Real Estate NATIONAL Prep

bundle of rights

posess, use, transfer, encumber, exclude

the right to mortgage property as collateral for debt

the right to encumber

doctrine of prior appropriation

in some states water is owned by govt, individual use requires approval

littoral rights

pertain to oceans, seas and lakes because navigable therefore public therefore state owned

riparian rights

concerns moving water, state owns if navigable

a personal property item that has been converted to real property by attaching to real estate

a fixture

chattel fixtures

personal property temporarily affixed to conduct business eg: store freezers

plants and crops requiring human intervention

emblements

are emblemebts considered real or personal property?

personal

the process of converting real property to personal property

severance

the act of converting persobal property to real property

affixing

undivided interest

refers to the interest in property owned by two or more parties whereby each party has an equal right to enjoy the entire property

if rhe interest holder enjoys the right of possession, the party is considered to have an

estate in land

ownership of any of the bundle of rights to real property

interest

if a private interest holder does not have the right to possess, the interest is an

encumberance

if the interest holder is not private such as a government entity, and does not have the right to possess, the interest is some form of

public interest

examples of encumbrances

tax liens, mortgages, easements, encroachments

an estate in which ownership is for an undefined length of time

freehold estate

an ownership of a temporary right to hold land or property in which a lessee or a tenant holds rights of real property by some form of title from a lessor or landlord.

leasehold estate

both freehold and leasehold estates are referred to as

tenancies

highest form of ownership in real estate includes full bubdle of rights

fee simple

two types of fee simple ownership

absolute and defeasible

perpetual estate not conditioned by stipulated or restricted uses and may be freely passed onto heirs

fee simple absolute

perpetual estate provided usage conforms to stated conditions

fee simple defeasible

two types of fee simple defeasible

determinable and condition subsequent

The deed states usage limitations, if violated estate reverts to grantor or heirs

determinable fee simple defeasible

if condition is violated, previous owner may reposess property. however not automatic, grantor must retake within certain timeframe

condition subsequent fee simple defeasible

a freehold estate limited in duration to the life of the owner or other named person

life estate

the holder of a life estate is called a

life tennant

if life estate names a third party to receive title to the property upon termination of the life estate, the party enjoys future interest called a

remainder interest

the holder of a remainder interest is called

a remainderman

if no remainder estate is established, the estate reverts to the original owner or the owner's heirs. the original owner retains a ______ estate

revisionary interest

two types of life estates

conventional and legal

created intentionally by the owner. It may be established either by deed at the time the ownership is transferred during the owner's life or by a provision of the owner's will after his or her death. The estate is conveyed to an individual who is called the life tenant.

conventional life estate

two types of conventional life estates

ordinary and pur autre vie

ends with the death of the life estate owner and may pass back to the original owners or their heirs (reversion) or to a named third party (remainder)

ordinary life estate

endures over the lifetime of a third person after which property passes from the tennant holder to the original grantor (reversion) or a third party ( remainderman)

pur autre vie

type of life estate that is created by state law rather than by a property holder's agreement

legal life estate

three major forms of legal life estates

homestead, dower, curtesy and elective share

protect family members from losing their homes to general creditors attempting to collect a debt

homestead laws

wife's life estate interest in husband's property. When husband dies, wife may make claim to portions of descendant's property

Dower

husband's equivalent to dower

curtsey

state-level statute enabling a surviving spouse to make a minimum claim to deceased spouse's real and personal property

elective share

leasehold estate for a definite period of time

estate for years

example month to month lease agreement in which upon receipt of rental payment, lease extends for period of time

estate from period to period or periodic tenancy

landlord and tenant agreement that has no definite expiration date

estate at will

tenant occupying premises without consent of a

landlord or legal right

estate at sufferance

sole ownership of freehold estate

tennency in severalty

ownership by two or more owners

co ownership

co tenants enjoy an individually owned, undivided interest; any ownership share possible; no survivorship

tenancy in common

equal undivided interest jointly owned

joint tenancy

equal undivided interest jointly owned by husband and wife

tenancy by entireties

tenancy in severalty

sole ownership

bargain and sale deed

"I own but won't defend"

general warranty deed

"I own and will defend"

special warranty deed

"I own but will defend against my acts only"

quitclaim deed

"I may or may not own, and I won't defend"

used by an executor to convey a decedent's estate; also called an executor's deed.

personal representative's deed

used by a court-appointed guardian to transfer property of minors, or mentally incompetent persons.

guardian's deed

used to convey foreclosed property sold at public auction; usually executed pursuant to court order; Texas statute claims that the party which executes the deed is entitled to a sales fee or commission based on a percentage of the property.

sheriff's deed

used to convey property to a third party trustee as collateral for a loan; on satisfaction of the loan terms, the trustee uses a reconveyance deed to convey the property back to the borrower.

deed of trust

used to convey property to the trustee of a land trust. Not to be confused with deed of trust.

deed IN trust

used to convey land to a condominium developer; accompanied by the condominium declaration when recorded.

master deed

used to convey co-owned property in compliance with a court order resulting from a partition suit; a partition suit terminates an estate when one or more co-owners want to dissolve their relationship and are unable to do so without the assistance of a court.

partition deed

used to transfer government property to private parties.

patent deed

used to convey property sold at a tax sale.

tax deed

the maker of the will

testator or devisor

will made orally, and written down by a witness; generally not valid for the transfer of real property

nuncupative

court proceeding that settles a decedent's estate

probate

someone who enters, occupies, and uses another's property without the knowledge or consent of the owner, or with the knowledge of an owner who fails to take any action over a statutory period of time.

adverse posessor

tenancy in common

most common ownership with two or more unmarried owners

what does no survivorship mean in a tennancy in common?

deceased tenant's estate passes to heirs not to other tenants in common

joint tenancy vs tenancy in common with regards to ownership percentages

joint tenants own equal shares of property ( can't be 25%, 75% must be 50 50 if two)

joint tenancy vs tenants in common in regards to title

joint tenants share one title tenants in common hold separate titles to their individual interests

joint tenancy vs tenants in common in regards to survivorship

interests and rights pass to surviving joint tenants

joint tenancy vs tenancy in common in regards to unity of time

unity of time (entering into agreement at same time) required only under joint tenancy

legal avenue for owner who wants to dispose of his interest against the wishes of others

a partition suit

form of ownership exclusively reserved for husband and wife

tenancy by entireties

survivorship in tenancy by entireties

ownership passes to spouse automatically

foreclosure in tenancy by entireties

estate subject to foreclosure only for jointly incurred debts

form of ownership held by business partners as provided by the uniform partnership act

tenancy in partnership

the individual, institution or organization that holds legal title to the trust property and is responsible for managing and administering those assets.

trustee

An individual or organization that gifts funds or assets to others by transferring fiduciary duty to a third party trustee that will maintain the assets for the benefit of the beneficiaries.

Read more: Trustor http://www.investopedia.com/terms/t/trustor.asp#ixzz4QMDzmvTP

Follow us: Investopedia on Facebook

trustor

the person who is to receive the benefits or advantages (such as income) of a trust.

beneficiary

Trustor synonym

grantor

allows trustor during his lifetime to title to a trustee

living trust

confidence placed in a person by making that person the nominal owner of property to be held or used for the benefit of one or more others

trust

involving trust, especially with regard to the relationship between a trustee and a beneficiary

fiduciary

trust tgat takes place when the owner dies

testamentary trust

allows the trustor to convey fee estate to trustee and to name himself beneficiary

land trust

which right is not included in encumbrance

the right to possess

the reciever of an easement right

benefitted party

the giver of an easement right

burdened party

This doctrine states that if a property owner is lax in protecting his or her rights, the property owner may lose those rights.

doctrine of laches

policy requires subdivision developers, at the same time as they are developing their projects, to make improvements that will minimize the negative impact of the project on municipal infrastructure

concurrency

affirmative easement

one that allows use