Term
| A1) Feudal System vs. Allodial System |
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Definition
Feudal System - King owns the land
Allodial System - Ownership (the deed) can be granted |
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Term
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Definition
| The rights or interests a person has in what he owns |
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Term
| A1) What is the "bundle of rights"? (U.P.E.T.E) |
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Definition
Usage
Possession
Exclude others
Transfer
Encumber (use as collatoral)
*there is no right of destruction |
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Term
| A1) What is corporeal property? |
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Definition
| Land and tenements (man made structures) |
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Term
| A1) What is included in the land rights |
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Definition
| Surface, subsurface (mineral rights), and Air rights |
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Term
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Definition
| Man made structures: Buildings and improvements, Fixtures, Natural Fruits |
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Term
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Definition
| Personal property attached to real property (Ex. Ceiling fans) |
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Term
| A1) What are the legal tests for whether fixtures stay with the land? (MARIA) |
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Definition
Method of attachment (how permanent)
Agreement (What have the parties decided?)
Relationship
Intent
Adaptability (how does it fit to the property?)
*Cost is NEVER a factor |
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Term
| A1) What are Trade Fixtures? |
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Definition
| Business related and can be removed by departing tenants |
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Term
| A1) What are the physical characteristics of REAL property? |
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Definition
Immobility
Indestructibility
Non-homogeneity (no 2 parcels are the same)
and the Law of Situs (governed by the laws where it is located) |
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Term
| A1) What is Chattel and how can it be transferred? |
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Definition
| Personal property can be transferred with a bill of sale |
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Term
| A1) What is the right of emblements? |
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Definition
| This gives the tenants (farmers) the right to harvest money crops that mature after they leave |
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Term
| A1) What are "incorporeal rights"? |
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Definition
| Non-physical rights such "hereditaments" (rights of inheritance) and the rights-of-way (easements) |
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Term
| A1) What are the economic characteristics of REAL property? |
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Definition
Scarcity
Modification (improvements, add ons)
Fixity (frozen asset, hard to liquidate)
Law of Situs (governed by the laws where it is located) |
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Term
| A1) What are the two classifications of water? |
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Definition
| Ground water and surface water |
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Term
| A1) Who controls all water rights in Arizona? |
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Definition
| Arizona Department of Water Resource |
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Term
| A1) What is an exempt domestic well? |
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Definition
| A well with a maximum pump capacity of 35 gallons per minute and that waters less than 2 acres |
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Term
| A1) What is prior appropriation when it comes to surface water? |
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Definition
| individual permits to use surface water issued on a first in time - first in right basis |
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Term
| A1) Water Measurement - Acre foot |
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Definition
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Term
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Definition
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Term
A1) Property adjacent to or abutting water:
navigable vs non-navigable |
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Definition
Navigable - property stops at the high water line
Non-navigable - Extends to the low water line (center of the stream) |
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Term
| A1) What are the government rights, regulations, and controls? (PETE) |
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Definition
Police Power
Eminent Domain
Taxation
Escheat |
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Term
| A1) What is Police Power? |
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Definition
Power to limit, regulate, and confiscate,
Includes zoning and city planning |
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Term
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Definition
| Regulation of the ways a property can be used |
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Term
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Definition
| Rezoning an area because of a hardship |
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Term
| A1) 4 land use classifications (IRAC) |
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Definition
Industrial
Residential
Agriculture
Commercial |
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Term
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Definition
| A charge against R.E to raise funds to meet public needs of Government. |
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Term
| A1) What is "Ad valorem"? |
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Definition
Ad Valorem means "by value",
more value = more taxes |
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Term
| A1) Taxes are levied vs paid |
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Definition
Levied annually and Paid semi-annually
Levied January first and paid Oct 1 and Mar 1 |
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Term
| A1) Assessment ratios for property taxes |
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Definition
Residential - 10%
Vacant Land - 16%
Commercial/ Industrial - 20% |
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Term
| A1) What are the delinquency dates for property taxes? |
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Definition
1st half - Nov 1
2nd half - May 1 |
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Term
| A1) Describe a property tax lien sale |
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Definition
The taxes are 1 1/2 years late
Sold at an auction to the lowest bidder
Winner receives a certificate of purchase
Owner may redeem within 3 years, if home owner doesn't pay then may seek compensation through a tax foreclosure sale |
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Term
| Name the two types of estates and describe their differences |
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Definition
Freehold - indefinite duration
Less than freehold (lease hold) - definite duration |
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Term
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Definition
| An estate that can be taken from the current holder due to an "if clause" (defeatable) |
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Term
| Which type of estate will revert automatically to the original holder if a condition occurs? |
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Definition
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Term
| Which type of estate "might" revert to the original holder if a condition is not met? |
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Definition
| Fee conditional, but the original holder must choose to exercise his right. |
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Term
| What is a future estate called? |
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Definition
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Term
| What is fee tail (not legal in AZ) |
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Definition
| The estate must go to a blood relative |
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Term
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Definition
*The estate will be granted for the life of the grantee and then will revert back to original holder
*can be "por autre vi" on the life of another
*must have a future estate included; reversion or remainder |
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Term
| What rights does a life tenant not have? |
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Definition
| transfer, destroy, or pass to heirs |
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Term
| What is a dower and a curtesy? |
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Definition
| When spouses grant interest in estate to each other. Dower = husband to wife, Curtesy = wife to husband |
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Term
| What protection does a home owner have for their equity? |
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Definition
A homestead
*Protects up to $150,000 against unexpected liens and judgements
*Is automatic in primary residence
*Can still have protected equity if placed in an account and not touched |
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Term
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Definition
| Less than freehold estates, chattel real (permission to use real estate), personal property |
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Term
| What are the 4 types of a leasehold estate? |
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Definition
Estate for years: definite beginning and end
Estate from period to period: uncertain ending
Estate at will: Either party can terminate w/ out notice
Estate at sufferance: at least one party isn't happy |
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Term
| When must a lease be in writing? |
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Definition
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Term
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Definition
| The Lessor, Lessee will show acceptance by their actions. |
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Term
| What does "let and demise" refer to in a lease? |
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Definition
| Lessee will be willing to give up property upon request |
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Term
| What type of lease includes all the bills in the rent payment |
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Definition
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Term
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Definition
| Renter pays taxes, insurance, etc. and Lessor receives the net |
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Term
| Give an example of a percentage lease |
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Definition
| A boutique that is benefiting fram a bigger store in the same building; lower rent but pays a percentage of gross sales as well |
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Term
| What is a Graduated lease? A index lease? |
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Definition
| A graduated lease and index lease are similar in concept as they both may raise or lower over time but the index lease is based on the consumer price index with a set margin, and graduated leases start low and raise over time |
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Term
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Definition
| One person owns the land, and another the improvements, these are usually long term and are typically commercial. Max lease duration of 99 years. |
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Term
| What are the different ways to terminate a lease? |
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Definition
Expiration of term - no notice required
Agreement of parties, abandonment by the lessee, destruction of property, condemnation under eminent domain, merger of leasehold and fee estates, broach of terms by either party, or death |
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Term
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Definition
| A right acquired by one party to use the land of another for a special purpose |
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Term
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Definition
"Runs with the land" If property is sold then the easement remains.
Involves a servient property and a dominant property |
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Term
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Definition
| A right or interest held by a person not a property and owner of the easement does not need to own adjacent property |
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Term
| How might an easement be created? |
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Definition
| Express agreement, implication- necessity usually an issue of access to the property, or by prescription |
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Term
| What are the different ways an estate can be held? (5 types of tenancy) |
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Definition
| Sole and seperate, co-ownership, Tenancy in common, joint tenancy, community property |
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Term
| Name the 4 methods that a title of real estate can be transfered |
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Definition
Voluntary alienation - left on your own free will
Involuntary alienation - Sheriffs deed, Treasurers deed, adverse possession
Descent - Died intestate w/out a will
Will - Died testate |
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Term
| Who are the parties to a deed? |
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Definition
Grantor - givOR of the deed
Grantee - recEEver of the deed (does not have to sign the deed) |
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Term
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Definition
| A real estate broker, an attorney, an owner of property |
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Term
| What are the basic requirements of a deed? |
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Definition
It must be in writing
The grantor must be considered "competent"
Identifiable grantee
Granting Clause
Legal Description - IMPORTANT
Legal consideration - (valuable or love and affection)
Signature of grantor at least
Acknowledgement
Delivery to grantee (Actual, hand to hand, or Escrow) |
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Term
| Describe the optional habendum clause. |
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Definition
| This clause specifies the degree or interest being conveyed, "to have and to hold" |
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Term
| What are exceptions or reservations |
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Definition
| An owner keeps title to a portion of the property. An example would be when the owner retains mineral rights |
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Term
| What is the covenant of seizin? |
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Definition
| The grantor has the right to convey or sell the title. |
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Term
| Which covenant does the grantor promise to defend the grantee against the claims of third parties? |
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Definition
| Covenant of Quiet enjoyment |
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Term
| Which covenant promises that there are only the encumberances that have been revealed? |
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Definition
| Covenant against encumberances |
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Term
| Which deeds have covenants? |
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Definition
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Term
| Which warranty obligates the grantor to perfect the title and is in special and general deeds? |
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Definition
| The warranty of further assurance |
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Term
| Describe the warranty forever? |
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Definition
| This requires the grantor to defend the grantee's title forever, it is only contained in the general warranty deed. |
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Term
| Which is the first title granted by the gov't to an individual? |
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Definition
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Term
| What is a bargain and sale deed? (involuntary alienation) |
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Definition
| These are deeds that are transferred with no warranties and often involve foreclosure. They include: Sheriff's, treasurer's, Executor's deed, Trustee's (bankruptcy) |
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Term
| What is a quit claim deed used for? |
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Definition
| To release an interest (remove a cloud on the title) Contains no covenants or warranties and is not designed to convey. |
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Term
| What would gift deed, disclaimer deed, correction deed, and fiduciary deeds be considered? |
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Definition
| These are releasing deeds. |
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Term
| What is the purpose of recording the deed? |
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Definition
| Recordation is not mandatory but gives enforceability of claim to title, and allows for chain of title |
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Term
| What does an affidavit of value do? |
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Definition
| This helps the county assessor determine value for tax purposes |
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Term
| How can a person recover or retain a piece of real property? |
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Definition
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Term
| Abstract of title with possession, unrecorded deed with no possession, Recorded deed with no possession, unrecorded deed with possession, and recorded deed with possession all show? |
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Definition
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Term
| The strongest quality of claim to title would be a... |
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Definition
| recorded title with possession. |
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Term
| An abstract of title is a... |
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Definition
| Chronological history of title |
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Term
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Definition
| for the benefit of the buyer and is paid for by the seller in the amount of the purchase price. |
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Term
| What does an owners policy actually cover? |
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Definition
| Errors by the title insurance company, incorrectly given marital status, and hidden or undiscovered defects. |
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Term
| A Lenders policy (aka ALTA, extended coverage, or broad form coverage) is... |
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Definition
| for the benefit of the lender (mortgagee, or beneficiary) and is paid for by the borrower. This is issued in the amount of the loan to insure the lender has an enforceable lien. |
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Term
| Items in the public record, gaps in the chain of title, and gov't rights are insured by ALTA, True or false? |
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Definition
| False, the lender's policy only insures against rights of parties in possession, unrecorded documents, questions of survey? |
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Term
| When you waive your rights in exchange for something else that is called? |
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Definition
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Term
| Allowing someone else to take first lien position in place of you is called? |
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Definition
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Term
| A schedule A does what with the estate covered? |
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Definition
| Gives the name of the insured, a Legal description, and defines the estate covered. |
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Term
| All the standard exceptions, and special exceptions can be found in the? |
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Definition
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Term
| Involuntary alienation can be caused by natural causes such as? |
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Definition
| alienation such as erosion and avulsion, or Acquisition such as accretion, alluvial deposits, and reliction. |
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Term
| Involuntary alienation can be caused by Operations of law such as? |
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Definition
| Foreclosure, bankruptcy sale, Mortgage foreclosure, Trustee's sale, judgement execution, or escheat. |
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Term
| First grant or patent in a chain of title is issued by? |
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Definition
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