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

Info icon This 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 grantor (transferor of property), his or her heirs, or any other designated person
Image of page 1

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

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

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern