Unit 9-Title, Deeds and Ownership Resrictions Flashcards
a person who has a vested interest in property is said to have this…
TITLE
what is a DEED?
It is an instrument of conveyance specifically stating ownership in property. Simply..it conveys LEGAL TITLE
An interest in real estate in which an individual receives the title at a future date is a contract for?
Equitable Title.
The act of TRANSFERRING TITLE or an interest in real property from one person to another is called?
ALIENATION
Describe the 2 types of alienation?
Voluntary Alienation
Under owners control/consent. Gift or sale
Involuntary Alienation
by operation of law
this written instrument is used to
convey interest in real property and legal title.
sell or gift real property to another during the owners lifetime.
DEED
this legal instrument is used to convey title to REAL and PERSONAL property after a persons death
WILL
What does it mean when a decedent dies “TESTATE?”
It means they prepared a will.
What does it mean when a decedent dies “INTESTATE?”
it means they had no will.
Would a will be a form of voluntary or Involuntary Alienation and why?
It is Voluntary because the testator (male) or testatrix(female) intended to gift the property.
In a gift of real property, the real property is called?
DEVISE
the person receiving the gift of real property is the?
DEVISEE
what is DESCENT?
it is the passing of property to the legal descendants (heirs) of a person who dies INTESTATE (without a will)
Is Descent voluntary or involuntary alienation and why?
It is involuntary because the STATE determines the disposition of property.
This process provides for the government to take the property of an owner who dies INTESTATE with no known heirs.
it ensures the property is always owned by someone.
ESCHEAT TO THE STATE
What is ADVERSE POSSESSION?
Occurs when an owner of record fails to maintain possession for 7 or more years and property is seized by another.
By sleeping on their rights as an owner, and not using the legal means available to remove a “hostile trespasser” he/she loses rights to the property.
What is another word for the legal process called Eminent Domain
CONDEMNATION
what is CONDEMNATION?
it is the government’s power to take land from an owner through a legal process for public purpose.
must the government pay for land taken by Eminent Domain?
yes…fair price.
is Eminent Domain a form of voluntary or involuntary alienation and why?
It is involuntary because regardless of whether the owner wants to part with the property, the government must exercise their power.
Describe the 2 types of Notice To Legal Title
ACTUAL NOTICE
-direct knowledge acquired during the course of the transaction
CONSTRUCTIVE NOTICE
- accomplished by recording a document in PUBLIC RECORDS. Recording an instrument of conveyance puts the world on notice regarding an owners interest in real property.
This must FIRST be done by the GRANTOR before a deed can be recorded
The deed must be ACKNOWLEDGED and witnessed and certified by a notary.
What is the purpose of the ACKNOWLEDGMENT
it declares before a notary that the signing of the document is a voluntary act.
Does the RECORDING of a document require any witnesses? How many?
YES. It requires 2…one of which can be the notary.
A recorded legal document giving constructive notice of a PENDING LEGAL ACTION that involves real estate is known as
LIS PENDENS
What information is included in a LIS PENDENS?
Names of parties, object of action, and legal description of property.
A COMPLETE successive record of a property’s ownership starting with the earliest owner is called the
CHAIN of TITLE
how far back can a chain of title go in the state of FL?
30 YEARS
a condensed history disclosing items about property that are of public record is an…
ABSTRACT of TITLE
Why is an ABSTRACT of TITLE search conducted?
to reveal the owner of the property and any Mortgages, Liens, Judgments or unpaid taxes not satisfied to date.
What can’t an ABSTRACT OF TITLE guarantee?
the validity of the title of the property.
Will an ABSTRACT of TITLE search show encroachments, forgeries or any interests of conveyances that have NOT been recorded?
NO
Executed by an attorney, this is an opinion of whether the seller has a marketable title
TITLE OPINION
What is TITLE INSURANCE?
A contract that protects the policy holder from losses arising from defects in the title (forged deed, incorrect marital status, incapacity of grantor)
True or False…TITLE INSURANCE is required by FL LAW.
FALSE..it is NOT REQUIRED
This is conducted to determine if there are unrecorded encumbrances on the title such as special assessments, unrecorded liens, unpaid fees to county or municipalities
A MUNICIPAL LIEN SEARCH
What are the 2 types of Title Insurance?
1-OWNER’S POLICY
- not transferrable
- it is issued for the total purchase price of the property.
- it protects the new owner (and heirs) of unexpected risks associated with forged deed signatures or defects in title
- one time premium paid when policy is issued.
2-LENDER’S POLICY
- issued for unpaid mortgage amount
- protects LENDER from title defects
- if lender sells mortgage to another investor..it is assignable to new mortgage.
May a licensee render an OPINION of TITLE?
NO. They are not qualified. They must advise BUYER to contact an attorney or a title insurance company to determine the condition of the sellers title
Who are the parties to a DEED?
The GRANTOR -owner signing title
The GRANTEE- new owner receiving title
the Premises section of a deed includes this information…
Names and addresses of Grantor/Grantee, the Date of deed, words of conveyance
words stating the GRANTORS intentions to transfer to GRANTEE such as “grants,” bargains,” “sells,” or similar are known as
Words of Conveyance
This clause, starting with the words “to have and to hold…” and defining the legal bundle of rights being conveyed to the grantee is known as
HABENDUM CLAUSE
if the HABENDUM CLAUSE states to “have and to hold FOREVER” it is referring to this kind of estate
FEE SIMPLE
if the HABENDUM CLAUSE states to “have and to hold FOR THE LIFE OF THE GRANTEE” it is referring to this kind of estate
LIFE ESTATE
Must a DEED be acknowledged or notarized to be valid in the state of FL?
NO. HOWEVER, if the GRANTEE wants to give constructive notice of ownership, the deed must be notarized before it can be recorded.
Who must sign a Deed?
A competent GRANTOR and 2 witnesses
Does the GRANTEE have to be competent?
NO, because a GRANTEE may be an unborn child or a baby who has yet to reach their capacity for competency.
What type of deed provides the greatest protection to the BUYER?
A General Warranty Deed
What are the Covenants of a General Warranty Deed?
Covenant of Seisin-
grantor owns property and has rights to convey title
Covenant Against Encumbrances
Grantor warrants property is free of liens
or other encumbrances.
Covenant of Further Assurance
Grantor promise to sign & deliver any
legal instrument in the future that may
be required to make title good.
Covenant of Quiet Enjoyment
Grantor guarantees peaceful possession
undisturbed by hostile claims on title
Covenant of Warranty Forever
Grantor guarantees to forever warrant and
defend the grantees title against lawful
claims
What is a special warranty deed?
It is a deed where the GRANTOR guarantees that nothing has been done to encumber or cloud the title during their ownership BUT, does not make guarantees against the actions of any previous owner.
A deed where there is no express warranty against encumbrances is known as a…
Bargain and Sale deed
This is the only type of deed that protects the GRANTOR
Quitclaim Deed
What are the characteristics of a Quitclaim Deed?
-contains NO covenants or warranties
-grantor makes no warranties about quality or
extent of the title being conveyed
-is useful for clearing existing clouds on title
-allows GRANTOR to sign a deed transferring
any and all interest w/out claiming any kind
of ownership or any right of title.
-GRANTOR does NOT warrant forever.
when an individual is appointed by will or order of the court to settle the estate of a deceased person they are executing this type of deed…
Personal Representatives Deed (Deceased)
What is a Guardians Deed?
when a guardian acts on behalf of a minor in a fiduciary capacity to legally convey the minor’s property.
This deed requires the permission of the court to sell of convey property belonging to the minor.
when a COMMITTEE is appointed by the court to administer the affairs of an owner declared legally incompetent or committed to an institution, they will execute this type of deed…
A COMMITTEES DEED
Title to property sold for non payment of taxes will execute this type of deed and the BUYER will assume all risk for title defects.
A TAX DEED
this form of Government Restriction on Ownership represents the broadest power of government to limit or regulate the rights of property owners
POLICE POWER
why does the government apply restrictions on ownership?
to protect the general health, welfare and safety of its citizens
what ordinances and regulations fall under POLICE POWER
- zoning
- building codes
- health standards
- city planning
- rent controls
what are the 2 types of ownership limitations and restrictions?
1- Government Restrictions
2-Private Restrictions
What are the restrictions classified as GOVERNMENT RESTRICTONS? (P.E.T)
P- police power
E- eminent domain (condemnation)
T-taxation (property)
Describe how property taxation protects the citizens
the taxes allocated to their property serve to fund the various levels of government that provide the benefits of police power.
what is the primary basis for LOCAL taxation?
PROPERTY
What are the 4 PRIVATE restrictions on ownership?
(DELL)
D - deeds
E - easements
L - leases
L - liens
this type of restriction limits the use of property by current and future owners through RESTRICTIVE COVENANTS
DEED RESTRICTION
i.e. a subdivision that says all the buildings have to be of a specific architectural design
What are the characteristics of an easement?
- the right for a person or the public to use land for a specific and limited purpose.
i.e. utility easement, railroad right of way,
ingress-egress
Describe the 4 types of EASEMENTS
Easement Appurtenant (ADJACENT)
- involves 2 or more parcels of property - continues from owner to owner - allows owner use of adjacent property
Easement in Gross
- benefits company that owns it i. e- utility right of way to access power lines
Easement by Prescription
-continued after 20 years of open,
continued, adverse use of another
persons real property contrary to the
owners interest in the property
Easement by Necessity
-if a landowner subdivides land, conveying part in a way that causes a parcel to be landlocked, the court may authorize creation of an easement to allow access to landlocked property
The UNAUTHORIZED use of another’s property is known as…
ENCROACHMENT
if an encroachment continues for more than 7 years, this is created
IMPLIED EASEMENT
An agreement between the landlord and renter that grants right of possession and use of property for a specified time in return for compensation is called a
LEASE
True or False
A lease for less than one year must be IN WRITING, signed by the lessor and lessee and TWO witnesses to be enforceable?
TRUE
What is a GROSS LEASE?
the tenant pays fixed rent and landlord pays all expenses associated with the property.
What is a NET LEASE
the tenant pays a fixed rent PLUS property costs such as maintenance and operating expenses.
mostly used in commercial properties
a lease where the tenant pays rent based on gross sales received by doing business on the leased property is called a
PERCENTAGE lease
What is a VARIABLE lease
A lease where the specified rent increases at set future dates
when a rental property is sold, what happens with the existing lease and advance rents
The lease is binding on the new owner and security and advance rents MUST transfer to the new owner
( new owner must inform tenant w/in 30 days where monies are being held)
The claim against property belonging to another, to have a debt or other obligation satisfied is called…
A LIEN
what are the two types of LIENS?
Voluntary and Involuntary
A lien placed by owner against the property to secure payment of a long term debt is a
VOLUNTARY LIEN
A lien created by law to protect interest of persons who have valid monetary claims against the owner of real property is an…
INVOLUNTARY LIEN
what is a GENERAL LIEN?
A lien that attaches to ALL of a lienee’s real property
