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200 Cards in this Set
- Front
- Back
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Planned Unit Development (PUD) |
Method of real estate development flexible /multi use zoning Celebration in FL |
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Time Share |
is any right to occupy a unit of Real Property during 5 or more seperate time periods over at least 5 year |
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Common Elements
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In condo ownership a partial ownership of the common areas |
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Townhouse Ownership |
Similar to Condo but owner also has land. Shares a common wall with neighbor. |
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nonhomogenieity |
used to describe land, No 2 parcels of land are exactly alike. |
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proprietary Lease |
Shareholders in a corporation for the lease of a unit in a building.. Occurs a lot in NYC |
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Cooperative |
Owned by a corporation individuals own "stock" in the corporation and get a proprietary lease |
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Joint Tenancy |
owned by 2 or more people, can be husband and wife they have equal shares Right of survivor ship. One dies the other(s) acquire their share |
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Severalry |
Property owned by one owner |
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Homestead |
A legal life estate an estate credited by statue becomes effective automatically used in most states NOT NC. |
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Waste |
Injury to a property by a life tenant |
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Reversionay Interest or Reversion |
Grantor doesnt name a remainderman in a life estate Ownership returns to the Grantor or his/her heirs |
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Defeasible Fee Estate |
Simple Determinable & Fee simple on Condition an estate which the holder has a fee simple title that can be terminated upon the occurrence or non occurrence of a specific act |
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Fee simple subject to a condition, subsquant |
Prohiibits a specific condition on the property has to be reclaimed through legal proceedings IE the brother is not allowed on the property. |
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Fee Simple Determinable |
Continues 'so long as' -a prescribed land use -ends automatically no law suit needed Elings flight park |
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Estovers |
-Life Tenant The right to use the properties resources Use lumber for Fire and repairs |
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Common Elements |
Pools, hallways, elevators in condo
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Fructus Industrials/embelements |
Crops for harvest Fruit trees Corn wheat Real property until harvested then it becomes real property |
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Broker |
acts as an agent who negotiates the sale, purchase or rental of property on behalf of other for a fee |
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Highest & best use |
Greatest actual return on their investment |
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Fructus Naturales |
Trees, bushes Trees do not require cultivation |
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Modular Home |
Assembled on site, it is immediately considered real property HUD Label can be found under the sink or in electrical box |
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Subjacent Support |
Subsurface mining will support the land surface |
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Lateral Support |
Construction or excavation on neighbors property should not cause the soil on owners property to subside |
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Avulsion |
Sudden land loss, avalanche Flood Hurricane |
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Reliction |
Erosion |
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Accretion |
small gradual increase in land resulting from soil deposits |
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Foreshore |
Land between High and low tide water mark Owned by the state of NC -all beaches are public beaches |
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Littoral Rights |
Boarders oceans and large navigable lakes that have a tide -owns to the high water mark |
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Riparian Rights |
Rights to owner of land on the course of a river or non navigable waterway. -Owns to the cent of the water way |
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Livery of seisin |
old english term A bound bundle of sticks that become the right of ownership Real property a bundle of rights |
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appurtenances |
Right or privilege that goes with the ownership of land -HOA -Shared Driveway Easment |
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market |
A place where goods are bought and sold |
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Chattel |
Items of personal property Moveable property |
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Real Estate |
Land at, above, and below the earths surface and everything permanently attached to it |
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NCUCC Uniform Commercial Code |
Items purchasd on credit Remain personal property till loan is paid off |
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Agricultural Fixtures |
Fixtures on a farm and are considers real property and remain with the property |
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Trade Fixtures |
A fixture specific to business, Pizza oven, hair washing sink, etc.
If not removed at lease termination becomes Real Property |
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Fixtures |
An item that was once real property but has been affixed to the land or building that construes it to be part of the real Estate |
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Business cycles |
upward and downward fluctuations in business activity Expansion, recession, depression, revival |
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Situs |
Location Location location, Taking into consideration social and economic factors building a donut shop near a factory |
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S.L.I.P |
Scarcity Location Improvements Permanence |
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Economic Characteristics of Real Estate |
SLIP |
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I.R.M.A |
Intention - of the person who installed it Relationship- to the property Rent/Owner Method -How permanent is it attached Adaption - is it a custom piece built into the property |
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Physical charactists of real estate |
Imobility Industrictibility Uniquness |
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LIfe Tenant |
The owner of a life estate ends with the death of a person to whom it was granted can be successive |
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Remainderman |
Person that will recieve the fee simple absolute title from a conventional life estate |
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Life Estate |
a freehold estate in land that is limited in duration to the life of the new ower or life of another persons or persons |
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Future Interests |
The right of re-entry and the possibility of Reversion of the grantor pertains to a fee simple defeasible and fee simple determinable estate |
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Freehold estate |
indeterminable length of ownership. A lifetime estate passed from grantor to grantee via the deed -fee simple Defeasible fee Pur Autir Vie Ordinary life estate with remainder or reversion |
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Homestead |
A legal life estate occupied as the family home |
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Reversionary interest or Reversion |
Grantor doesnt name a remainderman the ownership returns to the grantor |
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Tenancy by the entirety |
Owners are husband and wife |
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Tenancy in Common |
A parcel of real estate owned by 2 or more people/entities unity of possession may have unequal shares no right of survivorship can sell through the right of partition passes to heirs |
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Joint Tenancy |
Owned by 2 or more people shares are usually equal right of survivorship (A,B,C owns, C dies A&B become owner) NC must write this out specifically |
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limited common elements |
assigned storage areas or parking spaces are examples |
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NC Condo act 1986 |
Provides consumer protection Public offering statement right to cancel escrow deposit Resale certificate |
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Condos Created by |
-Developers prepares and records -Describes in detail -contains Covenants, conditions, and restrictions Run with the land Appurtenant -by laws provided for internal management |
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public offer statement |
prepared by the developer buyer receives prior to signing contract contains info about the project including right to cancel |
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Right to cancel |
Within 7 days of signing no penalty - full refund No conveyances can be made till cancel period ends only new. not on resale no right to cancel on resale |
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Co Op ownership |
NYC apartment building. Everyone owns stock Receives a proprietary lease |
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Time share |
use of a unit for a stated period of time developer must renew registration every year till sold out |
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Tenancy by the entirety |
a concurrent form of ownership reserved fro property owner by husband and wife Right of survivorship is mandatory making the surviving spouse owner in severalty immediatly upon death of a spouse |
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Tenancy in common |
a concurrent form of ownership in which each owners holds an undivided interest in the real property. Ownership interest can be unequal and the right of survivorship is not allowed |
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Partition |
The division of peoples interest in real property when all the parties do not voluntarily agree to terminate the co-ownership takes place through court procedures |
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lis pendens |
A recorded document giving constructiove notice that an action affecting a particular piece of real estate has been filed in a state or federal court |
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Writ of Execution |
is a court order authorizing and directing an officer (Sheriff) to see property or the defendant in order to satisfy a judgment |
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Syndication |
refers to a group of people united for the purpose of making and operating an investment can be an LLC or general partnership |
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Designated agency |
is an optional method of practicing dual agency 1 agent - buyer 1 agent - seller |
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Deed of Trust / Mortgage |
Most Common owner pledges property to secure the repayment of the debt |
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Encumbrances |
Burden/Restriction May affect quality and or value of title Liens restrictive covenants easements encroachments |
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General Liens |
Judgment liens State/Federal Tax Liens Personal Property Liens |
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specific Liens |
Mortgages Real Estate Taxes/assessments Mechanics lien |
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Real Estate Tax Liens |
Ad Valoren (according to value) Also Assessment liens Liens on the property itself Good for 10 years Tax liens always superior |
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Mechanics Liens |
120 from last day of work to file Dated back to the first day or work 180 to take action (60 past the 120) |
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Lien Priority |
First in line first in time |
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Subordination |
To step down in lien priority determined by recording date |
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Writ of attachment |
court order that seeks a judgement other than the mortgage prevents a sale w/o getting paid 1st judgement is Writ of Execution |
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Easements |
right to use another persons land for special purposes non possessory interest |
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Easements |
Easement Appurtenant- Recorded and in writing Easement in Gross - utilities |
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Creating an easment |
Express in grant-in words(in the deed) Express in Reservation necessity- landlocked Prescription- continuous NOT ORAL |
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Servient owner Dominant owner |
Servient- land it encumbers Dominant - the land that benefits from the easement |
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Eminent domain |
Goverment takes private property for pubic use. IE make room for a runway at an airport |
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Condemnation |
Process of taking the property |
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License or personal privilege |
permission to enter land for a specific reason. hunting fishing not an emcumbrance |
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Assessed value |
Market value or true market value |
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NC tax rate |
$0.80 per $100 of assessed value |
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National uses mills |
8 mils per $1 1 mils is 1/10 of a penny 8 mils is $.008 Divide Assessed value by 1000 X mils $150,000/1000=150 x 20 mills = $3000 |
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Octennial plan |
All property must be appraised every 8 years can be done annually never longer than 8 years Horizontal adjustment - apply a % increase in the 4th year |
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Metes and Bounds |
Reference to a recorded plat (lot and block) Legal description POB point of beginning designated start and ending place Metes Line length bounds direction of the line N S E W Calls- compass directions |
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Survey Terms |
Monuments - stones lakes and highways Benchmark permanent reference point to establish elevation and altitudes ASL Datum A point, line or surface from which elevations are measured to determine heightof structures or grade of street |
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Goverment survey method |
Principal Meridian - Runs N and S Base Line Runs E and W Results 4 square |
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Townships |
Ranges run N and S TIer or Rows run E and W Run 6 miles apare Each square is a township Township is 6 miles x 6 miles |
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Sections |
1mile x 1 mile 1 mile = 5280 feet 5289 x 5280 = 27,878,400 square feet 43,560 square feet in an acre 27,878,400 / 43,560 = 640 acres 36 sections in a township |
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Acre |
43, 560 square feet |
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Quarters |
Each section is divided into quarters Each Quater is 160 acres 640 acres / 4 quarters = 160 acres |
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Fractional parts |
each quarter 160 acres is divided into quarters these 40 acre are fractional parts |
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Sections of a township |
36 sections 6 mile x 6 miles numbered starting in the NE corner 16 is reserved for schools |
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Reading a rectangular survey description |
Start at the end and work backwards |
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Recorded Plat ( Lot and Block) |
A plat or subdivision divided into numbered or lettered blocks and lots |
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Informal References |
Can be sufficient if they enable a surveyor to preciesly locate a parcel of real estate IE street address contracts and deeds should contain a legal description |
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Essential elements in a Deed |
Deed in writing Grantor has legal capacity Grantor and Grantee identified Adaquate words of conveyance accurate legal description Deed signed by grantors deed delivered and voluntarily accepted |
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Deeds do NOT NEED |
Date Recorded Witnessed Recite amount paid Notarized - unless you want it recorded |
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Valid vs Enforceable Deed |
To be enforceable it must be recorded, to be recorded it must be notarized |
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Types of Deeds |
General Warranty Special Warranty Quitclaim Special purpose |
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General warrenty deed |
most widely used Best kind of deed Contains 3 covenants grantor warrants against all claims and demands Forever in the past |
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Special Warranty deed |
Warrents that title is free from defecte which have arised only since they have owened it Deed for foreclosures contains words like remise, release, alienate and convey in the granting clause |
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Quit Claim |
No warranties or promises used to quit a claim, easements, life estates not used for transferring simplest form of a deed |
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Bargain and Sale Deed |
Like a quitclaim grantor gives now warrenties grantor claims to have or have had an interest in the property |
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Special purpose |
Correction deed deed of gift deed of release deed in lieu of foreclosure Trustee deed guardians deed - must be 18 Committee deed |
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Revenue Stamps and excise tax |
Tax levied on Seller paid to the register of deeds Cost: $1 for each $500 of sales price shown on Deed |
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Adverse possession |
Process of taking property use must be open, continuous for 20years without owners content uninterrupted exclusive Notorious |
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Squaters rights |
Right of the party in possession squatter must file suit to quiet title title by prescription |
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TItle search |
must be done by an attorney in NC other states use title companies brokers can not give opinion determines status of the title Check recorded documents |
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Chain of title |
look at history of transfer each transfer is a link generally covers 40 years Grantor Grantee index |
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abstract of title |
a checklist brief history of the title all legal action that took place determines if there is a claim not used in NC widely used in other states |
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Cost of title insurance |
one time premium remains in effect indefinitely $2 per $1000 of sales price |
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Connor act |
Recording act places serious penalties on Grantee that doesnt record Could be considered void Pure race state |
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Documents requied to record |
Contracts to convey deeds in county where real property lies Deeds of trust/mortgage Leases for more 3 years easments |
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mortgage payoff |
Record lien satisfaction done by atty clears encumbrance buyers mortgage can be the primary lien |
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Torrens system of registration |
legal registration system - verifys ownership submit application to court clerk in county |
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Alienation |
the act of transfering property to another |
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Deed |
a written instrument by which an owner of real estate intentionally conveys right, title or interest n a parcel of real estate to another a deed is evidence of title
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Grantor/Grantee |
Owner/reveiver |
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Words of Conveyance/Granting Clause |
Convey bargain sell remise, release, quitclaim |
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5 covenants of a general warrenty deed |
Covenant of seisin against encumbrances of quiet enjoyment further assurance warranty forever |
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2 warranties of Special warranty deed |
Grantor receives title property was unencumbered by grantor contains words like, remise, release, alienate and convey |
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Bargin or sale deed |
no expressed warranties against encumbrances grantor does hold property contains words grants, releases, bargains and sells |
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Recording |
The act of placing a document in public record |
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American with Disabilities Act |
Federal act implementing regulations the protect citizens with mental or Physical disabilities. Does not apply to residential housing but to commercial facilities and places of public accomidation |
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Blockbusting |
Illegal practice of inducing homeowners to sell their property because a particular protected class is moving in |
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Channeling/steering |
channeling home seekers to particular areas either to maintain homogeneity or change the character of a particular area |
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Civil Rights act of 1866 |
Federal act that prohibits racial descriminationin the sale and rental of all real and personal property |
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,Code of Ethics |
A written system of standards for ethical conduct designed to advise, guide and regulate job behavior NAR adopted code in 1913 |
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Department of Housing and urban development |
Federal department active in national housing programs. Urban renewal, public housing, model cities, rehab loans, FHA subsidies, fair housing enforcement |
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Equal Credit Opportunity Act ECOA |
Federal law that prohibits discrimination on the extension of credit because of race, color, religion, national origion sex, age or marital status. |
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Federal Fair Housing Act |
Federal law the prohibits discrimination in housing based on race, color, religion, sex, handicap familial status or national origion |
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NC Fair Housing act of 1983 |
Same as federal but does not exempt owners who are selling their own property adn it does exempt the rental of a unit in a one to four unit residential building if one of the owners or owners family members live in one of the units |
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NC Human Relations Commission (NCHRC) |
Agency responsible for enforcing the NC Fair Housing act
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Office of Fair Housing and Equal opportunity |
Federal agency under the dept of Housing and Urban Development in charge of administering the Federal Fair housing act |
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Panic Peddling |
Blockbusting |
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Protected Classes |
Family status, marital status, age, race, gender, handicapping condition, color, religion, source of income, and national orgin |
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Redlining |
illegal practice of a lending institution denying loans or restricting their numbers for certain areas of a community |
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Marketable Title Act |
NC - it title can be traced back 30 years it becomes marketable title |
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Title Insurance |
insures against losses sustained as a result of defects in title Owners policy is permanent Mortgage companys (Mortgagee) is diminishing |
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Title insurance standard coverage |
defects in public record Forged documents incompetent grantors incorrect marital statements improperly delivered deeds |
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Ttitle insurance not covered |
Defects or leins listed in the policy Defects known to the buyer changes in land use brought by zoning changes Defects in survey.. |
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Torrens System |
provides evidence of title without the need of additions search of public records |
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Police Power |
Authority to create and adopt regulations necessary to protect public health safety and general wel |
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Action to quiet title |
A court action to remove a cloud on a title |
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adverse possession |
O Open C Continious E Exclusive A adverse N Notorious/Hostile For 20 years 7 if have color of title |
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Chain of Title |
Succession of title conveyances from some starting point where by the present holder of real property derives |
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Cloud on the title |
any document, claim, unreleased lien or encumberance that may impair a title usually revieled in title search and removed by quitclaim or quiet title. |
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Constructive notice |
Notice given to the world by recorded documents. Possession of property is also constructive notice |
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marketable title |
good clear title, reasonably free from possible defects |
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Marketable Title Act |
designed to eliminate obsolete defects in a chain of title. If a chain of title can be traced back 30 years it is a marketable title |
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Aesthetic zoning |
Regulate the appearance of real property such as exterior color or construction materials |
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Buffer Zones |
a piece of land usually a park separating and screening land dedicated to one use form land dedicated to another use |
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Building Codes |
ordinance that specifies minimum standard of construction for building to protect public health and safety |
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building permit |
written govt permission for the construction, alteration ro demo of an improvement showing compliance with building codes and zoning ordinances |
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Certificate of Occupancy |
certificate issued by a govt authority that a building is fit for occupancy |
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cluster zoning |
grouping of homesites within a subdivision on smaller lots than normal with the remaining land used as commen areas |
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conditional use permit |
allowing incosistent use of land with zoning but in the public interest, |
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declaration of restrictive covenants |
a statement of all covenants conditions and restrictions (CC&R) affecting a parcel of land; sometimes noted on the plat map or in a seperated document They are appurtenant and aim to protect property values |
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Enableing acts |
State legislation that confers zoning powers on municipal goverments |
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Extra territiorial jurisdictions ETJ's |
a municipalitys right to regulate development in areas adjecent to but not part of the citys corporate limits population determines if the power extends for 1 or 3 miles from the corporate limits |
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FEMA |
Federal agency responsible for disaster prepardness under homeland security |
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Flood hazard area |
flood zone requiring flood insurance |
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Interstate Land Sales Full disclosure act |
A federal law regulating the interstate advertising and sale or lease of lots in subdivisions with 25 or more lotsDeveloper must provide a property report and register with HUD |
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laches |
a legal doctrine to bar a legal claim or prevent the assertion of a right because of undue delay or failure to assert the claim or right |
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Master Plan |
comprehensive plan to guide the long term physical development of a particular area |
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nonconforming use |
allowing use of property after a zoning change, grandfathered use. |
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Plat map |
map of a subdivision indication the location and boundries shows lots blocks, easements , streets floodplains etc |
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Protective/Restrictive covenants |
private agreementsthat limits the way real estate ovnership may be used used by developers to maintain specific standards in subdivisions they are appurenant |
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variance |
Permission obtained from zoning authorities to build a structure or conduct a use this is expressly phohibited by the current zoning laws |
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Agent |
Is hired by the principals to act on their behalf |
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Agency |
The Fiduciary relationship in which the agent is held in a position of special trust and confidence by the principal |
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Customer |
A nonrepesented party for whom some level of service is provided who is entitled fairness and honesty |
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Universal agent |
is empowered to do anything the principal could do personally |
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General agent |
represents the principal in a broad range of matters could be a property manager |
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special agent |
represents the principal in one specific act or business transaction on under detailed instructions |
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Creation of agency |
may be accomplished by a written listing or property mamangment agreement with a property owner ; a written or oral buyer agency agreement or dual agency agreement |
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Agency Relationships |
Express agency - formal agreement Implied agency - results from the behavior |
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Termination of agency |
completion of purpose destruction of property expiration of the agreement mutual agreement breach by one of the parties operation of law ie bankruptcy |
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Single agency |
agent / firm represents only one party in a transaction |
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subagent |
agent of an agent |
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dual agency |
an agent or firm represents two principals in the same transaction |
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designated agent |
authorized by the broker to act as the exclusive agent of a specific principal in a dual agency situation |
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Working with Real Estate agents |
Reviewed at first substantial contact must review all agency options request signature does not create agency only proof of disclosure |
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Fiduciary relationship |
Obedience Loyalty Disclosure Confidentiality Accounting Reasonable skill and Care |
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Material facts |
Facts about the property itself facts relating directly to the property Facts relating directly to ability of parties to complete the transaction facts of special importance |
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Puffing |
legal exaggeration of properties benefits |
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Fraud |
the intentional or willful misrepresentation or ommision of a material fact to harm or take advatage of another person |
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Negligent misrepresentation |
Occures when a broker shold have know that a statement about a material fact was false |
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Negligent omission |
Occures when a broker did not disclose a material fact that the broker should have known |
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Total interest |
P&I x total months (360) - principal |
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To Figure P&I |
Total loan ÷ 100 × factor (6.99) = P&I |
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Discount points |
1 point = 1/8 of 1 % ie 4 points = 1/2 % |
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Subrogation |
Signing over rights in a claim to a title insurance company in return for getting paid off |
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Tax base |
Total of all assessed values |
