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68 Cards in this Set
- Front
- Back
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Residential |
Single family homes, condos, townhome, cooperatives, apartments, duplexes, triplexes, vacation homes and mobile homes |
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Commercial |
Shopping malls, retail stores, movie theaters, office buildings, parking lots, |
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Industrial |
Factories, warehouses, research and development facilities |
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Agriculture |
Farms, orchards, ranches, hatcheries |
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Special purpose |
Church, hospital, government land, and schools |
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Real estate characteristics |
Real estate has physical (physical attributes the land) and economic characteristics (affect the value) These characteristics can affect real estate value and the real estate market |
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Immobility |
Real estate that is fixed includes land surface and beneath to the earth center The location of real estate determines it value Real estate markets are local Land easily regulated and taxed Value heavily influenced An exact legal description of property’s location |
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Indestructibility |
The land cannot be destroyed or worn out Stable and long term |
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Nonhemogeneity |
No real estate are exactly alike |
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Allodial system |
Legal system recognizes full property ownership rights possession, control, enjoyment, and disposition |
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Common law |
Body of law developed through court decisions based on custom and usage |
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Property |
Defined as a bundle of rights which a owner choose to sell or give away one of the rights and retain the rest Possession occupy property Enjoyment possess property without interference Disposition right to sell or give away Control use property the way you want within the limits of the law Exclusion keep people from using the property |
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Land |
Earth surface to the center of the earth, airspace above land, and all natural things permanently attached such as trees and water |
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Real estate |
Land plus permanent human made additions. Include buildings, garage and fences |
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Real property |
Real estate plus bundle of legal rights |
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Improvement |
Any type of land development Includes building, streets, fences, and sewers Land that is unimproved is called raw land |
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Air rights |
Above the surface of the earth |
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Property (control) |
The right to use the property as you wish within the law |
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Property (enjoyment) |
Right to enjoy the property without interference |
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Property (disposition) |
The right to sell or give property to someone else |
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Property (exclusion) |
The right to keep someone from using the property |
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Property (possession) |
The right to occupy the property |
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Subsurface rights |
The ground below the surface of the earth and ownership of mineral rights |
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Taxation |
Meets government financial needs |
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Eminent Domain |
Government taking private property for public use without owner consent |
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Condemnation 3 requirements |
1. Declared by court for public use 2. Property owner is compensated by the government. The owner may also have the court decide fair compensation 3. Property owner is protected by due process |
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Inverse condemnation |
If government action force a significant loss of value or inability to use property |
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Escheat |
Person dies without a will or heirs. Property will revert to state or county where property is located |
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Encumbrances |
A charge claim or liability against real estate held by someone other than the property owner. May reduce property value but will not prevent transferring title. Can include property liens, deed restrictions, easements, profits a prendre and encroachments Liens, easements, and profits are no possessory interests in real estate |
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2 types Encumbrances |
1. Affect title lien or judgment 2. Affect title and physical condition (easement, deed restrictions encroachment |
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Easement |
The right to use someone’s land no possessory interest in real estate Gives the easement holder the right to use property |
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Easement is classified 2 ways |
Appurtenant easement- belongs to the land and transfer with title Positive easement- allows someone to use property for state’s purpose Negative easement- prevent someone from using the land In gross easement |
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Creating an easement |
1. Written agreement - between easement parties 2. Express grant - is given by owner which the easement rights over property 3. Reservation- reserves easement rights 4. Condemnation- acquired for public use and family is compensated 5. Prescriptions easement- unauthorized use of another’s land define by state law 6. Necessity easement- created by law |
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License |
Use of someone’s property for a specific purpose |
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Easement termination |
1. Expiration- if created for a specific period 2. End of purpose- purpose no longer exists 3. Merger- owner of dominant or servient property become owner of both properties 4. Agreement- owner agree to terminate 5. Abandonment - not used over a period of time 6. Court action - quiet title action is brought in court |
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Covenants conditions and restrictions (CCR@R) |
Places in deed by developers usually affecting development |
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Deed restrictions Covenants conditions and restrictions (CC&R) |
Places in deed by developers usually affecting development Private agreement that restrict the use of the real estate in some way and are listed in the deed they limit alterations or additions. Deed restrictions may be temporary or they may be based on a covenant that runs with the land |
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Encumbrances |
Non physical- lien, judgment, real estate taxes, mechanic lien, and mortgage lien Physical- easement, license, appurtenant, deed restrictions, in gross, necessity, prescription, and party wall |
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3 ways to create liens |
Contractual - Equitable- created by law Statutory- created by state law |
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3 ways to create liens |
Contractual - Equitable- created by law Statutory- created by state law Specific lien claim against a specific property either real or personal General lien claim against personal and real |
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Real estate tax and special assessments |
Priority over all other liens Remaining liens are prioritized by date and time recorded in public records in county where property located |
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Subordination |
To change priority of lien |
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Two real estate taxes |
Ad valorem and special assessment |
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Tax sale |
1. Court issue judgment 2. Notice of sale published 3. Property sold to recover delinquent taxes, interest, and penalties 4. Winner receives tax certificate after paying tax bill 5. Apply for tax deed |
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Mortgage lien |
Specific, voluntary lien |
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Covenant running with the land |
Covenant that applies not only to original parties but also to all of their successors with and interest in the land |
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For a covenant running with the land to be enforceable has 4 requirements |
1. Covenant must be created in writing 2. Parties intend that the covenant run with the land 3. Touch and concern the land, meaning that it alter the use of the property 4. Must be privity of estate to original parties that created the covenant such as seller and buyer or lessor and lessee |
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Lien |
A claim against property which serves as collateral for debt Liens transfer with the property if not paid and the new owner is responsible for debt Liens with higher priority are classified as senior liens and lower liens are junior liens |
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Legal description |
The exact way of describing the location of real estate that is accepted by court. Legal description is used in multiple documents deeds, mortgages, liens, trust deeds, and sale contracts |
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Methods used to describe real estate |
Metes n bounds Plat of survey method also called lot and block or recorded plat method. These methods can be used independently or in combination |
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Metes and bounds |
The oldest method used in legal description and is the primary methods used in states along eastern coast Metes refer to distance measured in feet and bound refer to direction Metes and bounds description starts at the point of beginning (POB) until the description ends back at the POB Metes and bounds includes POB, distances and directions |
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Monuments |
Fixed objects used in metes and bounds description to establish boundaries they may be natural or artificial. The POB in a metes and bounds description is usually a monument. Monuments are placed at the end of measurements such as a corner of property |
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Boundary lines |
Defines boundaries of a property and are drawn from monuments. Refers you distance and direction from monuments at each corner of property and boundary lines are marked with a monument |
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Directions |
Compass bearing are used to describe the direction of property boundary lines which include degrees, minutes, and seconds |
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2 problems using monuments in legal description |
1. can be destroyed or deteriorate 2. difficult to locate |
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Rectangular survey |
Government survey system and geographic survey system is a faster, simpler and more accurate identifying land. Four lines used principal meridians, base lines, range lines, and township lines used in 37 states |
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Plat of survey method also called recorded plat method and lot block tract method |
This system is used in urban areas when land is subdivided into numbered lots, blocks and tracts and a recorded survey called a plat map is referenced Always used in conjunction with metes and bounds or rectangular survey Surveyor’s plat map is recorded with the county and placed in a plat book or map book once that is done it becomes part of the legal description Survey plat shows public streets, lots sizes, and utility easements |
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Spot survey |
Shows location and size of building on the property |
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Allodial system |
Individuals hold absolute ownership rights in the land |
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Feudal system |
Government owns the land and individuals are tenants |
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Inheritable freehold estate |
Can be left to heirs includes fee simple absolute and fee simple defeasible estates |
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Noninheritable freehold estate |
Can not be left to heirs and terminates on the death of the person on whose life it is based. Includes conventional life estate and legal life estate |
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Fee simple absolute estate also called fee simple estate |
The highest form of ownership recognized by law and complete ownership for an unlimited time May be inherited, given away, sold by owner but still subject to government powers |
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Government powers |
Police powers Eminent domain Escheat and Taxation |
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Fee simple defeasible estate |
Subject to a condition to determine when it will begin and ends which creates an encumbrance on title and runs the the land Two types of defeasible fee conditional fee or determinable |
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Fee simple defeasible estate ends |
Title will pass one of three ways Back to original grantor (reversion interest) Original grantor’s heirs (reversion interest) A specified third party (remainder interest) |
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Fee simple determinable subject to condition precedent |
The estate remains in effect as long as a specified condition is satisfied. The grantor and grantor heirs retain right of reversion interest and if the condition is no longer being met and the estate ends automatically |
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Fee simple conditional subject to condition subsequent |
Estate includes prohibited use of the property |
