Unit 9 Key Terms Flashcards
abstract of title
Condensed history of title to real property consisting of a summary of the links in the “chain of title” extracted from documents bearing on the title status.
acknowledgment
Formal declaration before an authorized official, by the person who executed the instrument, that it is a free act.
actual notice
Information a person has actually learned by reading, seeing, or hearing.
adverse possession
A method of obtaining title to real property by occupying it in an open and hostile manner contrary to the interests of the owner.
alienation
The act of transferring ownership, title, or an interest or estate in real property.
appurtenance
A right or privilege associated with the property, such as a parking space in a multiunit building.
assignment
Written instrument that serves to transfer the rights or interests of one person to another.
chain of title
A successive listing of all previous holders of title (owners) back to an acceptable starting point.
condemnation
The taking of private real property for a public purpose under the right of eminent domain for a fair price.
constructive lien
A claim based on the principle of “unjust enrichment”; favors parties who have performed labor or delivered materials or supplies for the repair or building of an improvement to real property.
constructive notice
The recording of a document or an instrument in the public records designed to give adequate notice to all.
deed
A type of conveyance; a written instrument to transfer title to real property from one party to another.
deed restrictions
Provision placed in deeds to control future uses of the property.
easement
A right, privilege, or interest in real property that one individual has in lands belonging to another; a legal right to trespass; right-of-way authorizing access to or over land.
easement appurtenant
An easement that runs with the land and benefits an adjacent parcel of land.
easement by necessity
An easement created by a court of law in cases where justice and necessity dictate it, such as when property is landlocked.
easement by prescription
A right acquired by an adverse user to use the land of another, created through a court of law after long and uninterrupted use.
easement in gross
A type of easement that benefits an individual or business entity and is not related to a specific adjacent parcel, for example, utility easements.
eminent domain
The constitutional right given to a unit of government to take private property involuntarily, if taken for public use and a fair price is paid to the owner.
encroachment
Unauthorized use of another person’s property.
equitable title
The beneficial interest in real estate that implies that an individual will receive legal title at a future date.
escheat
Reversion of property to the state when an owner dies without leaving a will or any known heirs.
further assurance
A provision in a deed containing a covenant or warranty to perform any further acts the grantee (buyer) might require to perfect title to the property.
general lien
A claim that may affect all the properties of a debtor.
general warranty deed
An instrument of conveyance containing the strongest and most comprehensive promises of further assurance possible for a grantor (seller) to convey to a grantee (buyer).
grantee
Party who receives a deed or grant; buyer.
granting clause
The provision in a deed that specifies the names of the parties involved, the words of conveyance, and ta description of the property.
grantor
Party who signs and gives a deed; seller.
gross lease
An agreement for the tenant to pay a fixed (base) rent with the landlord paying all the expenses associated with the property.
ground lease
An agreement for the tenant to lease the land only and erect a building on the land.
habendum clause
A provision in a deed to a real property that stipulates the estate or interest the grantee is to receive and the type of title conveyed.
intestate
Without a will.
involuntary alienation
When a person dies intestate and the property either descends to the decedent’s heirs or transfers to the state through escheat.
junior lien
Priority is based on the date of recording in the public records.
legal title
Ownership of a freehold estate.
lender’s policy
Title insurance issued for the unpaid mortgage amount to protect the lender against title defects.
mechanic’s lien
Same as a construction lien.
net lease
An agreement for the tenant to pay fixed rent plus property costs, such as taxes, insurance, and utilities.
opinion of title
A formal statement by an attorney regarding the status of a title after examination of the chain of title.
owner’s policy
Title insurance issued for the total purchase price of the property to protect the new owner against unexpected risks.
percentage lease
An agreement for the tenant to pay rent based on the gross sales received by doing business on the leased property.
police power
The authority of government to protect the property, life, health, and welfare of its citizens.
quiet enjoyment
A provision in a deed guaranteeing that the buyer may enjoy possession of the property in peace and without disturbance by reason of other claims on the title by the seller or anyone else.
quitclaim deed
A type of deed that will effectively convey any present interest, claim, or title to real property that the seller (grantor) may own.
