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Real Estate Test 1
Cards for Test 1
81
Real Estate & Planning
Graduate
07/16/2012

Additional Real Estate & Planning Flashcards

 


 

Cards

Term
Doctrine of Ancient Lights
Definition

·      Long standing building owners with windows the right to maintain the sunlight that entered their buildings 

Term
Chattel
Definition
Personal Property
Term
Subterranean Rights
Definition

·      Includes anything below the land

o   Useful when valuable resources such as gold or oil lie below the surface

o   You can dig as far as you want but you have to make sure that you do not go into a neighbors property 

Term
Intangible Property
Definition

·      You can enjoy the benefit of being the payee on a promissory note

·      Annuity

o   A stream of income 

Term
Will
Definition
Doesn't have to be formal just has to be in writing
Term
Trust
Definition

1.   Inconjuction with a will or in place of it

2.   Can put in

a.   Car

b.   Golf clubs

c.    Dog

d.   Cash

e.   House

ú  This will help so you don’t have to do probate

·      Because then you would have to open up a court case and show that you have rights to this property

·      Probate is expensive 

Term
Interstate Succession
Definition
What happens to your property if you die without a will or a trust
Term

Acquisition of Real Property 

(4 types)

Definition

1. Inheritance

2. Gift

3. Purchase

4. Adverse Possession

Term
Settlor
Definition
The person who creates the living trust
Term
Trustee
Definition

To take care of the property 

Until the title is passed to the beneficiary 

Term
Beneficiary
Definition
This is the person who gets the property
Term
Devising
Definition
Conveying property by will
Term
California Doctrine of Adverse Possession
Definition

1.   Occupy continuously for 5 or more years

2.   Against the wishes of the owner

3.   Pay taxes

4.   Enclose the property

5.   Improve the property  

Term
Quiet Title
Definition
Who is the actual owner on a piece of real estate
Term
Tenant in Common
Definition

·      Default if there is no form of ownership listed

·      Own property jointly but upon death that persons interest passes on to his or her heirs

·      Lawsuit for Parton

o   The proceeds of the sale will be split and they will sell everything 

Term
Joint Tenancy
Definition
Term
Community Property
Definition
Term
Tenancy in Partnership
Definition
Term
4 Golden Rules of Community Property
Definition

1. Community Property- Any asset or income earned during M

2. Spousal Property- Any property acquired by a spouse before M or during M if acquired by gift, bequest, devise

3. At divorce à CP divided equally

4. At divorce à each spouse keeps his/her own SP 

Term
Transmutation
Definition

When CP goes to SP or visa versa 

At what time does the CP enhance the property

Term

Husband has home in Maine that was left to him worth $100,000

Wife goes and does interior design in it makes home worth $150,000

Definition

·      Husband will get $125,000

·      Wife will get $25,000

·      He gets $100,000 from home and ½ of the $50,000 

Term
Tenancy in Partnership
Definition

·      Is ownership option for two or more people who are co-owners of a business

o   If co-partner dies the heirs get assets

·      You can only use this for partnership business 

Term
Fee Simple Absolute
Definition

·      Indefinite Duration

·      No Restrictions

·      This is the “default estate”

Term

Fee Simple on Condition Subsequent 

Definition

·      Potential infinite duration

·      Can be terminated or limited by deed language

·      Look for “upon condition” or “provided that”

Term
Allienation
Definition

·      The right to transfer or convey property

·      Restriants on alienation could happen

o   IF this is harmful to society 

Term
Cannot commit waste
Definition

·      Doctrine of waste is that he exercises reasonable care

·      Who can bring a lawsuit if broken would be the person who has the remainder interest 

Term
Action to Quiet Title
Definition

·      The parties make arguments to see who owns a piece of property

o   You could just show the deed

o   You have 5 years from when the incident occurred like when you found out about the chickens

o   Need clear and convincing evidence 

Term
Title Examination
Definition

·      Trying to determine who owns the real estate

·      Do this in house

·      But hires a title report company to look it over again 

Term
Title Defects
Definition
Referred to as clouds
Term
Lis Pendens
Definition

·      This means suit pending

·      Only when the property is the enity being sued

Term

Writ of Attachment

Definition

·      When sueing but not over the home 

Term
Encumbrance 
Definition

·      Outstanding liens, mortgages, easements, rights of way, and abstract of judgment

Term
Race System Notice
Definition
Has no notice that someone has a prior superior interest  
Term
BFP
Definition

·      Bonified Purchaser for Value

·      Takes the property without any actual or constructive notice of a superior interest 

Term
Actual Notice
Definition
THis is when the person has actual knowledge of the fact
Term
Constructive Notice
Definition

·      When a document has been recorded with the County Recorder this is the notice for it 

Term
Escrow
Definition

·      Middle man hand the deed and cash over to make sure that the seller has clear title and that the purchaser and has money in the bank 

Term
Closing
Definition

·      When the actual real estate is consummated 

Term
ARM
Definition
Adjustable Rate Mortgage
Term
Fixed Mortgage
Definition
Same amount for every month of your term
Term
FICO
Definition
This is what you do for qualify for financing
Term
PMI
Definition

·      Private Mortgage insurance

o   This says that if you default on the loan then the bank can take it

o   If you cant come up with the down payment 

Term
Points
Definition
When the bank gives you a flat fee for purchasing a loan
Term
Balloon Payment
Definition
When at the end of the loan you give a lump sum of money
Term
Seller Financing
Definition
When the seller gives the buyer the deed in exchange for a promissory note
Term
Consideration
Definition

The bargain for exchange 

Ex. Money or a goat 

Term
Covenant
Definition
Word for promise
Term
Grant Deed
Definition

·      Includes 2 implied covenants (aka a promise)

o   Property cannot previously be conveyed

o   Free from encumbrances 

Term
Warranty Deed (Best Kind)
Definition

·      Property cannot previously be conveyed

·      Free from encumbrances

·      Any later claims of interest in the property 

Term
Quitclaim Deed
Definition
Conveys any interest that they have in the property 
Term
Easement 
Definition

·      The right to cross someone’s property for a limited or particular purpose 

Term
Two Types of Easements 
Definition

Easement Appurtenant 

Easement in Gross 

Term
Easement in Gross
Definition

·      This does not run with the land

·      Right to enter land but only for “personal benefit”

·      Does not benefit the holder in the sue of his own property

Term
Easement in Appurtenant 
Definition

§  If the HCE is bought by someone else the easement still applys it runs with the land 

Term
Dominant Tenement
Definition
The land is benefited
Term
Servient Tenement
Definition
The land that is passed upon 
Term
Difference between a license or easement 
Definition
A license is more temporary 
Term
Grant
Definition
a. When someone says that you can cross their property for $20,000
i. Ex. OCE walking onto HCE so that you can get the mail HCE agrees to an easement for $20,000
Term
Implication
Definition
Is that an easement has been implied for prior use
Term
Necessity
Definition
• Required that a property owner have an avenue of access across the property of another
• Ex. The only way to get to highway is though a property line
Term
Reservation
Definition
Seller sells the land but reserves the right to the easement piece of it
Term
Prescription
Definition
Prolonged Use

o You constantly ease on someones property for years and then since it has happened so long you can get a easement for it
o Needs these elements
• Prologed Use
• W/o permission
• Regular
• Open
Term
License
Definition
• A revocable privilege to do an act on the land of another
• Temporary
o Ex. Ticket to see a football game, you can enter the premise for one day
Term
Trespass
Definition
• The unlawful entry to another persons land
o Usually suing for money or injunction
o Can be by a person or object
Term
Injunction
Definition
Usually has to happen alot and to cause damages to the property
Term
Abatement
Definition
Court is requiring homeowner to eliminate a nuisance
Term
Nuisance
Definition
• An activity or conduct that substantially infers with an owners use and enjoyment of the property
• Ex. Odors, fumes, noise, smells
• Sue for this for punitive damages
Term
Prima Facie
Definition
Cannot come to the nuisance then sue for the nuisance
Term
Infermative Injunction
Definition
• An order to do something positive
o Asks a court to remove decking on a home so that the homeowner behind could see the ocean
Term
What are the requirements of an agency?
Definition
• Principal
• Agent
• Mutual Consent
• A subject to P’s control
• A fiduciary relationship
o Acting in the best interest
Term
What is not required of an agency?
Definition
• A written agreement
• A formal agreement
• Consideration
o Payment
Term
Duties of a agent.
Definition
LODD

• Loyalty
o Outside benefits
o Confidence
o No competition with principal
o No secret dealing
• No side deals with clients
o No conflict between P’s
• Like cannot defend a husband and wife in divorce
o Appropriate Behavior
• Obey Instructions
• Duty of Care
• Duty to Provide Info
Term
Duties of a principal
Definition
Reimbursement
Cooperation
Term
Gross Negligence
Definition
A mistake that a reasonable person would not
Term
Trees
Definition
o Right to cut trees that lean over property
o Spite Fence
• Over 10 feet and put there to annoy your neighbors
Term
Fences
Definition
o Mutual Obligation to maintain a fence that divides property
• What kind of fence
• Is there are existing conflict
Term
Division Fence
Definition
• A fence that rests upon the boundary of adjacent properties cost is shared by owner
Term
Farming
Definition
o If a farm did not present a nuisance to a nearby residence when farming was initially undertaken after 3 years of operation it cannot be considered a nuisance due to later changes in circumstances
Term
Boundary Disputes
Definition
o Allows property owners to establish a boundary line when the actual boundary line is uncertain
Term
Encroachment
Definition
An actual structure built on property
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