UC San Diego - Real Estate: Basic Legal Concepts

Vocabulary flashcards covering key legal concepts in real estate.

Estate

All that a person owns.

Freehold Estate

A possessory estate that represents the most complete form of ownership.

Leasehold Estate

A possessory estate based on the right to use property for a specified term.

Grantor

The seller or owner who transfers title to a new party.

Grantee

The buyer who receives title in a transaction.

Mortgagor

The owner or grantor of a mortgage claim.

Mortgagee

The lender that receives the mortgage claim on a property.

Lessor

The owner of land who leases the property to another party.

Lessee

The party that receives the right to use the property under a lease.

Easement

A nonpossessory interest in land for a special purpose, such as rights of way.

Abstract of Title

A summary of publicly recorded documents related to property ownership.

General Warranty Deed

A deed that includes covenants guaranteeing the grantor has good title and right to convey the property.

Special Warranty Deed

A deed that limits the grantor's covenants to the ownership duration of the current grantor.

Bargain and Sale Deed

A deed that conveys property without warranties from the seller and is often 'as-is.'

Quitclaim Deed

A deed that provides the least protection to the grantee, with no covenants.

Title Insurance

Insurance that protects against financial loss due to title defects.

Public Record

A record that provides constructive notice regarding property ownership and titles.

Nonrecourse Clause

A provision that limits the lender's claims to the mortgaged property in case of default.

Land Contract

An agreement where the seller retains naked title while the purchaser has equitable title.

Foreclosure

A legal process by which a lender takes possession of a property due to default on a loan.

Deficiency Judgment

A court order to pay the remaining balance owed on a loan when the property's sale does not cover the claim.