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Level 13

Title, Deeds & Ownership Restrictions


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Buyer's Market
When the supply of available properties exceeds the demand.
Margin
The % that is added to the index to calculate each interest rate change in an adjustable-rate mortgage. It
Immune
Real property that is owned by a unit of government and is not subject to taxation.
Principal Meridians
Imaginary lines running north and south and crossing a base line at a definite point; used
Partially exempt
Property subject to taxation but the owner is partially relieved of the burden.
Dual Agent
A broker who represents as a fiduciary both the buyer and the seller in a residential real estate
Owner-developer
An unlicensed entity that sells, exchanges or leases its own property.
Active License
A current valid license registered w/the DBPR. The status required to actively engage in the real
Failure to account for and deliver
The act of failing to pay money to a person entitled to receive it.
Negative Leverage
Borrowed funds cost more than the income the funds generate.
Net Operating Income (NOI)
The resulting amount when all operating expenses are subtracted from effective gross
At arm's length
People dealing at arm's length conduct negotiations on their own behalf w/out trusting the other's
Gambrel roof
A curb roof, having a steep lower slope and a flatter one above, as seen in a Dutch colonial
Blanket mortgage
One debt instrument covering two or more parcels.
Equity
An investor's own funds in a real estate investment property (the interest an owner has in property over and
Flag lot
A lot characterized by a long access road or driveway leading back to the main part of the lot.
Long-term capital gain
A gain on a capital assets that has been held for more than one year, resulting in a more
Transaction value
The loan amount in most appraisal assignments.
Negative amortization
A financing arrangement whereby monthly mortgage payments are less than required to pay both
Constructive notice
The recording of a document or an instrument in the public records designed to give adequate
Mutual recognition agreement
A transactional agreement between FL and another state that provides for the two
Homestead
FL law provides certain types of protection and benefits to homeowners regarding their permanent
Moral turpitude
Conduct contrary to honesty, good morals, justice and accepted custom.
Metes-and-bounds description
The most accurate method of land description that is used to describe both regular
Sales comparison approach
A method for estimating the market value of a property by comparing similar
Acceleration clause
Authorizes the mortgagee to accelerate or advance the due date of the entire unpaid balance
Development of regional impact (DRI)
Any development that because of its character magnitude, or location could
Compensation
Anything of value or valuable consideration, directly or indirectly paid, promised, or expected to
Buffer zone
A strip of land separating one land use from another.
Due on sale clause
A provision in a conventional mortgage that allows the mortgagee to call due the outstanding
Mortgagee
A lender who holds a mortgage on specific property as security for the money loaned to the borrower.
Triggering Terms
Certain credit terms or specific financing information included in an advertisement. Trigger
Equity of redemption
Allows the mortgagor to prevent foreclosure from occurring by paying to the mortgagee the
Investment value
The worth of a property to an individual investor based on that investor's individual
Biweekly mortgage
A mortgage loan amortized the same way as other loans w/monthly payments except that the
No brokerage relationship
An arrangement in which the broker does not represent either the buyer or the seller
Exclusive right of sale listing
A listing given to one broker who is assured of a commission no matter who sells the
Declaration of condominium
A recorded document that creates the condominium.
Valid
Sufficient to be legally binding; enforceable.
Deed in lieu of foreclosure
A friendly foreclosure (non judicial procedure) in which the mortgagor gives title
Assignment of mortgage
A legal instrument that states that the mortgagee assigns (transfers) the mortgage and
Caveat emptor
Let the buyer beware! Buyers are responsible for their own knowledge in real estate transactions.
Mill
One one-thousandth of a dollar or one-tenth of a cent.
Prorate
To divide various debts (charges) and credits between buyer and seller; a proration is a shared expense
Life estate
A freehold estate that ends w/the death of a named person; ownership for an individual's natural
Legal Title
Right of ownership ; evidenced by deed
Equitable Title
ownership interest evidenced by possession; right to receive legal title
Land Patent
Public grant conveying title to land
Types of Notice
Actual (possession) plus constructive (recording)
Personal Representative
Adminisisters estate of descendent; court appointed
Words of Conveyance
Grant
Warranty Deed (General Warranty Deed)
4 covenants plus WARRANTY FOREVER; required to deliver warranty deed unless
Covenant of Seizin
owns and has right to convey
Covenant of no Encumbrances
grantee given notice of all encumbrances
Covenant of quiet enjoyment
assurance of possession; grantee cannot be dispossessed
Granting Or premises
contains words of conveyance, legal description, names grantor and grantee
Special Warranty Deed
Only warrants title during time grantor owns
Bargain and Sale Deed
Grants
Quit-claim deed
Contains NO coverage or warranty;CLEAR CLOUDS; no warrants or covenants
Encumbrances
Claims affecting condition of title aka clouds
Notice of Lis Pednens
Notice of legal action
A person who holds vested ownership rights in property is said to have _____.
title
_________ title is a implies that a person will receive legal title at a future date.
equitable
another.
Alienation
A ________ is a legal instrument that conveys title to real and personal property after a person's death.
will
__________ is when the decedent died leaving a will behind.
Testate
Conveyance of real property in a will is considered to be _________ alienation.
voluntary.
When a person dies _________ they died without leaven a will.
intestate
When a person dies intestate their property goes to their legal descendants also known as _____.
heirs
process called __________.
escheat
The mnemonic device for remembering the means of adverse possession is ____ ____.
HOT CAN
A government can legally take land from an owner through a process called __________.
condemnation
If a government seizes a property through condemnation it must be for ________ purposes.
public
_________ domain gives the government a right to take property from an owner through condemnation.
Eminent
When a government seizes land under eminent domain they must pay a _____ price.
fair
When eminent domain is exercised it is an __________ form of alienation.
involuntary
on a house for a pool contract.
actual
_________ notice is accomplished by recording information in public records.
constructive
A _______ of ______ is the complete successive record of property ownership.
chain of title
title.
title search.
In Florida a title search is limited to _____ years.
30
The original source of the title is known as the ____ of _____.
root of title
If there is a gap in the chain of title a court proceeding might be necessary to _______ ________.
quiet title
An ______ of title is a summary of what the title search found in the public record.
abstract
recorded?
No.
of title and give an _________ of _______.
opinion of title
Which type of title insurance policy protect's new owners?
Owner's policy
Which type of title insurance policy protect's lenders?
Lender's policy
The two parties to a deed are the _________ (current owner) and the _______(New owner).
grantor, grantee
How many witnesses must there be when a deed is signed in order for it to be valid?
2
What is the mnemonic device for remembering the elements of a deed?
CEDDING
What 4 types of deeds are there?
quitclaim, bargain and sales, special warranty and general warranty
Which deed has the fewest covenants and warranties?
the quitclaim deed
A quitclaim deed can be used as a means of _______ title.
quieting
deed also has three unique covenants, what are they?
quiet enjoyment, further assurance, warranty forever
The quiet enjoyment covenant of a general warranty deed insures what?
peaceful possession undisturbed by claims of
The further assurance covenant of a general warranty deed insures what?
guarantees the grantor will sign and
The warranty forever covenant of a general warranty deed insures what?
the grantor will always defend the grantee's
When an owner cannot sign a deed, three types of special purposes deed exist. What are they?
personal
A guardian's deed is usually signed on behalf of a _______ child.
minor
When is a committee appointed to sign a committee's deed?
When the grantor is incompetent
In a foreclosure sale who assumes all risks for title defects?
the buyer
require?
general warranty deed
by the __________.
grantee
Revolution, the act that taxed all paper
stamp
There are two general categories of restrictions, what are they?
public/government and private
_______ power is the broadest form of government restrictions on property owners.
police
What is property taxation used to pay for?
benefits and protections provided by various levels of government:
What are the four most important subcategories of private limitations on property ownership?
deed restrictions,
Restrictive covenants, recorded along with subdivision plat maps usually affect an entire ____________.
subdivision
What two main types of easements exist?
easement appurtenant, and easement in gross
What two types of easement are created by a court of law?
easement by necessity, easement by prescription
and openly used?
20 years
An __________ is the unauthorized use of another's property.
encroachment
When an encroachment has existed for __ or more years it may create an implied easement.
7
In Florida, in order to be enforceable a lease of more than one year must be in _________.
writing
What are the 5 requirements of a valid lease?
names and signatures of landlord and tenant, legal capacity of
If a lease is for more than one year, how many witnesses must sign it?
2
repairs.
fixed, expenses
Net leases are typically used for _________ property.
commercial
The number of 'nets' in a net lease indicate that the tenant is taking on more and more _________.
expenses
In a __________ lease the tenant pays rent based on gross sales.
percentage
the consumer price index (CPI).
variable
In a _________ lease the tenant leases the land only and erects a building on the land.
ground
Are the five types of leases mutually exclusive?
No. There can be a combination of lease stipulations that
__________ of a lease occurs when a tenant assigns the lease of a property to another person.
Assignment
________ is used to give another person only part of an existing lease.
Subleasing
Liens are broadly classified as _________ and _________.
voluntary and involuntary
An ______ lien is when property owner fails to pay federal income tax.
IRS
An ________ tax lien are imposed against a decedent's taxable assets.
estate
A __________ lien applies only to a specific property.
specific
A construction lien is based on the premise of ________ enrichment.
unjust
_________ liens take priority over all other liens.
Superior
What are the three types of superior liens ?
Real estate tax liens, special assessment liens, federal estate tax
What are the four types of junior liens?
mortgage liens, judgement liens, vendor's liens, income tax IRS
The priority of liens can be changed by a ________ agreement.
subordination
Abstract of title
Is a summary report of what a title search found in the public record
Acknowledgment
Is the formal declaration before a notary public by the grantor that the grantors signing is a free
Actual notice
Is direct knowledge acquired in the course of the transaction, such as having actually seen the deed
Assignment of a lease
Occurs when a lessee (tenant) assigned to another person all of the leased property for the
Construction lien
Is a statutory right of material suppliers or laborers to place a lien on property that is
Future assurance
Is a promise in a Gen. warranty deed that guarantees the grantor will sign and deliver any
General warranty deed
Is the most common type of deed for conveying real estate, and it contains all the covenants
Granting clause
Is a clause in a deed that contains the premises or words of conveyance.
Habendum clause
Describes the type of estate being conveyed and starts with the words "to have and to hold".
Lenders policy
Is title insurance issued for the amount of the mortgage debt to protect the lender
Owners policy
Is title insurance for the total purchase price of the property to protect the new owner
Seisin
is the clause that promise that the grantor has the right to convey title (A statement of ownership)
Types of voluntary alienation
Deed and will (are types of...)
Types of involuntary alienation
Descent, escheat to the state, adverse possession, and eminent domain (are types
Two types of notice
Actual and constructive (are types of...)
In regards to a title, licensee must advise...
Must advise the buyer to either contact an attorney or title
How much is an owner's policy issued for?
Is issued for the purchase price
An owners policy claim will pay...
Will pay up to the purchase price
An owners policy benefits...
Benefits owner and his or her heirs
Is an owner's policy transferable
No, it's not transferable
A lenders policy is issued for...
Is issued for the loan amount
Lenders policy claim will pay up to..
Will pay up to the current loan balance
Is a lender's policy transferable?
Yes, it is transferable
Who pays for a lender's policy?
The buyer typically pays for this closing expense.
Name the four statutory deeds
Quitclaim deed
Three special covenants in a general warranty deed
Quiet enjoyment
Government restrictions on ownership
PET
Private restrictions on owners
Deed restrictions
Variable lease
Index lease
General liens include...
Judgment lien
Of vendors lien is created when...
Is created when a purchase-money mortgage is recorded by the seller.
Priority of a vendor's lien
priority is established by date of recording.
Construction lien must be filed
within 90 days after last work is done and assumes priority over mortgage liens
Lien priority
determines the order in which the liens will be paid off if the property must be sold.
superior liens
property tax and special assessment liens- take priority over all other liens.
Priority of most liens
is the date and time that the liens was recorded with the clerk of the circuit court in the
priority of IRS liens
is based on the recording date
subordination agreement
changes the priority of liens