Maine Real Estate Law Flashcards

Maine Real Estate Law Flashcards

In a warranty deed,the grantor warrants/guarantees:

Grantor- The giver of the deed. This is usually the seller, but it is anyone authorized to transfer the property such as the personal representative of an estate of a deceased person.The Commission adopts rules to establish: -Standards of practice for licensees-Qualifications for licensure-Requirements for pre-license and continuing education-Duties of Designated Brokers for the supervision of employees and independent contractors

The Commission is composed of:4 industry members and 2 public members

The covenants (promises) made by the seller extendback in time to cover the ownership of all prior owners.Tenancy in commonTwo or more parties are the owners. The parties may acquire their ownership at different times. o A new owner may enter into the joint ownership at any time. The parties may own unequal shares. o Party #1 owns 25%, Party #2 owns 35%, Party #3 owns 40%) No right of survivorship. o Each party may sell or will his interest to an outside party Tenancy by the entireties (Does NOT exist in Maine)Tenancy by the entireties is a form of ownership reserved exclusively for spouses. On the death of one spouse, the decedent's interest passes automatically to the other spouse. Each spouse owns the estate as if there were only one owner. Fractional interests cannot be transferred.Interest may be conveyed, but only with the consent and signatures of both parties. The estate is subject to foreclosure only for jointly incurred debt. The estate may be terminated by mutual agreement, death, or divorce.General Warranty Deed (also known as Warranty DeedThe majority of all real estate transactions transfer with a general warranty deed. This type of deed contains five covenants (warranties) and creates the most liability for the grantor and is considered the best deed for the grantee to receive.

Time Share (Interval Ownership) (Note: In Maine, time

shares are not included under real estate license law.) A group of people are Tenants in Common with ownership of a living unit. Rules govern when the individuals may occupy the units (generally in one-week intervals).CooperativeIndividuals own shares in a corporation that owns the building(s). Note that the individuals do not own real estate; they own person property (shares of stock). The corporation grants a proprietary lease to the individual that specifies which unit the individual may occupy Community property (Does NOT exist in Maine) Some states have established a community property form of ownership. This type of ownership defines property rights of legal spouses before, during, and after their

marriage, as well as after the death of either spouse. Upon the death of either spouse, half of the deceased's community property passes to the surviving spouse, and the other half passes to the decedent's heirs GranteeThe receiver of the deed. This is usually the buyer, but it could be another person, such as someone receiving the

deed by a gift.

Sole Ownership Tenancy(or Estate) in severalty One party is the owner. One name is on the deed. o This party can be a person, or it can be a business entity such as a corporation.The purpose of the Maine Real Estate Commission is to:Promote public understanding and confidence in the business of real estate brokerage CondominiumCondominium is a form of ownership, not a style of living unit! The condominium is created by the declaration of the developer with a master deed recorded at the registry of deeds. A unit owner generally owns "from the walls in" (the airspace) within his own unit. The association is made up of all the owners owns everything else as tenants in common. Some elements are "common elements" (swimming pool, laundry room, sidewalks, main hallways, unreserved parking) while other elements are "limited common elements" that are owned by everyone but restricted in use to certain unit owners (reserved parking spot, deck outside the walls of each unit, front porch, etc.).A unit owner may get a mortgage or be foreclosed on without it affecting any of the other unit owners. There is usually a homeowners' association that enforces the bylaws and covenants of the association.Tenancy in partnershipGrants business partners equal rights to all partners, however the property must be used in connection with the partnership's business. Individual rights are not assignable.Co-Ownership Joint tenancyTwo or more parties are the owners. o They do not have to be married. It could be a group of five friends, for example.Two or more names are on the same deed. The joint

tenants share the four unities of: o Time They take title to

the property at the same time. o Title They have one title.All their names are on the same deed (the same piece of paper). o Interest Joint tenants own equal shares in the property, without exception. If there are four co-tenants, each owns 25% of the property. If there are ten co-tenants, each owns 10%. o Possession They all have the right to possession of the entire property. (It's not that party #1 possesses the first floor, party #2 possesses the second floor, and party #3 possesses the third floor.) There is a right to Survivorship. o Joint tenants enjoy rights of survivorship. When one of the joint tenants dies, all his interests and rights pass to the surviving joint tenant(s).This has nothing to do with wills or heirs or inheritance. It is solely due to the fact that they are joint tenants. Joint tenants do not have the ability to will their interest to parties outside of the tenancy. Transfer of interest o A joint tenant may transfer his interest in the property to an outside party,