Section II. Real Estate Title and Ownership

Title

legal ownership of property.

Ownership

the right of possession, occupancy, use, enjoyment, and disposition of real property

Alienation of title

transferring ownership of property to someone else.

Legal title

Actual ownership of property, recognized by law, that allows you to control, sell, or transfer it.

Equitable title

is the right to use, enjoy, and benefit from a property, even though you do not hold legal ownership yet.

Notice

Putting the world “on record”

constructive notice

information has been made available to the public

constructive notice

can also be known as a legal notice

inquiry notice

a legal notice that is presumed by law when factors exist that would make a reasonable person inquire further

Title records

including all documents affecting title, interest, and rights to real property, are maintained in every city and county in the United States

Acknowledgement

a formal declaration made by a person who has signed a document before an authorized officer, usually a notary public.

marketable title

a title free from reasonable doubt as to who the owner is

title search

an examination of the public records usually performed by a title company or abstractor.

A chain of title

shows all changes in ownership; each owner is a link in the chain.

A cloud on title

usually revealed by a title search and may be removed by a quitclaim deed or a suit to quiet title.

Eminent domain

is the right of federal, state and local governments to assume ownership

Police power

Government authority to regulate land for health, safety, and welfare.

Taxation

state and local governments’ right to tax property to raise general revenue.

Escheat

the power that the state government has over the title of real property owners to obtain title to property when someone dies without a will and leaves no known heirs, or when property is abandoned.

encumbrances.

Anything that limits or affects ownership of property (like liens or easements).

Deed restrictions

are private agreements contained in a deed, lease, or will restricting the use and occupancy of real property.

Encroachments

are unauthorized infringements on a property owner’s rights as a result of physical intrusion.

Easement

The legal right to use another person's land for a specific purpose.

Estate

the extent of ownership interest that a person has in real property.

Freehold estate

an estate in land that is of indeterminable duration, meaning that it is not limited by a specific time frame.

Fee Simple Estate

is the highest and most complete type of ownership of land that is possible.

Qualified Fee Estate

a fee simple estate that has certain qualifications or limits.

Life Estate

a fee simple estate that is conveyed to a person for the duration of someone’s life.

Remainder Estate

The right to own a property after a life estate ends.

Reversion Estate

the estate that is left, or that reverts, to the grantor after a grantor has conveyed a lesser estate (less than a fee interest) to

someone else (grantee).

Statutory Estate

any estate that is created by law

A leasehold estate

is for a definite duration and does not involve ownership.

estate for years

involves a lease that has a definite beginning and a

definite ending date

estate from year to year

is any tenancy or lease that runs for an indefinite number of time periods; can be month to month or week to week

estate at will

exists when a tenant is in lawful possession of real estate with no definite time specified as to when he will vacate, and no particular recurring period is specified

estate at sufferance

exists when a tenant occupies real estate after his lawful rights have run out.

A tenancy in severalty

individual ownership of real property.

joint tenancy/estate

owned by two or more persons, each with the right of survivorship

Tenancy by the Entireties

joint property ownership that can exist only between a husband and wife

Easements

legally enforceable rights to the limited use of another’s land.

Lien

A legal claim against property used as security for a debt.

Lien Priority

The order in which liens are paid when property is sold.

General lien

A lien that attaches to all property owned by a debtor.

Voluntary lien

A lien created by agreement between parties.

Statutory lien

A lien created by state law.

Property tax liens

A government lien for unpaid property taxes that has highest priority.

Special assessment liens

A lien for public improvements that benefit specific properties (like sidewalks or sewers).

Federal tax liens

A lien placed by the IRS for unpaid federal taxes.

Mortgage liens

A voluntary lien placed on property to secure a loan.

Vendor’s liens

specific, equitable, involuntary liens filed by a seller (vendor), against the property sold, in the amount of any unpaid purchase price.

Foreclosure

The forced sale of property to pay a debt secured by a lien.

License

Temporary permission to use land that can be revoked anytime.

Lis Pendens

Notice that a lawsuit involving the property is pending.

Involuntary Lien

A lien created by law without the owner’s consent.

Easement Appurtenant

An easement that benefits one property and burdens another.

Dominant Estate

Property benefiting from the easement.

Servient Estate

Property burdened by the easement.

Mechanic’s Lien

A lien filed by contractors or workers who were not paid for work on property.

Judgment Lien

A lien placed on property after a court judgment for unpaid debt.

Easement in Gross (Personal)

An easement that benefits a person, not a property.

Commercial Easement in Gross

Easement owned by a company for business purposes.

Zoning

Government division of land into districts for specific uses.

Variance

Permission to break zoning rules due to hardship.

Deed

A written instrument used to transfer ownership of real property from one person to another.

Consideration

Something of value exchanged for property

Escrow

A third party holds documents or money until contract terms are met.

Covenant

A promise made by the grantor about the condition of the title.

Quitclaim Deed

Transfers whatever interest the grantor may have.

Covenant of Seisin

Grantor actually owns the property and has the right to sell it.

Condemnation

when the government takes private property for public use, usually paying the owner fair compensation (eminent domain).

devise

leaving real estate (land or property) to someone in a will.

4 Powers of the Government

1. Eminent Domain

2. Police Power

3. Taxation

4. Escheat

Actual Notice

when someone has seen, or been given, actual information or

documents.

tenant in common

form of joint ownership where two or more people own a property together, but:

• each person can have a different percentage of ownership

• no right of survivorship (when one dies, their share goes to their heirs, not automatically to the other owners)

adverse possession

If one party gains title by continuous, open, hostile and exclusive use of property, it is known as:

cloud on title

any claim, document, or issue that creates doubt about who truly owns a property.