Nc Real Estate Chapter 3 - Encumbrances

Front 1

Encumbrance

Back 1

-A claim, charge or liability that attaches to real estate and may be a:

-Lien,

-Deed Restriction, or

-Lis Pendens

Front 2

Lien

Back 2

-A right given by law to certain creditors to have their debts paid out of the property of a defaulting debtor, usually by means of a court sale.

-An encumbrance on real property that can be general or specific

Front 3

Deed restriciction

Back 3

-Clause placed in a deed by the owner to control the future uses of the property.

Front 4

Restrictive Covenant

Back 4

-Private agreement usually imposed by the owner when property is sold that limits the way the real estate ownership may be used;

-Frequently used by owner/developer to maintain specific standards in a subdivision;

-The covenants are appurtenant

- Also called protective covenants

Front 5

Covenant

Back 5

-A written agreement between two or more parties in which a party or parties pledge to perform or not perform specified acts with regard to property

-Usually found in such real estate documents as deeds, mortgages, leases and contracts for deed

Front 6

Lis Pendens

Back 6

-A recorded legal document giving constructive notice that an action potentially affecting title to a particular property has been filed in either a state or a federal court;

-Title is effectively unmarketable during litigation;

Front 7

General Lien

Back 7

-The right of a creditor to have all of a debtor's current and future property for the next 10 years (both real and personal) sold to satisfy a debt.

- i.e. judgment lien

Front 8

Specific Lien

Back 8

-A lien affecting or attaching only to a specific parcel of land or piece of real property;

-i.e. mortgage lien

Front 9

Lien Agent

Back 9

-A title insurance entity that is designated under the NC Mechanic's Lien Law by a real property owner to receive notifications of possible mechanics' liens from construction vendors

-In NC, private residential and commercial construction projects costing more than $30k must designate a lien agent

Front 10

Mechanic's Lien

Back 10

-A specific, involuntary lien secured by interest in real property to give security to contractors, laborers and materialmen who have performed work or furnished materials in the erection or repair of a building.

Front 11

Priority of Liens

Back 11

-Generally, the first to record is first in right;

-Real estate taxes and special assessments take priority of all other liens;

-Order of priority can be changed by a subordination agreement.

Front 12

Subordination Agreement

Back 12

-A written agreement between lien holders on a property that changes the priority of a mortgage, judgment, and other liens under certain circumstances

Front 13

Easement

Back 13

-A right to the limited use of land of another for a specific purpose without ownership;

-A non-possessory interest in real estate;

Front 14

Easement Appurtenant

(Type of Easement)

Back 14

-An easement that runs with the land;

-Part of both the dominant and servient tracts;

-Conveys with the title to either tenement.

Front 15

Easement in Gross

Back 15

-An easement that attaches personally to the easement of the owner; (i.e. RR or utilities)

-Not created for the benefit of any land owned by the owner of the easement;

-There is no dominant tract;

-Attaches to the servient tract;

-Personal is not assignable, but commercial is.

Front 16

Easement by Necessity

Back 16

-Allowed by law as necessary for the full enjoyment of a parcel of real estate;

-i.e. to allow a landlocked land owner the right of ingress and egress over a grantor's land.

Front 17

Easement by Prescription

Back 17

-Acquired when a claimant has made use of another's land for a certain period of time as defined by state law;

-Prescriptive period is 20 years in NC;

-Claimant's use must have been continuous, exclusive and without owner's approval;

-Use must have been visible, open, and notorious so owner could have readily learned of it.

-Can be prevented by owner giving permission.

Front 18

Termination of an Easement

Back 18

-when the need no longer exists or when the two properties come under one ownership;

-by release of the right of easement to the owner of the servient tenement,

-if the easement is abandoned, or

-by the non-use of the prescriptive easement.

Front 19

Servient Tenement

Back 19

-Land on which an easement exists in favor of an adjacent property;

-Also called servient estate or tract;

-Easement runs with the land.

Front 20

Dominant Tenement

Back 20

-A property that includes in its ownership the appurtenant right to use an easement over another person's adjacent property for a specific purpose;
-Ownership of the easement runs with the land.

Front 21

License

Back 21

-A personal privilege to enter land of another for a specific purpose.

-Nontransferable and temporary

Front 22

Encroachment

Back 22

-An unauthorized intrusion of an improvement, or any part of an improvement, on the real property of another party;

-Can make title to both parcels unmarketable;

-Best discovered by survey.

Front 23

Ad Valorem Real Estate Taxes

Back 23

-Based on the value of the property taxed;
-Specific, involuntary statutory liens, and
-levied by states, counties, municipalities, school districts, utility districts, parks and recreation districts and others.

Front 24

Assessment

Back 24

-Valuations conducted by county or township tax assessors or appraisers;

-Generally based on sales price of comparable properties;

-