Chapter 5 Florida Real Estate

Real Estate tax liens become effective on:

January 1st each year

Which of the following is an example of a voluntary lien?

Mortgage Lien

Which type of lease provides that the tenant will pay a fixed rent, plus the property's costs?

Net Lease

The type of title insurance that is non-transferable has a face amount equal to the purchase price is the:

Owners Policy

The government has the right to enact laws and regulations to protect the health, safety, and welfare of the public through the exercise of its:

Police powers

Which type of statutory deed is used primarily to clear defects in title:

Quitclaim Deed

If a person dies with a valid will in effect, that person died:

Testate

List and describe the four types of statutory deeds and the legal requirements for deeds

The four types of deeds are quitclaim, bargain and sale, special warranty, and general warranty deeds. In order for title to transfer the grantor must deliver the deed and the grantee must accept the deed.

Describe the parts of a deed and the requirements of a valid deed

The important parts of a deed are the names of the grantor and grantee, consideration, words of conveyance, estate being conveyed, restrictions and reservations, appurtenances, legal description, signature of the grantor with two witnesses, and the deed delivered and accepted.

Distinguish among the various types of leases

There are five types of leases: 1. Gross Lease 2. Net Lease 3. Percentage Lease 4. Variable Lease 5. Ground Lease

Explain the various methods of acquiring title to real property and describe the conditions necessary to acquire real property by adverse possession

There are six methods of acquiring title to real property: 1. Deed: The most common means to conveying title. 2.Will: A person leaves their estate to others upon their death. 3.Descent and distribution: Transfers a person's estate when there is no will 4.Escheat: Title reverts to the state of Florida when a person dies without a will and no heirs 5.Eminent Domain: Government land taking with or without the owners permission 6.Adverse possession:Open and hostile possession doing the normal things a true property owner would do for seven or more years.

List and describe the the various types of governmental and private restrictions on ownership of real property.

There are two methods of restrictions on property: 1. Governmental restrictions include police powers, eminent domain, and taxes. 2. Private limitations include deed restrictions, easements, leases and liens

Explain the different types of title insurance

There are two types of title insurance. The owner's policy covering the owner's equity in a property while lender's policy (mortgagee's policy) covers the banks investments

What are the ways that a lessee can transfer its rights to a lease:

1. An assignment of lease gives up everything owned remaining in a lease 2. A sublease gives up less than everything owned in a lease.

Distinguish between an abstract of title and a chain of title

A chain of title is a history of ownership. An abstract is a complete history of a property, which includes title, liens and any other document recorded

What is the difference between voluntary and involuntary alienation?

A voluntary lien is given out of choice. An involuntary lien is recorded for the non-payment of a debt.

Rights to real property can be voluntarily conveyed through the use of

A will

All of the following are considered to be a superior lien except: A.IRS liens B.Federal Estate tax lien C.Special Assessment lien D.Real Estate tax lien

A.IRS liens

Distinguish between actual notice and constructive notice

Actual notice is physically reading a person's deed, being told by the owner that they have acquired title, or by observing a person's actual possession and control of a property and having some interest in the property. Constructive notice, also known as legal notice, is created by recording in the public records any interest in real estate that might be owned.

Recording a deed in the public records achieves:

Constructive Notice

Which of the following is a non-governmental limitation on title:

Deed restrictions

If the government wishes to seize private land for the purpose of widening an existing road, they can acquire the land though:

Eminent Domain

If a person dies with no heirs or beneficiaries, their estate will pass to the state of Florida through the process of:

Escheat

Which type of deed offers the greatest protection for a buyer?

General warranty deed

The words of conveyance in a deed are contained in the:

Habendum Clause