Real Estate And Real Property Ownership

Chapters 1-20 Real Estate And Real Property

This chapter is about real estate and real property.


general lien

A lien that attaches to all property owned by an individual. Real and personal.


involuntary lien

A lien placed on property without the consent of the property owner.


license

the act of giving a formal (usually written) authorization


lis pendens

a pending lawsuit


mechanics’s lien/materialman’s lien

Lien imposed by law on real property to secure payment for work performed or materials furnished for the construction, repair or alteration of improvements on the real property


mortgage

a conditional conveyance of property as security for the repayment of a loan


nonpossessory interest

In the context of real property, an interest in land that does not include any right to possess the property.


party wall easement

A wall that is located on a boundary line between two adjoining parcels of land.


right of way

the privilege of someone to pass over land belonging to someone else


service tenement

the land or tenement over which an easement or other encumbrance is exercised by the dominant tenement


specific lien

A lien that is secured by a specific parcel of property and affects only that particular property


subordination agreement

An agreement by the holder of an encumbrance against real property to permit that claim to take an inferior position to other encumbrances against the property.


tax lien

A charge against property, created by operation of law. Tax liens and assessments take priority over all other liens.


voluntary lien

a lien created intentionally by the property owners action, such as when someone takes out a mortgage loan


acknowledgement

using a notary public to demonstrate that a document was voluntarily signed….


adverse possession

getting the title so someone else’s real property by possessing it. possession must be open and notorious, hostile and adverse, exclusive, and continuous for a prescribed number of years (10 in NY)


bargain and sale deed

A deed that carries with it no warranties against liens or other encumbrances but that does imply that the grantor has the right to convey title. The grantor may add warranties to the deed at his or her discretion


block and lot

legal description used for platted property which is land that has been subdivided into blocks and lots.


consideration

anything of value such as money, goods, services, or promises given to induct another person to enter a contractor


conveyance

document effecting a property transfer


dedication

a gift of land from an owner to the government


deed

the official document transferring ownership from seller to buyer


devise

real property transferred in a will, to transfer real property by a will


delivery and acceptance

when the grantor delivers the deed and the grantee accepts the deed. this is necessary for conveyance of title.


executor

a person appointed by a testator to carry out the terms of the will


foreclosure

when a bank takes back a property and auctions it off to recover the unpaid loan amount


full covenant and warranty deed

A deed that provides the greatest protection, in which the grantor makes five legal Promises (covenants of seisin, quiet enjoyment, further assurances, warranty forever, against encumbrances) that the grantee’s ownership will be unchallenged,


grant

transfer by deed


grantee

a recipient of a grant


grantor

The person transferring title to or an interest in real property to a grantee


habendum clause

that part of deed which begins “to hand and to hold”; defines extent of ownership


involuntary alienation

means the grantor (owner of the property) did not have a choice; that the law determined that the property would be transferred as in eminent domain or other government interferences.


metes and bounds

Legal description that begins at a well marked point and follows the boundaries around the tract, back to the place of beginning


plat

a detailed survey map of a subdivision recorded in the county where the land is located


quitclaim deed

document transferring title or right or claim to another


referee’s deed

Awarded by auctioneer (referee) when property is bought at auction. Carries no warranties but implies grantor has legal title.


sheriff’s deed

an instrument drawn under court order to convey title to property sold to satisfy a judgment


survey

the process of locating and measuring the boundaries of a property, and identifying improvements, encroachments, and easements associate with the land


voluntary alienation

Voluntary transfer of title to Real Estate property, either a gift or selling of property


abstract of title

A history of the ownership of a parcel of land which lists transfers of title, rights, and liabilities.


actual notice

The actual knowledge that a person has about the existence of a particular fact.


chain of title

Succession of conveyances from some accepted starting point, whereby the present hold of title derives the title, there should be no “breaks” in the succession


closing statement

Detailed cash accounting of a real estate transaction showing all cash received, all charges and credits made and all cash paid out in the transaction


cloud on the title

any outstanding claim or encumbrance which would, if valid, affect or impair the owner’s title to a particular estate. While the cloud remains, the owner is prevented from conveying marketable title


construct notice

provides protection to a landowner against all unrecorded titles


credits

money received for an obligation given


debits

charges against an account


hud-1 settlement statement

A closing statement or settlement sheet that outlines all closing costs on a real estate transaction or refinancing.


marketable title

Good or clear title, reasonably free from the risk of litigation over possible defects


proration

Dividing property taxes, hazard insurance and other expenses or income between the buyer and seller, as of date of settlement.


real estate settlement procedures act (respa)

A federal law requiring the disclosure to borrowers of settlement (closing) procedures and costs by means of a pamphlet and forms prescribed by the United States Department of Housing and Urban Development., A federal law requiring lenders to provide information on all costs associated with closing a residential loan within three business days of the loan application, to use the HUD-1 closing statement, to limit required escrow deposits, and to avoid kickbacks on loan-related services.


reconciliation

verifying debits and credits have been added and subtracted correctly on a real estate settlement statement


settlement statement

A statement listing the funds required at closing, which should be furnished to the buyer by the real estate broker at least one business day before closing for review.


survey

the process of locating an measuring the boundaries of a property, and identifying improvements, encroachments, and easements associated with the land


title

actual document showing that you own a property


title insurance

a type of insurance that protects the buyer in case problems with the title are found later


title search

an examination of documents recording title to the property to ensure the owner has a clear title


listing agreement

A contract between an owner (as Principal) and a real estate broker (as agent) by which the broker is employed as agent to find a buyer for the owner’s real estate on the owner’s terms, for which service the owner agrees to pay a commission


loyalty

gotta stay loyal to the clients and customers that you represent/service


misrepresentation

stating an untrue fact


negligence

carelessness


net listing

…, A listing based on the net price the seller will receive if the property is sold. Under a net listing the broker can offer the property for sale at the highest price obtainable to increase the commission. This type of listing is illegal in many states.


non solicitation orders

prohibits the solicitation of residential property listings, and applies to all real estate brokers and agents; ruled unconstitutional by the us court of appeals


obedience

the agent must act with obedience and obey all legal and reasonable instructions from the client


offer of compensation

The commission that will be paid on the sale of property.


open listing

Multiple agents; only the selling agent (broker) entitled to commission; seller retains right to sell independently without obligation to pay anyone a commission


ostensible agency

A form of implied agency relationship created by the actions of the parties involved rather than by written agreement or document


price fixing

an antitrust violation in which competitors set a standard commission rate


principal

buyer or seller


procuring cause

In order to be paid, the broker starts an uninterrupted chain of events that results in a sale


renunciation

when someone who has been granted something or has accepted something later gives it up or rejects it; as when an agent withdraws from the agency relationship


revocation

The termination of a licensee’s privilege to practice real estate


self-dealing

agent buys principal’s property himself or sells it to a relative, friend or associate, w/o disclosing that fact to principal, in violation of fiduciary duties, earns secret profit


stigmatized property

properties that do not have any physical defects but have become less marketable because they were the scene of a crime, suicide, or other undesirable event


subagent

the party to whom an agent delegates some of his/her authority


tie-in arrangement

requiring the consumer as a condition of a transaction to use ore not use a particular service or product, illegal in NY


undisclosed dual agency

Representation of both principal parties in the same transaction without full written disclosure ;and approval from all parties.


undivided loyalty

A fiduciary obligation that is given up by both the buyer and seller when they consent to dual agency.


appurtenance

a right that goes with real property ownership usually transferred with the property but may be sold separately


beneficiary

the recipient of funds or other benefits


bundle of legal rights

Ownership of all legal rights: control, possession, use, disposition, enjoyment


chattel

personal as opposed to real property


emblements

Annual, harvestable crops such as corn, wheat; personal property


fee on condition

the previous owner forbids or restricts you from doing something or the ownership is voidable


fee simple estate

The complete ownership of a property; may be either absolute or conditional.


fixture

a object firmly fixed in place (especially in a household)


joint tenancy

Co-ownership of real estate; when one of the owners dies, that interest goes to the remaining owners (right of survivorship)


land

territory over which rule or control is exercised


leasehold estate

Tenant’s right to occupy real estate during the term of a lease, generally considered to be a personal property interest


life/estate/life estate pur autre vie

Also known as the estate for the life of another.The estate is owned for the lifetime of some named third party. Example: A farmer gives farm to a daughter in law for benefit of grandchildren. If the grandchildren die, the property automatically reverts back to the farmer or a third person.


littoral rights

(1) A land owner’s claim to use water in large navigable lakes and ocean’s adjacent to his or her property. (2) The ownership rights to land bordering these bodies of water up to the high water mark.


parcel

piece of real estate


partition

allows any co-owner to end a joint tenancy


personal property

Movable objects, not real property, sometimes called chattels, such as cars, cash, stock


possessory interest

any entitlement that gives one the right to the land at a given moment. The holder has the right to possess the land now.


qualified fee

.ownership with terms or conditions which if violated could cause the ownership to be defeated or

terminated


real property

.property consisting of houses and land


right of survivorship

When a joint tenant dies, his or her interest passes to the remaining owners of the property; becomes an issue only at death of one of the owners


riparian rights

Owner’s rights in land that borders on or includes a stream, river or lake. Rights include access to and use of the water


severalty

Ownership of real estate by one person only; although a corporation (single entity) can own in severalty


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