Appraising - Deeds

deed

a written, legal instrument that conveys an estate or interest in real property when it is executed and delivered

grant deed

seller has not previously conveyed the estate being granted, has not encumbered the property as noted in the deed, and will convey to the buyer any title to the property acquired after date of deed

quitclaim deed

a form of conveyance in which any interest the seller possesses in the property described in the deed is conveyed to the grantee without warranty of title (common in tax sales)

tax deed

conveys title to a property purchased at a tax sale; may or may not convey absolute title free of all prior claims and liens depending on state law

bargain and sale deed

conveys real estate from a seller to a buyer and does not guarantee a clear title; used by court officials and fiduciaries to convey property they hold by force of law but to which they do not hold the title

warranty deed

conveys to the buyer the title of the property free and clear of all encumbrances except those specifically set forth in the document

deed of trust

borrower, lender, and a trustee who holds property title when the deed of trust is executed and delivered. The trustee transfers title to lender if borrower defaults and to the borrower if the note is repaid

reconveyance

passing of title to real property back to the original owner

contract

a legally binding agreement between 2 or more parties that represent their promise to do or not to do a particular thing

uniform commercial code

governs sale of goods valued at more than $500 and contracts must be in writing to be enforceable

statute of frauds

requires certain documents to be in writing; prevents fraud

offer

a manifestation of willingness to enter into a bargain, which creates in the offeree the power of acceptance

acceptance

a manifestation of willingness to be bound by the terms of an offer made in a manner invited or required by the offer

express contract

clearly states the terms

implied contract

understood from the actions of the parties involved

bilateral contract

both parties make promises to each other

unilateral contract

only one party makes a promise and that promise is used to encourage the other party to act (2nd party has no legal obligation but if they act 1st party has to follow through)

executed contract

reached the finish line; closing has taken its place and deal is done

executory contract

still work in progress (not finished until completed)

valid contract

binding and enforceable on all parties involved

void contract

no legal force of effect even though it contains the elements of a valid contract

voidable contract

one that results from the failure of the parties that meet some legal requirement

unenforceable contract

one that appears to be valid but would not be enforceable in court

consideration

something of value at its core

4 ways a contract can be terminated

agreement of parties, performance of the contract, impossibility of performance, and operation of law

release of contract

to give up a right as releasing one from obligation to perform under a contract or to relinquish a right an interest in real property

assignment

the act of transferring an interest in property or some right to another

novation

agreement of parties to a contract to substitute a new contract for an old one

full performance

simply fulfill all the terms and then contract is executed

time of essence clause

the specified time and dates in this agreement are vital thus mandatory and any delay will be grounds for canceling the agreement

impossibility of performance

party remains liable even if they cannot perform without this provision (needs to be stated)

operations of law

bankruptcy, statute of limitations, and alteration of contract bre

breach of contract

failing to perform any term of the contract, written or oral, without a legitimate legal cause - DOES NOT release the party form their obligations

rescission

the cancellation of a contract by mutual agreement of the parties

reformation

the correction or change of an existing document by court order upon petition of one of the parties to the document and it will be ordered if there is proof of unintended language like omission of something

injunction

a writ (order) by a court ordering someone to do something or prohibiting some act after a court hearing

specific performance

the right of a party to a contract to demand that the defendant be ordered in the judgement to perform the contract

compensatory damages

damages recovered in payment for actual injury or economic loss which does not include punitive damages

consequential damages

damages claimed in a lawsuit which were caused as a direct foreseeable result of wrongdoing

liquidated damages

pre-agreed sum in a contract that one party must pay the other if a breach occurs

punitive damages

damages awarded in a lawsuit as a punishment and example to others for malicious fraudulent acts

arm's length transaction

a transaction between unrelated parties who are each action on own best interest

lease

a contract in which the rights to use and occupy land, space, or structures are transferred by the owner to another for a specified period of time in return for a specified rent

flat rental

a lease with a specified level of rent that continues throughout the lease term

gross lease

a lease in which the landlord receives stipulated rent and is obligated to pay all the property’s operating and fixed expenses

net lease

a lease in which the landlord passes on all expenses to the tenant

graduated rental lease

a lease that provides for specified changes in rent at one or more points during the lease term

index lease

a lease, usually for a long term, that provides for periodic rent adjustments based on the change in an economic index (ex. consumer price index)

revaluation lease

a lease that provides for periodic rent adjustments based on the market rental rate of space

escalator lease

allows the lessor to seek reimbursement of operating expenses after specific criteria have been meet

percentage lease

a lease in which the rent or some portion of the rent represents a specified percentage of the volume of business, productivity or use achieved by the tenant

overage rent

the percentage rent paid over and above the guaranteed minimum rent or base rent; calculated as a percentage of sales in excess of the specified breakpoint sales volume