Chapter 1 RE

Chapter 1 RE - Chapter 1: Real Estate Investment Basic...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 1: Real Estate Investment – Basic Legal Concepts (1) Abstract of title: A historical summary of the publicly recorded documents that affect a title (2) Bargain and Sale Deed: Conveys property without seller warranties; “as is” deed; Buyer of property takes title with no assurances from the seller and must take the initiative to determine whether any imperfections exist and, if desired, how to cure such defects (3) Deed: Usually title is conveyed from one person (the grantor) to another (the grantee) by means of a written instrument (4) Deed Restrictions: Limit the use of the property by all subsequent owners of that property (ex. Prohibit alcohol) (5) Easement: Nonpossessory interest in land; Right to use land that is owned or leased by someone else for some special purpose (e.g., as a right of way to and from one’s property) (6) Estate: All that a person owns (including realty and personalty) (7) Estate for Years: Type of leasehold estate investors and lenders are most likely to encounter; created by a lease that specifies an exact duration for the tenancy; the original fee owner is considered to have a leased fee estate. This means that he or she has given up some property rights to the lessee (the leasehold estate) (8) Estate from Year to Year: estate from period to period, or simply as a period tenancy; Continues for successive periods until either party gives proper notice of its intent to terminate at the end of one or more subsequent periods (9) Fee Simple Estate: (absolute) estate ; represents the most complete form of ownership of real estate (of freehold estate); free to divide up the fee into lesser estates and sell, lease, or borrow against them as he or she wishes (10) Freehold Estate: Lasts for an indefinite period of time; there is no definitely ascertainable date on which the estate ends; connotes ownership of the property by the estate holder (11) Future Estates: Estates not in possession; Do not convey right to enjoy the property until some time in the future (12) General Warranty Deed: Most commonly used deed in real estate transactions and most desirable type of deed form the buyer’s perspective; Offers the most comprehensive warranties about the quality of title; the grantor warrants that the title he or she conveys to the property is free and clear of all encumbrances other than those specifically listed in the deed (13) Leasehold Estate: describes rights/interests obtained by tenants when leasing or renting a property (14) Lender’s/Mortgagee Policy: insurance policy; Insures the interests of the mortgagee; payable to the mortgagee (15) Lessee: person who leases land; may have the right to possession and exclusive use of a property for a period of time. (16) Lessor: a person who holds title (17) Life Estate: Fewer ownership rights than a fee simple estate; Lasts only as long as the life of the owner of the estate or the life of some other person; upon death of that person, the property reverts back to the original
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 05/09/2011 for the course FIN 7310 taught by Professor K during the Spring '11 term at LA Tech.

Page1 / 10

Chapter 1 RE - Chapter 1: Real Estate Investment Basic...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online