Chapter 2 Real Estate Flashcards

Chapter 2 Real Estate Flashcards Project broker for timeshareIs the BIC EasementsRights to another's property for a specific purpose.Air space is limited becauseZoning ordinances - restrict the height of improvementsFederal laws - three straight because of air traffic flying at an altitude specified by the government Two types of estate in land-Freehold-Less than freehold (also known as leasehold and non-freehold estates CourtesyIs the husbands right to a life estate in the property owned by a deceased spouse during the marriage Mortgage lienIf the borrower does not pay the debt as promised (default), the lender can foreclose the mortgage by having the property sold at public auction and applying the proceeds of the sale to the debt Security agreementAn instrument used to create security interest and put on public record by the filing of a notice called a financing statement. The example he gave in class was the jewelry boxes of a jewelry store Right to a estoversA life tenant has a legal right that allows him or her to cut and use a reasonable amount of the timber from the land to repair buildings or to use for fuel but does not allow the tenant to cut and sell the timber for profit Eminent domainIs the government's power to take private property for public by paying the owner fair and just compensation. The actual taking of the property under this power is called

condemnation. Example: property taken for the

development of485 mineral leasePermits the use of land for mineral exploration in mining operations that must be in writing to be enforced.TaxationTaxes are imposed upon real property (also known as, ad valorem) according to its value. This is the largest source of income for local governments Agricultural fixturesPresumed to be classified as real property. For example, if a farmer installed a silo it general interpretation would be that it would become the property of the land owner and not ordinarily removed by the tenant at the end of the lease Lateral (side) supportThe right of Leanne to be supported in its natural state by adjacent land or in other words your neighbors land Specific Liens/General LiensSPECIFIC-claims against propertyMortgageReal property tax (levy)Mechanics lienGENERAL-claims against assets of a personJudgmentPersonal property tax(highest priority)Income taxEstate and inheritance tax

**Joint TenancyRequires 4 unities of time, title, interest, and possession.Upon the sale of an interest by a joint tenant, the person buying this share does not become a joint tenant with the other tenants but becomes a tenant in common. NC does not favor joint tenancy IncorporealThings that are intangible Intestate successionOne who has died without leaving a valid will What happens in Timeshare NCREC discipline Project broker and the salesperson may be reprimanded, suspended or revoked but a developer may be fine up to $500 Trade fixturesThis is personal property that are used in the course of the business operating in a leased space.SeveraltyWhen title to real property is held in the name of ONLY one person...severed How many days does a Carpender have to file court action to enforce a mechanics lien?180 days EmblementsPersonal property usually annual crops, that include corn, wheat, melons, and soy beans. And in emblement is used to denote the right of a tenant to re-enter the property and harvest the emblement after the termination of the tenancy.Two categories of freehold estates1.)Estates of inheritanceFee simpleAbsoluteDeterminableConditionalLife estate(pur autre' vie)2.)Estates not of inheritance-Conventional life estateMarital life estates

Partitiona division into piecesfor example: if I can't find a buyer I

can bring a lawsuit in North Carolina called lawsuit of partition which means the property will be sold and proceeds split The highest priority of all liens isLiens for Real property taxes Estate at willIs for and in definite time and may be terminated by either party instantaneously by giving notice to the other party Estate for yearsIs for any fixed period of time and automatically terminates at the end of that period CooperativesDon't own real property, own Stocks in Corporation and that corporation owns a building containing cooperative apartment. Leasehold estate NC condominium act 1986This is a consumer protection's act that Requires public offering statement, disclosure prior to purchase contract, seven day right of rescission, implied warranties, Deposit is held in escrow, and resale certification Improvements on the landDone by property owners such as buildings, payed driveways , walkways EscheatThe reverting of property to the State when there are no heirs capable of inheriting.Testate-owner dies and HAS a willIntestate-owner dies and has NO will

Concurrent (joint) ownershipSimultaneous ownership of real property by TWO or MORE people Subsurface rightsThis is also known as the mineral rights and is an interest in real property that allows the owner to take minerals from the earth. Example, Fracking Priority of liensIt is the Pure race system. The first one to record the lien is the first one in line. However there are exceptions like in the case of mechanics lien where it relates to the first day of work rather than the date of recording.Mechanics lienA lien filed by someone such as a Carpender who provide labor or materials to a property or property improvement.Nine freehold estatesAlso known as less than freehold or at least hold estates converter rental interest in real property Profit a' prendre (profit)Tenements include intangible rights in the land of another, such as the right to take minerals, soil, timber, fish, or game from that land Tenancy by the entiretiesLimited to husband and wife, there must be a legal marriage at the time that the husband and wife receive title to the property, acquisition after marriage, right of survivorship, both must sign to convey, no right to partition Judgment lienConstitutes a general lien against all real and personal property the judgment debtor owes in the county in which the judgment is recorded FixturesFixtures our personal property but can become real property when attached to the land. This can become problem so practitioners need to pay close attention Writ of attachmentA pre-judgment right to creditors. This right exist for creditors of debt, other than mortgages, and is obtained as the result of a judgment being passed down in a court of law against the debtor. Renews every 10 years.garnishments ForeshoreThe land between the mean high watermark and low watermark. This is owned by the state

• parts of improvements1.) private improvements usually done on land by a

property owner2.) public improvements usually done by government or governmental organizations like sewers, sidewalks, streets, etc.Tenancy in commonIs characterized by two or more persons holding title to a property at the same time, with no right of survivorship Navigablewide or deep enough for ships to be able to pass through and owners of property along these watercourses own up to the banks while the state owns the body of water and the rights to use it Declaration of restrictionsA part of restricted covenant and is a restrictions written in an individual deed or recorded as a master instrument

Littoral rightsThe rights of land owners whose property ordered an ocean or lake where the water levels fluctuate, as with ocean tides, the land owner owns the mean high watermark.AlienationThe life tenant can transfer his or her title to another person or play to the title as security for a debt Improvements to the landDone by government or quasi- government entities Four factors of a total circumstance test that identifies a fixture )IRMA 1.) Intent - this one is the most important. Example of the refrigerator with the wood panel who's INTENT was to make it look like the cabinets2.) relationship - and owner is presume to make a permanent improvement, where as a renter maybe presumed to make a temporary attachment.Example renter removes the ceiling fan3.) method-does the method of attachment mean that removal of the item will damage the property? For example removing the hot tub from the deck built around it.4.)Adaptation-The item adapted to the real property to which it is attached.Example custom blinds made for a non-standard window UCC - Uniform Commercial CodeProvides for the lender to retain a security interest in a chattel (personal property) until the lender is paid in full Fee simple absoluteProvides the greatest form of ownership available in real estate. Fee=ownership and ownership is forever or a lifetime Air rightsOwnership in the rights to the area above the surface of the earth to the heavens and enable the landowner to use that space to construct improvements, to lease, or to sell to others.Fee simple determinableA defeasible or qualified fee estate - title can be terminated by the grantor. Title is good " so long as" The property is used for a determinable purpose TownhouseHorizontal ownership, HOA owns common areas in severalty and not subject to the NC condominium act Riparian rightsAppurtenant rights of an owner of property bordering a flowing body of water

• natural processes that affect riparian boundaries[AREA]1.) Accretion-gradual build up or increase of land by natural

forces.2.)Reliction-A gradual recession of water leaving land permanently uncovered3.)Erosion-opposite of accretion, this is a natural process in which the flow or movement of water gradually produces a lost riparian land, for example beach a erosion.4.)Avulsion-Record or sudden change in riparian land, either loss or gain, resulting from violent natural forces.A landowner can reclaim land through avulsion however environmental laws may limit or avoid their rights.