Chapter 9

What are the covenants in a warranty deed?

1. covenants of seisin, 2. covenant against encumbrances, 3. covenant of further assurance, 4. covenant of quiet enjoyment, 5. covenant of warranty forever

Three most important subcategories of governmental limitations

1. police power 2. eminent domain 3. taxation

Legal Title

A deed conveys

Devise

A gift of real property to a devisee

Bequest

A gift of tangible personal property to a beneficiary

Will

A legal instrument used to convey title to real and personal property after the person's death

Lis Pendens

A recorded legal document giving constructive notice of a pending legal action that involves real estate.

Private Restrictions on Ownership

Deed restrictions, easements, leases, liens

List 2 ways to transfer title to property by voluntary alienation

Deed, Will

What are the two major classifications of liens?

General Liens and Specific Liens

what are the 4 statutory deeds

General Warranty Deed, Special Warranty Deed, Bargain and Sale Deed, Quitclaim Deed

vendor's lien

If a buyer of a property (vendee) is unable to make the full down payment required, a seller (vendor) frequently will allow a purchase money mortgage to make up the amount of money the buyer is unable to produce

Easement by necessity

If a landowner subdivides land, conveying part of it in a way that causes a parcel to be landlocked, the court may authorize creation of an easement by necessity to allow property owners to enter and exit their landlocked property

testate

Indicates that the decedent prepared a will before death (voluntary alienation) because the testator/testatrix intended to gift the property to a particular individual.

Owner's policy

Issued for the total purchase price of the property, protects the owner, not transferrable

deed

It is an instrument of conveyance whereby title to real property is transferred from one party to another

What are the 3 types of General liens?

Judgment Lien, Income tax (IRS) lien, Estate Tax lien

Parts of a deed

Names of the grantor and the grantee, consideration, words of conveyance, words of conveyance, interest or estate being conveyed, exceptions and reservations, deed restrictions, appurtenances, legal description, voluntary delivery and acceptance, signature of the grantor and 2 witnesses

General Lien

Not restricted to one property but may affect all properties of a debtor.

what are the four types of specific liens?

Property tax and special assessment lien, mortgage lien, vendor's lien, construction lien

General Warranty Deed

Provides the greatest protection to the buyer because the general warranty deed contains all the covenants and warranties available to give the grantee every possible future guarantee to title protection

Acknowledgement

The formal declaration before a notary public declaring that signing the document is a voluntary act.

Special Warranty Deed

The grantor guarantees that nothing has been done to encumber or cloud the title during the grantor's ownership

Tax deed

The instrument used to convey title to property sold for nonpayment of taxes

Equitable Title

a beneficial interest in real estate implying that an individual will receive legal title at a future date

Lien

a claim to have a debt or other obligation satisfied out of property belonging to another

Title Insurance

a contract that protects the policyholder from losses arising from defects in the title.

Voluntary Alienation

a legal term used to indicate the transfer of title is accomplished with the owner's control and consent (Testate)

Title

a person who holds vested ownership rights in the property has

covenant of seisen

a promise that the grantor owns the property and has the right to convey title to the property

appurtenance

a right or privilege associated with the property.

Easement

a right to use the land of another for a specific and limited purpose

abstract of title

a search of the recorded documents concerning a parcel of real property

Deed

a written instrument used to convey an interest in real property

Easement by prescription

acquired by continually using another person's real property for the statutory period when such use is adverse to the owner's interest (20 yrs)

Lease

an agreement between the landlord and a renter that grants the lessee the right of possession and use of the property (not ownership) for a specified time in return for compensation

implied easemement

an encroachment that has continued for more than seven years

transfer of riparian rights or easements to the grantee are examples of

appurtenances

Adverse posession

arises when the true owner of record fails to maintain possession and the property is seized by another

Committee's deed

committee is appointed by the court for an incompetent person. All members of the committee must sign the deed

List the two types of notice to legal title .

constructive notice, actual notice

Involuntary liens

created by law to protect interests of persons who have valid monetary claims against the owner of the real property

the instrument used to transfer title from one individual to another is a

deed

habendum clause

defines the bundle of legal rights being conveyed to the grantee. "To have and to hold", "forever" if life estate or "for the life of the grantor" if fee simple

title to real property is transferred fr[om the grantor to the grantee when the deed is voluntarily _____________ and _______________

delivered and accepted

specific liens

do not affect all of the debtor's property, applying only to certain specified property

easement in gross

does not benefit another specific parcel of land; the easement benefits the company that owns it.

encumbrances can also be

easements, covenants, deed restrictions, encroachments and government regulations

List 4 ways to transfer title to property by voluntary alienation

eminent domain, adverse possession, escheat, Descent/probate

A lien is an _________ on title to real property

encumbrance

Opinion of title

executed by an attorney who has studied the abstract of title. The opinion will list any defects or clouds on the title, such as liens, easements, or other encumbrances

Income tax (irs) lien

failure to pay federal income taxes, once filed becomes a lien on all property owned by the taxpayer at the time of filing as well as future property acquired until the lien is paid

Eminent Domain

gives government the power to take land from an owner through a legal process called condemnation. The taking must be for a public purpose.

The two general categories of restrictions are

government restrictions and private restrictions

Who are the two parties to a deed?

grantor (owner giving title) and the grantee (new owner receiving title)

The deed must be signed by a ____________and ____________

grantor and two witnesses

Estate tax lien

imposed against a decedent's taxable assets automatically upon death

A person who did not prepare a will before death died

intestate

judgment lien

involuntary, general lien

Easement appurtenant

involves two or more parcels of property and continues from owner to owner (the easement transfers with the title

Constructive notice also called legal notice

is accomplished by recording a document in the public records.

Actual Notice

is direct knowledge acquired in the course of a transaction. verbal notice

Lender's policy

issued for the unpaid mortgage amount, protects the lender, trasnferrable

Recording a document in the public records provides _______________ notice

legal

Guardians deed

legally conveys the minor's property

deed restrictions

limit future use of the property

Property tax and special assessment lien

municipal governments have been delegated the authority to levy real property taxes and special tax assessments

Does Florida Law require title insurance

no

Assignment

of a lease occurs when a lessee assigns to another person all the leased property for the remainder of the lease

FLorida law requires that a lease for more than _________ be in writing and be signed by the lessor, the lessee, and two witnesses to be enforceable

one year

Voluntary liens

ones that the owner places against the property to secure payment of a long-term debt, such as a mortgage lien

involuntary alienation is usually accomplished by

operation of law

List the two types of title insurance policies

owner, lender

Deed restrictions

private restrictions placed in a deed that affect the use of a parcel of real property

Escheat

provides for a government, normally a state government, to take the property of an owner who dies intestate and who has no known heirs entitled to receive the property

The covenant in a general warranty deed guaranteeing that the grantee is receiving title free from hostile claims against the title is the covenant of

quiet enjoyment

Giving opinions to title

real estate licensees must advise the buyer to either contact an attorney or a title insurance company to determine the condition of the seller's title

Restrictive covenants

recorded by the developer, along with the subdivision plat to maintain specific standards in the subdivision, such as requiring certain architectural or design specifications

Police power

represents the broadest power of the government to limit or regulate the rights of property owners

Title by adverse possession may be obtained after ______ or more consecutive years

seven (7)

Subleasing is also called

subrogation and subordination of space

Chain of Title

the complete successive record of a property's ownership

covenant of warranty forever

the grantor guarantee to forever warrant and defend the grantee's title against all lawful claims

covenant of quiet enjoyment

the grantor guarantees peaceful possession undisturbed by hostile claims of title

covenant of further assurance

the grantor promises to sign and deliver any legal instrument in the future that might be required to make the title good

covenants against encumbrances

the grantor warrants that the property is free from leins or other encumbrances, except as noted in the deed

When a leased property is sold

the lease is binding on the new owner

granting clause

the premises section stating the grantor's intention to transfer title to the grantee. grants, bargains, and sells

ground lease

the tenant leases the land only and erects a building on the land (can run up to 99 years

Gross Lease

the tenant pays a fixed rent and the landlord pays all expenses associated with the property, including taxes, utilities, insurance, and repairs

Net Lease

the tenant pays fixed rent plus property costs such as maintenance and operating expenses. often used on commercia properties

Percentage Lease

the tenant pays rent based on gross sales received by doing business on the leased property

variable lease

the tenant pays specified rent increases at set future dates

Encroachment

the unauthorized use of another's property.

Involuntary alientation

title to the property transfered without the owners consent (intestate)

Personal Representative's deed

used to formalize and record the transfer of title. It should show the full consideration paid for the property and contain a covenant of no encumbrances

Sublease

used to give another person only part of an existing lease

Transfer by _______ is accomplished with the owner's control and consent

voluntary alienation

mortgage lien

when a lender makes a loan using real estate as security, the property owner signs a mortgage document that creates a lien against the property

Intestate

when a person dies without leaving a will and all the property the deceased person owned at the time of death passes to the deceased person's legal descendants (heirs) Involuntary alienation.