Real Estate - MA Salesperson

Financial encumbrances:

1) A mortgage is a voluntary lien​ 2) A tax lien is an involuntary lien 3) Special assessments 4) Mechanics lien 5) Attachments 6) Judgements 7) Super lien​

Grantor gives title, grantee receives it.

A blankOR gives something. A blankEE receives something.

Cooperative

A corporate entity which owns the entire real estate, one deed, one mortgage, only. Each "owner" is granted stock in the corporation and a lease for the particular co-op unit.

collecting his personal property

A former owner returns to harvest annual crops, he is:

Life estate in remainder​

A grants to B, when B dies estate goes to X. X is the remainderman. X is always named by A at the establishment of the life estate.

Pur autre vie (​for the life of another)

A grants to B, when Y passes, estate goes to X. X is the remainderman, originally named by A. The life tenant​ B is prohibited from laying waste​ to the property and must keep real estate taxes current.

Emblements

A harvest crop. If you plant it, you get to harvest it (reap what you sell).

License

A personal, non-transferable, revocable permission to use the land of another.

Since it is cemented in, it is real estate.

A single family home with a concrete patio in the backyard is sold. The seller installed a handmade cobblestone fireplace mortared on the patio. Is the fireplace real estate or personal property?

Real estate

A ventilation fan is built into a wall, the unit is:

Real estate because it is specific to the property.

A very large stone sits at the end of a driveway and is inscribed with the house number. Is the stone real estate or personal property?

Personal property because it is special built for the family.

A very large stone sits at the end of a driveway and is inscribed with the last name of the seller. Is the stone real estate or personal property?

Adverse possession​

Acquiring the land of another by open, continuous, and uninterrupted use that is hostile and adverse to the owner. Private land will often be blocked off from public access once a year to interrupt access. By use of a method called tacking claimants can defeat the interruption efforts of the owner.

encumbrances​

Although you hold the color of title other parties may still file claims against your ownership aka

Easement

An irrevocable right "running with the land" which survives sale of the property. "A right held by one property owner to make use of the land of another for a limited purpose."

Super lien​

Applies to unpaid condo fees and holds a position superior to any mortgage, can force the sale for unpaid condo fees.

Will

Bequeath ​and devise​ real estate. Bequest​ and leave as a legacy​ personal property. The person making the will is known as the testator​, a will must be witnessed by two individuals not named in the will. If an individual passes without a will the person is said to be intestate. ​The Probate court will administer the property and distribute the property via the common law rules of descent. Dower rights​ apply to the surviving spouse, male or female.

Syndication​

Commonly referred to as a Real Estate Investment Trust or REIT. This is basically owning stock in a real estate holding company.

Tenancy in common​

Each owns the property in a separate but undivided interest, no survivorship. In other words, if party A dies, party B does not inherit the interest of party A. The interest of party A is granted to the heirs of party A.

non-financial encumbrances

Easement/License/Encroachments/Covenants are all examples of __________________.

Joint Tenancy​

Equal interests, equal possession, acquired at the same time, by the same deed. Upon death of owning party, the remaining parties acquire the interest equally, not the heirs

Judgements​

Final determination by a court of a debt. Failure to pay a judgement may result is the sale of the asset.

metes and bounds

From Nicks Rock, to Smelt Pond, to Spooner Pond to Triangle Pond and back to the POB is an example of

Condominium​

From the Latin con "together with" and dominium "right of ownership". The unit deed is recorded at the time of sale of a single unit. The master deed defines the entire condo complex and governance. Single unit ownership with a joint undivided interest and responsibility in the defined common areas. A buyer receives a 6D certificate​ from the condo association stating that the condo unit is current with all condo fees.

Mineral rights​

If minerals are vertically removed they become personal property (Law of Capture). What kind of right is this?

6D certificate

In selling a condo what proves that all the condos fees are current?

Yes, a chandelier is permanently affixed, therefore it is real estate.

Is a chandelier real estate?

It is real estate because it is dug in and cemented.

Is a mailbox real estate or p.p.?

If it is connected by a copper tube it is real estate, if it is just plugged in it is personal property.

Is a refrigerator personal property?

Types of non-freehold estates

Leashold/Tenancy at will/tenancy at sufferance.

Attachments​

Legal seizure of a defendant's property to prevent asset transfer or hiding of assets. Lis pendens​ from the Latin, pending action, is not a lien itself but notice of pending legal action and hence it is a cloud on the title.

Three types of life estate

Life estate in reversion, life estate in remainder, pur autre vie (for the life of another) are known as what?

Involuntary alienation

Loss of ownership due to lack of funds: taxes, court judgements, bankruptcy, suit for partition.

Easement in gross

Mary is allowed to drive over Sue's land to access a boat dock on a non-abutting parcel. Mary benefits from _______________.

Methods of measurements of real estate.

Metes and bounds / Lots and blocks are what?

Personal property

Moveable items like furniture, the bright line of difference is the nature by which an item is attached to the land, with exceptions noted below. Personal property aka personalty​ or chattel ​may also be sold by a receipt or bill of sale.

Tristram's Landing Inc. v Wait

No commission is due, unless and until the transaction closes, according the 1975 SJC decision of _____________.

an improvement

No, a vehicle is not this.

remainderman

Person A grants an estate to B. When B dies, X takes over the estate, this is an example of:

Covenants​

Private agreements, usually in a neighborhood, to uphold certain visual or value standards: each home shall have at least a garage or front porch. "Racially-based restrictive covenants are not, on their face, invalid under the Fourteenth Amendment," under the 1948 US Supreme Court Case Shelley v Kraemer ​case.

A tax lien is an involuntary lien

Property taxes are factored by the value of the property (ad valorem) ​and collected quarterly in most towns. A tax lien holds priority over any other lien. If a property is sold by the town for non-payment of taxes, the prior owner has six months to repay the taxes plus interest under the right of redemption​.

Mechanics lien​

Protection for contractors and material suppliers.

A deed

Real estate is sold by what?

Surface rights​, Air rights, Appurtenances​, Mineral rights​, Riparian rights, Littoral rights.

Real property rights are grouped as a bundle.

Lots and blocks​

Recorded plat plan of a subdivision. Street grid creates ___________, they are divided by_____________.

Tenancy at sufferance​.

Remaining in a rental unit beyond a lease term.

Leasehold​ or lease.

Renting for a fixed term. A leased fee,​ is a property held in fee which has been leased.

Tenancy at will ​

Renting month to month is what kind of tenancy?

Appurtenances​

Rights of access (beach rights) are called what?

Trade fixture

Something you can make $ from. Example: a barber shop char because barbers can make $ from these.

tenancy at sufferance

Tenant B stays beyond his lease, an example of :

Accretion​

The addition of net real estate by mother nature - wind and water, the additional land is alluvium​. Erosion​ the subtraction of net real estate by mother nature.

Purchase and Sale​

The common real estate transaction often involving but not requiring real estate agents and brokers.

Foreclosure

The forced sale of an asset to satisfy a private debt.

Tax sale​

The forced sale of an asset to satisfy a tax debt or back taxes. Aka a Sheriff's sale.

Eminent domain​

The taking of land by government through a process called condemnation, the government must prove that the land is needed for a public purpose. Not as common today, but heavily used to construct the Interstate Highway system and to redevelop neighborhoods - see the West End of Boston.

Personal property and real estate

The two types of property.

Fee, fee simple, fee simple absolute​.

The type of estate interest that theoretically is not subject to restrictions, hence it is the best form of ownership that can be granted from the grantor to the grantee​. The law assumes all estates are Fee unless otherwise noted.

Encroachments​

The unapproved use of land by another. For instance, Mary "accidentally" widens her driveway by paving over part of Bob's land. Often resolved or discovered by survey.

Easement in Gross​

This is a personal written right to grant a non-abutter to access land, for instance (for hunting and fishing).

Tenancy by the entirety

This is reserved for married people. The interest cannot be divided during the term of the marriage. Upon divorce parties become tenants in common. Upon death of a spouse, the surviving spouse takes title as a fee simple estate aka survivorship​.

severalty​.

Title held by an individual such title is called:

Fee simple determinable​ Title transferred upon condition a certain activity continues.

Title transferred upon condition a certain activity continues.

Fee simple subject to condition subsequent​

Title transferred upon condition a certain activity does not occur in future is what?

Air rights​

To use the vertical airspace, subject to local, state and federal regulation.

Fee, fee simple, fee simple absolute/life estate/Fee simple subject to condition subsequent/Fee simple determinable

Types of freehold estates are?

1. Tenancy by the entirety 2. Tenancy in common 3. Joint tenancy 4. Syndication 5. Condominium 6. Cooperative

Types of multi-party ownership.

Riparian rights

Use of water by a lake, river or similar body of water for recreation and agriculture. On navigable water the rights extend to the water's edge. On non-navigable water rights extend to mid-point of water. What kind of right is this?

Dedication

Voluntary gift of land to the government.

Crops or emblements​. Can be removed by the seller and are considered personal property. The harvest of the crops can also occur after the close of a real estate transaction. AND Trade equipment or fixtures​. The classic example are the chairs, sinks and cabinets of a barber shop.

What are the two exemptions to the rule of personal property?

Surface rights​

What is the Right to build and plant crops? Also the right not to have an abutting property destabilized the subject property.

How is the item attached​ to the real estate? Is the item one of a kind or special built for the location​? What was the intent ​of the owner? Can the parties agree​ to include the item inside or outside the real estate transaction?

What questions should you ask to determine if something is real estate?

Escheat​

When in the absence of heirs property ownership reverts to the state.

A mortgage is a voluntary lien

While the mortgage lien is in place the mortgagor is said to have equitable title, until the mortgage lien is released at which time legal title is obtained.

tenancy in common

X and Y own property together, X dies and B inherits X share, the real estate is owned in:

escheat

X dies his estate reverts to the government:

fee

X sells an estate to Y with no strings attached, this is an example of:

Metes and bounds

_________ are measured in feet from a known point, like a rock. ___________is the compass direction. Measurement returns to the point of beginning aka POB.

Non-freehold estates​

______________ are possession/limited in time/comes to an end (rent or leasing).

Special assessments​

_______________ is a charge paid over time for the targeted expenditure of public funds, the most common is for the improvement of roads and sewer. The improvement is known as a betterment​.

Registered Land​

________________ provides the same or higher level of grantee protection as does title insurance and is often used to quiet title.

Real estate

aka real property​ or realty​, is land and certain items attached to the land. If it is nailed down, screwed down, or glued down.

Uncle Bob gives Nephew Ray a boat upon Bob's death:

bequest

Improvements

buildings/barns are examples of this

The government forces the sale of a property for the construction of a new civic center:

eminent domain

Freehold estates​

forever ownership/unlimited in time is called what?

Q buys property and receives deed protecting him against events during X's term of ownership but encroachment began before X owned the property Q should have sought a:

general warranty deed

Deed is evidence of title

it is recorded at the Registry of Deeds, the government collects a tax via the use of a Deed Stamp​ to fund the Registry. ​At closing the Deed Stamp ​is typically paid for by the seller. Recording a deed at the Registry is not required for it to be valid however doing so serves as constructive notice​ to all parties with or without actual notice of the transaction and protects grantees against claims of title.

Real estate

items permanently affixed​ to (land or building).

Not a lien, but notice of a possible lien in future:

lis pendens

At low tide a property owner tells people walking on the beach to move along, at issue is:

littoral rights

General Warranty​ Deed​

protects buyer against any prior claim of title that occurred during or before the seller's term of ownership.

Special Warranty​ Deed​

protects buyer against any prior claim of title that occurred during the seller's term of ownership.

Liens are a type of encumbrance​

representing a debt secured by an ownership stake in the property.

Littoral rights

the body of water would be very large, like the Atlantic Ocean or the Great Lakes. Rights end at the mean high water mark. What kind of right?

Quitclaim​ Deed​

the most common for basic real estate transactions, transfers grantor's ownership interest in a property such as it existed at the time of closing. Provides grantee little protection - hence the need to investigate the chain of title​ and secure title insurance which in Massachusetts must be handled by an attorney. Title insurance is needed even though under the covenant of seisin​ the seller is asserting that they have not promised the property to any other party.

Life estate in reversion

​A grants to B, when B dies, estate reverts back to A.

Easement appurtenant

​From the French ease of tenant and also the most common type of easement is access to travel over the property to access another property when the lots of property are adjoining. The dominant tenant​t is the party with the right and receives the benefit aka an appurtenance​. The subservient tenement​ is the property which grants the easement / encumbrance.

Title insurance

​is a type of insurance that protects against a possible defect or cloud on title. Efforts to remove defects or cloud on title is called action to quiet title. Color of title​ is a term used to describe ownership of title.

A deed

​written intent to transfer ownership. The Habendum clause​ "to have and hold" defines the estate granted.