Real estate U Chapter 3

Estate for Years

A leasehold estate for any specific period of time. An estate for years is not automatically renewed.

Subordination Agreement

A legal document used to make the claim of one party junior to (or inferior to) a claim in favor of another.

Servient Tenement

A parcel of real property that is encumbered by an easement of a dominant estate.

4 Unities of Co-ownership

1) Time2) Title3) Interest4) Possession

The grantor of a deed must be at least

18 years old and mentally competent.

Habendum Clause

A clause in a deed or lease that defines the type of interest and rights to be enjoyed by the grantee or lessee. Also known as the "to have and to hold'" clause.

deeds

A deed is also called an instrument of conveyance.

Joint Tenancy

A form of concurrent ownership, which occurs when two or more persons own a single estate in land, with right of survivorship. Must have equal shares, right to partition.

Acknowledgement

A formal declaration before a duly authorized officer by a person who has executed an instrument that such execution is the person's act and deed.

Curtesy

A husband's interest upon the death of his wife in the real property of an estate that she either solely owned or inherited provided they bore a child capable of inheriting the estate.

Leasehold Estates

A leasehold estate is a non-freehold of limited duration, providing the right of possession and control but not title.

Lis Pendens

A legal document, filed in the office of the county clerk giving notice that an auction or proceeding is pending in the courts affecting the title to the property. (Not applicable in commission disputes.)

Tax Lien

A lien imposed by law upon a property to secure the payment of taxes.

Voluntary Lien

A lien placed on property with the knowledge and consent of the property owner.

Involuntary Lien

A lien placed on property without the consent of the property owner.

General Lien

A lien that attaches to all property owned by an individual. Real and personal.

Specific Lien

A lien that only binds to a specific asset or property.

Life Estates

A life estate is ownership, possession, and control of a property for someone's lifetime.

Dominant Tenement

A parcel of real property that has an easement over another piece of property (the servient estate).

Servient Tenement -

A parcel of real property that is encumbered by an easement of a dominant estate

Leasehold Estates (Periodic Estate)

A periodic lease automatically renews itself for another period at the end of each period unless one party gives notice to the other party at a time specified in the lease before the lease ends.

Trustor

A person who conveys title to a trustee.

Mechanic's Lien

A statutory lien on the real property of another, created to ensure payment for work performed and materials furnished in the repair or improvement of real property, such as a building.

Easement for Light and Air

A type of negative easement. This easement prevents an adjoining land owner from building any structure that would obstruct the passage of light or air from reaching the dominant land.

Fee Simple Estate

Absolute ownership of real property; a person has this type of estate where the person is entitled to the entire property with unconditional power of disposition during the person's life and descending to the person's heirs or distributees

Easement in Gross

An easement that benefits an individual or a legal entity, rather than a dominant estate.

Easement by Implication

An easement that is not created by express statements between the parties; but as a result of surrounding circumstances that dictate that an easement must have been intended by the parties.

Leasehold Estates (Estate for years)

An estate for years exists for a fixed period of time. It can be as short as a day and as long as many years. Once the term of the lease ends, the rental agreement is automatically terminated.Most residential leases are an estate for years.

Trade fixtures are

An item of personal property attached to the land or building leased by a tenant who uses the item in a trade or business.

Encumbrance

Any right to or interest in the land interfering with its use or transfer, or subjecting it to an obligation.

Consideration

Anything given to induce another to enter into a contract such as money or personal services.

Consideration -

Anything given to induce another to enter into a contract such as money or personal services.

Act of Waste

Describes a cause of action that can be brought in court to address a change in condition of a property brought about by a current tenant that damages or destroys the value of that property.

Unities of Interest, Possession, Time and Title

Describes the conditions that must exist in order for certain kinds of property interests to be created. In order for two or more people to own property as joint tenants with right of survivorship, or for a married couple to own property as tenants by the entirety, they must have the four unities (Interest, Possession, Time, and Title)

Fee Simple

Fee simple absolute provides the most complete form of ownership.Absolute ownership of real property; a person has this type of estate where the person is entitled to the entire property with unconditional power of disposition during the person's life and descending to the person's heirs or distributees. Most properties in New York have a Fee Simple Absolute deed, unless specified otherwise!

Life estate example

Joe will grant ownership of his property to Sarah until the death of Nancy.Once Nancy passes away, the ownership of the property will revert back to Joe (or Joe's heirs).

Delivery and Acceptance

Legal policy mandates that a deed to real property be a matter of public record; therefore, subsequent to delivery and acceptance, a deed must be properly recorded.

Essential Elements of a Deed

Must be in-writing (according to the Statute of Frauds).- Include a grantor (the person conveying title to the property).- Include a grantee (the person receiving title).- Contain a granting clause, which includes words of conveyance.- Provide evidence of consideration (something of value).- Include a legal description of the property.- Include an habendum clause (this clause begins with the words "to have and to hold").- Include limitations and subject-to clause (any deed restrictions or easements must be noted).- The signature of the grantor (the grantee is not required to sign the deed).- Acknowledgement/recording (the deed must be notarized and recorded).- Delivery and acceptance (a valid deed must be delivered to the grantee).

Tenancy in Common -

Ownership of real property by two or more persons, each of whom has an undivided interest, without the "right of survivorship".

Easement by Necessity

Parcels without access to a public way may have an easement of access over adjacent land if crossing that land is absolutely necessary to reach the landlocked parcel and there has been some original intent to provide the lot with access

Supply and Demand When demand (the number of buyers in the market) is greater than supply (the amount of available homes to purchase),

Prices will increase

Appurtenances

Something which is outside property itself but belongs to the land and adds to its greater enjoyment such as a right-of-way or a barn or a dwelling.

Tenancy in common:

Tenancy is common is a form of co-ownership by two or more persons, each of whom has an undivided interest, WITHOUT the "right of survivorship".

Partition

The division which is made of real property between those who own it in undivided shares

Partition

The division which is made of real property between those who own it in undivided shares.

Leasehold Estates (Estate at Will)

The duration of an estate at will is for an unknown period of time. This is an open-ended estate.

Dower

The part of or interest in real estate of a deceased husband given by law to his widow during her life.

Remainder Interests / Remainderman

The person who is to receive the property after the termination of the prior estate.

Beneficiary

The person who receives or is to receive the benefits resulting from certain acts.

Bundle of Rights

The rights of an owner to possess, control, enjoy, sell, lease, mortgage, and dispose of the property.

Conveyance

The transfer of the title of land from one to another. The means or medium by which title of real estate is transferred.

Conveyance (Deed)

The transfer of the title of land from one to another. The means or medium by which title of real estate is transferred. A deed is a document used to convey title legally to real property. A deed is also called an instrument of conveyance.

Ownership in Severalty

Think of it as a single individual owns real estate, therefore, the ownership is 'severed' from all others.

Trade Fixtures

Trade fixtures are items of personal property that a business operator installs in rented building space.

Voluntary Alienation

Transfer of title to an asset with the consent of the owner.

Conveyance after death: Intestate succession

When a person dies and leaves no valid will, the laws of intestacy determine the order in which the property is distributed to the heirs.The heirs take title by descent, or the way they are related to the decedent (deceased person).The typical order of descent is spouse, children, parents, and siblings, followed by relatives who are more distant.According to law, the person appointed by a court to distribute the intestate decedent's property is an administrator or administratrix.

Covenant of seisin

assures the grantee that the grantor holds the title specified in the deed.

Covenant of quiet enjoyment

assures the grantee that they will have quiet enjoyment and possession of the property.

A few typical examples of a fixture include?

chandelier- custom book shelves- wall-to-wall carpeting- plumbing fixtures

Personal property is also known as?

chattel

Full Covenant and Warranty Deed

contains the broadest form of guarantee of title of any type of deed and provides the greatest protection to the grantee.

The Grantor is the Seller in the deed process

conveys the deed

A Mechanic's Lien is what type of Lien?

specific lien

Easement

the right to use land for a specific and limited purpose

Dominant Tenement

A property that includes in its ownership the appurtenant right to use an easement over another person's property for a specific purpose.

Mechanic's Lien

A security interest in the title to property for the benefit of those who have supplied labor or materials that improve the property.

Involuntary Alienation

A transfer of title to real property without the owner's consent .

Party Wall

A wall that is located on or at a boundary line between two adjoining parcels of land and is used or is intended to be used by the owners of both properties.

Easement by Condemnation

An easement created by the government or government agency that has exercised its right under eminent domain.

Easement Appurtenant

An easement that benefits the dominant estate and "runs with the land". In other words, an easement appurtenant generally transfers automatically when the dominant estate is transferred.

Riparian Rights

An owner's rights in land that borders on or includes a stream, river, or lake. These rights include access to and use of the water.

Trustee

Any person who holds property, authority, or a position of trust and responsibility for the benefit of another.

Trustor

Any person who holds property, authority, or a position of trust and responsibility for the benefit of another.

ACRIS

Automated City Register System

Deed Restrictions

Clauses in a deed limiting the future uses of the property. Deed restrictions may impose a vast variety of limitations and conditions—for example, they may limit the density of buildings, dictate the types of structures that can be erected, or prevent buildings from being used for specific purposes or even from being used at all.

Easement by Prescription

Implied easements granted after the dominant estate has used the property in a hostile, continuous, and open manner for a statutorily prescribed number of years.

Joint Tenancy

Joint tenancy is a form of co-ownership by two or more persons, each of whom has an undivided interest WITH the "right of survivorship".

Lot and Block

Method of identifying legal description of property.

When supply is greater than demand

Prices will decrees

Special Purpose Real Estate

Property that is appropriate for one type of use or limited use. This type of property has unique design or layout, uses special construction materials, or other features that limit the property's utility for purposes other than the one for which it was built. For example, a church, theater, or school.

Air Rights

Rights in real property to use the space above the surface of the land.

Life Estate

The conveyance of title to property for the duration of the life of the grantee.

Easement by Grant

The creation of an easement by one party expressly transferring the easement to another party.

Reversionary Interest

The interest which a grantor has in lands or other property upon the termination of the preceding estate

Bundle of Rights

The premise that the ownership of real estate consists of the ownership of various rights associated with it. These rights include the right to use and/or occupy, the right to sell in whole or in part, the right to lease, the right to bequeath and the right to do none of the foregoing.

Escheat

The reversion to the State of property in event the owner thereof abandons it or dies, without leaving a will and has no distributees to whom the property may pass by lawful descent.

Tenancy by the entirety:

This form of co-ownership is limited to married couples.

mortage

a specific type of loan that is used to buy real estate

Covenant against encumbrances

assures the grantee that no encumbrances against the title except those set forth in the deed itself exist.

Covenant of right to convey

assures the grantee that the grantor has the legal capacity to convey the title and has the title to convey.

Real property

is the land and improvements, and all legal rights, powers, and privileges of real estate ownership. Real property includes the bundle of rights.

Everything that is not real property is

property, personalty

The Grantee is the Buyer in the deed process

receives the deed

Littoral Rights

rights of a landowner adjacent to a lake Remember "L" - Littoral/Lake or ocean