California Real Estate Principles - Chapter 5 - Encumbrances

CC&Rs

Covenants, conditions, and restrictions; limitations on land use imposed by deed, usually when land is subdivided, as a means of regulating building construction, density, and use for the benefit of other property owners; may be referred to simple as restrictions.

specific lien

Creditor's right in identified property of the debtor.

starting time

Date on which a construction project begins (work starts or materials are provided)

trustee's deed

Deed given to the purchaser at a foreclosure sale by the trustee acting under a deed of trust.

equity

Difference between current market value and the remaining indebtedness on a property; free-and-clear property value.

satisfaction

Discharge of an obligation before the end of its term by payment of the total debt owed.

abstract of judgment

Document stipulating the outcome of a legal action, which can be filed in any county where the judgment debtor has property.

voluntary lien

Encumbrance on property imposed on action or with consent of property owner.

lien release

Filed by holder of a mechanic's lien to voluntarily remove the encumbrance from the property owner's title.

lien release bond

Filed with the county recorder by property owner who disputes the correctness or validity of a mechanic's lien to stop foreclosure of the property; must be in an amount equal to 150% of either the entire claim against the property or the portion of the claim allocated to the parcel(s) sought to be released; can also be filed by anyone having an interest in the property or by any other lienholder affected by the claim.

general lien

Lien on all real property of the debtor.

involuntary lien

Lien on property that can be imposed without the express permission of the property owner.

notice of cessation

Notice that can be filed by a property owner after work on a construction project has been stopped for 30 continuous days.

notice of completion

Notice that can be filed by a property owner within 10 days following completion of a construction project.

notice of noresponsibilty

Notice that must be filed by a property owner and posted in a conspicuous place on the property within 10 days of learning of construction, repair, or other work being performed on the property that the owner has not authorized.

priority of claims

Order in which creditors will be paid when there are claims against a homestead that result in a judgment against the homeowner.

license

Permission to enter onto the land of another for a specific purpose and/or length of time.

trustee in bankruptcy

Person who holds title to debtor's assets in a bankruptcy proceeding.

express reservation

Property interest identified in deed as retained by grantor.

deed restriction

Provision placed in a deed by the grantor that limits the property's use or requires the grantee to fulfill requirements of subdivision covenants, conditions, and restrictions.

easement by condemnation

Taking of an easement right by a public entity.

power of eminent domain

The government's right to take property for a public purpose on payment of just compensation to the property owner.

dominant tenement

The land benefitted by the use of an easement.

servient tenement

The land burdened by an easement.

plaintiff

The person who sues in a court action.

attachment

The process by which real or personal property of a party to a lawsuit is seized and retained in custody of the court.

easement

The right to a specific use of or the right to travel over the land of another.

encroachment

The unlawful intrusion of a property improvement onto adjacent property.

six-month rule

Time period in which a homeowner can sell one home and move into another, less costly one, in order to pay debts that would otherwise threaten a sale of the homestead.

marketable title

Title that a reasonably prudent purchaser, acting with full knowledge of the facts and their legal significance, would be willing and ought to accept.

Give an example of an involuntary lien.

tax liens

writ of execution

A court order directing the sheriff or another officer to satisfy a money judgment out of the debtor's property, including real estate not exempt from execution.

bankruptcy

A federal court proceeding in which the court takes possession of the assets of an insolvent debtor and sells the nonexempt assets to pay off creditors on a pro rata basis; title to the debtors assets is held by a trustee in bankruptcy.

restriction

A limitation on the use of real property;

preliminary notice

A notice must be given by a lien claimant that the work is subject to a mechanic's lien if a lien is to be obtained. The notice covers work subsequent to the notice and up to 20 days prior to the notice.

defendant

A person against whom legal action is initiated for the purpose of obtaining criminal sanctions ( in a case involving violation of a penal statute) or damages or other appropriate judicial relief (in a civil case).

easement appurtenant

A property interest that belongs to the owner of the dominant tenement and is transferred with the land.

condition; it can be a condition subsequent or a condition precedent

A qualification of an estate granted that can be imposed only in a conveyance.

homestead exemption

A statutory exemption of real property used as a home from the claims of certain creditors and judgments up to a specific amount.

mechanic's lien

A statutory lien against real property in favor of persons who have performed work or furnished materials for the improvement of the property.

injunction

A writ or an order issued by a court to restrain one or more parties to a suit or proceeding from doing an act deemed to be inequitable or unjust in regard to the rights of some other party or parties in the suit or proceeding.

express grant

Agent identified in written or oral agency agreement.

zoning

An act of city or county government specifying the possible uses of property in a particular area.

covenant

An agreement or a promise to do or not to do a particular act, usually imposed by deed.

easement by necessity

An easement right over the land of the grantor of adjacent property that would otherwise be landlocked.

easement in gross

An easement right with no accompanying property ownership right.

easement by implication of law

An easement that will be created by law to provide access to a parcel of land that is otherwise landlocked.

lien

An encumbrance that makes property security for the payment of a debt or discharge of an obligation.

restraint on alienantion

An illegal condition that would prohibit a property owner from transferring title to real estate.

tax lien

An involuntary lien that arises from a taxpayer's obligation to pay real property taxes, state income and estate taxes, or federal income, gift, and estate taxes.

cloud on the title

Any claim, condition, or encumbrance that impairs title to real property.

encumbrance

Anything that effects or limits the fee simple title to or affects the condition or use of real estate.

payment bond

Bond that may be required of a building contractor to compensate the property owner if the contractor defaults in performance of contract obligations, such as payment of subcontractors, workers, and suppliers.