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Definition
| When a party owns property, he or she has legal title to it. |
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Term
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Definition
| The right to gain ownership interest in the future. |
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Term
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Definition
| A party entitled to the ownership of property must be able to show he or she has acquired such right, or risk losing the property to another claimant. |
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Term
| Notice of Ownership- Actual Notice |
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Definition
| Is provided by physical possession. |
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Term
| Notice of Ownership- Constructive Notice |
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Definition
| Also called legal notice, is achieved by recording the document in public records. Like showing it to the entire world. |
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Term
| Marketable (Merchantable) or Clear Title |
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Definition
| Title in fee simple that is free from litigation and defects, which enables an owner to hold it in peace or sell it to a person of reasonable prudence for market value. |
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Term
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Definition
Public records which link all past owners of a parcel of land from the root of title to present day also known "chain of title".
Public records also contain documents such as mortgages, judgments, divorces, deaths, births, tax liens and other documents that may have an effect on the title of property. |
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Term
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Definition
| Refers to a review of the history of title as performed by an attorney. This is not a guarantee of good title. |
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Term
| Title Defect or Cloud on Title |
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Definition
| Any claims or other factors that could cause the title to a property to be declared invalid. |
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Term
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Definition
| Provides financial protection against losses sustained as the result of a defective title. |
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Term
| Type of policies of Title Insurance |
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Definition
| Lender's title insurance and Owner's title insurance. |
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Definition
Protects the lenders up to the loan amount.
Is transferable to other banks as title of the property does not transfer. |
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Definition
Protects the Owner of the property against losses associated with Title issues.
This is not transferable. |
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Term
| Does Florida Law require that the owner purchase Title Insurance |
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Definition
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Term
| Methods of Acquiring title is also known as |
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Definition
Alienation.
May be Voluntary or Involuntary Alienation |
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Term
| Voluntary Alienation includes the following: |
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Definition
Deed-A document that conveys title from one party to another when real property is sold or conveyed by gift.
Will- A will is a document that provides for the transfer of title upon the death of an individual who died testate. |
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Term
| Types of Transfer by Involuntary Alienation |
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Definition
1. Descent and Distribution - to legal heirs without will
2. Escheat- reverts to state because no heirs found
3. Eminent Domain - Government takes prop
4. Adverse Possession- Squatters rights -have control of property |
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Term
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Definition
Transferring title from one party to another.
Document is called a Deed. |
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Term
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Definition
| Conveys (gives the property). |
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Term
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Definition
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| REquirements for Valid Deed |
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Definition
1. In Writing
2. Grantor must have legal capacity (legal age and have the legal right)
3. deed must be signed by Grantor and witnessed by two persons. |
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Term
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Definition
1. Premises Clause
2. Habendum clause
3. |
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Term
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Definition
| Also known as the granting clause, the only legally necessary clause required. Names parties, words of conveyance, states consideration inc date of transfer, and legal description of the property. |
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Term
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Definition
| The to-have-and to hold clause, specifies the legal rights being conveyed. The portion of the bundle of rights being conveyed is described in this clause, such as "fee simple". |
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Term
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Definition
| Clauses containing promises made by the grantor to the grantee. |
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Term
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Definition
It assures the the grantee that the grantor owns and has ownership by the grantor.
Assures the grantee that the grantor has the legal right to convey the property. |
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Term
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Definition
-Quit Claim
-Bargain and sale Deed
-Special WArranty Deed
-General Warranty Deed |
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Term
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Definition
| Contains no warranties of any kind. Grantory relinquishes any interest he may have. |
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Term
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Definition
| A type of bargain and sale deed. Grantor promises to defend the title against any and all claims. Provides the best protection to the grantee. If a specific type of deed is not specified then a general warranty deed is used. |
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Term
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Definition
| Deeds where the grantor either cannot or will not sign a deed. |
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Term
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Definition
| Used to grant ownership to a government body when the property owner did not pay the property taxes. |
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Term
Limitations of Private Property Ownership
(PETE) |
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Definition
The rights of citizens are not unlimited. Government has sovereign powers which allows the gov to limit or control the actions of citizens to protect the overall
public wellbeing.
P-Police Power
E-Eminent Domain
T-TAxation
E-Escheat |
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Term
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Definition
Allows the government the power to restrict use of land to protect the health safety, and welfare of citizens.
Example: zoning and building codes |
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Term
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Definition
Allows local state or fed government, utilities, to obtain ownership to private property. This is called "taking".
Not Shopping Center |
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Term
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Definition
| The power that allows the gov to levy taxes on private property. If owner doesn't pay the taxes then the unpaid tax lien may be foreclosed on court. |
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Term
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Definition
| Allows ownership when owner dies and there are no heirs. |
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Term
| Private Limitations on Property Ownership |
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Definition
Private limitations are restrictions place by an owner that affect the use of the subsequent owners.
EX: Easement, walls, leases,deed restrictions (HOAs) |
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Term
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Definition
A limited right give to the easement holder to use a portion of another party's property for a specific purpose.
Easement by prescription- 20years |
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Term
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Definition
| An authorized physical intrusion onto property owned by another. |
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Term
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Definition
| Gross Lease, Net Lease, Percentage Lease, Ground Lease, Lease Option, Sale Lease back |
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Term
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Definition
| The tenant agrees to pay fixed rental amount and the landlord pays all expenses. Residental leases usually gross leases. |
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Term
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Definition
| Tenant pays a fixed rent plus all or a portion of the operating costs, such as taxes. Commercial and industrial lease usually net leases. |
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Term
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Definition
| Tenant pays a flat fee plus percentage of sales. EX: Shopping ;malls |
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Term
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Definition
| A claimsagains property by a creditor or unit of governments is used to secure a payment of a set or other obligation. There are superior and junior liens. |
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Term
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Definition
Sup liens take precedence over all other types of liens.
Three types:
Property taxes
Special Assessment-for improvements, such as road paving
Federal estate tax lien |
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Term
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Definition
The priority of a junior lien is based on the date of the recording in the public records.
Examples:
Mortgage liens, Vendors liens, Judgment lien, Construction lien, federal income tax, state tax
Const lien must be placed on property where work was done. |
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Term
| Which of the following is the warrant in a deed in which the grantor assures the grantee freedom from hostile claims against their ownership? |
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Definition
| A warrant appearing in a deed is a promise or guarantee made by a grantor to a grantee. A warrant of quiet enjoyment is a promise by the grantor that assures the grantee that he or she will not suffer hostile claims against the ownership of the property. |
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Term
| Which of the following is required to obtain title by adverse possession? |
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Definition
| Adverse possession is a legal principle under which an owner may lose title to another person who has taken control of the property. The person who claims ownership must enter into open, adverse, hostile, and exclusive possession of the property for a period of 7 continuous years. Possession must be hostile to the true owner and must be under a claim of ownership, even if the claim is imperfect. The possessor must pay all real estate taxes for all years of possession and meet other requirements of Florida statutes. If the true owner "slept on his rights" and failed to eject the trespasser, title may be lost to the hostile claimant. |
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Term
| What type of notice is considered to be the best proof of ownership? |
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Definition
| Constructive notice, also called legal notice, is achieved by recording documents in the public records. Recording a document has the same legal effect as showing it to the entire world. In contrast, actual ownership is provided by physical possession. Although actual notice and constructive notice have the same legal priority, recording an instrument in the public records may be easier to prove; therefore, constructive notice is the best evidence of ownership. |
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Term
| A five-year lease of a 10,000-square-foot warehouse prohibits assignment. After two years, the tenant is unable to continue with the full rent payments and arranges with another tenant to take over one-half of the space and pay one-half of the rent for the remaining term. What is this arrangement called? |
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Definition
| A sublease occurs if a lessee transfers less than 100% of the space that has been leased, or makes a transfer for a shorter period-of-time than the entire remaining lease period and becomes the sublessor, or the second landlord. The original lessee remains responsible for making rent payments to the landlord and is the conduit for making payments from the sublessee to the landlord. The sublessor subleases the property to the sublessee. This transaction is referred to as a sandwhich lease as the original tenant is "sandwiched" between the landlord and the sublessee. |
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Term
| Which of the following is required for a valid deed? |
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Definition
Requirements for a valid deed include the following:
(1) must be in writing;
(2) parties (grantor and grantee) must be named;
(3) grantor must have legal capacity to grant ownership;
(4) consideration must be described;
(5) a granting clause or words of conveyance must be included;
(6) a habendum clause must define the quality of the ownership interest (rights) being conveyed; (7) a legal description of the property must be provided; (8) must be signed by the grantor and witnessed by two persons. The grantee is not required to sign the deed); (9) must be voluntarily delivered and accepted. |
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Term
| Which condition correctly describes the requirement for a lease longer than one year to be enforceable? |
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Definition
| The Statute of Frauds requires a lease for a period of more than 1 year to be in writing and signed in order to be enforceable in court. It must be witnessed by two persons and conform to the same requirements as a valid deed. |
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