Unit 9
listen describe the various types of governmental and private restrictions on ownership of real property and distinguish among the various types of leases and liens - DELL
DEED RESTRICTIONS - restrictiosn owner can put on their deed. (ie, no commercial buildings for 30 years). -restrictive covenants are for the entire neighborhood, usually for a mandatory HOA EASEMENT - right to use someone elses land without permission -easement inpertinent - when you need to use your neighbors land to get to a main road (friendly) -easement gross - where utility companys must go to fix things -easement by necessity - when you go to court to force an easement easement by prescription - created by open uninterrupted of continuous use LEASES -gross lease - you pay landlord, and they take care of everything -net lease - pay base rent, but pay for things the owner normally pays for (like insurance) -percentage lease - great location when in sales, you agree to pay a base rent, you agree to pay more if gross sales grow -index lease - rent tied to financial index. rent fluctuates with the index ground lease - landlord owns the land, but tenent rents the land and builds their own building LIENS General liens - follow the person, attach to everything that person owns Specific liens - attach to the property Mortgage lien - Vendors lien - owner financing, creates a vendors lein Construction lien - when you don't pay your contractor Superior liens - are always first in line - gov assessment liens, real estate property tax liens (ALWAYS FIRST) Junior liens - always second (mortgage, vendors, etc...)
list and describe the four types of statutory needs and the legal requirements for deeds
General Warranty deed - most comprehensive deed. Contains the sezin clause (grantor legally owns property and has right and authority to sell it to the grantee) Special Warranty deed - when you buy property from the bank. ONLY gurantee title from day they foreclosed to day you bought. Bargain and sale deed - when you go to an aution and buy property. 0 protection from title. Quit Claim deed - it clears problems and clouds on title, but doesn't have sezin clause. Special purpose deed - when owner can or not able to sell property. Tax deed - when you buy from a tax deed auction.
distinguish between actual notice constructive notice
actual notice - reading, hearing and seeing constructive notice - when you record something in public records (much safer) BOTH ARE EQUAL LEGALLY
differentiate between voluntary and involuntary alienation, explain the various methods of acquiring title to real property, and describe the conditions necessary to acquire real property by adverse possession
legal title - means ownership equitable title - will get legal title at some point in the future alienation - transferring ownership interest from one person to another (voluntary or involuntary) if you die with a will, you are said to have died in testate -if someone puts real property in will, it's called the devise -recipient is called devisee 1. Die without a will, die intestate -- dessent 2. if not desendents -- it escheats to teh state 3. adverse possession happens when owner doesn't take care of their property 4. eminent domain - government at any level can take your property adverse possession - can claim ownership -move in openly -lived for 7 years -pay real estate taxes for 7 years
distinguish between an abstract of title in the chain of title, and explain the different types of title insurance
title insurance policies owner policy - seller needs to pass on clear title, then give it to buyer at closing. title insurance will cover anything that was missed. (not transferable) lender policy - if getting a mortgage. Buyer has bank protect the mortgage. This IS transferable.
describe the parts of the deed and the requirements of a valid deed
word of conveyance - granting clause deed restrictions name of the grantor (two witnesses) voluntary delivery and acceptance addendum clause - type of estate being conveyed