Unit 9 - 7 State - Title, Deeds, and Ownership Restrictions Flashcards
Unit 9 Constructive notice (legal notice)
Makes documents available as public records (ex: pool company records construction lien on property for unpaid job)
Unit 9
Lender (Mortgagee) Policy
*issued for loan amount
*transferrable (assignable)
Unit 9
How does a deed become valid?
At time of voluntary delivery and acceptance
Unit 9
Quitclaim deed
Least protection
Used to clear existing or potential clouds on the title
only contains granting clause
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Net lease
tenant pays fixed rent plus expenses
Unit 9
Variable (index) Lease
Building rents $12 per square foot with an index of 1.5. Index increases to 1.8. What is the adjusted rental rate?
1.8/1.5 = 1.2
Unit 9 Voluntary Liens (with owners consent)
vendor’s lien (seller financing/mortgage)
Unit 9
Vendor’s Lien
buyer (vendee) unable to pay full down payment, seller (vendor) will frequently allow a purchase money mortgage
Unit 9
Legal title vs Equitable title
legal = ownership of freehold estate (fee simple and life estate) equitable = receive legal title at future date
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Alienation
transferring ownership, title or interest of real property
Unit 9
Transfer by Voluntary Alienation (2 ways)
Deed = conveys legal title Will = conveys title after death
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devise vs devisee
devise = gift of real property devisee = recipient of gift
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Transfer by Involuntary Alienation (4 ways)
descent = die intestate (w/o will) given to legal descendants
escheat to the state = die intestate but have no heirs
adverse possession = owner sleeps on his rights
eminent domain = gov’t takes the land
Unit 9
Title Insurance
Owner policy vs Lender (Mortgagee) Policy
owner = not required, for purchase price, not transferable
lender = loan amount, transferable
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Parts of the Deed - Premises
Premises = names, dates, marital status, etc. and contains…
Consideration
Granting clause
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Consideration
Part of deed (in the premises) that states anything of value being exchanged for the title
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Granting Clause
CONVEYANCE of title
states intention to transfer the title (grants, bargains, sells, etc)
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Habendum Clause
bundle of legal rights conveyed by the grantee
“to have and to hold”
Unit 9
Covenant of Seisin (seizin)
says grantor owns and has right to sell (convey)
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General Warranty Deed
most commonly used in Florida
greatest protection bc contains all covenants and warranties available so able to defend title forever
Unit 9
Gov’t Restrictions on Ownership
PET
Police Power = zoning, building and health codes, etc
Eminent domain = right to take public property for public use
Taxation
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Private Ownership Restrictions
DELL
Deed restrictions = private restrictions, possible restrictive covenants (same as deed restricted community)
Easements
Leases
Liens
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Easement appurtenant vs prescription
appurtenant = easement by necessity (driveway in their yard) prescription = 20 years of open, continuous, uninterrupted use. Gains easement and not title
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Gross Lease
fixed rent
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Net Lease
fixed rent + building expenses
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Percentage Lease
rent based on gross sales (malls)
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Variable Lease
rent will change, graduated at set times, tied to an index
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Ground Lease
long-term lease on land
tenant may erect a building ex: Wawa
typically 99 year lease
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General Liens vs Specific Liens
general = attaches to all properties of the debtor's real property in the county where the lien is recorded specific = only on certain specified property
Unit 9
Superior Liens vs Junior Liens
Superior (priority)= property tax lien, federal estate tax lien, special assessment liens Junior liens (based on date of recording) = mortgage lien, judgment lien, vendor's liens, IRS liens
Unit 9
Construction Liens
take priority by date construction started, not by the date it was recorded
