Unit 9 - Title, Deed & Ownership Restrictions

Question 1

Abstract of Title

Answer 1

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

Question 2

Acknowledgement

Answer 2

Formal declaration before an authorized official, by the person who executed the instrument, that it is a free act

Question 3

Actual Notice

Answer 3

Information a person has actually learned by reading, seeing or hearing.

Question 4

Adverse Possession

Answer 4

A method of obtaining title to real property by occupying it in an open and hostile manner contrary to the interests of the owner
HOT CAN is acronym for Adverse Possession

Question 5

Alienation

Answer 5

The act of transferring ownership, title or an interest or estate in real property. Alienation can be voluntary or involuntary

Question 6

Appurtenance

Answer 6

A right or privilege associated with the property, such as a parking space.

Question 7

Assignment

Answer 7

Written instrument that serves to transfer the rights of one person to another.

Question 8

Chain of Title

Answer 8

A successive listing of all previous holders of title (owners) back to an accessible starting point

Question 9

Condemnation

Answer 9

The taking of private real property for a public purpose under the right of eminent domain for a fair price

Question 10

Construction Lien

Answer 10

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

Question 11

Constructive Notice

Answer 11

The recording of a document or an instrument in the public records designed to give adequate notice to all.

Question 12

Deed

Answer 12

A type of conveyance; a written instrument to transfer title to real property from one party to another.

Question 13

Deed Restriction

Answer 13

Provision placed in deeds to control future uses of the property

Question 14

Easement

Answer 14

A right, privilege or interest in real property that one individual has in lands belonging to another; a legal right to trespass; a right of way authorizing access to or over land.

Question 15

Easement Appurtenant

Answer 15

An easement that runs with the land and benefits an adjacent parcel of land.

Question 16

Easement by Necessity

Answer 16

An easement created by a court of law in cases where justice and necessity dictate it, such as when property is landlocked.

Question 17

Easement by Prescription

Answer 17

A right acquired by an adverse user to use the land of another, created through a court of law after long and uninterrupted use

Question 18

Easement in Gross

Answer 18

A type of easement that benefits an individual or business entity and is not related to a specific adjacent parcel, for example, utility easements

Question 19

Eminent Domain

Answer 19

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.

Question 20

Encroachment

Answer 20

Unauthorized use of another person’s property

Question 21

Equitable Title

Answer 21

The beneficial interest in real estate that implies that an individual will receive legal title at a future date.

Question 22

Escheat

Answer 22

The reversion of property to the state, on the owner’s dying without leaving a will or any known legal heirs.

Question 23

General Lien

Answer 23

A claim that may affect all the properties of the debtor.

Question 24

General Warranty Deed

Answer 24

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).

Question 25

Grantee

Answer 25

Party who receives a deed or grant; buyer

Question 26

Granting Clause

Answer 26

The provision in a deed that specifies the names of the parties involved, the words of conveyance, and a description of the property.

Question 27

Grantor

Answer 27

Party who signs and gives a deed; seller

Question 28

Gross Lease

Answer 28

An agreement for the tenant to pay a fixed rent with the landlord paying all of the expenses associated with the property.

Question 29

Ground Lease

Answer 29

An agreement for the tenant to lease the land only and erect a building on the land.

Question 30

Habendum Clause

Answer 30

A provision in a deed to real property that stipulates the estate or interest the grantee is to receive and the type of title conveyed.

Question 31

Intestate

Answer 31

Without a will

Question 32

Involuntary Alienation

Answer 32

When a person dies intestate and the property either descends to the decedent’s heirs or transfers to the state through escheat.

Question 33

Junior Lien

Answer 33

A second mortgage or junior-lien is a loan you take out using your house as collateral while you still have another loan secured by your house. … The term “second” means that if you can no longer pay your mortgages and your home is sold to pay off the debts, this loan is paid off second.

Question 34

Legal Title

Answer 34

Represents the legal ownership along with the right to control the property in many circumstances. Legal title is transferred from one person to another by a deed.

Question 35

Lender’s Policy

Answer 35

Title insurance issued for the unpaid mortgage amount to protect the lender against title defects.

Question 36

Lien

Answer 36

A claim on property for payment of some obligation or debt.

Question 37

Mechanic’s Lien

Answer 37

A Construction Lien

Question 38

Net Lease

Answer 38

An agreement for the tenant to pay fixed rent plus property costs, such as taxes, insurance and utilities.

Question 39

Opinion of Title

Answer 39

A formal statement by an attorney regarding the status of a title after examination of the chain of title.

Question 40

Owner’s Policy

Answer 40

Title insurance issued for the total purchase price of the property to protect the new owner against unexpected risks.

Question 41

Percentage Lease

Answer 41

An agreement for the tenant to pay rent based on the gross sales received by doing business on the leased property.

Question 42

Police Power

Answer 42

The authority of government to protect the property, life, health and welfare of its citizens

Question 43

Quitclaim Deed

Answer 43

A type of deed that will effectively convey any present interest, claim, or title to real property that the seller (grantor) may own.

Question 44

Restrictive Covenants

Answer 44

Conditions placed by developers that affect how the land can be used in an entire subdivision.

Question 45

Seisin

Answer 45

A covenant in a deed that warrants that the grantor (seller) holds the property by virtue of a fee simple title and has a complete right to dispose of same. Also called a seizin clause.

Question 46

Specific Lien

Answer 46

Claims that affect only the property designated in the lien instruments or agreements

Question 47

Sublease

Answer 47

A lessee leasing a property to a third party for a period of time less than the original lease. Also called subletting.

Question 48

Superior Lien

Answer 48

A lien that takes priority over all other liens

Question 49

Testate

Answer 49

Having left a will.

Question 50

Title

Answer 50

Evidence of ownership of real property, such as a deed

Question 51

Title Insurance

Answer 51

A policy of insurance that protects the holder from any loss resulting from defects in the title.

Question 52

Variable Lease

Answer 52

An agreement for the tenant to pay specified rent increases based on a predetermined index (CPI) at a set future date.

Question 53

Voluntary Alienation

Answer 53

The transfer of a title with the owner’s control and consent

Question 54

Warranty Forever

Answer 54

A provision in a deed guaranteeing that the seller will for all time defend the title and possession for the buyer.