Re Exam 2

Front 1

RIghts to nonnavigable bodies of water:

Back 1

Riparian rights: (Eastern US) all owners whose land underlies or borders the water shall have equal rights to the water
Prior appropriation: First come first serve

Front 2

Freehold Estates (Fee simple absolute estates, qualified fee estate, life estates)

Back 2

Ownership.
Fee simple absolute estates: Associated with "owning real estate" and is the type of estate acquired in a typical transaction.
Qualified fee estate: An owners rights can be lost should a stated even or condition come to pass.
Life Estates: A type of freehold estate that terminates immediately upon the death of a named person

Front 3

Concurrent Estates

Back 3

Joint ownership.
Tenancy in common: Traditional, each party owns a portion of the land.
Joint tenancy: Similar as tenancy in common except it carries with it the right of survivorship. If a co-owner should die, the other owner or owners automatically divide the share owned by the deceased.
Tenancy by the entirety: A specialized type of joint tenancy that can only be created between husbands and wives.Share ownership, shares pass to surviving spouse, etc.
Community property: System between husbands/wives that exists in some states. Property is divided

Front 4

Cooperative ownership

Back 4

The land and building are usually owned by a nonprofit corporation specifically created for the purpose of owning the property

Front 5

Metes and bounds system, rectangular survey system, and reference to recorded plats

Back 5

Metes and bounds: (traditional) Metes are the distance used in a description, and bounds are the directions of the boundaries that enclose a piece of land
Reference to recorded plats: A common alternative and supplement to these methods of legally describing real estate is to refer to engineers drawings of parcels or real estate called plats that have been recorded as part of the official public record.

Front 6

CC and R's

Back 6

Covenants, conditions, and restrictions. Private encumbrances that limits the way a property owner can use a property. Essentially promises made by a landowner about how the property will or will not be used. Often made by developers. E.g, paint house certain way

Front 7

Lien

Back 7

A claim on a property as either security for a debt or fulfillment of some monetary charge or obligation. For example, an owner might give a mortgage on a property in order to borrow money, thus creating a lien on the property.

Front 8

Specific lien

Back 8

Created to secure debts that are associated with a particular parcel of real estate
Two types: Created to protect creditors using real estate as their security for repayment of debts are mortgages and mechanics' liens
Mortgage: In return for a loan to buy real property, purchasers often pledge the property as collateral for the debt
Mechanics: protects those who provide labor or materials for real estate improvements.

Front 9

General lien

Back 9

Like specific liens, general liens, do not represent property ownership; they are, however, creditors' claims against a property owners title.
For example, a judgment lien or an income tax lien- is placed on all of the property that might be owned by an individual, including any real estate

Front 10

Easement

Back 10

A right given to one party by a landowner to use the land in a specified manner. The landowner does not have to give up his land, but rather coexists with the holder of the easement.

Front 11

Easement appurtenant/in gross

Back 11

Appurtenant: Exists when an easement is legally connected to an adjoining property. Eg, Bill pays susan to grant him an easement to run a sewer line from his house across her property to the citys trunk sewer line. in this case, Bills land is being served or benefited by the easement and is known as the dominant estate.
In Gross: There is no dominant estate, only a servient estate. E.g, a utility company that acquires an easement to run its power line or pipeline across a property

Front 12

Creation of Easements (express grant/reservation, implication, prescription)

Back 12

Express grant or reservation: Most easements created this way. E.g, One owner may grant the other an easement in order to reach a road. As stated in a deed.
Implication: When one or more parcels are severed from a larger tract under common ownership, the right to use the land may be implied from the factual circumstances.
Prescription: may be created when someone other than the owner uses the land "openly, hostilely, and continuously

Front 13

Termination of easements. Agreement, merger, abandonment

Back 13

Agreement: Both parties agree to terminate their respective rights
Merger: An easement can be terminated by the merger of the dominant and servient estates
Abandonment: If the benefited party does not exercise his rights to use the servient estate over an extended period of time, the easement may be terminated.

Front 14

Conservation Easement

Back 14

A type of "negative easement" that prevents specific uses of the real estate by the owner. For example, setting a portion of the land to a natural area, thus creating a conservation easement.

Front 15

Profit A Prendre

Back 15

A nonpossessory interest in real property that permits the holder to remove part of the soil or produce of the land. (Holder gets to farm the land)

Front 16

Encroachments

Back 16

Unauthorized invasion or intrusion of a fixture, a building, or other improvement onto another persons property.E.g. a fence that strays across the property line. If the owner fails to force removal of the fence, the other party may claim the legal right to continue encroaching.

Front 17

Adverse possession

Back 17

Allows individuals to acquire title to land they do not own because they have openly possessed it for a statutory period of time, usually 7-20 years. The use must be open and notorious, actual and exclusive

Front 18

Ad valorem tax

Back 18

It is levied as a percentage of value. The property tax is an ad valorem tax

Front 19

Assessed value

Back 19

The portion of the market value subject to taxation

Front 20

Steps in administering the property tax

Back 20

1. Property value assessment
2. Development of the budget and tax rate
3. Tax billing and collection

Front 21

Eminent Domain

Back 21

Government can acquire property for a public use, even if the owner doesn't want to sell, as long as the owner receives just compensation. An eminent domain proceeding is called a condemnation proceeding. Inverse condemnation occurs when the owner states the gov't has reduced the value of the property to such an extent that the gov't has effectively taken the property away from the owner

Front 22

Police power

Back 22

Gov't has the power of regulation, which gives it the ability to protect public health, safety, morals, and general welfare.

Front 23

Innovative Zoning techniques:
-Planned Unit development
-Performance (impact) Zoning
-Incentive zoning
-Transferable development rights

Back 23

Planned unit development (PUD's): Permit greater flexibility of design. E.g, lot sizes may be reduced to permit greater densities, convenience shopping may be permitted for the benefit of the community
Performance (impact) Zoning: Permits use of land to certain performance standards, usually to protect the environment. E.g. regulate noise, smell, smoke
Incentive zoning: Encourages developers to provide certain publicly desired features in return for various incentives. E.g. increased floor space if developer provides a pedestrian plaza
Transferable development rights: Under a transfer system, in order to develop their property, landowners can sell part of their bundle of rights to other landowners, who then can use their own land more intensively.

Front 24

Zoning Changes (3 ways)

Back 24

Legislative relief: If a property owner seeks a change in the property's use, he can request a change in zoning use classification from the local zoning authority, usually the city council or county commission.
Administrative relief: If a property owner seeks a relatively minor change, it sometimes can be accomplished administratively through a variance or special-use permit granted by a board of adjustments, a zoning appeals board, or some similar body. A zoning variance permits are used to deviate slightly from a strict interpretation of the zoning ordinance to avoid placing undue hardship on the owner. E.g. allowing a house to be built on an oddly shaped lot, some relief from minimum side-yard requirements may be needed
Judicial relief: If property owners are unhappy because the legislative or administrative relief they sought is not granted, they may appeal to the courts

Front 25

Nonconforming use

Back 25

A continuing use that was legal before a zoning ordinance was passed but that no longer complies with the current zoning regulation. Such a use generally is allowed to continue for some period of time unless the nonconforming structure is substantially destroyed or abandoned.

Front 26

Subdivision regulations

Back 26

Another tool for implementing the community planning process, establish the standards and procedures for regulating the subdivision of land for development and sale. Their purpose is to protect both the community and future residents from poorly planned and executed developments. The planning board determines the standards that must be met for subdivision approval, and also establishes an approval procedure:
-Preapplication conference
-Approval of the Preliminary plat
-Approval for the final plat

Front 27

Mandatory Dedication

Back 27

Another method to shape city growth. To obtain approval for a project, the developer often is required to dedicate parts of the property to such public purposes as rights-of-way for streets, utilities, and drainage. In some communities, developers may be required to dedicate land for parks, open space, and schools.

Front 28

Impact fees

Back 28

In addition to mandatory dedications, a community may also enact impact fees on new development to help raise the funds necessary for the expansion of public facilities.

Front 29

Takings

Back 29

If a government unit acquires property for public use under the power of eminent domain, this action is a taking, which requires the payment of compensation.

Front 30

Escheat

Back 30

If a landowner dies without leaving either a valid will or living relatives, the state government becomes the new owner of the property.

Front 31

Necessary elements of a deed

Back 31

-Identification of the parties
-Consideration given for the conveyed interest (something of economic value)
-legal description of the property
-specification of the interests conveyed
-signatures of the proper parties

Front 32

Covenants/warranties

Back 32

(additional elements of a deed)
covenant: any agreement or promise
warranty: a guarantee that the statements made are true

Front 33

Warranty Deed

Back 33

Broadest type of all deeds. The grantor makes promises that cover the traditional covenants and warranty. The grantor assures the grantee that no liens or encumbrances other than those on public record exist against the property (covenant against encumbrances), that the grantor has a fee simple interest in the property, and that he or she is in full possession of the interest being conveyed, and thus has the right to convey it (covenant of seisin)

Front 34

Special warranty deed

Back 34

Similar to a warranty deed except it limits the extent of the grantors warranties to events that occurred during the grantors period of ownership. It does not protect the grantee against encumbrances that may have arisen before the grantor took title

Front 35

Bargain and sale deed

Back 35

A deed that implies the grantor has title to the property and the right to convey it but does not contain any express covenants as to the titles validity. In essence, it simply specifies that the grantor "does hereby grant, sell, and convey" some interest in real property to the grantee. Notice the lack of covenants in this type of a deed compared to a warranty deed

Front 36

Quitclaim deed

Back 36

Transfers any interest that the grantor may have in the property described but does not imply that the grantor has any valid interest in it. The quitclaim deed is most commonly used to clear defects in the title of the property

Front 37

Marketable title

Back 37

One that is free and clear of past, present, and future claims that would cause a reasonable purchaser to reject such a title

Front 38

Insurable title

Back 38

One that a reputable title insurance company is willing to ensure

Front 39

Title perfect of record

Back 39

The public records related to the particular title involved show no defects whatsoever. This title usually provides the buyer with the most protection

Front 40

Title search

Back 40

Reveals the ownership history, or chain of title, of a property

Front 41

Title abstract

Back 41

A written summary of the chain of title for a given parcel of real estate. Generally, such abstracts are prepared by employees of an abstract company who are not licensed lawyers but are trained specifically to search titles

Front 42

The Torrens system

Back 42

The Torrens system of land registration provides the landowner with a title certificate similar to that used to show title to a car. To obtain the torrens certificate, the purported owner must be willing to go through a legal registration proceeding.

Front 43

Elements of a valid contract

Back 43

-Offer and acceptance
-Consideration
-Capacity of parties
-lawful purpose
-Writing agreement (in RE)

Front 44

Breach of contract

Back 44

The party getting screwed may sue for specific performance, that is, ask the court to order the breaching party to perform the terms of the contract

Front 45

Contract Contingencies

Back 45

A well drafted contract provides that the parties will be discharged from performance in the event of certain conditions. These conditions are called contingencies. A common clause in residential RE sales contracts is a financing contingency that allows a buyer who is not able to arrange the necessary financing within a certain time period to cancel the contract and recover any earnest money paid without further obligation

Front 46

Option to buy contract

Back 46

Sometimes a party is interested in buying a specific property but is not yet ready to sign a sales contract. The option to buy contract is one way to ensure that the property will not be sold to another party before the person who holds the option to buy has made a final decision. It is an agreement between the owner and the potential buyer to keep an offer open for a certain amount of time

Front 47

Contract for Deed

Back 47

This arrangement stretches out the payments to the seller over time, but it allows the seller to retain legal title to the property until the agreed-on amount is paid. While making payments to the seller, the buyer typically has possession of the property as the "equitable" owner.