RE. Ch 9 and beyond

Leases Nonresidential property is defined as?

- Any property having more than 4 residential units - Vacant Land zoned for more than 4 residential units - Agricultural property containing more than 10 acres

Ways a lease agreement can be terminated

- Destruction of the property - Lien foreclosure - Condemnation through eminent domain proceedings - Expiration of the lease terms - Bankruptcy of the tenant - Agreement of the Parties - Breach of the Lease provisions

Leases What makes a valid lease agreement

- Names and Signature of the lessor and lessee - Considerations (Money or something of value given by the lessee ti the lessor) - Term of the Tenancy - Legal Description of the property

Government Survey Method Each section is _____ square mile or _____ acres

1 mile or 640 acres

How/Why may a broker get his unpaid commission on a residential property

1) A property owner may approve the filing by granting authority in a listing or sales contract 2) A broker may record a judgment rendered by a Florida court in the amount claimed

Private Limitations on Private properties

1) Deed Restrictions 2) Easements 2a) Appurtenant 2b) In gross 2c) By prescription

Types of leases

1) Gross Lease 2) Ground Lease 3) Net Lease 4) Percentage Lease 5) Lease-Option 6) Sale-Leaseback 7) Sales-Contractback

Government Survey Method How are Subsection of Subdivisions divided?

1) Into Quarters 2) NW, NE, SW, SE 3) 160 acres each 4) Which can then be Subdivided further into 1/2 (80 acres) or 1/4 subsections of (40 acres) 5) Which can then be divided more to 1/4 (10 acres) 6) Which can then be divided more to 1/4 (2.5 acres)

Ch. 10 3 Common methods to describe property

1) Metes and Bounds (Surveyor's Method) 2) Government Survey (Rectangular or Grid) 3) Plat (Lot and Block)

Types of Junior Liens

1) Mortgage Lien 2) Vendor's Lien 3) Judgement Lien 4) Construction (Mechanic or Materialman's) Lien 5) Federal Income Tax Lien 6) State Corporate Income Tax Lien

What are the 2 basic components of a lease?

1) Period-Of-Time 2) Unit of Space

Government Limitations on private properties

1) Police Power: Zoning 2) Eminent Domain: Condemnation 3) Taxation 4) Escheat: No Heirs

Variables that cause lease payments to be periodically adjusted

1) Pre-determined increments (Graduated Payments) 2) Market Value (Step-up lease) 3) Consumer Price index (CPI)

Two ways the lien holder can get payment?

1) Property owner pays the lien holder 2) Lien holder sues in court to have the property sold so payment may be made from the proceeds of the sale.

The 3 types of Superior Liens

1) Real Estate Property Tax 2) Special Assignment 3) Federal Estate Tax

Other classifications a lien may have?

1) Specific (to one property) 2) General (apply to any property the person may own) 3) Superior 4) Junior

Government Survey Method How is the state of Florida further subdivided into squares?

1) The squares are called Townships by drawing additional North/South lines and additional East/West lines at 6 mile intervals 2) The North/South lines are drawn parallel to the principal meridian and are called Meridians, or Range Lines 3) The East/West lines are drawn parallel to the baseline and are called Baselines or township lines

Government Survey Method How to locate a section in a township?

1) locate the Township Tier and Range 2) Locate the section # within the Township

Government Survey Method - A township is further subdivided into _____ sections. - Each of these sections is given a number to identify it, using a numbering system that runs from 1 to _____

36

Government Survey Method A township is ____ miles square and contains ___ square miles

6 miles and Contains 36 square

What is a warrant in a deed

A promise made by the grantor

Government Survey Method Where does the section numbering begin in a Township?

At the Northeast Corner with the #1 and proceeds in a Westerly direction to include Section 1 through 6.

Metes and Bounds Refers to compass directions to property boundaries

Bound

How/Why may a broker get his unpaid commission on a non-residential property

Broker is required to give written notice to the property owner in the listing agreement or in a separate document stating that, upon execution of the listing, the broker has a lien against the owner's interest in the property

How are foreclosures for liens accomplished?

By legal proceeding in court instituted by the lien holder as the result of nonpayment of a debt

Government Survey Method The intersection of Guide Meridians and Correction Line form a 24 mile-square area called a ___________

Check

For Eminent Domain; If the parties cannot reach an agreement through negotiation, the condemning authority will implement a legal proceeding in court to exercise its right to acquire the property. This action to enforce the sale is called a _______________________________

Condemnation Proceeding

- (Specific) A contractor or builder who has not been paid money that is due to them is entitled to a lien against property for materials or labor used to build or improve the property.

Construction (mechanic or materialman's) lien

Government Survey Method ______________________________ are located every 24 miles North and South of the Tallahassee Baseline

Correction Line

- Most common form of private limitation. - Often placed against several properties at the same time by a developer or builder. - May limit virtually anything that is not contrary to law, such as height, color, architectural style, fencing , and even landscaping.

Deed Restrictions

What type of Easement? - Involves two or more parcels of property and runs with the land, which means the right attaches to the land, not to a person or other entity, and is binding on all present and future owners

Easement Appurtenant

What is an example of the Easement Appurtenant?

Easement by Necessity

What type of Easement? - Created in Florida by 20 years or more of continuous and uninterrupted use of a portion of another person's property. - Example: A pathway across private property to a beach.

Easement by Prescription

What type of Easement? - Involves right of access by one party onto a parcel of real estate owned by another party. - Most common is Utility Easement

Easement in Gross

- A limited right given to the _______________ holder to use a portion of another party's property for a specific purpose. - Are encumbrances that affect both a property owner's rights of use and potentially the value of the property. - A legal interest in real property that is created by contract, deed, or operation of law

Easements

What may private limitations include?

Easements, Leases, Party wall agreements, or covenants between owners that extend to future owners

Allows local, state, or federal government, railroads, public utilities, and public housing authorities to obtain ownership to private property. Called Taking

Eminent Domain

Unauthorized physical intrusion onto property owned by another. - example: Fence built over property line.

Encroachment

Leases The statute of frauds require that a lease for a period of more than 1 year be in writing and signed in order to be __________________ in court. Must be witnessed by 2 persons and conform to the same requirements as a valid deed.

Enforceable lease

Allows the state to acquire ownership of property when an owner dies intestate and no lawful heirs can be located

Escheat

- (General) Become a lien at the time of death. - Some states, but not Florida, also impose a state inheritance tax.

Federal Estate Tax

- (General) Can be placed against the property of an individual for nonpayment of federal income taxes

Federal Income Tax Lien

What is the enforcement for liens?

Foreclosure

General or Specific Liens 1) Federal estate Tax Lien 2) Judgment Lien 3) Federal Income Tax Lien 4) State Corporate Income Tax Lien

General

Government Survey Method A ________________________ is a fractional piece of land less than a full quarter section located along the shore of a lake or the bank of a stream

Government Lot

- Was developed in 1785 to make possible the westward expansion of the United States. - Divides the surface of the earth into a grid with numbered squares. - Each numbered square can be subdivided repeatedly into smaller squares. - System is based on the principle that you can identify any point on a plane by referencing the intersection of two lines (or axes)

Government Survey Method (Rectangular Method)

Lease - Defined as "a lease in which the tenant agrees to pay a fixed rental amount, and the landlord pays all expenses related to the property such as real estate taxes, insurance, and maintenance costs"

Gross Lease

Lease - Typically a commercial, long-term lease in which the tenant is permitted to develop the property during the lease period. - All expenses of the property, such as taxes, maintenance, insurance, and financing costs are the obligation of the tenant. - At the end of the lease, the land and all structures and improvements revert to the property owner

Ground Lease

Government Survey Method To correct variations, ______________________________ are drawn every 24 miles east and west of the Tallahassee Principal Meridian

Guide Meridians

- (General) Is imposed when a party is entitled to collect damages awarded by a court as the result of a lawsuit

Judgement Lien

Superior or Junior 1) Mortgage Lien 2) Vendor's Lien 3) Construction Lien 4) Judgment Lien 5) Federal Income Tax Lien 6) State Corporate Income Tax Lien

Junior

Priority of a ____________ lien is based on the date of recording in the public records, not on the amount of the lien. - Paid based on whichever lien was recorded first.

Junior Lien

A ____________ creates a legal interest in real property, but does not convey ownership.

Lease

Leases - Defined as "a lease that contains an option to purchase the property within a certain period of time and under specified conditions"

Lease-Option

Leases The owner is the __________, who grants the right to occupancy and use

Lessor

Temporary, revocable right to use another's property

License to Use

A financial claim against property by a creditor or unit of government that is used to secure the payment of a debt or other obligation owed by the property owner

Lien

- Is notice of a pending lawsuit against a property owner. - Gives notice to a potential purchaser of the pending lawsuit that might later affect the title to the property.

Lis Pendens

Metes and Bounds Are measurements of distance such as inches, feet, yards, and miles

Metes

Oldest method of land description and provides the most accurate type of legal description. - Can be used to describe regular and irregular shaped tracts of real estate.

Metes and Bounds (Surveyor's Method)

Leases - Real Estate licensees can fill in the blank on model residential lease forms approved by the Florida Supreme Court covering periods of 1 year or less. - Licensees are not allowed to modify the form in any way or to interpret the language in response a question. - No attachments or addenda may be added. - If the form requires changes or interpretation, the advice and assistance of an attorney must be obtained

Model lease forms for periods of 1 year of less

Metes and Bounds - Also known as benchmarks. Are fixed objects used to establish boundaries. - Initial reference point for a survey begin here. (which is a known point) - Can be metal or concrete markers and are found set in the ground

Monuments

- (Specific) Is a voluntary pledge of property as security for repayment of a loan

Mortgage Lien

Lease - Defined as "a lease in which the tenant pays a fixed rent plus or a portion of the operating costs such as real estate taxes, insurance, and maintenance." - Commonly are commercial and industrial leases - Net rent is paid to the landlord after the tenant has paid the expenses they have agreed to pay

Net Lease

Memory Device for Government Limitations on Private Property

PETE

Lease - Defined as "a lease in which the tenant pays a monthly base rent plus a percentage of the annual or monthly gross sales of goods sold on the premises." - Common in retail centers and malls

Percentage Lease

Metes and Bounds The survey begins by giving directions from the monument to the edge of the property which is called the _____________________. When the survey return to the _____________________ its called a closing

Point of Beginning (POB)

Zoning is an exercise of which governmental power

Police Power

Restrictions placed by an owner that affect the use of the property by subsequent owners

Private limitations

The taking (Eminent Domain) must only be for?

Public use. Ex: Highways, Schools, Railroads, or Public Projects (Not for Shopping centers)

Government Survey method Each vertical area between meridians are called _________

Range (R)

- (Specific) Also know as property tax. Assessed and become a lien on Jan 1st of each year. - Taxes are paid in arrears (Payment made after the charges are incurred)

Real Estate Property Taxes

Another term for Deed Restrictions

Restrictive Covenants

Leases A property owner may sell a leased property "subject to the lease". However, with the condition of sale, the buyer must honor the rights of the tenant under the original lease

Sale of leased property

Leases - Similar agreement to a sale-leaseback in that it involves the sale of a property with a provision for it to be repurchased at a future date for a specified price. - The former owner/seller makes mortgage payments to the purchaser rather than lease payments

Sales-Contractback

Leases - Occurs when a property owner sells the property to an investor who immediately leases the property back to the original property owner, who then becomes the tenant.

Sales-Leaseback

Government is said to have ______________ powers, Which allows the government to limit or control the actions of citizens when necessary to protect the health, safety, and welfare of the public

Sovereign

- (Specific) For improvements, such as road paving, sidewalks, and sewers attached to the property until the full amount of the lien has been paid

Special Assessment

General or Specific Liens 1) Real Estate property Tax Lien 2) Special Assessment Lien 3) Mortgage Lien 4) Vendor's Lien 5) Construction Lien

Specific

- (General) Corporations in Florida are subject to a state income tax. Nonpayment can result in a state corporate income tax lien filed against corporately owned property

State Corporate Income Tax Lien

A ________________ occurs if a lessee transfers less than 100% of the space that has been leased, or makes a transfer for a shorter period-of-time than the entire remaining lease period and becomes the sublessor or the second landlord. - The original lessee remains responsible for making rent payments to the landlord and is the conduit for making payments from the sublessee to the landlord.

Sublease

Superior or Junior Liens 1) Real Estate Property Tax Lien 2) Special Assessment Lien 3) Federal Estate Tax Lien

Superior

Takes precedence over all other types of liens.

Superior Lien

Government Survey method Where does it begin in Florida

Tallahassee

Government Survey method In Tallahassee a East/West line is drawed called __________

Tallahassee Baseline

Government Survey method In Tallahassee a North/South line is drawed called __________

Tallahassee Principal Median

The power that allows the government to levy taxes on private property if an owner does not pay the property taxes when they are due. The unpaid tax lien may be foreclosed in court; thereby, forcing the property to be sold

Taxation

What does Police power allow the government to restrict?

The use of land to protect the health, safety, and welfare of the citizens. With: Zoning and Building/Health Codes

Government Survey method Each horizontal area between baselines is a row of townships called a ________

Tier (T)

Government Survey method A tier is a row of townships; however, in common usage, a tier is more often referred to as a ___________

Township

- (Specific) An owner who sells a property is entitled to a lien against the property that is being sold to secure any unpaid balance of the purchase price.

Vendor's Lien

How may a lien be placed against a property?

Voluntarily by the owner or Involuntarily by a creditor

The warrant in a deed in which the grantor assures the grantee freedom from hostile claims against their ownership

Warrant of quiet enjoyment

Example of an Easement by Necessity

When a landowner subdivides their property in such a manner as to create a landlocked parcel; The law assumes the purchaser of such land has a right of access. If the deed that creates the landlocked parcel does not specify, the purchaser can sue in court. and the court will impose the easement. Creates 2 separate estates. Party who gives up the right is called the Servient Estate Party who gain is called Dominant Estate

What is a party wall agreement?

Where two or more owners share a common wall

An exercise of police power that is designed to prevent an undesirable use from infringing on and negatively affecting adjoining property

Zoning

An _________________ of lease occurs when a lessee transfers all of the leased space for all of the remaining time. - Lessee is the Assignor - Person receiving the rights is the Assignee - The assignor assigns leasehold rights to the assignee - The assignee becomes the lessee and pays rent directly to the landlord

assignment

Instrument transfers title from one individual to another

deed

Leases The tenant is the ___________, who receives the right to use the property

lessese

What does the term "title" refer to in real estate

ownership