Real Law Test 2 Flashcards

Terms Definitions
Difference between easement and license...




personal right-cant be sold



written document


changes with ownership of land

cannot be revoked

Working Interest
lessee's share of oil
list of all transactions in chrono
Whoever owns the dominant tenement owns the easement...can there be a seperate sale of the easement?
The Landlord-Tenant Law prevails over what the lease says.
Most mortgage loans are repaid semiannually.
ex. municipalities,federal, state, and local governments
private encumbrance
Contract Provisions
contingency clause to leave contract if unable to acquire all desired lots
Dominant Tenement
has the benefit of the easement
Quitclaim Deed
convey only the grantors present interest in real estate, rather than th real estate itself...used when the grantor knows the title held has a flaw
Fructus Naturales
trees, perennial bushes, grasses etc. which do not require annual cultivation are considered real estate
An owner's title insurance policy is not transferable to a purchaser of the property.
Samuel Adams signed his Boston townhouse to Harrison Stone. Who is required to sign the deed in connection with the transfer of ownership?
Samuel Adams.
Who has the equitable title?
Buyer during the gap
Forced dedication is an example of what power that a city possess's.
Police Power
Phase I audit
not involve testing or sampling....due diligence to see if measures are necessary..looking for a reason to inspect
Land Trust
If Frank wants  to acquire his property but does not want his family to he conveys the land to Charlie the Trustee only acts if directed to... the agreement from Charlie and Frank is unrecorded
Competancy of the Grantor
Legal Age and Sound Mind

Tenant signs a written agreement with the owner for the rental of an apartment, for one year, and later moves in. This is a _____
Tenant under lease
A loan can always be prepaid before its maturity.
A real estate contract must be in writing to be enforceable.
In the absence of an express covenant for title, the full risk of title failure falls on the purchaser of real property.
building codes
Public laws that regulate methods and materials to be used in the construction of improvements.
Steps a buyer should take when entering into a "Sale-subject to" transaction.
Read carefully
Estoppel certificate...states the principal and interest, balance due, whether the loan is in default, penalties, and tax and insurance escrow
Title insurance
If payments include tax and insurance
As long as the landowner is left with an economically viable use of the land, a taking will not be found.
Ground Lease
the landowner leases the land only to a tenant who covenants in the lease to erect a building on the premises, or who otherwise takes fee simple ownership of the building by deed
Living Trust
Frank signs a deed conveying his land to Charlie the Trustee, in trust, with power to sell the property and make investments, the income of the trust to be payable to Landowner during his lifetime, and after Franks death then to Widow then to Dennis and Dee..... called a living trust since it goes into effect while Franks alive
Rule of perpetuity
land cannot be tied to restrictions forever
Police Power X
the power to pass reasonable laws for the good of the public.
Promote, improve, and enhance:
Reasons for adverse possession

it furthers the public policy that encourages the use of land
ownership of real estate often depends on transactions that occurred so long ago that the witnesses who were familiar with the transaction are dead or have forgotten
Why does a recorded declaration suffice as a building restriction? 
all that is needed to create enforceable building restrictions or easements is a recorded document that gives public or constructive notice of the restrictions or easements
What do recording laws provide?
until recorded, a deed, mortgage, or other instrument conveying an interest in real property is ineffective and void as to subsequent purchases or mortgages of the same land.
Why should unincorporated associations be avoided?
they cannot defeind lawsuits in its own name...they must act through the members....which means unlimited liabilities to the members
Easement of Necessity
when the owner of land sells a part thereof that has no outlet to a highway except over the remaining land or over the land of strangers, a right of way by necessity is created by implied grant over the remaining land of the seller
What does the plat identify?

property to be transfered to public agencies, such as any proposed streets
the individual home sites
the common areas to be transfered to the HOA
any other parcels to be kept by the developer or transfered to others
Land or Real Estate includes...
not only the ground but everything attached, over, and under
Zoning is considered constitutional as long as the zoning regulation bears some reasonable relation to public welfare.
Example of zoning within a city
Purposes of the Loan Settlement Statement
furnishes the borrower with a complete record of all disbursements and withholdings made by the mortgagee from the proceeds of the loan
provides the mortgagee a signed authorization by the borrower for all such disbursements and thus tends to eliminate the possibility of any legal action that might be taken if the mortgagor claims improper charges were made against the loan
fixes the date on whic hthe mortgage becoems a lien
Why is a convertible mortgage attractive to the borrower and lender? x
it is allows the borrower to retain all of the tax benefits associated with ownership until the lender exercises the conversion option
it is attractive to the lender because the lender exercises its option at a time when the property has proven itself to be viable and has increased in value.
Three dimensions from the Merchandise Mart in Chicago case
1. Air lot
2. Column Lot
3. Caisson Lot
List and briefly describe the formal parts of a deed.
a) Caption.b) Premises or preamble.c) Granting clause.d) Description.e) Habendum.f) Warranty clause.g) Testimonium.
Prior in time is prior in right
mortgages will be ranked according to time
Does an easement acquired by prescription have to stay the same as it was during the prescriptive period?
Yes, as long as the improvements were foreseeable consequences of the development of the dominant parcel
Contracts with builders: Fixed Price
What is disadvantage
builders make a contract to build at a set price.......if the price is becoming higher than the fixed amount, the builder may cut corners 
What helpful information with respect to real estate closings can a legal assistant obtain from reviewing the loan commitment?
This is a contract to issue a mortgage loan.a) Loan amount.b) Interest rate.c) Loan terms.d) Repayment terms.e) Prepayment terms.f) Full property description for collateral.g) Any other items required by the lender that must be satisfied before closing.
What is the difference between a general warranty deed and a limited warranty deed?
A general warranty deed is an absolute warranty regarding the property that includes warranties for what predecessors in title may have done. A limited warranty deed warrants only against lawful claims of people by, through, or under the grantor. The grantor in a limited warranty deed does not warrant against the actions of any predecessors in title.
Why would prepayment not be allowed on an installment sale?
The seller wants to avoid income tax
Foreclosure of the mortgage will terminate the tenants rights to possession of the premises.
True if the mortgage was senior to the leases
When purchasing a unit in a condo, what are you really purchasing?
Unit plus the percentage of interest in the common elements assigned to that unit
What is a title commitment, and why is it important in a real estate transaction?
A title commitment is the agreement by a title insurance company to issue a title insurance policy once certain conditions have been met. Title insurance is essentially a post closing matter; that is, you cannot ensure that a person owns a property until he or she in fact does own the property, nor that a lender has a mortgage on the property until in fact the loan has been made and the mortgage recorded. A title commitment, howere, is a preclosing item that illustrated to the legal assistant and attorney exactly how the title insurance policy will appear once the closing has taken place.
What duties are owed by an agent to a principal?
a) Follow the principal's instructions.b) Exercise reasonable care and skill in performance.c) Disclose all matters related to the agency relationship.d) Account for any money belonging to the principal which comes into the agent's possession.
What would be an excessive increase of burden
If the owner of a dominant easement divided his land that is benefiting into 50 parcels......two is reasonable. 50 is not
Contracts with builders: Cost plus a %
The buyer pays for all the costs of construction and then pays the builder a percentage of the cost.........the builder has an incentive to make the construction cost high, so they get more commission
Real property that has been used for a particular purpose but is later changed by zoning regulations.
The uses are permitted to continue, provided they are not expanded.
Sam Seller offers to sell his home to Pat Purchaser for the sum of $75000. Pat Purchaser responds that she will only purchase the home for $65000. Sam Seller rejects the offer of $65000. Pat Purchaser then offers $75000 for Sam Sellers's home. Is there a
No, a contract does not exist until there has been mutual agreement of the parties. The counteroffer must be accepted by the seller before a contract exists.
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