TESTING TO PASS THE TEXAS PEARSON VUE REAL ESTATE EXAM

Texas Real Estate License Exam Prep - ALL IN ONE REVIEW AND

TESTING TO PASS THE TEXAS PEARSON VUE REAL ESTATE EXAM

Flashcards Real PropertyReal Estate + Bundle of Rights Legal Life EstateCreated by operation of state law as opposed to a property owner's agreementDesigned to protect family survivors Property CharacteristicsProperty is either real or personal property is either tangible or intangible TrusteeRenders fiduciary duties to trustor and beneficiary The Bundle of RightsPossess, Use, Transfer, Exclude, Encumber Deficiency JudgmentsJudgement by court on borrower to forfeit other property to payoff any short falls from foreclosure EncumbrancesNon-possessory interests limiting legal owner's rightsDo not include possessionEncumbrances that affect useEncumbrances that affect ownership, value , transferEncumbrances affecting use; easements, encroachments, licenses, deed restrictionsEncumbrances

affecting ownership, value, transfer: liens, deed conditions

Equitable TitleAn interest that gives a lienholder or buyer the right to acquire legal title to a property if certain contractual conditions occur CreationRequires four unities1. Possession - acquire same possessory rights2. Interest - acquire equal, undivided interests3. Time- Acquire interests at same time4. Title- Acquire interests with same deed Mortgage Lien ForeclosureLiquidation of collateral property by judicial, non-judicial, or strict foreclosure CooperativesOwnership of shares in owning corporation-proprietary lease in a unit-Corporation has sole, undivided ownershipOwners potentially liable for expenses of entire co-op, creditors may foreclose on entire property IndestructibilityLand is permanent and cannot be destroyed since by definition it extends below ground and into the sky. Since land is permanent, it does not depreciate. Only improvements depreciate and are insurable Legal TitleFull legal ownership of property and the bundle of rights as they apply to it. Contrasts with equitable title.FreeholdTenants in common own undivided interests, pay expenses per separate agreeement Trade FixturesPersonal property items temporarily attached to real estate in order to conduct business

DefeasibleReverts to previous owner per conditions Lien PriorityOrder in which liens against a property are satisfiedDetermined by superior vs junior class by date of recordationThe highest priority lien is paid by foreclosure proceeds before any other lien Strict ForeclosureCourt orders legal transfer of title directly to lender without public sale Non Possession/Non PossessoryPrivate: EncumbrancePublic: public interest Tenancy in SeveraltySole ownership of a freehold estate; passes to heirs Legal TitleOwner enjoys full bundle of rights Fee Simple AbsoluteHighest form of ownership interest Living/Testamentary TrustConveyance of real, personal property during one's lifetime Estate for yearsSpecific, stated duration, per lease, expires at end of term Deed RestrictionsConditions, covenants, imposed on property by deed or subdivision platGoes with the property upon transferEstablished to control quality, standards of a subdivisionApply to land use, type of structure, set-backs, minimum house size, etc Federal regulationGrants rights of ownershipControls broad land usage standardsRegulates anti-discrimination laws-land grants, federal flood zones, fair housing laws, FHA, EPA BeneficiaryReceives ownership benefits Conventional Life EstateLimited to lifetime of life tenant or named party Judicial ForeclosureLawsuit by creditor and court-ordered public sale to enforce lien, deficiency judgments, redemption rights SubsurfaceSubsurface or mineral rights Real EstateLand + manmade permanent attachments Personal PropertyChattels, trade fixtures, emblements Community PropertyAll other property earned or acquired during the marriage PeriodicLease term renews automatically upon acceptance of rent Life EstatePasses to another upon death of a named party Junior LienPaid after superiors by date of recording Non-homegeneityLand is non-homegenous, no two parcel of land are exactly the same since they have a different location LiensClaims attaching to real and personal property as security for debtRecorded on title effectively reducing the equity in the amount of the lienDoes not convey ownership unless a mortgage in a title theory stateLien attaches to the propertyProperty can be uncumbered by multiple liensLien terminates upon payment, recording satisfaction Land TrustGrantor and beneficiary are same party; beneficiary uses, controls property but does not appear on public records Joint TenancyEqual undivided interest jointly owned Freehold (Own)Fee simpleAbsoluteDefeasibleLife EstateConventionalLegal

EmblementsPlants or crops that are considered personal property despite being attached to land Equal ownershipOwners always hold equal shares SurvivorshipOn death, interests and rights pass to other joint tenants ImmobilityLand cannot be moved from one site to an other, its location is forever fixed.Superior Liens by rank (not by date of recordation, paid before junior liens Real estate tax liensSpecial Assessment LiensFederal Estate Tax LiensState Inheritance Tax Liens Specific LienAgainst car or house Voluntary LienMortgage lien Deed ConditionsCreated upon property transferIf violated, ownership may revert to previous owner Non-judicial foreclosurePower of sale granted to lender, no suit, no deficiency judgment, no redemption period after sale General LienAgainst any & all assets

Riparian RightsRivers and streamsIf waterway is navigable: owners own

land to water's edgeIf waterway is not navigable: owners

own land to midpoint of waterway Property CharacteristicsProperty is either real or personal. Property is either tangible or intangible Littoral RightsApplies to seas and lakesAbutting property owners own to high water markState owns underlying land LandSurface, all natural things attached to it, subsurface, and air above the surface ReversionPrevious owner to receive estate Separate PropertySeparate-Acquired before marriage-Acquired by gift or inheritance-Acquired with separate-property funds-Income derived from separate property CharacteristicsRights to use portions of another's propertyAffirmative easement - allows a useNegative Easement - prohibits a use Unity of OwnershipOwners hold single title jointly Factory-built housing - mobile homes and manufactured homes Units are real or personal property-Real property if permanently affixed to ground, otherwise it is personal property Pur Autre VieLimited to Lifetime of another, passes to remainderman or previous owner Differentiation CriteriaItem is real or personal property depending on why, how item is attached to the real estate. Depends on the owners'Intention, adaptation, functionality, relationship of parties, contract provisions Physical CharacteristicsInmobility, indestructibility, heterogeneity.Title Theory StateLender holds legal title to the mortgaged property until the mortgagor satisfies the terms and obligations of the loan

Equitable TitleParty can obtain legal title subject to agreement with creditors HomesteadRight to one's principal residenceLaws must occupy the homesteadcannot be conveyed by one spouseEndures over life of head of householdInterests extinguished if property destroyed TrustorGives title, deed, trust agreement to trustee Involuntary LienTax Lien Estate in LandInclude right of possessionLeaseholds=limited

durationFreeholds: duration is not limited

Doctrine of Prior AppropriationState controls water usageState grants usage permits Real PropertyLand, fixtures, attachments OrdinaryEstate passess to remainderman or previous owner when life tenant dies State RegulationGoverns real estate businessSets regional usage standards-License laws, water rights, development regulation Deed CovenantsCreated by mutual agreementEnforceable by injunction Time SharesLease or ownership interest in property for periodic use on a scheduled basisLease- tenant leases property per the lease's schedule Easement AppurtenantAttaches to the estateDominant tenement's right to use or restrict adjacent servient tenementBy necessity to landlocked ownersParty wall easement in a shared structure to not or destroy LicensePersonal right to use a propertyDoes not attachNon-transferrableRevocableCeases upon death of owner RemainderNamed party to recieve estate Superior LienPaid before juniors Junior Liens by date of recording (by date of recording)Federal income tax liensJudgement liensMortgage LiensVendor's liensMechanic's Liens Redemption RightsBorrower's right to reclaim property before or after foreclosure sale Easement by PrescriptionProperty used without permissioncan come to exist regardless of owner's consentObtainable through continuous, open, adverse use over a period TransferMay transfer to new owner as a tenancy in common interest with remaining joint tenants Estate at WillFor indefinite period subject to rent payment, cancelable with notice Estate at SufferanceTenancy against landlord's will and without an agreement Lien Theory StateLender of mortgaged property holds equitable title rather than legal title, borrower holds legal title