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164 Cards in this Set

  • Front
  • Back
escheat
a reversion of property to the state when a person dies with no will or heirs
riparian
rights of a landowner bordering a natural watercourse such as a lake, river, or stream
littoral
rights of a landowner on bank or shore of a sea, ocean, or large lake.

rights extend to mean highwater mark.
severance
act of removing something from the land
tenemants
property rights of a permanent nature
disposition
the right to sell, will, give away, dedicate or in any way dispose of the property
accretion
gradual build up of soil by water
adverse possession
acquiring title to property through prolonged and unauthorized occupation
acre
43,650 square feet
alienation
transfer of ownership of real esate from one person to another
alluvion
increase in land by soil deposited by water
attorney-in-fact
one authorized to act in another's behalf
accession
acquiring ownership of fixtures left by the tenant
annexation
affixed; permanently attached to real esatte
appurtenance
a right or privilege included with ownership of land; such as an easement
emblements
annual plantings requiring cultivation
hereditaments
real or personal property which passes at death
condemnation
the legal action in eminent domain procedure
incorporeal
intangible (personal property)

vs. corporeal (tangible) property
police power
the right of government to enforce laws for the protection of its citizens
avulsion
the sudden removal of land by action of water
bargain and sale deed
a deed of title with no warranties.

It does imply that the grantor has possesion of or a claim or interest in the property conveyed. Used by trustees, fiduciaries, executors, and court officers.
base lines
latitude line used in government survey land descriptions
certificate of title
evidence of ownership issued by the land court to registered owner
cloud on title
an apparent defect in title
color of title
something having the appearance of ownership, but may or may not be true title
covenant
a written agreement or promise in a contract
dedication
the voluntary conveyance of private land to the public
deed
a written insturment that when properly executed and delivered conveys title to land
devise
transfer of property by a will

Donor= Devisor
Receiver = Devisee
durable power of attorney
a power of attorney that continues after the principal's death
general warranty deed
provides best guarantee of title
contains all five warranty covenants:
1)covenant of seizin
2)covenant against encumbrances
3)covenant of quite enjoyment
4)covenant of warranty of tile
5)covenant of further assistance
covenant of seizin
the grantor guarantees that he or she is owner of the property and has a right to sell it and convey title
covenant against encumbrances
the grantor warrants that there are no defects in or claims against the title other than those agreed to by the grantee and specifically set forth in the deed.
covenant of quiet enjoyment
the grantor warrants that title is conveyed free of interference from the acts and claims of third persons.
covenant of warranty of title
the grantor promises to pay for the cost of defending the grantee's title in actions by persons asserting rightful claims to the property
covenant of further assurance
the grantor warrants that he or she will perform any act necessary to perfect the title for the grantee.

for example, the grantor would be requireed to execute and deliver a new deed in order to correct an error in a preceding one.
grantee
the person named in the a deed who acquires ownership
grantor
the person conveying title
habendum clause
the "have and to hold" clause in a deed
Proves that its yours and you own it.
indefeasible title
title which is guaranteed by the court under the torrens system or registered land system
intestate distribution
distributions of an intestate's property to heirs according to law of descent
legacy
personal property received under a will
administrator
a person appointed by the probate court to settle an estate when there is no will
Special Warranty or Limited Warranty Deed
A special warranty deed is similar to a general warranty ded, except that the grantor's liability to defend the title is limited to claims originating through the grantor and not to those which occurred prior to the grantor's tenure of ownership. (The grantor would not be responsible for a lien which was recorded prior to the grantor's taking title.)

This is called a Quitclaim deed in Massachusetts.
Quitclaim Deed
In Massachusetts, same as a special warranty deed, i.e. guarantor only responsible for liens during his tenure of ownership.

Generally, a transfer of the grantor's rights to real estate with no warranties or covenants of title
Bargain and Sale Deed with Covenant
The covenant changes the bargain and sale deed into a Special Warranty deed with the grantor warranting only that he or she has done nothing to encumber the property during his or her term of ownership.

In some states, this is referred to as a "grant deed".
metes and bounds
a method of land description by the use of boundaries with reference to distance and compass bearings
Typically used in eastern states
partition
to divide jointly held property into distinct portions so that each co-owner may hold his/her porportionate share in severalty
seizin
possesion of land by one who claims title, either rightfully or wrongfully
patent
public grant that transfers title to land from government to a private person.
Real Property
the land and everything that is stuck on it. You have air rights and everything in the ground.. Air rights to a limit... 250ft.
CHATTEL
Personal Property- Anything that isnt 'stuck to the house'
Chattel Real
...stays with the lease. IE if you are leasing an apartment and that apartment is sold. You are allowed to stay in the space until the lease runs out.
Fixture Determination:
1 The intent of the parties
2 The method of annexation
3 The agreement of the parties
Trade Fixture
these are not part of the real property. These are things that someone leasing the space puts in. IE- Shoe Racks put in by a shoe store leasing a space.
Economic Characteristics of Real Property
1 Scarcity (property comes less available (beach front) and the value should go up
2 Improvements (add on and things will hopefully go up)
3 Long Term Investment (Real estate is considered FIXED or permanent in nature)
4 Location (SITUS)
Property Rights: (BUNDLE OF RIGHTS)
1 Control- to use at your discretion within the law
2 Possession- to hold and use or in the case of a lease you can't use until lease is up
3 Enjoyment- to use without others infringing on your rights (and you can't infringe on other peoples quite enjoyment)
4 Disposition- to sell, convey or will as you choose
5 Exclusion- to limit others from entry as you choose
Eminent Power
government can take your property if they feel it is necessary. Person must be properly paid if the government takes the property (Condemnation- if your house is condemned the property's possession is taken by the government.
Taxation- AD VALOREM TAXATION
the laws that dictate that the town can collect taxes on the property
Fee Simple Estate
No conditions to the ownership. Known as Fee Simple Absolute. Highest for of estate possible.
Fee Simple Determinable Estate
This comes with rules. You can have the property if you do XXX. If this condition is not met the property goes back to the original owner. The cause and effect is already outlined. The effect happens AUTOMATICALLY
Fee Simple on Conditional Subsequent Estate
There are rules. You have the property but what happens if the rules are broken have not yet been decided what the effect will be. There will be lawyers involved and paperwork to figure out what will happen.
Life Estate
Own it as long as you are alive- An estate given by the grantor (seller) to the grantee (buyer) for life. Upon death of the granttee the property passes to a thrid party who is known as the REMAINDERMAN.
Homestead
a life estate occupied as the family home. It is intended to protect occupants against certain creditors during the occupants lifetime.
Concurrent Estates
When two or more hold estates together. Husband and wife owning a house.
Tenancy by the Entirety
Husband/Wife- this shares the house and if something happens to the other the house goes automatically in the entirety to the other person.
Joint Tenant
Buy a house with a friend as an example- Both parties own things equally. If something happens to one party the house goes to the other party automatically.
Tenancy in Common
Two or more persons have separate interests in a parcel of property with no right of survivorship.

This is the recommended way to buy a property with a friend. You can sell your interest to someone else
Tenancy in Partnership
There are three forms of business ownership

1. Single proprietor
2. Partnership- The property can not be attached to
3. Corporation
Easement
the right that one person has to be on someone else's property. Allows the town or different party to access an area of your property.
Dominant Estate
Receiving the benefit of going on someones property
Serveant Estate
Giving the benefit to someone else to go one your property
Easement Appurtenant
This is an easement that goes on forever in duration
Easement in gross
This is personal in nature and runs with the user of the land (dominant estate) dies.
Easement of Necessity
An easement created when land is sold that can only be reached by going through someone elses property (land locked property)
Easement by Prescription
If I am visibly using your property for 20 years it becomes mine to use.
Deed
a written document that transfers title
Prescription
Open, Continuous and adverse use for 20 years in MA
Necessity
Owner must be granted access over the land of another (a land locked parcel)
Dower & Curtesy Rights
Womans Rights are Dower and Mans Rights are Curtesy- Rights can allow for pieces of the property go to the spouse in death.
Encroachment
Anything overhanging another persons property provides rights to the person thats property is being 'encroached'
Restrictive Covenant
In a deed is a prohibited use or a requirement must be followed. This is additional rules to the building codes.

Many gated communities have these (Colors of house, no external clothes lines, etc)
Condominiums
Piece of the whole ownership.
183A
The law requires that there be a master deed on all of the buildings and units in a condominium. Each of the 'units' require a unit deed.
Non-Freehold Estate
also known as a lease or a leasehold.
Property owner keeps most rights to the property, but conveys the RIGHT OF POSSESSION to tenant.
Demise
Duration of lease or TERM of lease
Estate/tenancy for years
A lease is for specific or definite term and has a definite date
Tenancy from period to period
A lease usually month to month
Estate/Tenancy at will
Either party may end the tenancy at any time giving them some form of notice.
Tenant at Sufferance
A tenant remains past the lease expires or notice
Gross lease
Also known as Flat or Straight Lease. Tenant pays specified rent and landlord covers everything else.
Escalated Lease
A gross lease where rent changes as taxes and operating costs change
Net Lease
Tenant is required to pay for some or all other expenses in addition to the rental fee.
Triple Net Lease
The tenant pays the rent and all other expenses (condo fee, heat, water etc...)
Percentage Lease
Rent is calculated on percent of the gross sales of the tenant. Rent payment to go up as sales go up.
Graduated Lease
Also known as a step-up lease increasing rent of the term of the lease.
Index Lease
rent increase or decreased based on consumer price index
Ground lease
lessor leases the land and the lessee improves the land
Lease Purchase
Lessee rents for a period of time, then the lessor will transfer ownership to the lessee.
Sandwich lease
lessee leases property to the new tenant, the lessee becomes the sub-lessor, new tenant becomes the sub-lessee.
Sale and lease back
Property owners sells to an investor and then lease the same property back on a rental or leasehold arrangement.
Actual Eviction
tenant who does not live up to the terms of the lease can be kicked out.
Constructive Eviction
When the landlord does not do the jobs they are supposed to do the tenant can walk away from the lease and property.
Assignment VS. Sublease
An Assignment the lessee would sell the balance of the term of the lease to a third party.
A subleasee makes the leasee ultimately is responsible for anything that the subleasee does.
Contract
An agreement between two parties to do something.
Listing Agreement
A contract between a seller and a real estate firm to sell property.
Buyer Agency Agreement
A contract between a buyer and real estate firm to assist the buyer in purchasing property.
Purchase and Sale Agreement
a contract between a buyer and a seller to purchase a piece of property for some consideration.
Lease
A contract between a landlord and a tenant agreeing to rent property for a specified amount of time.
Option
An agreement between two parties where one party has the right to do something or not do something in a specified period.
First Right of Refusal
Similar to an option except that no specified price is specified.
Expressed Contract
Agreement between parties is specific and usually in writing.
Verbal Contract
Expressed if the agreement is detailed in speaking words.
Implied Contract
Contract where the agreement of the parties is determined by their action without the specific wording of agreement either written or verbal.
Bilateral Contract
agreement where one party agrees to do something and a second party agrees to do something else in return.
Unilateral contract
one party agrees to do something if the other party does something else. (like posting for reward for lost dog)
Executed Contract
contract where both parties have completed everything that each agreed to perform. Closed/Completed
Executory Contract
a contract where two parties have an agreement but some things have yet to be completed. ON ITS WAY TO BE CLOSED
Elements of a contract
- Offer & Acceptance
- Consideration- something of value exchanged for something of value.
- Legality- A contract must deal with an agreement within the law.
-Competency- both parties must be competent to enter into a contract.
-Consent- to establish that no duress is being applied and that all parties are acting of their own free will. (Notary need to witness)
Laches
Doctrine that action was not taken in a reasonable period of time. Similar to statute of limitation where time is specified.
Statute Of Limitations
The time limit within which legal action must be taken to be enforceable.
Estoppel
A previous action or statement can be used to hold a party accountable even if later proved to be in error.
Termination of an offer
-Death of the offeror
- Time limit
-Offer Revoked Prior to Acceptance
-Acceptance --- basically once the offer is accepted it becomes a contract so the name changed
-Couteroffer
Equitable title vs legal title
when a purchase and sale agreement is signed. Buyer has equitable title but the seller has legal title until the closing.
Government Survey
Method of surveying property in the west. it involves range lines, township lines.
Delivery of Acceptance
Transfer is not complete until deed signed is accepted by the grantee.
Lis Penden
'Action Pending' - Recorded legal document that gives notice that legal action is in process that may effect the subject property
Tax Stamps
When the property is conveyed by deed. MA requires excise stamps purchased and affixed to the deed. Paid for by the seller. $2.28 per $500.
Involuntary alienation
giving away my house against my will.

* Adverse Possession
* Eminent domain (gov takes it)
* Escheat (you die)
* Foreclosure (you dont pay)
* Natural Forces (erosion - land errodes, accretion-build up of land ,avulsion- sudden storm that instantly takes property way (building falling of the edge a cliff)
testate
to have a will
intestate
die without a will.
Transfer by descent
When you die with no will it keeps going down to different levels of the family
Executer
Male in charge of documents
Exectrix
Female in charge of docs.
Codicil
Change to a will
Real Estate Cycle
-Listing House
-Showing House
-Find Qualified Buyer
-Prepare purchase & sale agreement
-obtain financing
-close deal. pass papers, get keys
Financing Procedure
-Morgage Application
-Bank Approval Cycle
1. Must appraise the property
2. Must approve the borrower
Property inspected by real estate appraiser, bank checks out credit reports. if property and borrower are good things move forward.
P & S - Financing Clause
-the contract is subject to buyers obtaining financing
-the mortgage note is the written promise of the borrower to pay the money borrowed back to the bank
-the mortgage deed (referred to as the mortgage)
-the buyer or the borrower actually deeds (transfers title to) the property to the bank.
-The mortgage noted and the mortgage deed is recorded at the registry of deeds.
prime rate
rate at which a lending institution charges its best customers on short-term notes
federal discount rate
the rate charged by the fed reserve bank to its member banks. It is what the feds charge the banks.
Purchase Money Mortgage
A seller sells you the house but acts as the bank for you. You pay them the monthly fee. Usually this is a 10 to 15 year deal. At the end of that period there is a balloon payment to pay off whatever is left.
VA loan
Banks actually makes the loan and services the loan. The VA Administration guarantees the loan.
FHA mortgage
Established in 1934 to stimulate the housing market. FHA insures the loan rather than guarantee it.
MGIC- Mortgage Guarantee Investment Corporation
private mortgage insuring companies- PMI
Three Secondary Mortgage Markets that buys loans from Banks:
1. The Federal National Mortgage Association- Fannie Mae
2. The Home Loan Mortgage Corporations- Freddie Mac
3. The Government National Mortgage Association- Ginnie Mae
Regulation Z
Truth In Lending

- Disclosure-- the lender must provide borrower with a disclosure statement before the borrower makes any financing commitment. (includes Finance Charges and Percentage Rates)
- Right of Rescission--- Can rescind the offer within 3 days to reverse your mortgages.
-Adverting -- requires ads to provide disclaimers on what the loan really means.
Real Estate Brokerage
A real estate broker is any individual who, for consideration, sells, buys, rents, exchanges or negotiates option on real property.
law of agency
Is the principal-agent relationship.
principal
Individual that hires an agent
Fiduciary
relationship means a position of trust and confidence
old car
Rule of Agents
O bey
L oyal
D isclose
C onfidentiality
A ccountability
R easonable care
General Agency
Any agency relationship covering a broad range of matter. A property management managing and apartment complex.
Imputed Notice
Knowledge by an agent that is binding on the principal due to the principal-agent relationship even though the principal does not have first hand knowledge.
Types of Listings:
1. Open Listings (anyone can sell it)
2. Exclusive office listing (one office selling)
3. Exclusive Right to Sell (the agent is the only seller)
4. A Net Listing (this is against the law. they need to know the price going in)
5. A multiple listing (can sell any property. any companies listings)
An agency may be terminated in a variety of ways:
-completion of objective- the property sold
-expiration of time limit- contract ran out because house didnt sell
-mutual consent - both parties agree to end it
-Revocation of either party-
-Death of the party- either party dies.
-Destruction of subject - the property burns
-Bankruptcy
c.93a- Mass General Law
disclose everything you KNOW that might impact the buyer or seller.
Caveat Emptor
LET THE BUYER BEWARE
Underwood vs Risman (1993)
This case is about Lead and what it decided is that real estate professionals need to state what they KNOW not what they believe or think.
c111
Lead Paint Law - from 1600-1978 lead was used in interior and exterior paint, varnishes and stains.
The lead law requires that anyone with a child under 6 must de-lead within 3 months of purchasing the home.
Federal Civil Rights Act - 1866
Discrimination based on race is Illegal.
Federal Fair Housing Act
1968 (Title 8)- The civil rights amendment-The Fair housing act of 1968 prohibits discrimination based on race, color, religion, national origin or sex. These are referred to as "Protected Classes"
On March 12, 1989- expanded the protected class to include the handicapped and families with children
Blockbusting is illegal
attempting to influence any individual to sell or rent with threats that persons of a particular protected class status are entering the neighborhood.
Steering is illegal
showing members of a protected class property in neighborhoods made up predominantly of the same minority background, while not showing comparable properties in other neighorhoods