Property, Rights, Ownership

Discharge of Liens

- Payment & satisfaction of debt - Filing of a bond - Agreement of parties -Disillusion by operation of law

Property Descriptions

-Books & Plans/ Maps/ Plan Reference (GPS) -Metes & Bounds -Lot & Block (Plat Map) -Street Address - Reference to Previous Deed

Water Rights (Types)

-Littoral: frontage on an ocean, sea, or large lake at its highest tide -Riparian: flowing water course, non navigable, to the center

Necessities for Condominium Corporation

-Master insurance -Individual Unit Insurance -Financial Reserves for common area maintenance (big ticket expenses) -

Lien Holders

-Municipalities (local government) -Private Creditors (mortgage, attachment, judgment, mechanics lien) -State & Federal Government

Water Rights (Terms)

-Terms of Addition: accession, acceration, alluvial, alluvium, reliction, dereliction -Terms of Reduction: removal, deduction, erosion, avulsion, deliction

Real Property- Rights

-air -land -mineral

Types of Deeds

-bargain and sale deed -sheriffs deed -fiduciary deed -release deed -timber deed -crops and farm produce deed -deed of reconveyance -general warranty deed -quitclaim deed

Involuntary Transfer

-foreclosure -bankruptcy -eminent domain -partition -escheat -adverse possession

Types of Wills

-formal or witnessed -oral: spoken by person near death and written down by a witness -holographic or handwritten

Tenants in Common

-fractional interests (titles in severalty) -no rights of survivorship -interest can be conveyed by will or deed without consent of other tenants in common - court ordered petition of partition

Types of Estates

-freehold -non-freehold -life estates

Freehold Estates

-has title to land -indefinite period of possession

Real Property- Physical Characteristics

-immombility -indestructability -uniqueness (non homogeneous)

Real Property- Legal Tests

-intention of the parties -method of attachments -type and adaptability (built-in bookshelf) -relationship of the parties (whether owner paid for fixture/installation or tenant covered cost with severance agreement

Life Estates

-life tenant -remainderman -reversion -per autre vie - dower and curtesy

Personal Property

-movable items not fixed to property -includes all property EXCEPT land & improvements -tangible -title passed by Bill of Sale

Easement in Gross

-property is for use of general public -all servient interests -passes with title; terminates with discontinued use

Cooperatives of Condominium Corporation

-residents are stockholders in Corporation that owns building -Proprietary Lease vs Deed -Cooperative owner's monthly costs -board of directors manage building -Transfer Restrictions

Time Sharing

-resort or vacation home property -purchase with "right to use" interval -interval prices vary by time of year -common expenses prorated -ability to swap -Mass law requires Right of Rescission -ability to swap -must use licensed broker

Non-freehold Estates

-right of possession but NOT ownership -definite period of time

Real Property- Economic Characteristics

-scarcity -improvements -permanence of investment -area of preference

Types of Ownership

-sole ownership/estate severalty -concurrent

Inheritance Terminology

-testate: having a Will -testator: person making a Will -intestate: person dies without a Will -codicil: a change to the original Will -Bequeath a devise: gift of real estate in Will -Bequeath a legacy: gift of personal property -executor: person appointed by Will to carry out terms of the Will -probate: the legal process of executing a will -administrator: representative appointed by probate (intestate)

Four Unities

-unity of time -unity of title -unity of interest -unity of possession

5 Covenants of General Warranty Deeds.

1. Covenant of Seisin (freehold possession) 2. Covenant of Quite Enjoyment 3. Covenant ofFurther Assurance 4. Covenant Against Encumbrances 5. Covenant of Warranty Forever orWarranty of Title

Liens

A charge or claim against the property as security of debt collection. This type of encumbrance remains in effect until discharged, affects the title and salability of the land, and "runs with the land". This can be voluntary, involuntary, or equitable. *recorded at the Registry of Deeds by court recorder at cost of $125

Retaining Wall

A division line for two adjoining property owners used for construction and support of their property. Owners share wall equally (1/2 & 1/2) and must maintain their respective halves, each has easement in other half for lateral support, and each must maintain his half. This is also referred to as a "Party Wall".

Deed

A legal document that transfers interest ownership. It is a written instrument, that shows evidence of title or ownership claim,by which Grantor voluntarily conveys to Grantee ownership of, or interest in, real estate.

Per Autre Vie

A life estate "for the life of another" (translated French), a conventional type real estate that measures its duration by the life of someone other than the tenant (i.e. Caregiver/companion allowed to live in residence until death of separate party)

Encroachment

A type of encumbrance in which unauthorized or illegal infringements that can affect a titles marketability (for both properties)- they may arise & exist with the knowledge & consent of owners. May be removed by selling property in question to owner of other property or with proper deeding of property usage

Fee Simple Determinable

A type of freehold estate in which an estate that will end automatically when the stated event or condition occurs; the interest will revert to the grantor or heirs of the grantor.

Fee Simple Subject to a Condition

A type of freehold estate in which the grantor must take action to terminate the estate if such stated event or condition occurs.

Tenants by the Entirety

A type of ownership that applies to married couples only which includes the rights of survivorship; the property cannot be divided without consent of both spouses. Divorce creates tenants in common.

Joint Tenants

A type of ownership that consists of rights of survivorship, must have permission for disposition, and must meet the four unities. In case of death, the survivor owns the property in its entirety

Lis Pendens

A type of property encumbrance which affects the marketability of property's title. In this case, a lawsuit pending has been recorded against the property meaning the litigation pending may become the responsibility of the new owner.

Holographic Will

A will entirely handwritten by the testator without a witness. This type of Will is not recognized as valid in Massachusetts and is only applicable to veterans/soldiers in relation to personal property.

Title

A written document which refers to the ownership (full or partial) of a property and can be transferred in whole or in part.

Real Property

All the interests, rights, and benefits which are included with the ownership of land as well as the physical rights of ownership of the land.

Recording a Deed

Although this procedure is not required for validity, it provides protection for Grantee by Constructive Notice. It includes Title Insurance, Title Search & Color of Title. The cost of this process is $125 and payable to Court Clerk/recorder

Real Property Fixtures

An item of personal property that had become permanently attached to the real estate.

Easement Appurtenance

Any improvements, rights, or privileges included with ownership of land -two parcels of land -dominant & serving tenements -noted on the deed and passes with title

Encumbrances

Any interest or claim in another's land which in some manner burdens or diminishes the value of the property. -easements -leins - -

Recorded Land

BUYER BEWARE! The Registry accepts or rejects a document for recording based on meeting minimal requirement and takes no responsibility for its accuracy. In Massachusetts, this is the most common form of land recording.

Unity of Possession

Both owners must have the right to the whole property.

Unity of Interest

Both owners must have the same interest in the property.

Voluntary Liens

Charges/claim against property created by agreement (i.e. Mortgage)

Tacking

Combining successive periods of possession to establish ownership by adverse possession. This is only allowed when no time lapses between the end of one occupant's possession and the beginning of another's possession. In addition, the possession by the prior occupant must have been adverse or under the color of title.

Business Ownership

Corporation Partnership Syndication

Bundles of Rights

Each branch represents a separate & distinct ownership: -possession -exclusion -control -enjoyment -disposition

Rights of Survivorship

Each individual joint tenant passes away, the remaining tenants interest would increase until the last remaining person becomes sole owner. The condition is historically an assumed part of joint tenancy, and some older deeds will specify "as joint tenants and not as tenants in common"

Master Plan

Established by planning boards in communities to determine growth pattern through zoning districts, establishes land use restrictions, and is voted upon by inhabitants and/or their representatives.

Dower and Curtsey

Expectant rights in property of deceased spouse

Creation of Easement

Expressed Grant/ Agreement of Parties -Deed has clause granting/reserving easement -not binding upon 3rd parties unless easement in writing Prescription (Adverse Possession) Necessity -Parcel is landlocked

General Warranty Deed

Grantor warrants protection against claims from third party DURING AND BEFORE the time the grantor owned property. Provides greatest protection for grantee, most liability for grantor. Contains 5 Covenants or Promises.

Quitclaim Deed

Grantor warrants title against third party claims ONLY DURING the period of his ownership. (Also a special warranty deed)

Annexation

Hoe something is attatched to the real estate *if permanently attached; considered part of real estate not personal property

Title Insurance

Insurance policy that protects owners and lenders from actually financial loss in the event that certain covered problems develop regarding the rights of ownership of property. There are two types- owners and lenders policies. Lenders policies are required of most every mortgage lender in the US, and are typically included in closing costs. Owners policies are optional and paid for by homeowner.

Trade Fixtures

Items of personal property attached to the real estate and necessary for BUSINESS. *may be removedby tenant at enf of tenancy or passed to the landlord within reacinable time by accession.

Registered Land

Land that has gone through a Land Court Registration and Decree process for ownership or boundary line issues. The court will then issue a Certificate of Title.

Homestead Exemption

M.G.L, Chapter 188 -$500,000 value of principal residence shielded from creditors -Creditors may attach property but cannot force sale -$500,000 exemption for each owner over the age of 62 or disabled *exemption: any debts prior to homestead declaration, tax payments, mortgages, alimony or child support, delinquent condo association fees

Possession

Owned by whomever holds the title

Unity of Title

Ownership must arose out of the same deed.

Enforcement of Zoning Laws

Permits are issued by building inspector, Board of Appeals is available for variance, and covers special permits.

Lien Priority

Proceeds of a sale or foreclosure are applied to liens in order of priority: 1. Municipal Liens 2. Federal Liens 3. State Liens 4. Condo Fees (up to 6 months) 5. Mechanics Liens 6. All other liens in order of recording Any left over funds revert to seller

Rectangular Survey System

Propert description method used in 30 states- mostly in the west/midwest- a grif system that starts measuring from the axis where a baseline (east/west) and principal median (north/south) intersect

Unity of Time

Property must be acquired at the same time

Transfer by Inheritance (succession)

Property of a person that died without a Will is distributed to heirs according to Massachusetts Uniform Probate Code of descent and distribution. If no heirs found, property is retained by the state by ESCHEAT.

Concurrent Ownership

Simultaneous ownership by two or more people or organizations

Severance

Tenant covers cost of fixture/installation & owner agrees tenant can remove later

Alienation

The act of transferring or conveying ownership (title) of a real estate from one person or entity to another involuntarily.

Grantee

The buying party

Estates in Land

The degree, quantity, nature, and extent of interest a person holds in land. In other words: everything (real and personal) that someone owns

Termination of Easement

The easement can be terminated if: purpose ceases to exist,destruction of servient tenement, abandonment, merger of ownership, adverse possession, court decision/order, excessive overuse, expiration of agreement.

Property Transfer

The equal division of between all owners (equitable division) which can be voluntary or involuntary (court ordered sale of property)

Reversion

The estate reverts back to the grantor for the life of the estate

Voluntary Transfer

The intention sale or gift of real estate by grantor or grantee, which can be by transfer of Will, transfer by accession, assignment to another party, or dedication for public use.

Remainderman

The person whom the grantor of the life estate has named to take the title.

Appurtenance

The right or benefit of something that's belongs to something else, generally by attachment

Adverse Possession

The right to acquire another person's land by the use of the land for a prescribed period of time; a minimum of 20 years. Additionally, use must be "open, notorious, continuous, hostile, and adverse to the true owner's interest". This does not apply to government property or Registered Land.

Exclusion

The right to deny access to others

Control

The right to direct use of prolerty

Disposition

The right to sell, rent, or transfer ownership.

Enjoyment

The right to use property in any legal manner

Easements

The right to use the land of another for a specific purpose but without the right of possession (i.e. right of way),title not conveyed only right to use (i.e. License), and therefore creates encumbrance upon property of the Grantor and an appurtenance with property of grantee

Grantor

The selling party

Land Use Restrictions

This is the major purpose of zoning as it determines usage allowed in each district, used dimensional lot regulations toCo from Density of Development. Zoning laws must be nondiscriminatory, reasonable, specific, and concise. Snob zoning allows an aggrieved party to obtain immediate review of unfair, arbitrary, or capricious decision of a local appeal board.

Condominium Corporation

This particular venture is created by declaration (Master Deed), has by-laws, rules, and regulations, as well as a unit owner association. In addition, each unit is owned in Fee Simple Defeasible, shares percentage interest in common areas, pay association fees for maintenance, are subject to super liens, and must have a "6D" certificate at closing.

Sole Ownership/ Estate Severalty

Title held by ONE person or organization

Real Estate Mortgage Trusts (REMTS)

Trusts in which the business buys and sells real estate mortgages rather than real property. Sources of income for these types of trusts are interest, origination fees, and profits earned from buying and selling mortgages.

Real Estate Investment Trusts (REITS)

Trusts which invest in real estate directly, either through properties or mortgages and uses them as securities that sells like stocks on the major exchanges

Fee Simple Absolute

Type of freehold estate; highest form of ownership, includes all rights in the "Bundle", no limitations or conditions imposed on use or enjoyment of the land

Fee Simple Defeasible

Type of freehold estate; limitations imposed by Grantor on use, runs with the land. This includes.. -Fee Simple Determinable -Fee Simple Subject to a Condition

Equitable Liens

Type of lien attached for purpose of equity interest

Involuntary Liens

Type of lien that results by statutory operation of law, nonpayment of real estate taxes, or Mechanics Lien.

General Lien

Type of lien which attaches all property of debtor to a given jurisdiction to secure payment of property owners personal debt. (I.e. Government lien for nonpayment of taxes)

Special or Specific Lien

Type of liens that only effects a specific property.

Elements of Valid Deed

Validity of the document requires: -written -legally competent Grantor -Grantee & Grantor Mentioned -consideration mentioned -granting clause (conveyance) -legal description of property -Grantor signature -delivery & acceptance -sealed -dated -Notarized if to be recorded

Metes & Bounds

Walks the property boundaries by first identifying physical point of beginning (pob) and then describe differences and diections along gbe property line.

Life Tenant

When property is deeded to a specific party, but the right of use of property is retained for life of another party.