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Florida Real Estate Exam
Terms/everything
190
Real Estate & Planning
Not Applicable
03/01/2012

Additional Real Estate & Planning Flashcards

 


 

Cards

Term
FREC
Definition

the Florida RealEstate Commission (FREC) was created, the regulatory agency that implements andenforces the State licensing laws.

7 members

must have 51% to vote

2 year miniumum service of an agent

Term
DRE
Definition

Division of Real Estate (DRE), the State agency empowered to enforce on a daily basis the rules and regulations imposed by the FREC. More than 300,000 real estate sales associates, broker associates, brokers, and brokerage firms are presently regulated.

works hand in hand with FREC

DRE is responsible for performing all the DPR functions as they relate to the real estate profession.

Term
The Business Defined
Definition
The real estate business comprises people whose activities and interactions involve buying, selling, exchanging, leasing, renting, improving, appraising, auctioning, and using real property
Term
Owner-user
Definition
An owner-user of real estate usually holds property as a necessity or convenience for residential, personal, or business use. In addition, the property is usually being held for long-term benefits, such as appreciation and tax shelter
Term
Owner-Investor
Definition
A real estate owner-investor usually holds property for the production of income and long-term benefits, such as appreciation, tax shelter, and income from the eventual sale of the property.
Term
A Broker may act in 3 ways?
Definition
transaction broker, single agent, or in a no brokerage capacity
Term
Transaction Broker
Definition

a broker may offer limited representation to any party in the transaction. Fiduciary duties are not owed to either party, although limited confidentiality is owed to the party represented. When acting as a transaction broker for both parties, a broker is not permitted to represent one party to the detriment of the othe

assumes operating as this type of broker inless a form is disclosed stating it is a single agency or a no brokerage relationship

Term
Single Agent
Definition
When a broker is acting as a single agent, the party employing the broker is called the principal or client. The broker owes the principal the fiduciary duties of obedience, loyalty, confidentiality, accounting, and full disclosure. Although the principal is usually responsible for payment of the brokers compensation, any party in the transaction could pay the broker for the real estate services performed
Term
No brokerage relationship
Definition
must deal honestly and fairly, disclose all known facts that materially affect the value of residential real property and are not observable by the buyer, and account for all funds entrusted to the broker
Term
Principals and prospects.
Definition
When a real estate licensee has established an agency relationship with a customer, the party owed fiduciary duties is called the principal, or client. The licensee owes fiduciary duties to the principal. If the licensee has not established an agency relationship with a customer, the customer is called a prospect. Fiduciary duties are not owed to the prospect. All of these relationships are discussed in detail in Module 4, Real Estate Brokerage Relationships.
Term
Broker-employer
Definition
When employed by a broker-employer, sales associates and broker associates act as the brokers agent in performing services of real estate. Compensation for real estate services must come from the broker-employer, or with the broker-employers written authorization, a closing agent may pay the associate directly
Term
Owner-employer
Definition
When employed by an owner-employer, a sales associate or broker associate can only perform real estate services involving the owner-employers property. Compensation for real estate services must come from the owner-employer
Term
Sales associate
Definition

must work under the supervision of a broker-employer or owner-employer. A sales associate may not be employed directly by the public.

Can do all dutys a broker can do

Can manage an office

Term
Broker associate
Definition
chooses to work under the supervision of a broker-employer or owner-employer.
Term
real estate brokerage
Definition
business includes brokers and sales associates who, for compensation, provide real estate services for others. A real estate brokerage is a service business, and expert information is the product that the broker or sales associate provides
Term
farming
Definition

Brokerage firms often specialize in or target a particular geographic area, property or client type and use the marketing method farming to solicit the targets business.

Term

Business Brokerage

Definition

Business brokerage involves the sale of business enterprises (sales prices in excess of $200,000) and business opportunities (typically smaller businesses with a sales price of $200,000 or below). Because the value of a business is normally based on going-concern value, special expertise is needed to examine the business as an operating enterprise producing income rather than simply limiting the value to a collection of tangible assets and liabilities.

Term
Property Management
Definition
primary responsibility of a property manager is to obtain the highest possible net income for the landlord
Term
Community association manager (CAM)
Definition

require a license

 having more than 10 units or budgets in excess of $100,000 per yea

Term
appraisal
Definition

Paid on a fee bais

based on the time and difficulty of the assignment and not on the value of the property being appraised.

 

Term
What properties can a real estate agent appriase?
Definition
legally appraise properties that are not involved in federally related transactions such as a sale or loan in which a federal agency is involved or in which a federally insured or supervised financial institution grants or buys a loan.
Term
  USPAP
Definition

Uniform Standards of Professiothe generally accepted standards for professional appraisal practice in North Amnal Appraisal Practice (USPAP),

CMA'S are not controlled under this

Term
Subdividing
Definition
simply converts a raw parcel of land into smaller parcels
Term
development
Definition
 involves the construction of improvements on the parcels.
Term
speculative building
Definition

In speculative construction, the improvement is built by the developer, contractor, or builder to his specifications, on his land, with the goal of selling the land and building

subdivision building

Term
tract building.
Definition
involves a builder constructing homes from a variety of floor plans which act as examples of what the builder offers in a subdivision
Term
Mortgage Brokers
Definition
Mortgage brokers bring borrowers and lenders together for a fee. Mortgage brokers are limited to acting as an agent and do not have the authority to approve or reject a loan on the lenders behalf. They do not loan money to borrowers but submit loan applications
Term
Mortgage Bankers
Definition
In ths business of lending money,
Term

Local Level

How does it affect real estate?

Definition
exercise of zoning laws which regulate such matters as building size, height, setback, and occupancy; through taxation to support schools and parks; and through planning, cities and towns can have a significant impact on real estate development, growth, and appreciation. Local government also determines occupational licensing requirements, building permit requirements, subdivision requirements, and housing codes
Term
 eminent domain
Definition
powers to condemn property for a public use, but must pay the property owner fair market value for any property seized
Term
condemnation
Definition
The legal process used by state governments to take private property
Term
Chapter 475 of the Florida Statutes
Definition
was revised to implement the reorganization and procedures of the license law and its regulations
Term
caveat emptor
Definition
buyers beware, laws in florida to regulate agents for scams
Term
Address Change
Definition
Licensees are required to notify the DBPR in writing within 10 days of any change in mailing address
Term
When a Real Estate License Is Required
Definition

    any service of real estate

in Florida

 

for another

 

for compensation

 

 

Term
DBPR Responsibilities
Definition

Investigation

Prosecution of complaints.

Administration of licenses

Use of monies.

Term
ineffective
Definition
it is suspended (a temporary administrative penalty), but it is not void. A revoked license, however, is void.
Term
Multiple Licenses
Definition
Multiple licenses are only issued to active brokers who want to form more than one company
Term
Group License
Definition
 A group license enables the licensee to work from any of the owner-employers properties.
Term
Brokerage Relationship Disclosure Act (BRDA)
Definition

allows four types of broker transactions, does not allow dual agency

passed the  presumption that all licensees are operating as transaction brokers unless written disclosure of a single agency or no brokerage relationship is provided.

Term
Dual agency?
Definition
Is illegal and has Fiduciary dutues representing both the seller and the buyer
Term

Client.

 

Definition

 The party who employs a licensee in an agency relationship. The licensee works for and represents this party (buyer or seller) in a fiduciary capacity. Single agency is the only authorized brokerage relationship in which licensees have a client. Also called principal.

 

Term
Customer.
Definition
. A third party for whom some level of service is provided and is entitled to fairness and honesty, disclosure of material facts, and accounting for all funds.
Term
Designated sales associate.
Definition

a broker may imploy two sales associates to perform  by the same firm to represent different parties in the same transaction as single agents, termed designated sales associate. However, this provision applies only to commercial real estate transactions, not to residential transactions

have in which the seller and buyer each have assets of $1 million or more

Term
Residential Sales are?
Definition

improved residential property of 4 units or fewer

unimproved residential property intended for use of 4 units or fewer

agricultural property of 10 acres or fewer

Term
 in-house sale
Definition
which the brokerage firm, through one or more of its real estate licensees, acts as both listing and selling agent
Term
Subagency
Definition

Competing brokerage firms typically work together to sell property

can get ugly(dual agency)

prohibited with most firms

Term
Representation Agreements
Definition
Representation agreements, such as buyers broker agreements, usually describe the professional fee and how the brokerage firm will be paid
Term
Office sign must contain?
Definition

name of the broker

words Licensed Real Estate Broker or Lic. Real Estate Broker

corporate or LLC name if applicable

trade name if applicable

partnership name if applicable

Term
Advertising?
Definition

Must be done under a brokers supervision

must include the name of the brokerage firm as it is registered with the FREC. It must be displayed in a manner that a reasonable person would know he or she is dealing with a real estate licensee.

Term
blind advertisement
Definition
 An ad in which only a post office box number, street address, or telephone number appears
Term

Licensee-Owned Real Estate

Definition
When brokers sell their own property, they may advertise either as an owner without reference to their brokerage activity or through their office acting as a broker. Also, if a sales associate owns the advertised property, he or she may advertise either as an owner without reference to licensee status or through his or her broker. In both of these situations, the licensee must inform the other party that the licensee has a personal interest in the property prior to receiving an offer on the property.
Term
Escrow Deposits
Definition

prior to accepting the offer, the seller has no rights to the deposit, and the broker holds the deposit in \\must be in a trust or title company having trust powers within Florida, or a credit union, bank, or savings and loan association located in Florida. .

statments must be kept for 5 years

Term
conversion
Definition

misuse of, commingling or intermingling of, or failure to account for funds or property entrusted to any licensee for safekeepin

agent uses keys to party at the vacant house

Term
suit for declaratory decree
Definition

when the broker does claim an interest in the deposit. Brokers could be awarded reasonable attorneys fees and court costs in a suit for interpleader, but the broker is not entitled to reasonable attorneys fees and court costs in a suit for declaratory decree.

suit for interpleader is opposite

Term

Refund Provisions

(Renters)

Definition

75% refund

notice within 30 days

The following written contract or receipt agreement must be provided to the prospective renter in boldface 10-point (or larger) type:

first degree misdemeanor  if unable to comply with renter laws

Term
Earning Commision Requires?
Definition
the licensee is required to have a valid, current, and active real estate license. A licensee may earn a commission while properly and actively licensed and subsequently have the license suspended or revoked and still be paid the commission because the relevant factor is when the commission is earned in relation to the license status.
Term
Adverse Interests
Definition

A broker cannot divide/split commissions and accept, or try to collect compensation from another broker who represents an adverse interest to his or her principal without the knowledge and consent of all involved parties.

Term
overage
Definition
secret profit), a form of fraud caused by the brokers making more than the agreed-upon or customary commission.
Term
bad faith and breach of trust
Definition
take copies of listings, records, or other confidential information of the broker
Term
Sole Proprietorship
Definition
an individual just goes into business. He or she is treated as an individual, is personally liable for his or her actions and those of his or her employees within the scope of their employment
Term
Registration of Real Estate Brokerage Corporations
Definition
At least one officer must hold an active brokers license. All other officers and directors must be licensed as active or inactive brokers or be registered. Any officer or director who performs or personally directs sales or sales forces, advertising, or soliciting, or comes in contact with the owners of property listed or to be listed or with the investing public in connection with brokerage transactions must be an actively licensed broker. Sales associates or broker associates cannot be officers or directors of real estate brokerage corpora
Term
general partnership
Definition
when two or more adult persons engage in business together and agree (expressed or implied) to share the profits and losses of the business. A partnership agreement can be oral or written. It is not necessary to file any documents with any state agency or official to form a partnership
Term
ostensible partnership
Definition
exists when someone is deceived into believing that a partnership exists when it actually does not exist. It is not a true or actual partnership
Term
limited partnership
Definition

limited partnership, a certificate of limited partnership is filed with the Florida Secretary of State and recorded in the public records of the county in which the principal office is located.

Limited partners are liable only to the extent of their investment

Term
joint venture
Definition

is a temporary business relationship formed when 2 or more adult parties combine their efforts to complete a single business transaction or a predetermined definite number of transactions. A joint venture agreement can be oral or written. The brokerage firms do not need to register with the FREC because they are already registered separately.

 

Term
trust, or syndication
Definition
engage in transactions involving its own real estate. Created by filing a declaration of trust with the Florida Secretary of State, it cannot be formed to broker real estate.
Term

Cooperative Association

Definition
formed by a group of merchants or businessmen to advertise, promote, and market their products. A citrus co-op is an example.
Term
Ecclesiastic or Church Organization)
Definition
consists of a bishop or other appropriate clerical personage designated to hold title to church property. The person holding title to the corporate sole property is the sole titleholder
Term
Commercial Real Estate Sales Commission Lien Act
Definition
A real estate broker who enters into a written brokerage agreement with an owner for the leasing of the owners commercial real estate will have a lien that attaches to the owners interest in the commercial real estate. Unlike the Sales Act which is a lien that attaches to the owners net proceeds and not the real estate, the lien established under the Leasing Act is on the real property
Term
Criminal law
Definition

 typically a second degree misdemeanor punishable by a criminal fine not to exceed $500 and/or imprisonment for up to 60 days.

Violation of rental agrements is a first degree misdemeanor

someone who acts as a license without is a 3rd degree felony

Term
Florida Real Estate Recovery Fund
Definition

was created to provide financial reimbursement to persons who have suffered a loss as the result of actions of a real estate licensee

$50k for single

$150 for multiple

 If a broker was following an escrow disbursement order (EDO) and was sued in a civil action, damages awarded against the broker can be reimbursed from the Fund without jeopardy to the brokers license.

Term
Civil Rights Act of 1866
Definition
prohibits racial discrimination in the sale or rental of real and personal property
Term
Jones V. Mayer
Definition
black guy complaining.... shocker. Why do we have to learn about this crap in the 60's if you dont realize that racial discrimination is wrong just shoot yourself now.
Term
Civil Rights Act of 1968
Definition
prohibits discrimination in the showing, negotiation, sale, rental, or financing of a dwelling on account of race, color, religion, sex, or national origin.
Term
Steering or Channeling
Definition
real estate licensee may not steer or channel an individual, directly or indirectly, into or away from a neighborhood on the basis of race, color, religion, or national origin.
Term
blockbusting.
Definition
Inducing owners to sell their property by telling them the neighborhood is deterior­ ating or becoming transitional due to the threat of, or introduction of change in the racial, ethnic, or religious composition of the neighborhood with the intent of profiting from those sales
Term
Redlining
Definition
the unlawful practice of lending institutions refusal to lend or reducing loan funds to an area because of the integrated makeup of the community.
Term
Fair Housing Poster
Definition

Real estate brokers must display a U.S. Department of Housing and Urban Development (HUD) fair housing poster in all places of business, including model homes in subdivisions. In addition, developments financed by the Federal Housing Administration (FHA) must undertake an affirmative marketing program to attract a cross section of the community.

Term
Deed Restrictions
Definition

Deed restrictions with references to restrictions concerning race, religion, color, or national origin may be encountered in practice, but are not enforceable.

 

Term

1988 Fair Housing Amendments Act

Added what?

Definition
include banning discrimination against handicapped individuals and families with children
Term
Senior housing
Definition
 the state or federal government; or all residents are age 62 or older; or 80% of the housing units have at least one resident age 55 or older.
Term
Familial status
Definition

refers to families with children, including pregnant women and people with, or securing custody of children under the age of 18

exempt to

retirement communities

complexes of 4 units or less and single-family houses, if sold or rented by owners who have no more than 3 houses.

Term

Florida Residential Landlord And Tenant Act

Definition

 lease is a contract and is subject to all the general requirements of contracts.

purpose is to create a careful balance of rights between landlord and tenant

Term
Landlord Obligations
Definition

the extermination of rats, mice, roaches, ants, and bedbugs

locks and keys

the clean and safe condition of common areas

garbage removal and outside receptacles

heat during winter

running water, and hot water

Term
Deposit or advance funds.
Definition

The funds must be kept in a Florida banking institution.

The tenant shall receive 75% of the interest payable on this account, if any. The landlord may retain the remaining 25%

The landlord must notify the tenant in writing of the manner in which the landlord is holding any security deposit or advance rent within 30 days of receipt of any such monies.

 The landlord has 15 days after termination of a lease to return any security deposit with interest, if any, or within 30 days

 

 

Term
Landlords Right to Enter the Dwelling
Definition

inspect the premises

make necessary or agreed-upon repairs

decorate, make improvements, or alterations

supply agreed-upon services

show the dwelling to purchasers, mortgagees, tenants, workmen, or contractors

Term

Interstate Land Sales Full Disclosure Act

Definition
regulates interstate land sales by requiring developers to file a registration statement disclosing relevant information concerning real estate developments (subdivisions) with the HUD Office of Interstate Land Sales Registration. A property report also must be provided to each purchaser
Term
Property Defined
Definition

Property is either real or personal. The term property, in the strict legal sense, is an aggregate or bundle of rights to a thing that is guaranteed and protected by the government. More specifically, property means ownership and the unrestricted and exclusive right to a thing (with certain exceptions). These rights include the right to own it, possess it, use it, enjoy it, encumber it, dispose of it, and exclude everyone else from interfering with it. Simply put, property is a bundle of ownership rights.

 

Term
property owner has 4 basic rights.
Definition

disposition

use

possession

exclusion

Term
term real property or real estate does not include
Definition
cemetery lot or right of burial in any cemetery; nor does the term include the renting of a mobile home lot or recreational vehicle lot in a mobile home park or travel park.
Term
Real estate vs real property
Definition
Real estate refers only to the physical land and improvements, whereas real property includes the physical land and improvements as well as the intangible interest and rights inherent in the ownership of real estate.
Term
Subsurface rights.
Definition
Subsurface rights include the right in a parcel of real estate to explore, drill, or dig below its surface for minerals (gas, oil, coal, etc.) and water. The mineral rights and certain water rights may be sold or leased.
Term
Riparian rights
Definition
flowing water, river, stream
Term
Littoral rights
Definition
real estate owners whose land abuts nonflowing water (such as an ocean, sea, or lake) to use and enjoy the water and shore abutting their property
Term
Accretion
Definition
gradual growth in the amount of land due to natural causes, such as additions in soil to the real property.
Term
Erosion, also called avulsion,
Definition

 loss of land due to natural causes and is very common along Floridas coast.

 

Term
Fixture
Definition
A fixture is an article of personal property, now legally considered to be real property
Term
Estate Defined
Definition

A person who has rights to real property has an estate,which is an interest in the property. The type of estate he or she has is determined by the degree of freedom, quantity, nature, extent, and duration of his or her rights in the property.

There are 2 types of estates, freehold or nonfreehold. Freehold estatesinvolve ownership by the tenant; nonfreeholdestatesprovide possession and use but not ownership.

Term
Fee Simple
Definition

most common form of ownership; it is the most desirable and the most complete and comprehensive. It is the least limited form of ownership as it includes all rights of possession, occupancy, use, enjoyment, and disposition.

This estate will descend to the heirs of the titleholder generation after generation unless

Term
Life Estate
Definition
life estateis a freehold estate that extends for the duration of an individuals life, usually the person holding the estate, who is known as the life tenant. It ends upon the titleholders death or upon the death of another individual
Term
Reversion estate
Definition

right of the original grantorthat is, the person who created the life estateor his or her heirs to regain the property in fee simple upon the death of the life tenant.

 

Term
Remainder estate.
Definition
 third party, someone other than the original grantor or his or her heirs, is to receive the leftover or remaining ownership, that party is called a remainderman
Term
estate in possession
Definition
estate whose titleholder is in possession of the rights to which he or she is entitled. This estate is vested.
Term
estate in expectancy
Definition

estate in expectancy is one whose title has not yet been received by the party entitled to receive it, such as a remainder estate or reversion estate. An estate in expectancy can be either vested or contingent.

 

Term
Qualified Fee Estate
Definition

A qualified fee estate (fee simple defeasible)is a fee ownership with limitations imposed by the grantor

if not followed owenership reverts back to grantor

Term
Estate for Years (Tenancy for Years)
Definition
estate for years must be in writing, must have a definite beginning date and a definite ending date, must be signed by the landlord, and must have 2 witnesses.
Term
Estate at Will (Tenancy at Will)
Definition
The rights run from week-to-week, month-to-month, quarter-to-quarter, or even year-to-year. The period for which rights exist is typically measured by the frequency of the rental payments
Term
Unit (Condominium Parcel)
Definition
A unit is a part of the condominium property, including the undivided share in the common elements that is subject to individual and exclusive ownership.
Term
Assessment
Definition

An assessment is a share of the funds required for the payment of common expenses, which from time to time is assessed against a unit owner. These assessments are commonly called maintenance fees or association dues

CONDOS

Term
Florida Condominium Act (Chapter 718, F.S.)
Definition

regulates the development and sale of condominium units.

The purchaser is allowed 15 days from receipt of the documents to either rescind or proceed with the sale

Resale is 3 days

Term
Timesharing Defined
Definition

 real estate ownership or use acquired by a deed, lease, or license. Timesharing is commonly used in the sale and purchase or lease of vacation and second-home properties such as condominiums, motels, hotels, and apartment buildings located in resort areas

real estate license is required of anyone who performs a service of real estate in timesharing

Each purchaser is allowed a 10-day cooling off period during

Resale is 3 days

Term

Estate in Joint Tenancy (Joint Estate)

have what 4 stiupulations?

Definition

acquired ownership with equal rights of possession, use, and enjoyment

equal and undivided interests

acquired their ownership at the same time

acquired their rights by the same deed or conveyance (title)

Term

Estate Tenancy in Common

Definition

Tenancy in common differs from joint tenancy in nearly every respect. The ownership can be obtained at the same or different times; the interests can be equal or unequal; the rights can be obtained by the same or different deeds or conveyances. The owners must, however, have equal rights of use, possession, and enjoyment.

can pass down in will

Term

Estate Tenancy by the Entireties

Definition
Husband and wife
Term

Elective Share Defined

Definition

The elective share provides that the surviving spouse (widow or widower) is entitled to 30% of the deceased spouses personal and real property except for homestead property, which is treated separately.

Term
Title
Definition
right by which a party is entitled to the present or future ownership of realestate. Ownership includes the right of possession, occupancy, use, enjoyment, and disposition of the property. Title is also the evidence of ownership of real estate. One who owns property has title to it.
Term
Actual Notice
Definition
provided by physical possession of property by the owner or whena legal instrument evidencing title, such as a deed or a bill of sale, has actually been seen by a person.
Term
Constructive Notice
Definition
notice is provided by a recording instrument, such as a deed,conveyance, or bill of sale. Documents recorded (placed) on public record with the clerk of the circuit court in the county in which the property is located have the legal effect of showing the public a copy of the document. For this reason, constructive notice is generally recognized as the best proof of ownership.
Term
Voluntary alienation (transfer)
Definition
occurs when real property is sold or conveyed bygift or by will.
Term
Involuntary alienation
Definition
 occurs when a person dies without a will (or avalid will) by escheat, eminent domain, or adverse possession.
Term
deed
Definition

type of conveyance used to transfer title to real estate from one party to another. Transfer of title by deed or conveyance is the most common method of acquiring title. Title to personal property may be transferred by deed or conveyance.

 

Term
Deed Requirements
Definition

In Writing

To be valid, a deed (conveyance) must be in writing. It is usually under seal.

 Execution

To be valid, a deed (conveyance) must be signed (executed) by the grantor and witnessed by 2 persons.

 Legal Description

A deed must contain the legal description of the property.

 Consideration

A deed must be accompanied by a valuable or sufficient consideration.

 Delivery and Acceptance

Title transfers when the deed (conveyance) is delivered to and accepted by the grantee.

 The sales price need not appear in the deed.

Term
Do deeds need to be notarized?
Definition
Deeds and conveyances do not have to be acknowledged (notarized) or recorded to be valid; however, they must be acknowledged before they can be recorded
Term
General Warranty Deed (Warranty Deed)
Definition

A general warranty deed is a conveyance in which the grantor (seller) fully warrants or guarantees clear title to the real estate he or she is conveying to the grantee and agrees to warrant or defend the title against any and all claims

Used most and offers greatest protection to the Grantee

Term
Special Warranty Deed
Definition

which the grantor warrants or guarantees the title he or she is conveying only against claims by him- or herself, or by anyone claiming by, through, or for him or her. One form of special warranty deed is a tax deed, which is used in a tax foreclosure sale. Special warranty deeds are also frequently used for other purposes, such as conveying the property of a decedent.

 

Term
Bargain and Sale Deed
Definition
the grantor grants, bargains, andsells the property to the grantee. The grantor does not expressly agree to warrant ordefend the title in any respect, but he or she does promise that the title he or she is transferring is valid (an implied warrant of seisin).
Term
Quitclaim Deed
Definition
quitclaim deed is a conveyance in which the grantor transfers and releases any interest he or she may have, if any, in the property. The grantor does not agree to warrant or defend title in any respect and does not even promise that the title he or she is transferring is valid.
Term
Referees Deed in Foreclosure
Definition
referees deed in foreclosure is used to convey property sold in a court-ordered foreclosure sale. In effect, this type of deed is equivalent to a special warranty deed as it contains warranties or covenants similar to those in a special warranty deed. This type of deed is seldom used in Florida. It is also known as a sheriffs deed or a mastersdeed.
Term
Referees Deed in Partition
Definition

referees deed in partition is used to convey property following a court-ordered partition judgment involving property owned jointly by 2 or more persons who desire to dissolve their joint ownership of the property but who cannot agree on the physical division (partition) of the property.

 

Term

Deed of Trust (Trust Deed)

Definition

A deed of trust is used to convey title or an interest in property to a third-party trustee to be held as security for a debt or obligation owed by the trustor (borrower) to the beneficiary (lender). A deed of trust is similar to a mortgage and, in Florida, is treated as a mortgage. When the loan has been paid in full the trustee returns the title to the borrower by means of a reconveyance deed.

 

Term
Master Deed
Definition

enabling declaration (document) that conveys a parcel of real property held under a single deed into a number of individual condominium estates plus an estate for the common areas and elements of a condominium.

 

Term
Patent Deed
Definition

A patent deed is a special deed used to convey title of real estate from the United States government to an individual.

 

Term
Tax Deed
Definition
A tax deed is used to convey title to real property that has been foreclosed by a court order for nonpayment of real estate taxes. In Florida, a special warranty deed is also known as a tax deed when it is used by a city or county to convey a tax title or to convey title of city or county property
Term
Habendum Clause
Definition

The habendum clause is the to have and to hold clause, indicating the legal rights or estate or interest the deed is conveying (e.g., fee simple, life estate, etc.).

 

 

Term
Reddendum Clause
Definition
The reddendum clause is the reserving clause. It reserves a right or restriction in the title, not land, to the grantorfor example, an interest in a life estate to a remainderman. Deed restrictions are also found in this clause.
Term
Tenendum Clause
Definition
The tenendum clause states that the land, together with any improvements to the land, is being conveyed to the grantee
Term
Testimonium Clause
Definition

The testimonium clause contains the statement In witness whereof the parties to these presents have hereunto set their hands and seals. It is the conclusion of a deed.

Term
Warrant of Seisin
Definition
A warrant of seisin is an assurance to the grantee by the grantor that the grantor has the estate of title in the quantity and quality that he or she purports to convey. This is essentially a claim of ownership.
Term
Warrant of Encumbrances
Definition

A warrant of encumbrances is an assurance to the grantee by the grantor that there are no encumbrances or liens against the property being conveyed other than those specifically listed in the deed.

 

Term
Warrant of Quiet Enjoyment
Definition
A warrant of quiet enjoyment is an assurance to the grantee by the grantor that the grantee shalA warrant of quiet enjoyment is an assurance to the grantee by the grantor that the grantee shall enjoy the possession of the property in peace and without disturbance by hostile claimantsl enjoy the possession of the property in peace and without disturbance by hostile claimants
Term
Warrant of Further Assurance
Definition
A warrant of further assurance is an assurance to the grantee by the grantor to do such further acts in the future as the grantee may reasonably require to perfect the grantees title.
Term
Warranty Forever
Definition

A warranty forever is an assurance to the grantee by the grantor that the grantee shall have possession, completeness, security, and continuance of the title transferred to the grantee.

 

Term
Fiduciary Warrant
Definition
 fiduciary warrant is an assurance to the grantee by someone in a fiduciary capacity that he or she has done nothing that would in any way injure the title while he or she had control of the property.
Term
Warrant Against Grantors Acts
Definition

A warranty against grantors acts is a provision in which the grantor transferring title of property from a decedents estate warrants or promises that he or she has done nothing to injure or adversely affect the title while he or she was the personal representative of the estate and had control of the property.

 

Term
Will
Definition
 will is a document that an individual provides for the transfer of title (disposition) of his or her real and personal property after his or her death to another. When an individual dies leaving a will, is referred to as having died testate; without a will is intestate.
Term
Descent and distribution
Definition
statutory provision in which title to real and personalproperty is acquired upon the death of a person who left no will, because he or she is a legal heir of the deceased. An individual who dies without leaving a will is referred to as having died intestate.
Term
Adverse possession
Definition

legal principle in which title to real property is obtainedby a person who enters, without the consent or agreement of the true owner, into open, adverse, hostile, and exclusive possession of the owners property for 7 or more consecutive years and who meets other technical requirements of the Florida Statutes. When the true owner sleeps on his (or her) rights and does not eject an open and hostile trespasser, the owner will lose his or her title to the trespasser.

 

Term

Eminent Domain

 

Definition

Eminent Domain

The power of eminent domain is the right a government (city, county, state, or federal) retains over real property owners to obtain title to property for public use, such as highway right-of-way and school sites. This right is exercised through a condemnation proceeding in court. The government is required to pay just compensation for the property, which is negotiated with the owner. In the event of a dispute, compensation is determined by a jury trial with costs paid by the government.

Term
Estoppel
Definition
The legal principle where title is obtained, but because of failure to provide sufficient notice of ownership, title is lost to a subsequent innocent purchaser who provides notice of ownership rights, such as recording the deed is estoppel. The original purchaser is estopped (prevented) from recording the original deed.
Term
Escheat
Definition

When a person dies without a will, or intestate, the state determines the deceased persons heirs. If no heirs can be found, the property escheats, or becomes the states property. In other words, the state is the last heir.

Term
Merchantable Title
Definition

good and marketable title to real property that is free frommaterial defects, encumbrances, and any reasonable doubt as to who is the owner. It is title that the owner can readily sell or mortgage to a well-informed, reasonably intelligent, and prudent buyer or lender (mortgagee).

 

Term
Abstract of Title (Abstract)
Definition

 condensed history of the title to a parcel of real estate consisting of a compilation of all recorded instruments and notations on the public recordssuch as deeds, mortgages, easements, marriages, deaths, and divorcesthat in any manner affect the title of the property legally described in the caption of the abstract.

 

Term
Title Plant
Definition
A title plant is a duplicate set of the public records that includes copies of all the essential recorded instruments affecting title to real estate. Title plants are maintained by most abstract and title insurance companies
Term
Opinion of Title
Definition
competent attorneys written opinion regarding the condition of title to real estate based upon his or her examination of an abstract of title on the property and other public records and information. It is not a guarantee of title. A claim or lawsuit against the attorney or others may be necessary if title problems later arise. An abstract in and of itself is useless. It is only useful when used to obtain an opinion of title from a competent attorney.
Term
Title insurance
Definition
guarantee against any defects or encumbrances in title to realestate to which the title insurance company has not taken an exception. An example of an exception is except for the first mortgage currently outstanding. Title insurance is not a guarantee of title. A claim or lawsuit against the title insurance company or others may be necessary if title problems later arise.
Term
Defects in Title
Definition

deficiency or an imperfection in title to real estate that affects the owners rights to possession, use, occupancy, and quiet enjoyment of the property.

 

 

Defects are normally cured by the use of:

 

a quitclaim deed

 

a suit to quiet title, a proceeding to establish the plaintiffs title to real estate by bringing into court any adverse claimant and compelling him or her to either establish claim or be forever estopped from asserting it

 

the Florida Marketable Record Titles to Real Property Act, which eliminates certain defects in title that are more than 30 years old

Term
lien
Definition
legal right a creditor or unit of government (city, county, state, or federal) has over a debtors specific real and personal property as security for repayment of a debt or charge or for performance of some act to which the debtor is bound.
Term
Voluntary creating a lien?
Definition
by pledging the property on a mortgage lien to secure a loan.
Term

a lien does not

?

Definition
A lien does not transfer title to the property from the owner to the lienholder. It creates a financial claim against the owners equity
Term
Real estate tax liens.
Definition

are filed against real property each year.In Florida, real property is assessed at just value as of January 1; the taxes become a lien as of January 1; due and payable November 1; and become delinquent if not paid by April 1 of the following year. Real estate taxes are paid in arrears.

 

Term
Special assessment liens
Definition
liens are filedagainst real property for improvements such as street paving, sidewalks, sewers, and so on. A lien for an improvement not completed is a pending special assessment lien; a lien for a completed improvement is a certified special assessment lien. Generally, special assessment liens are levied only against those properties that will benefit from the improvement, and in an amount apportioned according to the cost of the benefits received, rather than by the assessed tax value of the property.
Term
Federal estate tax liens and state inheritance tax liens.
Definition
accrue against real and personal property at the time of death of the owner. Florida does not have an inheritance tax.
Term
Federal income tax liens
Definition
Federal income tax liens may be filed against real andpersonal property for nonpayment of federal income taxes.
Term
State corporate income tax liens.
Definition
 filed against corporate real andpersonal property for nonpayment of state corporate income taxes.
Term
judgement lien
Definition

 judgment lien is rendered by a court in lieu of monetary compensation awarded to a plaintiff against a defendant as a result of a suit.

 

Term
Mortgage Lien
Definition
 mortgage lien is placed on real property voluntarily by a mortgagor (owner of real estate) as security for repayment of a debt.
Term
Vendors Lien
Definition

A vendors lien is a right of a vendor (seller of real estate) to subject the property sold as security for any unpaid balance of the purchase price. A vendors lien right is waived if he or she has received any other form of security for the debt.

Term
Mechanics Lien
Definition
A mechanics lien is for labor, materials, supplies, or repairs to construct or improve property.
Term
Lien Priority
Definition
Superior liens. Real estate tax liens, special assessment liens, and federal estate taxliens are imposed by law without the consent of the owner. Real estate tax liens and special assessment liens are effective when levied. Federal estate tax liens are effective immediately upon death. All 3 of these liens are considered superior as they take precedence in priority over all other types of liens.
Term
lis pendens
Definition
pending lien whereby the property described in the lien is involved or about to become involved in a lawsuit and may become subject of a judgment.
Term
Right of a Real Estate Broker to File a Lien
Definition
may create lien rights to secure payment of commission if both broker and owner agree to this in writing. The agreement must specify the propertys legal description and street address, give the broker the right to file and record the lien, and describe any fees owed the broker for performance of duties as stated in the listing agreement. This does not apply to a broker associate or sales associate.
Term
Foreclosure Defined
Definition

Foreclosure is a legal proceeding in court instituted by a lienholder to enforce the lien against the debtor when he or she is in default of the debt or charge or fails to perform some act to which he or she is bound. Foreclosure results in a public sale of the property covered by the lien with the proceeds of the sale used to pay (satisfy) the lienholders claim. Foreclosure also terminates all rights of the debtor in the property, including the debtors right of equity of redemption.

 

 

Term
prioroity of liens
Definition

1.

Special assessment lien (May 5)

$ 1,000

2.

Mechanics lien (dates back)

$ 16,000

3.

Mortgage lien (April 12)

$ 75,000

4.

Judgment lien (September 1)

$ 12,000

Term
Police power
Definition

right government retains over the title of real property owners toadopt and enforce laws, ordinances, codes, and regulations to protect, promote, and support the order, health, safety, morals, and general welfare of the public. Zoningordinances and building codes are examples of the exercise of police power.

 

 

Term
eminent domain
Definition

eminent domain is the right a government (city, county, state, or federal) retains over the title of real property owners to obtain title to property for public use, such as a highway right-of-way, school site, and so on. This right is exercised through a condemnation proceeding in court. The government is required to pay just compensation for the property, which is negotiated with the owner. In the event of a dispute, compensation is determined by a jury trial with costs paid by the government.

 

Term
Taxation lien
Definition
government retains the power of subjecting the title of real property owners to taxation. If taxes, such as real estate, special assessment, intangible, income, andestate, are not paid by the owner when due, the government can file a lien against the title and, if necessary, have the property sold through a tax foreclosure sale.
Term

Escheat

Definition

Escheat is the power the state government retains over the title of real propertyowners to obtain title to property when an individual dies intestate (leaving no will) and having no known heirs. Through this process the property escheats (reverts back) to the state.

Term
encumbrances
Definition

An encumbrance restricts the use of property or reduces its value, or both.

Example: Easements, encroachments, deed restrictions, licenses, leases, and liens.

 

Term
easement
Definition
easement is the legal right to enter upon anothers property. It is considered to be an interest in real estate.
Term
Easement in Gross
Definition
An easement in gross is a right in property given to an individual or a business entity. Utility easements are typical examples of easements in gross.
Term
easement of perscription
Definition

An easement by prescription is a method by which easement rights to use anothers property are acquired by adverse, hostile, open, uninterrupted, and continued use for 20 years. An example of such an easement is persons using a private driveway without the consent or agreement of the owner.

 

Term
encroachment
Definition

An encroachment is an unauthorized infringement on a property owners rights as a result of physical intrusion onto the owners property. Only an up-to-date survey will reveal an encroachment. A new survey must be completed because the encroachment would not appear in other documents, such as a deed or an earlier survey. If necessary, legal action may be brought to have an encroachment removed.

Example: A fence built over an adjoining owners property line.

 

Term
license
Definition

license is a personal and temporary privilege given by a property owner to another person to enter on or use the owners property. It is not assignable and can be revoked by the property owner at his or her pleasure.

Example: The right to use anothers swimming pool or hunt on anothers land.

Term
Deed restrictions
Definition
covenants placed in the deed containing limitations thatrestrict the right and ability to use the property. The most common deed restrictions include restrictions on use of the property and size, price, design, and setback lines of improvements. Deed restrictions are usually written to run in perpetuity; however, they may be for a set period of time. Provisions also may be made for periodic review.
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