Term
Six ways in which ownership title may be acquired |
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Definition
- Public grant - transfer of title from the government to an individual. A patent deed is what is used.
- Will - transfer of title upon death of an individual who died testate (left a will)
- Adverse possession - a legal principle under which an owner may lose title to another person who has taken control of the property. The person claiming ovnership must enter into open, adverse, hostile and exclusive possession fot he property for a period of seven continuous years. Possession must be hostile to the true owner and must be under a claim of ownership, even if the claim is imperfect. The possessor must pay all real estate taxes for all years of possession and meet other requirements of Florida statutes. if the true owner "slept on his right" and failed to eject the trespasser, title may be lost to the hostile claimant.
- Deed - a document that conveys title from one party to another. Deeds are the most common document used to transfer title. Promptly record deed!
- Estoppel - A legal principle under which ownership to property may be lost because of the owner's failure to provide public notice of ownership. Done as part of closing.
- Descent and Distribution - a statutory system created by law; a system that provides for the transfer of title to legal heirs upon the death of an individual who died INTESTATE (left no will). Probate law establishes the order in which such assets must be allocated and provides for the distribution of property to those intitled to receive them.
WADED: will, adverse possession, deed, estoppel, descent and distribution |
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Term
Two methods used to provide evidence of ownership |
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Definition
- Actual Notice - physical possession. being in possession of property and claiming ownership is called actual notice. A party that has been shown a deed also has been given actual notice. Can be espress or implied.
- Constructive Notice - also called LEGAL NOTICE, is achieved by RECORDING documents in the public records. Recording a document has the same legal effect as showing it to the entire world. Docs are recorded in the Office of the Clerk of the Circuit in the county where the property is located. BEST EVIDENCE of ownership
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Term
Requirements for a valid deed |
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Definition
- must be in writing
- name the parties
- give the legal description of the property
- specify the legal rights being conveyed
- include a consideration - the sales price is NOT required and rarely ever is included."ten dollars and other good and valuable consideration" is the consideration most often used in a deed.
- be signed by a competent GRANTIR and witnessed by TWO persons. The Grantee is NOT required to, and rarely does, sign the deed.
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Term
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Definition
- Quitclaim Deed - contains no warrants of any kind. rarely used in day-to-day sales and transfers of ownership. Most often used to cure defects in title. May be used to remove easements. Grantor doesn't promis to have any rights in the property but any he may have are being conveyed.
- Bargain and sale deed - contains only one warrant, "warrant of seisin", which is an assurance to the grantee that the grantor does own and have the legal right to convey the property.
- Special warranty deed - a type of bargain and sale deed. the grantor grants, bargains and sells the property but offers protection to the grantee only for claims made by the grantor, the grantor's asssigns or others representing them.
- General warranty deed - "warranty deed" is a bargain & sale deed. most common type of deed. Provides best protection to grantee. grantor promises to defend the title against any and all claims! default deed used if sales contract doesn't specify.
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Term
How do Abstracts and Title Insurance help protect title? |
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Definition
- Abstract - an abstract is a history of the title to the property put together in a binder with a caption page, which identifies the property. it is a collection of all searched public recorded documents on a property and compiled to a certain date, after which an update continues on the data. An attorney must review an abstract and renders a "letter of opinion", which is not a guarantee of good title. a lawsuit against the attorney could be necessary if a defect is later discovered.
- Title Insurance - provides financial protection against losses sustained as the result of a defective title. if a policyholder should lose the property as the result of a defective title, the title company will compensate the insured party for the loss. there is no florida law that requires that title insurance be obtained.
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Term
3 Ways to Cure a Defect in Title |
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Definition
a property with a defective title is said to have a "cloud on title".
Curing - the elimination or resolution of the problem causing the defect.
- Quitclaim deed - quickest and least expensive alternative if the party can be located and is willing to release any interest he may have in the property. used to cure a defect in title by having the party who has a potential claim or interest in the property relinquish the claim by voluntarily executing a quitclaim deed.
- Suit to Quiet Title - A suit to quiet title is filed in court with all potential claimants required to appear in court and assert their claim. The court rengers a decision and resolves any dispute this curing the defect.
- Marketable Record Title to Real Property Act (MARTA)- The purpose of this act is to eliminate "claims in antiquity", which are old, unresolved claims that would most likely not be supported due to the passage of time. As a result of this law, title searches need only go back 30 years in order to establish a root of title in Florida. Any claim not exercised in that period is eliminated as a matter of law.
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Term
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Definition
| unauthorized physical intrusion onto property owned by another such as a fence built over the property line. Legal action in court can be brought to have an encroachment removed. The existence of an encroachment can only be determined by a current, up-to-date survey. |
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Term
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Definition
| Real estate taxes are assessed and become a lien on January 1 of each year, even though the owner does not know the amount until the tax bill is received after November 1 of the same year. Since the assessment is from January 1, but not known or payable until November, taxes are paid in arrears. |
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Term
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Definition
| A contractor or builder that has not been paid money due them is entitled to a lien against property for materials or labor used to build or improve the property. The mechanic's lien dates back in priority to the date the first materials were delivered or labor was performed on the property. The mechanic has 45 days from the date of completion of the work to file the lien in the public records if the property owner has not paid the amount owed. |
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Term
4 Basic Government Powers |
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Definition
- Police Power - Allows the government to restrict the use of land to protect the health, safety and welfare of the citizens eg. Zoning
- Eminent Domain - Allows local, state or federal government, railroads, public utilities and public housing authorities to obtain ownership to private property, called a "taking". must be for public use and owner must be paid a "just compensation" for the property.
- Taxation - The power that allows the government to levy taxes on private property. If an owner does not pay taxes when due, the unpaid tax lien may be foreclosed in court, forcing the property to be sold with the government being paid from the proceeds of the sale.
- Escheat - Allows the state to acquire ownership to the property when an owner dies intestate (leaves no will) and no lawful heirs can be located.
PETE |
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