Section 2

__________________ is the possession of a freehold estate.

Seisin

T/F: Joint tenants may NOT will their shares, however they may sell their interest.

True

T/F: Liens always constitute an impediment to clear title.

True

__________________ = permission to build that would otherwise violate zoning ordinances

Variance

_______________________ liens are specific, equitable, involuntary liens filed by a buyer in cases where the buyer has purchased the property but has not yet received title. This occurs when property is purchased under a contract for deed (installment sales contract, agreement for deed).

Vendee's

_______________________ liens are specific, equitable, involuntary liens filed by a seller (vendor) against the property sold, in the amount of any unpaid purchase price. It does not constitute a direct interest in the property, but rather it is an equitable right in case all of the purchase money is not paid.

Vendor's

_______________________ lien = is one entered into by agreement of the parties. An example is a mortgage given to secure a promissory note.

Voluntary

___________________________ __________________________: May occur by means of deeds, wills, dedications, and public grants.

Voluntary alienation

An __________________ ______ ______________________ is created by operation of law rather than by a formal written agreement. The classic example of this is one that arises when a piece of property is landlocked.

easement of necessity

T/F: Equitable interest in real estate or equitable title CANNOT be sold, assigned, mortgaged, and does NOT pass to a buyer's heirs upon his death.

False (opposite is true)

T/F: Title records are NOT open to the public for inspection.

False (opposite is true)

____________________ ______ _____________ = sequence in which liens are paid in event of sale; most often based on date of recording

Priority of liens

What are the 6 other types of deeds used today for specific purposes?

1) Deed of trust (trust deed) 2) Deed in trust 3) Guardian's deed 4) Deed in foreclosure 5) Deed in partition 6) Patent deed

What are the 3 main classifications of easements?

1) Easements appurtenant 2) Personal easements in gross 3) Commercial easements in gross

What are the four powers of the government that put limitations on title?

1) Eminent domain 2) Police power of government 3) The power to tax real estate 4) The power of escheat

What are the 4 most common leasehold estates?

1) Estate (tenancy) for years 2) Estate (tenancy) from year to year 3) Estate (tenancy) at will 4) Estate (tenancy) at sufferance

What are the 7 ways easements can be created?

1) Express grant 2) Express reservation 3) Necessity 4) Implication 5) Prescription 6) Agreement 7) Condemnation

What are the 2 types of defeasible (deferrable) fee estates?

1) Fee simple determinable 2) Fee simple subject to a condition subsequent

What are the 2 main types of freehold estates?

1) Fee simple estate 2) Life estate (and related estates)

What are the 4 types of involuntary alienation?

1) Foreclosure 2) Adverse possession 3) Eminent domain 4) Escheat

What are the 2 basic types of estate?

1) Freehold estates 2) Less-than-freehold (leasehold) estates

What are the 3 general classifications of liens?

1) General or specific 2) Voluntary or involuntary 3) Statutory or equitable

What are the 5 most common deeds in use today?

1) General warranty deed (warranty deed) 2) Special warranty deed 3) Bargain and sale deed 4) Quitclaim deed 5) Correction deed

________________ __________ ________________: Issued by a court when property is sold at a partition sale for the purpose of dividing a joint tenancy or tenancy-in-common ownership.

Deed in partition

What are some of the environmental concerns when zoning?

1) Air and ground water quality 2) Asbestos 3) Radon gas 4) Lead-based paint 5) Underground storage tanks 6) Hazardous waste 7) Sewage disposal 8) Wetlands

Easements may be created by what 3 ways?

1) Agreement 2) Adverse or hostile use 3) Condemnation proceedings

A lien can be created by which 2 ways?

1) Agreement of parties (as with a mortgage) 2) Operation of law (as with a tax lien or mechanic's lien)

There are several requirements that must be met to create a valid, legally enforceable deed. What are the 6 required things to be noted in a valid deed?

1) Grantor must be identified, and must be of age and of sound mind. 2) Grantee must be identified, and cannot be solely the grantor (a person may not deed a piece of property to himself only, but can deed it to himself and another jointly). 3) Consideration, usually money; can be significant (the actual price paid) or nominal 4) Words of conveyance distinguish it from a mortgage instrument, such as "I hereby grant and convey" 5) Legal description is generally required, although in the case of a condo the postal address may be sufficient since the full legal description is in the recorded declaration 6) Reservations, exceptions, and restrictions (if any) should be noted in the deed

Title may be held in what 5 ways?

1) Individually 2) Jointly 3) In trust 4) In a corporation 5) In a partnership

What are the 3 types of liens related to lawsuits?

1) Judgement liens 2) Attachment liens 3) Lis pendens

In condominium ownership, what are the 3 forms of documentation required?

1) Master deed (creates each of the specific units) 2) CC&Rs (rules of the complex) 3) Public offering statement

Homebuyers who purchase a home and take out a mortgage loan to finance the purchase will often be required by the lender to purchase two separate title insurance policies, which are:

1) Owner's policy 2) Lender's policy

What are the 3 customary clauses in deeds that have come to be required?

1) Premises clause 2) Habendum clause 3) Testimonium clause

What are the 8 most common types of liens?

1) Property tax liens 2) Special assessment liens 3) Federal tax liens 4) Mortgage liens 5) Vendor's liens 6) Vendee's liens 7) Mechanic's liens 8) Judgement liens

Under the recording acts, all documents affecting any rights, estate, title or interest in land (deeds, mortgages, liens, etc.) must be recorded in the city or county where the land is located so that this information is available to everyone. This local public record is for the protection of what groups?

1) Real estate property owners 2) Prospective real estate purchasers 3) General public (particularly interested creditors)

What 2 types of liens take priority?

1) Real estate property tax liens 2) Assessments

What are the 5 zoning categories?

1) Residential (single-family, duplexes, triplexes, fourplexes) 2) Commercial (retail) 3) Industrial (manufacturing plants) 4) Agricultural (farming) 5) Public (parks)

What are the 4 types of voluntary alienation?

1) Sell or will 2) Gift 3) Dedication 4) Patent

Most common deed restrictions involve what 4 things?

1) Size 2) Price 3) Design 4) Setback lines of improvement

What are the 5 ways people can hold title/ownership?

1) Tenancy in severalty (single or sole owner) 2) Joint tenancy or co-ownership (two or more owners) 3) Tenancy by the entireties 4) Tenancy in partnership 5) Tenancy in trust (title is held by a trustee)

What are the 2 general types of encumbrances?

1) Those affecting title 2) Those affecting the property physically

What are the four unities?

1) Title 2) Time 3) Interest 4) Possession joint

The exercise of police power must be what 3 things?

1) Uniform in operation 2) Nondiscriminatory 3) Cannot be advantageous to any one particular person or group

What are the 2 types of alienation?

1) Voluntary 2) Involuntary

In a tenancy in trust, a trust can be established by what 3 ways?

1) Will 2) Trust agreement 3) Deed in trust

What are 3 ways the government can control land use?

1) building codes 2) city and county master plans 3) zoning laws, ordinances, and zoning boards

Private zoning restrictions most typically occur by means of what 2 concepts?

1) restrictive covenants 2) deed restrictions

What 8 things must a condominium's public offering statement include?

1) that the condo will be governed by a unit owners' association in which each unit owner will have a vote 2) that certain decisions will be made by the executive body (board of directors) 3) that operating expenses will be paid by unit owners 4) that owners will be periodically assessed on the basis of an operating budget 5) that the unit owners' association may impose fines and may file a lien against any owner's unit if assessments are not paid 6) that the declarant must pay assessments on unsold units 7) provisions regarding resale of units, termination of the condo, and amendments to the condo documents 8) matters concerning the managing agent's performance of the routine operations of the unit owners' association

In what 6 ways can easements be terminated?

1) the necessity for the easement no longer exists 2) the dominant and servient estates are merged 3) the easement owner (dominant estate) releases the servient estate 4) the dominant estate is abandoned 5) the servient estate is destroyed 6) a court terminates it (as with a quiet title suit)

A condominium's declaration must include:

1) the project name 2) every city and county in which the project is located 3) legal description by metes and bounds 4) a detailed description and location of every proposed unit

What is the time period for a prescriptive easement in VA?

20 years

The title searcher begins examination with the original source of title, or _______ to ________ years prior depending on local custom and circumstances.

40; 60

_________________________ ____________________________ give the right of one landowner to use the property of an adjoining landowner for a specific purpose.

Easements appurtenant

____________________ occurs when a person dies; their estate and all the material goods they leave behind go through this where a court oversees their distribution so the right people get them.

Probate

_______________________ __________________ __________________________: The grantor's guarantee that there are no encumbrances against the property except those specifically disclosed.

Covenants against encumbrances

____________________________________: The formal declaration made by a person who has signed a document before an authorized officer, usually a notary public. The officer confirms that the person signing is known to the officer or has supplied adequate information.

Acknowledgement

______________________ __________ ________________ deed: A conveyance by which the grantor conveys property but does not agree to warrant or defend the title in any way. By his actions, the grantor implies that the title he is transferring is valid, thereby implying the warranty of seisin.

Bargain and sale

________________ __________________: An individual has seen, or been given, actual information or documents. When a person has searched the public record, inspected the property, or been shown a legal instrument evidencing title.

Actual notice

_________________________________: Person appointed by the court to carry out the terms of the will in the event there is no executor, or to oversee the distribution of assets of a person who died intestate.

Administrator

___________________________ __________________________: Acquisition of title to real property owned by someone else by means of open, notorious, hostile and continuous possession for a statutory period of time (15 years in VA).

Adverse possession

______________________: The formal, legal process by which a court reviews the distribution of a deceased person's estate.

Probate

____________________________: Any type of transfer of ownership of real property; can be accomplished voluntarily by a deed or will, or involuntarily by adverse possession or intestate succession.

Alienation

___________________________ ________ _______________ refers to any change of ownership. It involves transferring ownership rights or interests in real property from one person to another.

Alienation of title

Whose responsibility is the enforcement of deed restrictions?

All owners of property affected by the restrictive covenants

__________________ = first to zoning appeals board, then to court

Appeals

Trustees, fiduciaries, and officers of the court sometimes use this type of deed to convey property, where the grantor claims title but not necessarily marketable title.

Bargain and sale deed

This type of lien makes property collateral in a lawsuit.

Attachment

_______________________ liens are the result of a legal process involving the seizure of a defendant's real and personal property and holding it in the custody of the court as security while a lawsuit is being decided.

Attachment

Who should you refer to any transaction involving a defeasible fee?

Attorney

What kind of title is this an example of? Ex: When a homeowner borrows money on his home, the lender may require that a trustee be appointed to hold title to the home until the debt is repaid. The trustee holds this title to the property, but the homeowner still has the right of possession, use, occupancy, and enjoyment as long as he continues to repay the debt.

Bare legal title (naked title)

_______________ ___________________ _________________ (________________ ________________): Title that lacks the usual rights and privileges associated with ownership.

Bare legal title (naked title)

_______________________: A gift of personal property by will.

Bequest

__________________ _________________ = district separating two incompatible districts

Buffer zone

__________________ _________________ = Established to protect the public health and safety and are a valid exercise of the state's police power.

Building codes

__________________ _________________ = goal is promote public safety; require inspections and certificates of occupancy

Building codes

_____________________ _______________ are designed to ensure public safety.

Building codes

__________________ _________________ = zoning designed to control density; how many improvements can be built in a given acre

Bulk zoning

__________________ _________ _________________ __________________ _________________ = A master or comprehensive plan has been adopted in most cities and many countries to guide and control the long-term use and development of land within their jurisdiction. Its purpose is to direct present and future growth in a logical fashion with an overall concept in mind, having defined values and stated goals. Such a plan must be flexible enough to deal with change.

City and county master pans

What can a title search reveal?

Cloud on title

______________________: A modification, or addition to, an already existing will.

Codocil

Name the kind of easement described: -Attaches to a company -Usually assignable -Servient estate ONLY -Survives death or sale

Commercial easement in gross

Telephone, electric, and gas company right-of-ways are examples of what kind of easement?

Commercial easements in gross

_____________________ _________________________ _____ ___________________ are property rights held by a business entity. ATTACHES TO A COMPANY (OFTEN A UTILITY), USUALLY ASSIGNABLE, SERVIENT ESTATE ONLY.

Commercial easements in gross

__________________ ______________ include the land on which the building is situated, the shell of the building itself, each unit's walls, hallways, stairways, elevators, lobby, garages, swimming pools, tennis courts, etc.

Common areas

This is the right of each spouse to equal interest in property acquired during marriage.

Community property

________________________ is the legal proceeding by which the government obtains ownership of private property. Just compensation is either agreed upon by negotiations or decided in a court of law.

Condemnation

What is the following an example of? Ex: A church sells extra land it owns and puts a restriction in the deed saying if the land is ever used to sell alcoholic beverages, title reverts back to the church. If 100 years later, the property is redeveloped and a liquor store is built on the land, the church could come back and retake title.

Condition

__________________ _________ __________________ = similar to variance; special use permitted if conditions are met; allows otherwise prohibited structure to be built in a particular location; often required when the exception to the regulation is more major than what is required to obtain a variance

Conditional use permit

_______________________ __________ __________________ results in the issuance of a zoning permit that allows a use that is not in compliance with the surrounding local zoning already in effect.

Conditional use zoning

What kind of notice is this an example of? Ex: When a property owner records his deed at the county courthouse (places it on the public record), he is said to have given this kind of notice of his ownership rights.

Constructive notice (legal notice)

_________________________ __________________ (________________ ________________): Information has been made available to the public. This notice is a legal concept that charges the public with the responsibility of looking in the public records and at the property itself so as to have knowledge of all those are claiming a right or an interest in the real property.

Constructive notice (legal notice)

_______________________: private agreement contained in a. deed, lease, or will restricting the use and occupancy of real property; enforced by an injunction; placed on the property by developer who built the tract of homes.

Convenant

____________________________: Warrants or unconditional promises contained in contracts.

Convenants

__________________________ deed: Used to correct a mistake in a prior deed. Usually it is a fairly minor mistake such as an improper legal description, the misspelling of a name, or some other minor mistake of fact.

Correction

The National Environmental Policy Act established a ____________________ _________ _________________________ ___________________ for land-use planning and created the ___________.

Council for Environmental Quality; EPA

_____________________________ in deeds may restrict alienation or conveyance.

Covenants

_________________________ _________________ _____________________ _____________: Grantor has done nothing to cloud the title; used in special warranty deeds in which the grantor is a fiduciary such as an executor, trustee, or guardian. The grantor promises he has done nothing to injure or adversely affect the title while he has been the personal representative of the estate and has had control of the property. Executors and trustees will warrant a deed against their own acts, but will give no further assurances against the acts of others and will assume no liability for the acts of others.

Covenants against grantor's acts

________________________ _______ __________________ ______________________: Will take actions needed to clear title; the grantor's promise to do such further acts as might be required in the future to guarantee or perfect the title of the grantee.

Covenants of further assurances

_______________________ _______ _______________ ________________________: Arises from the grantor's assurance that the grantee shall enjoy possession of the property in peace and without disturbance by hostile claimants.

Covenants of quiet enjoyment

_________________________ _______ __________________: An assurance (promise) by the grantor to the grantee that the grantor has the estate of title in the quantity and quality that the grantor claims to convey.

Covenants of seisin

_________________________ ________ _______________________ _____________________: Assures the grantee of possession and continuance of the title transferred to the grantee, "the grantee will forever warrant the title to said premises." This covenant also promises that the grantor will bear the expense of defending the title against third person claims.

Covenants of warranty forever

________________ __________ ________________: Used to convey real property in a court-ordered foreclosure sale. Equivalent to a special warranty deed. Also called a referee's or commissioner's deed (when foreclosure is undertaken by a private mortgagee) or a tax deed or sheriff's deed (when property is sold to pay taxes).

Deed in foreclosure

________________________: Free transfer (no compensation) of privately owned land to a governing body with the stipulation that is be used for public purposes.

Dedication

_______________: A written instrument whereby a property owner conveys title (transfers his ownership interest in the property) to another.

Deed

________________ __________ ________________: Conveys real property to a trustee. Usually done to create a land trust. The trustee has the power to sell, mortgage, and subdivide the property, but usually only under the direction of the beneficiary.

Deed in trust

_______________ ______ __________________________: Most common method of acquiring title to real property and is a written instrument used to transfer title voluntarily from one party to another.

Deed of conveyance

________________ __________ ________________: Used to convey title to a third party trustee to be held as security for a debt. Used instead of a mortgage to secure a loan against real property. Appoints neutral third party to conduct any future foreclosure. Not used in most states.

Deed of trust (trust deed)

______________ _____________________: -Limit the use of property -Placed in deed by previous owners -Enforced by injunction -Can cover lot size, square footage of improvements, permissible uses, parking restritions

Deed restrictions

__________________ _________________ are established by a subdivision's original developer and are the most commonly encountered restrictive covenants.

Deed restrictions

__________________ _________________ usually affect the size or number of buildings, size of lots, cost and type of structure that can be built, fence or hedge heights, setback lines, and prohibitions against certain types of livestock and usage.

Deed restrictions

_________________ are the most common form of voluntary alienation.

Deeds

________________________ means capable of being voided, annulled, or defeated.

Defeasible

__________________ ______________ ordinances that restrict the average maximum number of houses per acre in a subdivision rather than restricting lot size for each dwelling are applicable to PUDs.

Density zoning

_______________________ ___________ ____________________________: Acquisition of an estate by inheritance when an heir succeeds to the property by iteration of law.

Descent and distribution

_____________________: A gift of real property by will.

Devise

__________________________: A person who receives real property by will.

Devisee

A _______________ is a wife's interest in her husband's property.

Dower

________________________ = more density to less density

Downzoning

__________________________ involves a change in zoning from a higher, more active category to a lower, less active (less profitable) category. An example would be a residential area is rezoned because of conservation concerns and the building of homes is no longer permitted.

Downzoning

________________________: The legal right to enter upon another's property.

Easement

Farmer Brown wants to sell a back pasture, but it has no access to a public road. Jones wants to buy the back pasture if Brown will include an easement to a nearby country road. The easement attaches to the back pasture and the back pasture is the dominant estate. Farmer Brown's remaining land becomes the servient estate. This is an example of what kind of easement?

Easement appurtenant

Name the kind of easement described: -Attaches to land -Adjoining parcels -Dominant and servient estates -Survives death or sale

Easement appurtenant

________________________ are legally enforceable rights to the limited use of another's land. Can be held by private citizens or by governments.

Easements

____________________________ do not create an ownership interest in land, but the right to use it.

Easements

_________________________ ______________________ is the right of federal, state, and local governments to assume ownership of private property for a necessary public use, with just compensation paid to the owner.

Eminent domain

______________________________: Unauthorized infringements on a property owner's rights as a result of physical intrusion.

Encroachments

T/F: A tenancy by the entireties can generally be severed by a partition suit.

False (can order division or sale of the property in court in the case of a divorce, but generally cannot be severed by a partition suit)

____________________ ______ _____________ = court order for sheriff to sell property; if lien is not repaid, creditor can go to court and ask property to be sold to collect; your will order writ of execution for sheriff to sell the property

Enforcement of liens

_______________________ lien = results from 1) a private, written contract that shows an intention to pledge property as security for a debt, or 2) a court decision based on English common law and a sense of fairness.

Equitable

________________________ ________________: The interest in a piece of real estate held by a buyer under a real estate sales contract or a contract for deed, to obtain absolute ownership of the property at a future date

Equitable title

____________________ refers to the power the state government retains over the title of real property owners to obtain title to property when an individual dies intestate and leaves no known heirs, or when property is abandoned.

Escheat

_____________________ solves the problem of property becoming ownerless.

Escheat

__________________ refers to the degree, quantity, nature, and extent of ownership interest that a person has in real property.

Estate

What type of estate is the following an example of? Exists when a tenant occupies real estate after his lawful rights have run out. It runs until the tenant vacates or the landlord decides to take some action. Termination does NOT require notice.

Estate at sufferance (tenancy at sufferance)

What type of estate is the following an example of? Exists when a tenant is in lawful possession of real estate with no definite time specified as to when he will vacate, and no particular recurring period is specified. Is often between friends without any formal agreement. It may be terminated by sale of the property, by death of either party, or by notice of either party.

Estate at will (tenancy at will)

What type of estate is the following an example of? Involves a lease that has a definite beginning and a definite ending date, and therefore does NOT automatically renew so NO NOTICE OF TERMINATION is required. It is NOT terminated by the sale of property.

Estate for years (tenancy for years)

What type of estate is the following an example of? Is any tenancy or lease that runs for an indefinite number of time periods; usually one rental period of notice required; can be less than a year but requires proper notice to terminate and RENEWS AUTOMATICALLY if no termination notice is received.

Estate from year to year (tenancy from year to year; periodic estate)

T/F: Some private properties are exempt from eminent domain.

False (none are exempt)

What type of estate is the following an example of? Ex: Sam Brown (a nice guy) has allowed his 80-y.o. Uncle Bert to live rent free in an old log cabin that was given to Brown by his father. Brown does not really want the property, but since it has been in his family for generations he does not want to sell it. He decides that it should go to his sister Emily who is the only surviving member of his family with children. However, Emily is not as nice as Sam, and Sam is afraid that she will throw his uncle out as soon as she gets the property. Upon advise of a lawyer, Sam decides to convey the property to his 80-y.o. uncle and stipulate the upon his uncle's death the property will go to Emily and her heirs. Uncle Bert now has a life estate in the property, and Emily is the remainderman with this kind of estate that automatically passes to Emily and her heirs upon the death of the old uncle. As remainderman, Emily has the right to insist that Uncle Bert maintain the property and not commit waste. Uncle Bert could sell the cabin, but the buyer would receive the same estate as Uncle Bert, meaning that when Uncle Bert dies, the property would go to Emily.

Estate in remainder

What type of estate is the following an example of? Ex: Son gives life estate to his mother so she owns the house for as long as she lives; but mother passes away and property does not revert back to the son and instead goes to his daughter.

Estate in remainder

What type of estate is the following an example of? Ex: Son wants a place for his mother to live so he buys a house = he has a fee simple estate. Then he gives the house to his mother = she has a life estate based on her own life (she is now the life tenant and owns the house/has all the same rights as any other homeowner as long as she is alive). If she passes away, the house ownership reverts back to the son.

Estate in reversion

What type of estate is the following an example of? Ex: Brother has two sisters who live in another state; one sister is developmentally disabled. Brother buys a house next to non-disabled sister and gives it to the disabled sister. She holds the life estate but it is not based on her life, it is based on the life of the non-disabled sister who promises to look after the disabled sister. Under this arrangement, the disabled sister owns the property as long as the non-disabled riser is alive. When the non-disabled sister passes away, the house can either 1) go back to the brother (estate in reversion) or 2) go to the brother's daughter (estate in remainder). f the disabled sister dies first, she could will her share to someone else (she could never transfer more interest than what she has--she only owns it for as long as the non-disabled sister is alive so the person who inherits it would only own it for as long as the non-disabled sister is alive).

Estate pur autre vie

T/F: A joint tenancy may be terminated by mutual consent of the parties but NOT by sale.

False (can be terminated by BOTH mutual consent or sale)

_____________________________: When the grantor retains fee title to a part of the land; the grantor excepts a portion of the property for himself.

Exception

__________________________: Person named in the will who executes, or carries out, the wishes of the testator, acting as his personal representative.

Executor/Executrix

T/F: A license has to be in writing.

False

T/F: The Torrens registered certificate of title is the same as a certificate of title, or opinion of title, issued by a private examiner.

False

T/F: in a tenancy in trust, the truster and beneficiary are NEVER the same person.

False

T/F: No restrictive covenants are illegal or unenforceable.

False (If restrictions are too broad in their terms or they violate laws such as fair housing laws, then courts may find them illegal and unenforceable.)

T/F: All building codes are based only on national standards.

False (In some cases, these codes are based on national standards; however, certain areas with special problems have developed very specialized building codes (such as areas prone to earthquakes or flooding)

T/F: An abstract does not HAVE to be prepared by a professional, licensed abstractor.

False (an abstract MUST be prepared by a licensed abstractor)

T/F: Mechanic's liens are only available to general contractors.

False (available to general AND subcontractors)

T/F: Minors and incompetents are NOT valid grantees.

False, they are

This is primary disclosure document in condominium ownership given to first purchasers of the property and how membership in the HOA will transfer from the developer to the unit owners as units are sold.

Public offering statement

_____________________ __________ liens are general, statutory, involuntary liens imposed for on-payment of federal estate taxes, federal income taxes, or payroll taxes.

Federal tax liens

Eminent domain can be used by what levels of government and by what companies?

Federal, state, local, and railroads and utilities

What type of estate is the following an example of? It is the highest and most complete type of ownership of land that is possible and exists for an indefinite duration/has no timeframe, and can be sold/given away/passed to heirs.

Fee simple (absolute)

_____________________________ due to unpaid debts (mortgage loans, property taxes, and other liens) also results in the transfer of ownership of real property without the owner's consent.

Foreclosure

This is an estate in land that is of indeterminable duration, meaning that it is not limited by a specific timeframe.

Freehold estate

What type of estate is the following an example of? Ex: A landowner who wants his waterfront property preserved in its natural condition could deed his land forever to an environmental organization such as the Nature Conservancy, with the deed requiring that the land be preserved.

Freehold estate

______________________ partnership = all partners have unlimited liability (each partner is personally liable for all the debts of the partnership); does NOT need to be in writing (though advisable).

General

_______________________ lien = is directed against the individual debtor and therefore attaches to all of his property both personal and real. Usually result from court judgements, IRS taxes, estate and inheritance taxes.

General

______________________ _______________________ deed: A conveyance by which the grantor fully warrants, or guarantees, clear title to the real estate being sold.

General warranty

This type of deed offers the greatest possible protection to the grantee and is the most common type of deed used in real estate title transfers.

General warranty deed

Federal taxes and court judgements are examples of liens that are what 3 characteristics?

General, statutory, involuntary

_________________________ ________________: Executed on behalf of a person who lacks legal capacity to convey title, such as a minor or any person judged incompetent by the courts.

Guardian's deed

In a condominium, this is the government body that charges dues and assessments.

HOA

________________________ _________________: The "to have and to hold" clause that follows the granting clause and indicates the type of estate or interest the deed is conveying, such as fee simple estate, a life estate, etc.

Habendum clause

_____________________________ _____________: One that is written in the testator's own handwriting but is not witnessed or acknowledged.

Holographic will

This protects personal residence from judgmental liens (not from mortgage or tax liens); designed to protect the family home from general creditors. It is most commonly claimed in the context of bankruptcy proceedings.

Homestead exemption

States have enacted laws governing condominium ownership. They may be called _____________________ ______________________ ___________ or _________________________ _____________.

Horizontal Property Acts; Condominium Acts

________________________ ___________________ is a term that distinguishes condominium ownership from the more traditional method of vertical ownership of property that includes the surface of the earth, the ground below, and the airspace above it.

Horizontal property

This is the life of a third party in a life estate.

Pur autre vie

How could a covenant of seisin by breached/broken?

If good title was actually held by a third party, or if the grantor did not hold the full extent of title that he claimed to be conveying

What kind of notice is this an example of? Ex: If a dirt road runs across the corner of an empty lot, a prospective purchaser would be expected to inquire as to the possibility of an existing easement through the lot, even though such an easement may or may not show up in the public records.

Inquiry notice

_____________________ ___________________: Legal notice that is presumed by law when factors exist that would make a reasonable person inquire further.

Inquiry notice

What type of tenancy is described? An estate owned by two or more persons each with the right of survivorship, cannot will share, only one title exists as a unit with all persons owning equal shares, unity of ownership is the basic principle, title is held as if all the owners constituted one single person, escapes probate (when one tenant dies, the remaining tenants receive his interest by JTROS), four unities must occur simultaneously as to all owners, can only be severed by valid conveyance or death, terminated by mutual consent of the parties or by sale.

Joint tenancy

___________________ means an individual died without leaving a will.

Intestate

_______________________ lien = is created by operation of law. May either be statutory or equitable. An example would be a property tax lien.

Involuntary

___________________________ __________________________: Includes descent and distribution, adverse possession, unintentional dedication of land for public use, accession, estoppel, foreclosure, eminent domain, and escheat.

Involuntary alientation

How does police power differ from eminent domain?

It is uncompensated regulation of the use of property.

What tenancy is the following an example of? Ex: Guyon, Donald, Walton, and Katherine all buy a piece of farmland as joint tenants. Guyon decides there is no future in farming and sells his interest to Farmer Brown. Farmer Brown now has a 1/4 interest int he farm and holds title as _________________________ to Donald, Walton, and Katherine. However, Donald, Walton, and Katherine hold an undivided 3/4 interest as joint tenants.

Joint tenancy; tenant-in-common

_______________________ liens are general, statutory, involuntary liens that attach to a debtor's real and personal property as a result of losing a lawsuit.

Judgement

___________ __________________________ means government will attempt to purchase property in open market but if seller refuses to sell will exercise eminent domain; appraiser hired to determine fair market value for property and will pay that price to the owner.

Just compensation

An ________ ______________ is developed for a particular subdivision by relating land, building coverage of the land, and open spaces to one another.

LUI scale

_____________-__________ _________________ (________) is the system of analyzing land use that has become an increasingly important tool in the development of PUDs.

Land-use intensity (LUI)

What type of estate is the following an example of? Is for a definite duration and does NOT involve ownership; ex. is a lease.

Leasehold estate (non-freehold estate)

________________ __________________: The right of ownership, possession, use, occupancy, enjoyment of a parcel of real property held by an owner.

Legal title

_____________________ ____________________: This policy insures the lender against the same risks as an owner's policy plus any circumstance that would invalidate the lender's lien against the property. It normally only covers the lender up to the amount of outstanding mortgage debt.

Lender's policy

______________ = a monetary claim making a property security for payment for a debt

Lien

_____________ are the most common form of private limitations on title.

Liens

_____________ make it possible for individuals and businesses to borrow large sums of money.

Liens

What are examples of encumbrances affecting title?

Liens (mortgages, taxes, etc.)

What type of estate is the following an example of? Limited to the lifetime of a person/fee simple estate that is conveyed to a person for the duration of someone's life.

Life estate

___________ ____________________: The person holding the estate in a life estate.

Life tenant

______________________ partnership = these partners in this partnership must make a definite, declared investment of money or property, but not services of any kind; liable only to the extent of their investment; certificate of this kind of partnership must be filed; MUST be in writing.

Limited

_________ ___________________ means "action pending." It is a pending lien that gives constructive notice to the world that an action affecting a particular piece of property has been filed and that the property is, or is about to become, involved in a lawsuit that may result in a judgement against the property.

Lis pendens

__________________ _________________ = basis for zoning ordinances; guide for future development

Master plan

You hire contractor Bob to build a patio; if you fail to pay Bob, he can file this kind of lien against your property and ultimately force the sale of your home to collect his money. Similarly, if Bob hires Sam to pour concrete for your patio and you pay Bob but Bob does not pay Sam, Sam can also file this kind of lien against your property to receive his money.

Mechanic's

_______________________ liens are specific, statutory, involuntary liens filed against real property by material men or laborers who have supplies material for, or worked on, improvements, repairs, or maintenance of real property.

Mechanic's

_____________________ liens are specific, equitable, voluntary liens filed by a mortgagee against a piece of real property that has been pledged as collateral for repayment of a debt.

Mortgage

Environmental legislation began in earnest at the federal level in 1970 with the passage of the:

National Environmental Policy Act

When a tenant dies, does his/her share go through probate?

No

Can the life tenant will the property?

No, except for life estate pur autre vie.

Does a buyer automatically become a joint tenant?

No, the buyer would hold that share as tenant-in-common.

__________________ _________________ = use predates current zoning; use is "grandfathered"

Nonconforming use

______________________________ ______________: An oral will; some states will allow this for personal property but not real property.

Nuncupative will

_____________________ ____________________: This policy covers the buyer and protects against forged documents, undisclosed heirs, misfiled documents, confusion arising from similarity of names, mental incompetence, etc.

Owner's policy

_____________________ includes the right of possession, occupancy, use, enjoyment, and disposition of real property.

Ownership

____________________ ______ _____________ = document recorded to release the lien; when a lien is repaid; removes lien from title

Satisfaction of lien

______________________ ________________: Used to convey title to real estate from the US government to an individual.

Patent deed

Joe owns a piece of land that he loves to fish on; when he sells the land he reserves an easement in gross for himself to access the land to fish; the easement only applies to Joe himself/cannot be transferred to anyone else. This is an example of what kind of easement?

Personal easement in gross

Name the kind of easement described: -Attaches to a person -NOT assignable -Servient estate ONLY -Does NOT survive death or sale

Personal easement in gross

_____________________ _________________________ _____ ___________________ are personal in nature and do not attach to any particular piece of land. Rather, they are property rights given to an individual. ATTACHES TO A PERSON, NON-ASSIGNABLE, SERVIENT ESTATE ONLY.

Personal easements in gross

__________________ ______________ __________________________ = similar to traditional subdivision in that homeowners own homes/lots but this is often a gated community with recreational facilities; homeowners pay dues to cover common areas/facilities

Planned unit developments (PUDs)

General planning and zoning, establishing building codes, requiring real estate licenses are all examples of the exercising of what power?

Police power

__________________ ____________________ is the right of government to adopt and enforce laws, ordinances, codes, and regulations to protect, promote, and support the order, health, safety, moral, and general welfare of the public.

Police power

________________________ _________________: Identifies parties and property; sometimes called the granting clause because it contains the words of conveyance, states the names of the parties involved, the extent of ownership, recites the consideration, and legally describes the property.

Premises clause

_____________________ __________ liens are specific, statutory, involuntary liens filed against real property at the beginning of each tax year (general Jan 1). They always have FIRST priority regardless of other liens' recorded dates.

Property tax

_________________________ means "owner," and leases in a cooperative are called _________________________ ___________________ because the tenant is also an owner by virtue of his stock ownership in the corporation.

Proprietary; proprietary leases

___________________ _________________: Transfer of title from the government to an individual.

Public grant

What type of estate is the following an example of? Ex: J. Griffith owns a large amount of land in CA and gives it to the state as a park but put a condition in the deed that the state cannot charge for admission to the park; if they did, the title would revert to J. Griffith or his heirs.

Qualified fee estate

What type of estate is the following an example of? Relates only to deed restrictions in the form of a condition where you could lose title if you violate the condition and is a fee simple estate that has certain qualifications or limits. The owner holds fee simple title subject to certain specified conditions.

Qualified fee estate (conditional fee, fee simple defeasible, defeasible fee)

__________________________ deed: A conveyance by which the grantor transfers and releases any interest he might have in the property. Grantor "quits" claim of any ownership and does not agree to warrant or defend the quality of title in any way, and also does not promise that he has any interest or rights to convey at all. He barely agreed that if he does have an interest, he will relinquish it.

Quitclaim

This type of deed is often used to clear up clouds on title and between joint owners (i.e. between a husband and wife in a divorce).

Quitclaim deed

What type of estate is the following an example of? This is a future interest in real estate created at the same time and by the same instrument as another estate; it arises automatically upon termination of the prior estate.

Remainder estate

____________________________: A right retained by the grantor (such as an easement).

Reservation

_____________________________: Usually imposed by the original developer. If there are deed _________________________ that affect the subject property, this fact should be stated in the deed, or in the case of a condo, the deed should reference the previously recorded master deed.

Restrictions

What are examples of encumbrances affecting property physically?

Restrictions, easements, encroachments

__________________ _____________________ restrict the use of real property and are usually contained in a deed or lease agreement.

Restrictive covenants

What type of estate is the following an example of? Ex: Whitehead conveys a life estate to his Aunt Katherine but does not specify any remainderman. Upon his Aunt Katherine's death, the property will automatically revert to Whitehead (the grantor) or his heirs.

Reversion estate

What type of estate is the following an example of? is the estate that is left to the grantor after a grantor has conveyed a lesser estate (less than a fee interest) to someone else (grantee). It is created by operation of law, so no express words of creation are needed.

Reversion estate (reversionary estate)

What should a client make sure that the creditor executes to remove a cloud on title once a lien is repaid?

Satisfaction of lien

_________________________ specify how close improvements may be built to the street or property lines.

Setbacks

Street paving, sidewalks, curbs, sewers are paid for by what types of liens?

Special assessment

____________________ _______________________ liens are specific, statutory, usually involuntary liens filed against those real properties that will benefit from a proposed public improvement.

Special assessment

______________________ _______________________ deed: A conveyance by which the grantor guarantees (warrants) the title he is conveying only against defect arising during the tenure of his ownership guardianship, and not against previous defects in title.

Special warranty

This type of deed is commonly used to convey property for non-payment of taxes (tax deed), or where any trustee conveys property (as with a sheriff's sale to satisfy a judgement).

Special warranty deed

_______________________ lien = is attached to one specific parcel of real estate. Encumbers only ONE property and DO NOT ATTACH TO PEOPLE. Include mortgage liens, property tax liens, special assessment liens, utility liens, and mechanic's liens.

Specific

Vendor's liens and vendee's liens are examples of liens that are what 3 characteristics?

Specific, equitable, involuntary

A mortgage is an example of a lien that is what 3 characteristics?

Specific, equitable, voluntary

Property taxes, special assessments, mechanic's lien, lis pendens are examples of liens are what 3 characteristics?

Specific, statutory, involuntary

__________________ _________________ = different zoning for one or a few parcels; illegal in most states; historically associated with bribery and corruption

Spot zoning

__________________ _________________ is said to exist when the zoning for a relatively small area differs significantly from the zoning of adjoining areas. In most states, this is considered arbitrary and is illegal.

Spot zoning

_______________________ lien = is a lien that is established, by or results from, laws passed by the legislature. An example would be mechanic's liens or property tax liens. Claimants must take steps to enforce their claims within a certain period of time.

Statutory

A dower, curtesy, community property, and homestead exemption are examples of what kind of estate?

Statutory estate

What type of estate is the following an example of? Any estate that is created by law.

Statutory estate

What is the following an example of? Ex: Jones occupies the property he bought from Smith for three years and then sells it to Garrison who occupies the property for another five years. Garrison can then take Jones' three years and add to his five, giving him a total of eight.

Tacking

_______________________ derives from state and local governments' right to tax property to raise general revenue.

Taxation

What type of tenancy does the following describe? Like joint tenancy but only between married couples. Requires the same four unities and includes the automatic right of survivorship. It is recognized in VA. This type of ownership is often used to escape probate. This tenancy can be terminated by mutual agreement of the husband and wife, divorce, or joint conveyance (such as a sale).

Tenancy by the entireties

What type of tenancy does the following describe? A partnership where an association of two or more persons carry on a business for profit as co-owners. Can involve general or limited partnerships.

Tenancy in partnership

What type of tenancy is described? Sole ownership, involves individual ownership of real property, title is held in a fee simple estate or in a life estate in the name of one natural person or one artificial person (such as a corporation), corporations/states/counties frequently hold title in this form, real property owned in this tenancy passes to heirs and is subject to probate upon death of the owner.

Tenancy in severalty

What type of tenancy does the following describe? Title held by trustee for the beneficiary. Fee simple title can also be held in trust. The real estate is conveyed by a truster (grantor) to a trustee; the trustee hold title to the real estate and must manage it for the benefit of another, called a beneficiary.

Tenancy in trust

What type of tenancy does the following describe? It is the most common form of co-ownership and the one that is assumed unless some other form of tenancy is clearly specified. Can will to families. Does NOT require equal ownership. Co-tenants hold title to property in fee simple, and each co-tenant has a unity of possession.

Tenancy-in-common

What type of tenancy is the following an example of? Ex: Jones and Smith buy a house and two acres as tenants-in-common. Jones puts up 3/4 of the money so he owns 3/4 of the house and 3/4 of the two acres, while Smith owns 1/4 of the house and 1/4 of the two acres. Both have equal rights to possession of the entire property, but if the house sells, Jones will get 3/4 of the profits (or losses), while Smith will get 1/4.

Tenancy-in-common

________________________ _________________: Containing the statement, "In witness whereof the parties to these present have hereunto set their hands and seals...." Is the conclusion of the deed. Dates and signatures.

Testimonial clause

T/F: In most cases, if a particular use is legally nonconforming and the improvements are destroyed, they cannot be rebuilt unless a variance is obtained.

True

If a tenant dies and there is a tenant in common, the share goes to whom?

The other remaining tenants but NOT the tenant-in-common

Sometimes a buyer will insert a provision in a contract that the seller shall deliver title free from all defects or encumbrances. What does this mean?

The seller should be aware that the buyer could reject title even if there were only a small, insignificant encroachment or defect.

_______________ is the right to, or ownership of, land.

Title

__________________ ________ ______________________: Acquisition of additional land and/or improvements under certain unusual circumstances.

Title by accession

Ex: A buyer fails to take possession of his property and fails to record his deed. The original seller fraudulently sells the same property to a second buyer who has no knowledge of the prior sale. The second buyer records and/or take possession. The court may recognize the second buyer as the true owner, in which case the first buyer will be stopped from belatedly proving his title. This is an example of what?

Title by estoppel

___________________ _______ ________________________: Is a legal principle whereby a person may obtain title to real property over the apparent owner, because the apparent owner has failed to act in such a manner as to put everyone on notice as to his rights in the property.

Title by estoppel (deed by estoppel)

Deeds, mortgages, mechanics' liens, tax liens, special assessment liens, building ordinances, zoning, and building permit are all examples of what kind of record?

Title records

T/F: In tacking/color of title, the original adverse occupant is not delivering good marketable title to the next adverse occupant; an adverse occupant does not acquire clear title to the property, rather he buys a claim to possible future clear title.

True

_____________________ _________________ = ownership is registered with the court rather than by signing a deed and recording that deed in public records; originated in Australia and is only used a few places in the United States

Torrens system

The ____________________ __________________ is a legal system that provides for the registration of land in order to verify ownership. Under this system, an owner petitions the state court to register his property. After a title search and a public hearing, the court issues a decree and, if all seems in order, will issue a _____________________ _________________________ _____________________________ ______ _________________.

Torrens system; Torrens registered certificate of title

In states that use the ______________________ ___________________, title passes when the deed is _______________________, not when it is delivered to the new owner.

Torrens system; registered

T/:F Title passes with delivery and acceptance regardless of whether or not a deed has been recorded.

True

T/F: A freehold estate can be set up so that it exists forever, or it can be based upon a particular person's lifetime.

True

T/F: A lien does not transfer title to property and does affect the right of the owner to convey his interest to another.

True

T/F: An easement right may pertain to any part of land including the ground under the surface or the airspace above the surface.

True

T/F: An unrecorded document does NOT need to be acknowledged in order to be valid.

True

T/F: Easements appurtenances "run with the land," meaning if the land is sold, the easement goes with the land.

True

T/F: Even if tenants-in-common own unequal shares in a piece of property, their percentage of ownership is a percentage of the whole.

True

T/F: Federal tax liens attach to all real and personal property of the debtor.

True

T/F: If a condominium unit is the subject of a judgement that results in foreclosure, the foreclosure only affects the subject unit.

True

T/F: If restrictive covenants are less severe, then the zoning ordinance takes precedence.

True

T/F: In a co-op in the event of a foreclosure, the entire property would be threatened.

True

T/F: In many states, mechanic's liens are valid for a limited period of time.

True

T/F: In most cases, a freehold estate is based upon the lifetime of one or another person (the present owner or occupant, or a third party).

True

T/F: Intestate and testate are both subject to probate.

True

T/F: Once property is Torrens registered, title cannot pass, encumbrances cannot be enforced against the property unless the conveyance of lien document is registered and is noted on the registered certificate of title.

True

T/F: One cannot defeat a joint tenant's interest by will.

True

T/F: Only the grantor needs to sign the deed, not the grantee.

True

T/F: Only those properties affected by the improvement are required to pay the special assessment lien.

True

T/F: Private restrictions on the use of real property that are more severe or restrictive than local zoning ordinances take precedence over the public zoning.

True

T/F: Real estate and special assessment liens are superior to federal tax liens.

True

T/F: Recording a deed is not legally required, but advised.

True

T/F: Requirement of marketable title is implied in law and thus need not be stated in the contract.

True

T/F: Tax liens become liens when property is assessed, not when taxes are due.

True

T/F: Tenancy in common passes to heirs and therefore does not escape probate.

True

T/F: The process of attachment cannot be used when dealing with a secured obligation such as a mortgage.

True

T/F: The same company that does the title search usually issues title insurance.

True

T/F: Title records, including all documents affecting title interests, and rights to real property, are maintained in every city and county in the United States.

True

T/F: When a buyer purchases a parcel of land, he buys it subject to any easements attached to it.

True

T/F: Zoning estoppel is difficult to prove.

True

T/F: in a cooperative ownership, entire complex is owned by a corporation.

True

______________________________ ___________________________ of land for public use can occur. Many property owners who allow public access to, or through, their private property will erect barriers at regular intervals (such as once a year) just to evidence that the public right to use the property is merely a license and not a right or interest in the property itself.

Unintentional dedication

How are PUDs different from condos?

Unit owners usually own the individual lot/house built on the lot; HOA/community association usually holds title to common areas (rather than unit owners being tenants in common like in a condo)

____________: A written instrument whereby an individual (testator) provides for the transfer of title to property to another, after his (the testator's) death.

Will

If a mechanic's lien is not paid before expiration, a creditor (contractor or workman) could go to court and obtain a _________________________ lien and use those procedures to continue collection efforts.

judgement

Can a joint tenant share his/her share of the property?

Yes

Can a tenant-in-common will their share to their family?

Yes

Can a life tenant sell the property?

Yes, but cannot transfer greater interest than what he/she has.

Can a life tenant take out of mortgage against the property?

Yes, but not very likely because the lender would know that the moment the life tenant died their collateral would become useless; the only way to do this would be for the life tenant to buy a life insurance policy with the lender as beneficiary.

Can the life tenant lease the property to someone else?

Yes, but terminates upon the death of the life tenant (because the life tenant owns it only as long as the life tenant is alive).

Must a life tenant maintain the property?

Yes, cannot allow "waste."

Is there a way for the buyer to become a joint tenant?

Yes, if they create a new deed naming all owners as joint tenants.

The government power of _________________________ _______________________ that permits governments and quasi-public corporations and utility companies to take private land for public use through a condemnation suit results in involuntary alienation of real property.

eminent domain

__________________ = The systematic division of a city or county by legislative regulation (ordinances) into various districts or zones. This also refers to the implementation of ordinances related house of land and buildings.

Zoning

__________________ _________________ = Regulate such things as use of land and buildings, structural and architectural designs, types of improvements permitted, height and bulk of buildings, density, lot sizes, and setbacks.

Zoning ordinances

__________________ _________________ = specific rules regarding types of improvements, lot sizes, setbacks, etc.

Zoning ordinances

______________________ __________________________ determine what type of improvements can be built on a given area.

Zoning ordinances

The grantee may also be required to sign the deed if he is:

assuming a mortgage or agreeing to abide by a restrictive provision

Condominiums are created by the recordation of __________________________ ______________________ that include, but are not necessarily limited to, the declaration (master deed) plots and plans and by-laws providing for self-government by a unit owners' association.

condominium instruments

An _____________________ summarizes what the title searcher found in the public record; it is a detailed report and historical summary of all grants, conveyances, wills, and judicial proceedings effecting title to a specific piece of real property, together with a statement of all recorded liens and encumbrances affecting the property.

abstract

_______________ _______ _______________ = summary of chain of title

abstract of title

When the title search is complete, an _____________________ will prepare an ___________________ _______ _________________.

abstractor; abstract of title

Ex. Owner A builds a shed on owner B's property with no written provision for removal. Owner B may acquire title to the shed by ______________________. This could happen if the court determined that since there was no agreed upon provision to remove the shed at some future date, then the original intention was for the shed to remain on B's land forever.

accession

All documents that are recorded on the local (city or county) public record must be ____________________________ before they can be recorded.

acknowledged

If a deed is recorded, it needs to be __________________________ and _______________________.

acknowledged; notarized

An ______________________________ is a declaration made before an authorized officer, usually a __________________, by a person who is voluntarily signing a formal, written document.

acknowledgement; notary

An easement is an (actual/contractual) interest in land.

actual

____________________ notice = known as a fact

actual notice

A will conveys no interest in property until:

after the death of the testator

An easement may be created by a written _______________________ between the parties. An example would be a contract through negotiation.

agreement

Units are sometimes referred to as ______________ in condominium ownership.

airlots

Covenants that seek to restrict an owner's right to sell his property are usually illegal and unenforceable because they are unreasonable restraints of ___________________________.

alienation

______________________ = to sell, transfer, or convey

alienation

The ___________________ system real property ownership is free and full ownership right in land by individuals and it is the bases of real property law in the United States.

allodial

The covenant of quiet enjoyment is breached only by:

an eviction by reason of a title supreme to that of the grantee

Zoning and planning ordinances are illegal if they are _______________________ or _________________________, or if they are not reasonably related to their general purpose--protecting the public.

arbitrary; discriminatory

Recording title gives __________________________ notice to all interested parties.

constructive

__________________________ notice = should have known; ex. recorded deed; whether you knew it or not, there was a way to find out

constructive

______________ __________________ _______________ = ownership without right of possession or use; happens in cases where a trust deed is used instead of a mortgage and also in contracts for deeds

bare legal title

Personal property conveyed by will is known as a ____________________ or ________________________.

bequest; legacy

A __________________ _________________ is a strip of land that is set aside to separate two types of land use that are considered incompatible.

buffer zone

Building codes are enforced by the issuance of __________________ _________________ in addition to the requirement for __________________ _________________ at certain phases of construction.

building permits; periodic inspections

The purpose of __________________ _________________ is to control density by restrictions on setback lines, building height, and percentage of open areas.

bulk zoning

people who want to buy a unit in that co-op would:

buy stock in the corporation

Suppliers and material men must have a _________________ (express or implied) before they are entitled to file liens.

contract

A ____________________________ is composed of single units in a multi-unit real estate development.

cooperative

PUD associations are usually non-profit, ___________________ entities whereas condominium associations are usually unincorporated.

corporate

In a cooperative, title to the land and individual units is held by a ________________________, ________________________, or _____________ _______________.

corporation, partnership, land trust

A final inspection is required before a __________________ _______ ______________________ is issued for a building.

certificate of occupancy (CO)

_______________ _______ _______________ = written opinion of title

certificate of title

This is a written opinion as to ownership of a piece of real property that is signed by a title examiner and attached to an abstract.

certificate of title (statement of opinion)

A _______________ _______ _________________ shows all changes in ownership; each owner is a link. If a link is missing, a gap exists and there is a cloud on the title.

chain of title

The purpose of a title search is to ascertain if there are any defect in the _________________ _______ _________________.

chain of title

_______________ _______ _______________ = history of conveyances and encumbrances; goes back 40-60 years usually; done by abstractor

chain of title

A lis pendens (notice of pending litigation) that no longer has any effect but that never has been removed from the public record is an example of a:

cloud on title

A prior conveyance with an incomplete legal description is an example of a:

cloud on title

A property sold without the wife's signature releasing her dower interest is an example of a:

cloud on title

A recorded contract for deed under which the buyer has defaulted but the contract has not been removed from the public record is an example of a:

cloud on title

A recorded mortgage that has been paid in full, but a satisfaction of mortgage has not been recorded on the public record is an example of a:

cloud on title

A recorded option that was not exercised is an example of a:

cloud on title

Any document, claim, unreleased lien, or encumbrance that makes clear title doubtful is a _________________ _______ ___________________. Some are serious while others are not. While this remains, the owner is usually legally unable to convey marketable title (clear title), unless this is generally perceived to be only a minor nuisance.

cloud on title

Once recorded in the public record, a lien creates a:

cloud on title

_______________ _______ _______________ = a problem with the title; ex. lien or forged deed; technically an existing mortgage is this but not a serious one as long as it is repaid

cloud on title

In cases where title appears to be good and valid, but a defect actually renders it invalid, a person may obtain good title under ________________ ______ _______________.

color of title

What is the following an example of? Ex: Smith sells Jones a house. Jones buys the house in good faith and is unaware of the fact that Smith held title under a forged deed. Jones records his deed and takes possession of the house. Because of Smith's forged deed, Jones does not have clear, valid title to the property. However, Jones can acquire legal title by occupying the property in good faith for a prescribed period of time (prescribed by state law). If, after that time, there has been no legal challenge to his ownership rights, Jones may apply to the court for clear title by means of adverse possessions under _________________ _______ ______________.

color of title

_______________ _______ _______________ = person appears to have title but there are undisclosed defects in that title; ex. couple moves their stuff into a vacant house to see how long they can stay for free (have this but not actual title)

color of title

A _________________ ___________ is a wall separating two living units in a condominium.

common wall

Ex: A zoning board might issue a _________________________ _________ ______________________ that would allow a hospital to be built in a residential neighborhood. However, the board would most likely set up certain conditions that would limit the hospital's activities and size. The objective would be to allow the hospital, while maintaining the integrity of the residential neighborhood.

conditional use permit

In the case of a ______________________, the governing body is usually the board of directors. This board of directors is empowered by its by-;was to set a price on each unit in the building. When a purchaser pay the agreed upon price for a particular unit (again, personal property). The _________________________ _______________ gives the stockholder the right to occupy and use a particular unit for the life of the _______________________.

corporation; proprietary lease; corporation

If an owner in the subdivision violates the deed restrictions, it is up to his neighbors to seek a __________________ _________________ to stop the violation.

court injunction

Liens are usually enforced by a:

court order

Property owners may appeal adverse decisions of the board to the:

courts

A _________________ is a husband's interest in his wife's property.

curtesy

Allowing a property owner to build a patio closer to the property line than zoning allows and a church being built in a residential zone if permitted are examples of:

variance

The priority of a lien is usually determined by:

date of recordation

A lien always arises from a ____________.

debt

Liens always arise from ___________.

debt

Developers of subdivisions are frequently required to ________________________ land for roads, and occasionally must _______________________ land for schools and parks as well.

dedicate

Encumbrances should be noted on the ______________ following the property description.

deed

The word title also refers to the evidence of ownership of land such as a ____________.

deed

A deed must be ________________________ by the grantor and voluntarily ________________________ by the grantee.

delivered; accepted

A grantor conveys interest to real property by:

delivering a deed to another during his lifetime

Encroachments will not appear in any other document such as a deed or earlier survey that was completed before the violation occurred. Because of this, most title insurance polices (do/do NOT) warrant against encroachments.

do NOT

If your property line falls at the edge of a river and there is erosion over time, the property line (does/does NOT) change with the erosion.

does

Real property ownership that involves right of survivorship, as with property held in joint tenancy and tenancy by the entireties, (does/does NOT) pass through probate.

does NOT

In an easement appurtenant, the owner who has the right of use is the one who benefits from the easement and as such holds the __________________ estate (benefits from the easement).

dominant

In an express reservation easement, the retained property with the right of use is the ___________________ estate and the sold portion is the ___________________ estate.

dominant; servient

An area zoned for multi-family housing changed to single-family housing is an example of:

downzoning

An easement may be accomplished by operation of law through the government's power of __________________ _________________ _____ _________________________ ________________________. It is used to establish easements that are necessary for public purposes.

eminent domain în condemnation proceedings

A lien is an ______________________ on title to real estate

encumbrance

Any interest held by any person other than the owner creates an:

encumbrance

Rights to the use and conveyance of property may be limited by individual, as opposed to government, action. These limitations are collectively referred to as ___________________________.

encumbrances

Special assessment liens have ________________ priority to property taxes.

equal

____________________ _______________ = right to legal title upon completion of a contract

equitable title

The action of a shore, or river taking soil from one owner's property is called ___________________________, and when it is added to another's property it is called ___________________________. These soil deposits are known as ________________________ or _________________________. The first property owner loses land, and the second gains. He gains title to this __________________________ by accession. While erosion is generally slow, _________________________ is the sudden removal of large amounts of soil by an act of nature such as an earthquake or mudslide.

erosion; accretion, alluvion; alluvium; alluvion; avulsion

When land ______________________ to the state, it is considered a form of involuntary alienation.

escheats

An executed deed with purchase money and instructions can also be deposited into _____________________.

escrow

A persona that holds title to real property has an __________________, which is his interest in the property.

estate

Sometimes government can be __________________ from enforcing a new downzoning ordinance against a landowner when that landowner can show that he has incurred substantial costs after relying upon the government's prior assurances that he had met all zoning requirements. This is known as __________________ _________________.

estopped; zoning estoppel

Title insurance policies include a list of _______________________ that are not covered by the policy (these generally include rights of parties in possession including unrecorded easements, any facts that an accurate survey would reveal, taxes and assessments not yet due or payable, zoning and government restrictions).

exclusions

An __________________ _______________ easement is created in writing by the landowner over his own land. Deed creates easement only, NO TITLE TRANSFER. Should be signed, acknowledged, and recorded.

express grant

Because an easement is an actual interest in land, an __________________ ______________ ______ _______________________ must be in writing, usually in the form of a separate deed or a reservation in a deed.

express grant of easement

An __________________ _______________ easement is created by ____________________ _______________ when a landowner sells a portion of his property to another, but reserves an easement over the sold land by placing this in the deed.

express reservation

The U.S. Constitution prohibits the ___________________ government from taxing land.

federal

As with condos, each unit in a PUD is a statutory entity unto itself, and individuals hold title to each unit in __________ _________________.

fee simple

In condominium ownership, individual or other entity (such as a corporation) hold title to individual units in ___________ _________________.

fee simple

Buyers subject to deed restrictions are said to receive __________ _________________ _____________ subject to deed restrictions.

fee simple title

The purchaser of a timeshare gains title to the property in __________ ________________ as a __________________-_______-___________________ with the other owners, or a ____________________ _________ _______________ with a future tenancy-in-common.

fee simple, tenancy-in-common, tenancy for years

With proprietary leases, there is no _______________ ____________________ ___________________.

fixed rental amount

Time-share units are divided into _______________, ____________________, or ____________________ Time periods (weeks, months, or years).

fixed, variable, rotating

In order for a deed to be valid, the __________________ must be alive at the time of delivery.

grantor

Parties to a deed are the ___________________ (the person who conveys title) and the _______________________ (the person who receives title).

grantor; grantee

PUDs are designed to produce a __________ density of dwellings on small lots to maximize open spaces.

high

Estate of a _____________________ ________________ is another name for estate at sufferance.

holdover tenant

An easement may arise by _______________________ from the acts or conduct of the parties. An example would be right of access implied by mineral lease.

implication

When one joint tenant dies, the shares of the surviving joint tenants (increases/decreases).

increases

Affected property owners may seek an _____________________ (court order) to correct violations of covenants.

injunction

__________________________ notice = should have investigated; inspection of the property should have caused you to check it out more carefully

inquiry

Unity of _____________: All joint tenants own one single interest together, equally. They all have the same right in the interest. If joint tenants list individual interests they will be treated as tenants-in-common because they lack this unity.

interest

Today, most time-share arrangements are referred to as ____________________ ______________________.

interval ownership

If a person died leaving no will he is said to have died _____________________.

intestate

If a property owner dies without a will (or with a defective will), and there is no survivorship provision in the chain of title, he is said to have died ________________________.

intestate

In a valid escrow, this is an __________________________ deposit and under the ______________________-_______________ ______________________, the death of the grantor does not terminate the escrow.

irrevocable; relation-back doctrine

If the adjoining landowners to a property in violation do not act promptly, they may lose their right to complain due to _________________, which is an equitable doctrine that bars a person from acting against another if the complainant has unduly delayed.

laches

Whereas title to a condominium unit only involves an air lot, title to a PUD unit usually involves a ___________ lot.

land

The theory behind the principle of adverse possession is that:

land is scarce, and that land should be put to productive use

A ________________ _________________ agreement can be used to shield the identity of the property owner or owners.

land trust

If a buyer wants to maintain confidentiality, he can place title to a piece of real property in a ____________ ________________.

land trust

Time-shares may be acquired pursuant to a _______________, __________________, or ______________ of interval ownership.

lease, license, deed

________________ _________________ = ownership with right of possession and use; transfers with closing

legal title

A _________________ is the personal, non-assignable, revokable privilege to do something and is NOT an interest in land.

license

A landowner giving oral permission to cross his land in order to gain access to the grantee's land is an example of a:

license

A ticket stub you get when you pay to park in a parking lot is an example of a:

license

In many states, a lender must file a _________ ____________________ as part of the process of filing a suit for foreclosure.

lis pendens

A seller under a contract of sale is required to deliver _____________________ _____________, that is, a title free from reasonable doubt as to who the owner is.

marketable title

___________________________ _______________ = reasonably free from doubt that seller is the actual owner and has the right to sell the property

marketable title

Building codes are usually designed to establish:

minimum standards of construction

Planned unit developments use _______________-__________ zoning to apply density requirements to an entire project, not to each lot within the project.

mixed-use

Each condominium owner has exclusive ownership of his individual air lot (or unit) and therefore can __________________, _____________, _____________, or _______________ that lot separately and independently of all other lots.

mortgage, sell, will, gift

If a deed, after being delivered and accepted, is subsequently lost or destroyed, it has (great/no) effect on the ownership of the property.

no

A PUD developer must record a subdivision plat and declaration containing covenants and restrictions, and provide for a _______-_______________ _____________________ ________________________ to oversee the common areas.

non-profit community assocation

A ___________________________ use is one that is inconsistent with, and does not conform to, the current zoning ordinance. It is a condition known as "___________________________" and is permitted to continue after a zoning ordinance prohibiting it has been established for the area.

nonconforming; grandfathering

In order for a document to be recorded on the public record it must be drawn and executed in conformity with the provisions of the recording statutes of the state in which the land is located. Most states require that the signature be acknowledged before a ____________________ __________________ or other officer.

notary public

Putting the world "on record" as to the ownership of real property is ________________.

notice

Encroachment is _________________ if it violates the neighbor's airspace (as in the case of overhanging tree branches).

nuisance

If tenants-in-common or joint tenants cannot agree to a termination of tenancy or severance of interests, a ___________________________ ______________ is the judicial remedy.

partition suit (suit to partition)

A special deed know as a __________________ _______________ is used for a public grant.

patent deed

Mechanic's liens can only claim payment for work and materials that have actually become:

permanent

Leasehold estates are generally classified as estates in _________________ property.

personal

In terms of environmental concerns, when selling a commercial property, it is advisable that buyers obtain a:

phase one environmental assessment

Basic land use regulation = __________________ _________________

police power

Downzoning is sometimes considered an exercise of _________________ __________________, and not a taking of land through eminent domain, thus no compensation is owed to the affected landowner.

police power

Governments derive the right to enact zoning laws and ordinances from their inherent __________________ _________________.

police powers

The unity of ____________________ is the only one of the four unities required for a tenancy-in-common.

possession

Unity of _____________: Tenants must have undivided possessions of the whole property. They must have the use of the entire property, and no individual tenant owns a particular portion of the property.

possession joint

If there is any discrepancy between the extent of ownership described in the premises clause and the habendum clause, then the _______________________ clause prevails.

premises

A ______________________ _______________________ is a right acquire by an adverse user. This type of easement is only acquired by the adverse, hostile, exclusive, open, uninterrupted and continued use of another's property for a certain prescribed length of time (anywhere from seven to twenty years depending on the state).

prescriptive easement

An acknowledgement is designed to:

prevent forgeries and fraudulent documents

When a court orders that an encumbered property be sold to satisfy the unpaid debts, liens will be paid from the process of the sale in order of:

priority

Individuals and developers may restrict the use of their land in manners that some refer to as __________________ _________________.

private zoning

Administrators and executors are accountable to the ____________________ court for their actions.

probate

A lien attaches to the:

property

Encumbrances should be listed in the deed after the:

property description

In a co-op, the rent is used to pay:

property taxes and maintenance

In a cooperative ownership, owners get a ________________________ ______________ and ___________ _____________.

proprietary lease; pay rent

The exercise of police power is legal as long as it reasonably protects:

public health, safety, morals, and general welfare

An owner of a one-and-a-half acre lot in a neighborhood zoned for two-acre homesites would need to apply for a _____________________ before building.

variance

Every condominium project must file a _________________ ______________________ ______________________ that discloses the characteristics of the condominium and the units offered and all unusual and material circumstances or features affecting the condominium.

public offering statement

A cloud on title may be removed by a ________________________ ____________ or a ______________ _______ ________________ _________________.

quitclaim deed; suit to quiet title

Priority of federal tax liens is determined by:

recording date

Covenants of further assurances is breach or broken when the grantor:

refuses to take required action or pay proper expenses or charges

A _________________________ is the person designated to take title upon the termination of the prior estate.

remainderman

In a lease, the landlord possesses the ____________________ estate.

reversion

What type of estate is the following an example of? Ex: Harry Smith wants to buy a hunting cabin from Sam Slick. Sam does not have fee simple title to the cabin but he does have a life estate interest in the hunting cabin (the duration of the estate is based upon his own lifetime). Harry decides that since Sam is 26-y.o. and appears to be in good health, it is worth the risk. He buys Sam's interest in the cabin. Unfortunately, Sam dies unexpectedly two years later. Upon Sam's death, Harry no longer has any ownership interest in the hunting cabin. The hunting cabin will either 1) revert to the original grantor if the grantor deeded the life east to Sam but maintained a ___________________________ estate for himself, or 2) pass to a third party _________________ if one was named in the same deed that granted the life estate to Sam.

reversion; remainderman

When raising money for investment purposes, a _____________________ license may very likely be required by both federal and state laws.

securities

State and local governments also have the right to _____________ property if taxes are not paid.

seize

In equitable title, legal title is still being held by the _______________, but the _____________ has the equitable right to obtain ownership upon performance (that is, when the terms and conditions of the contract are satisfied).

seller; buyer

In condominium ownership, units are assessed and taxed (together/separately).

separately

In an easement appurtenant, the owner whose land is being used is burdened by the easement and is said to hold the ___________________ estate (encumbered by the easement).

servient

Personal easements in gross has a ___________________ estate but no ___________________ estate because the easement attaches to a person.

servient; dominant

When there is only one surviving joint tenant, he or she takes title in ______________________, and can convey the property by deed or leave it to his/her heirs.

severalty

Time-share units are governed by ______________ laws.

state

The system which provides notification of ownership rights and creditors claims against real property is created by the:

state recording act

In a co-op, when a unit is sold, the proprietary lease is assigned to the buyer along with the seller's _______________ ________________________.

stock certificates

This is a court action intended to establish or settle the title to a particular piece of property. The result is to legally recognize those with a genuine right of title and to quiet those without a genuine interest or right.

suit to quiet title

Property tax liens are ______________________ liens.

superior

Special assessment liens are ___________________ liens, like property tax liens.

superior

A _________________ measures boundaries of a land area and locates all improvements such as buildings, fences, driveways, etc. They will also determine the existence of easements, encroachments, and setback requirements.

survey

Lenders usually require a current __________________ before they will lend money on a piece of property.

survey

Only an up-to-date ________________ will reveal an encroachment.

survey

Title insurance companies often require a recent ___________________ of the property.

survey

Sometimes real estate is bought and sold through a _____________________, which is simply an association of two or more individuals or companies who join together for a common investment purpose.

syndicate

Under color of title, an adverse occupant may tack on his period of possession to that of a prior adverse occupant. This is known as ___________________. A current adverse occupant can sell his claim to another adverse occupant until enough years accumulate to present a color of title claim in court.

tacking

In a co-op there is one __________ _________________ for the entire property since everything is owned by one corporation.

tax bill

When a joint tenant sells his interest to an outside party, the outside party takes title as a:

tenant-in-common

In a condominium, the unit owners own the common areas as:

tenants-in-common

In condominium ownership, common areas are owned by the individual unit owners as:

tenants-in-common

The heirs or devisees that take title pursuant to a will do so by virtue of ________________________ succession; the term "______________________" indicating the existence of a valid will.

testate

A ________________________ or maker (one who makes a will) must be of sound mind and of legal age. This person, and usually two witnesses who are not beneficiaries under the will, must sign.

testator

PUD unit owners are members of the corporate association and each pays monthly membership dues which the corporation uses to maintain:

the common areas

The delivery of the deed relates back to:

the date it was originally deposited with the escrow agent

The effective date of a property tax lien is:

the date the taxes are assessed

A deed signals:

the end of one ownership and the beginning of another

In a co-op, if some units do not pay and the corporation falls behind on payment, the state will sell:

the entire co-op and not just the units who did not pay

In a cooperative, real estate taxes and mortgages are liens against:

the entire parcel of real estate

If an encumbrance is NOT visible and is NOT listed in the deed, the grantor will be liable for:

the grantee's expenses to correct the problem, or liable for damages

In condominium ownership, the assessment for each unit is based on:

the value of the unit + the value of that unit's proportionate share of the common areas

Unity of _____________: All joint tenants must be named at the same time; new names cannot be added later. If joint tenants wish to add to their number, they must form a new joint tenancy.

time

Unity of _____________: Joint tenants must acquire title from the same instrument (same deed or will).

title

_______________ = ownership

title

When a person dies intestate, property is distributed to heirs according to state laws of descent (known as __________________ ______ ______________________ or _________________________ ___________________________).

title by descent; intestate succession

If the title company, after its investigation, feels that it has an insurable title, it will issue a policy that will insure the property owner against losses arising from ______________ __________________.

title defect

Forged documents, undisclosed heirs, misfiled documents, confusion arising from similarity of names, mental incompetence, etc. are examples of ________________ ____________________.

title defects

To determine whether marketable title can be conveyed, it is necessary that there be a ________________ _________________________ (_______________ __________________).

title examination (title search)

When the abstract is complete, it is sent to a ________________ ______________________ (usually a title company, licensed abstractor, or attorney) who examines the abstract and renders an opinion as to the status of the ownership.

title examiner

Once a deed has been delivered and accepted:

title has passed, ad the deed merely becomes evidence of the fact that title was conveyed

A ________________ ____________________ consists of an examination of the public records usually performed by a title company or abstractor.

title search

Encroachment is a ________________ if an improvement encroaches on the land (as a fence or driveway).

trespass

Tenants-in-common are said to have an _______________________ interest in the whole property.

undivided

Some owners have established permanent plaques that read "Private Property -- Permission to Use is Revocable" or "No Trespassing" signs in order to prevent:

unintentional dedication of land for public use

In condominium ownership, a ___________ is a cubicle of airspace that lies between the interior surfaces of the unit walls, and between the floor and the ceiling.

unit

A joint tenant's interest can only be severed by:

valid conveyance or death

The zoning board may grant a ___________________ if a property owner can prove that local zoning creates an undue hardship because of unique circumstances, and also show that granting the variance will not greatly alter the character of the affected locality.

variance

Zoning appeals boards have the power to grant:

variances or special exceptions

A special assessment lien would be (involuntary/voluntary) if all affected property owners agreed to pay, and petitioned the local government for a public improvement.

voluntary

Life tenants may not commit _________________ and are obligated to maintain the premises.

waste

A ____________ must be a completely voluntary act, free of any due influence by others.

will

If there is a sudden loss of land due to avulsion, the property line (would/would NOT) remain where the land used to be.

would

If you sue someone and are worried someone is going to sell off his/her property/assets and flee the jurisdiction, you can ask court for a:

writ of attachment

Judgement liens are enforced when the court issues a:

writ of execution

Most communities have established __________________ _________________ ________________ for the purpose of hearing complaints that individual property owners have with local zoning ordinances.

zoning appeals boards

Ex: If a government granted preliminary approval for a subdivision to a prior owner, the new owner relied upon that approval in purchasing the property, and then the government denied the landowner-development construction permits, the remedy could be __________________ _________________.

zoning estoppel

PUDs take advantage of the availability of _________________ __________________ and _____________-_________ __________________.

zoning variances, mixed-use zoning