.

Answer 98

a vote of trustee

Question 99

An example of an encumbrance. Gives someone else (dominant estate) the right to USE a part of the property while the owner (servient estate) retains the ownership rights. These are non-possessory rights, just the right of ingress (enter) and egress (exit). For that reason, it is said to be an interest (claim) on the property, but not an estate.

Answer 99

Easements

Question 100

An easement is created by:

Answer 100

Implication; Reservation; Necessity; Condemnation; Express Agreement;

Question 101

A burden on the property. All easements are these but not all of these are easements.

Answer 101

Encumbrance

Question 102

An easement created by a court of law in cases of justice and if necessity dictates it, especially in a case of landlocked property.

Answer 102

Necessity

Question 103

An easement arising by implication from the acts of conducts of the parties. For example a person acquiring mineral rights on a property also acquires an implied easement to enter the property for the purposes of removing minerals.

Answer 103

Implication

Question 104

Exists when the parties state the terms and show their intentions in words. Can either be oral or written. Like all real estate contracts, these should be reduced to writing to be enforceable in a court of law.

Answer 104

Express Agreement

Question 105

The creation of a new right or requirement retained by the grantor after the property transfer. A reservation or reservations are rights to use the granted property by the grantor in the future. For example, if a grantor deeded 40 acres, but retained the right to cross the land to get to a family cemetery: this is a reservation.

Answer 105

Reservation

Question 106

A judicial or administrative proceeding to exercise the power of eminent domain. The agency taking the property is the condemnor, and the person whose property is being taken is the condemnee. When private property is taken for public good, a fee simple estate or other reduced interest like an easement, may be acquired. A common example is obtaining owner access to a street entrance when the county builds a highway.

Answer 106

Condemnation

Question 107

The four types of easements are:

Answer 107

Appurtenant; In gross; Necessity; Prescription

Question 108

Easements for adjacent properties. These easements run with the land and can’t be sold separately.

Answer 108

Appurtenant Easement

Question 109

Name the two parties of an appurtenant easement.

Answer 109

dominant tenement and servient tenement

Question 110

the property benefiting from the easement

Answer 110

dominant tenement

Question 111

the property burdened by the easement.

Answer 111

servient tenement

Question 112

NOT tied to any land, but are instead owned by a person or company. For that reason, they are considered a personal interest. They are usually commercial in nature and can be sold to others. A utility easement is an example.

Answer 112

Gross easements

Question 113

(Operation of Law) are also sometimes referred to as “easement by implication” and are created by a court of law. Would be granted to a landlocked property to provide egress. An example is a farmer sells 80 acres of ground between his barns and the road. The court would say that the farmer has the right to an easement by necessity to get feed to his animals from the main road.

Answer 113

easement by necessity

Question 114

An easement by adverse possession. The claimant has used the property for the time period set by law. (Under Florida Law it is 20 years). If the time element has been fulfilled, the claimant can go to court to get the right to use the land forever.

Answer 114

Easement by Prescription

Question 115

Requirements to create Prescriptive Easements:

Answer 115

Possession -an individual must be in possession of the property or have used the property for the prescribed time period required by the state where the property is located.
Open - the individual must make “open use” that is, everyone must be able to see what the person is doing. (No underground tunnels etc.)
Actual: similar to actual notice, the person must be in possession use of the property for the prescribed time for everyone to see.
Continuous: for the statutory time period.
Hostile: in violation of the owner’s legal description by using the owner’s property and claiming as one’s own.

Question 116

Easements can be terminated by:

Answer 116

The purpose of the easement no longer exists. (a new road is built, etc.). The holder of the easement abandons it for the statutory time period. A merger of the properties occurs so an easement is not needed. Destruction of the property or the easement (such as being at the bottom of a new dam filled with water.)
The owner of the easement issues a Quit Claim deed back to the property owner that granted the easement.
Excessive use occurs as determined by the courts.

Question 117

A possessory, non-freehold, interest in land, created without ownership. The parties to it are the lessor and the lessee. A contract between the lessor and the lessee,

Answer 117

lease

Question 118

Means either the lessor or lessee may have the right to transfer the interest each has to another, should they chose to do so. The assignee takes the place of the first person in all parts and conditions of the contract and is required to perform accordingly.

Answer 118

An assignment

Question 119

Define the lessor

Answer 119

landlord

Question 120

Define the lessee

Answer 120

tenant

Question 121

Define the assignee

Answer 121

the third party

Question 122

created when the lessee grants a portion of time or a portion of space to another. The original lessee retains the liability to the lessor for payment of rent.

Answer 122

sublease

Question 123

Name the types of Commercial Leases:

Answer 123

Sale to subject lease; gross lease; net lease; percentage lease; ground lease; index lease or variable index lease

Question 124

Occurs when a buyer purchases a property that is currently leased. The lessee retains his rights to the property until the end of his lease regardless of who owns the property. The lessor will change with the owner and all deposits and rents will be transferred to the new owner, but the lease will remain until its expiration.

Answer 124

A sale Subject to lease

Question 125

requires a tenant to pay only rent, usually on a square foot basis while the landlord pays all of the other expenses like taxes, insurance etc.

Answer 125

gross lease

Question 126

requires the tenant to pay rent plus a portion or all of other expenses such as taxes and insurance. Often referred to as a net net, net net net, or a triple net lease depending on the amount of expenses paid by the lessee, this lease may not only refer to a commercial property but may also be charged on a residential property.

Answer 126

A net lease

Question 127

requires the tenant to pay rent based on a percentage of his gross profits and is usually used in start-up business. The rent will increase as the business has more sales.

Answer 127

A percentage lease

Question 128

gives the tenant the right to build or use the land for a specific time period, up to 99 years. This provides the lessor an avenue to maintain ownership of the land but allows someone else to use it for a long time period. A large portion of Hawaii homes are built on these.

Answer 128

ground lease

Question 129

a lease that goes up or down, based on a specific index such as the Federal Reserve’s cost of funds, as agreed to by the parties.

Answer 129

An index lease or variable index lease

Question 130

has gradual increases built in so that the lessee has increased rent payment as time progresses.

Answer 130

A graduated lease

Question 131

a debt or charge against the property. It is a form of security interest granted over an item of property to secure the payment of a debt or performance of some other obligation.

Answer 131

lien

Question 132

The owner of the property, who grants the lien, is referred to as the:

Answer 132

lienee

Question 133

The person who has the benefit of the lien is referred to as the lienor or lien holder.

Answer 133

lienor or lien holder

Question 134

Name the two types of Liens;

Answer 134

Voluntary and Involuntary

Question 135

lien where the owner was willing to place on the property such as a mortgage lien or to secure building upon a property.

Answer 135

voluntary lien

Question 136

A Statutory Lien that governs construction liens. The purpose of this lien is to protect contractors, subcontractors, suppliers and homeowners. Its purpose is to provide a method to assure full payment to a contractor who builds on a property. For owner’s, Florida’s mechanic’s lien statute requires subcontractors to provide notice of possible liens, which allows owners to avoid double payment to a contractor, subcontractor, material supplier or laborer, for the same services or materials.

Answer 136

mechanics lien

Question 137

A lien that is based on state, local and federal written laws and is a lien that cannot be automatically discharged through bankruptcy. It can be based upon taxes, rent, maintenance services, construction, a mortgage, or usage.

Answer 137

Statutory lien

Question 138

A lien that was placed on the property without the owner’s consent or willingness. All liens except a mortgage lien are involuntary - such as special assessment liens, mechanic’s liens etc.

Answer 138

Involuntary lien

Question 139

Liens that are a result of losing a judgment case. A general lien is against all the assets of the person who lost the law suit and effects all real and personal property. (car, boat, house, or business).

Answer 139

General liens

Question 140

A lien that is always either a judgment lien or a mortgage lien and is based on a doctrine of fairness and a written contract.

Answer 140

Equitable lien

Question 141

A lien that is a general lien because income tax is initially based on a person. If that person does not pay his taxes, the IRS sues to get a judgment; then the court awards a judgment against all the assets of the individual including his property.

Answer 141

Income Tax lien

Question 142

liens that are applied to a specific piece of property and affect only that piece of property.

Answer 142

specific liens

Question 143

Specific liens are most often found by _____________ when listing or selling a property.

Answer 143

sales associates

Question 144

What is the best way to ensure no surprises are encountered at time of closing?

Answer 144

The , sales associates should make it a point to have a “preliminary title search” on a property that they list to ensure no liens exist on the property.

Question 145

In Florida, property taxes become a lien on a property in:

Answer 145

January of the tax year after they are due. In April, those taxes become delinquent.

Question 146

In order to pay for items budgeted for local schools and services, these taxes become certificates for others to purchase in order to ensure that government services are not shut down.

Answer 146

property taxes

Question 147

When an owner does not pay his or her taxes, and those taxes are sold through certificates, that owner must:

Answer 147

pay those taxes to remove the lien on their property, but also for up to 18% interest to be paid to those who bought their tax certificates for any year.

Question 148

Why is the priority of liens in foreclosure important?

Answer 148

It indicates who gets paid first.

Question 149

Describe the priority of liens.

Answer 149

1. Cost of the sale (paid to the county for advertising, legal fees etc.)
2. Property taxes (These do not have to be recorded.)
   Ad Valorem Taxes
   Special Assessment Taxes
3. First mortgage or Deed of Trust
4. All other mortgages and other types of liens recorded with priority established by date of recording including mechanic and materialman’s liens.

Question 150

What if there is not enough money for all the liens to be paid?

Answer 150

the court may issue a deficiency judgment against the borrower. The total assets of the borrower are then available for collection by the debt holder. Everything is available to the debt holder including cars, boats, campers, airplanes etc.

Question 151

A legal document used to make the claim of one party junior to (or inferior to) a claim in favor of another. It is generally used to allow first lien status to a lienholder who would otherwise be secondary to another party, with the approval of the party that would otherwise have first lien.

Answer 151

Subordination agreement

Question 152

When does subordination normally arise?

Answer 152

When there are two existing mortgages, a first mortgage and a second mortgage, and the mortgagor intends to refinance the first mortgage. If the holder of the second mortgage does not subordinate the lien of its mortgage to the new mortgage, the new lender will not refinance the first mortgage. However, the second mortgage holder does not want to release its mortgage and re-file, due to additional costs and priority problems, so it will subordinate its lien to the lien of the replacement mortgage.

Question 153

A listing agreement for the sale of commercial real estate will entitle the broker to a lien on:

Answer 153

the net proceeds from the sale.

Question 154

What are the requirements for placing a lien?

Answer 154

The broker must disclose before or at the time of executions of the agreement the broker’s lien right using language prescribed in chapter 475. F.S.
The broker must deliver a commission notice to the owner and closing agent within 30 days of the time a commission is earned. The delivery must also be one day before the closing.
If there is no dispute from the owner within five days of closing, the owner confirms the commission and the closing agents will pay the broker from the owner’s net proceeds.

Question 155

A written brokerage agreement for the leasing of commercial real estate will attach a lien to the owner’s interest in the commercial real estate.

Answer 155

Commercial Real Estate Leasing Commission Lien Act (Leasing act)

Question 156

What are the requirements of Commercial Real Estate Leasing Commission Lien Act (Leasing act)?

Answer 156

Disclosure of lien must occur at the time the brokerage agreement is signed or prior to. Language must be substantially similar to 475.803(6), F.S.
No later than 90 days from the time a tenant takes possession, the broker must record a lien notice in the county or counties where the real estate is located.
The “lien notice” must be delivered to the owner within seven days.
The lien is effective for two years. If a renewal commission is earned, the lien is effective for 10 years. Extension provisions exit.
If the commission is not paid, the broker must foreclose the lien in a manner similar to a mortgage foreclosure.

Question 157

a physical thing which is an unauthorized intrusion of the owner’s legal title. In other words, the tree hangs over into the owner’s space, as defined by his legal description of the property.

Answer 157

encroachment

Question 158

Typical examples of encroachments are:

Answer 158

A fence placed on the wrong place on a property line
Tree limbs hanging over a property line
A roof of a garage over the neighbor’s lot line
A concrete driveway placed on or over the neighbor’s lot line.

Question 159

How are encroachments discovered?

Answer 159

By physical inspection (actual notice)
A survey (constructive notice)

Question 160

Why are encroachments important?

Answer 160

The encroachment can lead to a color or cloud on the title and a possible adverse possession suit if it is left for the statutory time period.

Question 161

Permission to use the property of another for a specific purpose. It is not assignable. The person who gave the license has the right to revoke it at any time. Death of the parties terminates it.

Answer 161

A license

Question 162

What are some examples of licenses?

Answer 162

Tickets to sporting events,
Hunting and fishing licenses,
Permission to use the property of another temporarily such as letting a neighbor go through the yard to put in a pool.