lien is a claim on a property as either security for a debt or fulfillment of some monetary charge or obligation. For example, an owner might give a mortgage on a property in order to borrow money, thus creating a lien on the property.

-the lien does not represent right of ownership for the creditor; rather, it amounts to a financial security interest in the property, a claim the creditor holds against the property to help ensure the debt will be repaid.

-liens are also classified as specific or general.

is created to secure debts that are associated with a particular parcel of real estate.

for example, a judgment lien or an income tax lien, is placed on all of the property that might be owned by an individual, including any real estate.

-like specific liens, general liens do not represent property ownership; they are, however, creditors claims against a property owner’s title. Unlike special liens, general liens normally may be filed on either personal property or real property

-the two types of specific liens that are created to protect creditors using real estate as their security for repayment of debts are mortgages and mechanics’ liens.

because few people choose to buy real estate without borrowing money, a mortgage is the most common encumbrance on an owner’s title. In return for a loan to buy real property, purchasers often pledge the property as collateral for the debt. In other words, the borrower creates a lien in favor of the lender

a mechanic’s lien (also known as a construction lien) protects those who provide labor or materials for real estate improvements, including suppliers, architects, engineers, landscapers, carpenters, plumbers, and similar workers. Any such suppliers of materials and labor who are not paid can file a mechanic’s lien on the property. If payment is still not made, foreclosure proceedings can result, with the property being sold to satisfy the debt

-mechanics’ liens are not just a concern to persons who fail to pay for work done to their real property; they can also create problems for subsequent

owners

a common general lien is a judgment lien. The winner in a lawsuit who has not been paid may collect the debt by claiming an interest in the loser’s property, including any real estate. If the judgment debt is still not paid, the property can be sold to satisfy the creditor’s claim. Such a sale, commonly referred to as a judicial

sale, is conducted as an auction by a sheriff or another legal authority. In some states, the debtor-owner of the real property may redeem ownership interest within a year of the sale by reimbursing the purchaser for the sales price and paying all costs of the sale.

Easement Appurtenant

An easement appurtenant exists when an easement is legally connected to an adjoining property.

as with almost all encumbrances, this easement “runs with the land; it continues when ownership changes unless specifically terminated

Easment In gross

there is no dominant estate, only a serviant estate. For example, a utility company that acquires an easement to run its power line or pipeline across a property or the highway department that acquires an easement for a road right-of-way has acquired an easement in gross. The easements have been granted to the utility company or the highway department, not to parcels of land. The land over which the utility line or road crosses is the serviant estate, and the easement binds all future owners of the property.

even though easements are considered permanent and pass from owner to owner, the rights and restrictions of an easement may be terminated under certain circumstances. Methods of terminating an easement include agreement, merger, and abandonment.

parties affected by the easement may expressly agree to terminate their respective rights in the easement. Such an agreement should be written and recorded so that notice is given to everyone interested that a prior easement no longer exists. Because easements are valuable, convincing the owner of the dominant estate can be quite expensive. If an easement is created by an express grant or reservation that specifies it will last for a limited term only, the easement automatically ceases at the end of that term.

an easement can also be terminated by the merger of the dominant and servient estates. If Bill’s land is burdened by an easement that permits Sarah, the adjoining landowner, to travel across a portion of his property, Bill could persuade Sarah to sell him the land and thereby terminate the easement. Bill could then sell the land to another party without granting an easement, provided the property has another access route. Such a strategy is used when an agreement to terminate an easement cannot be reached.

a third method of terminating an easement is abandonment. If the benefited party does not exercise his or her rights to use the servient estate over an extended period of time, the easement may be terminated. The length of time an easement may remain in effect without being used varies from state to state and from case to case. Some states require that the holder of a servient estate perform some act to block the easement’s use before any abandonment is possible. In essence, these states say that the easement must be terminated by the burdened owner’s prescriptive use of adverse possession.

even though someone may own the entire fee simple ownership rights in a parcel of real estate, this interest is often limited by certain restrictions placed on the property by public or private entities. These restrictions and limitations, known collectively as encumbrances, generally run with the land; in other words, they are binding on anyone who gains a subsequent interest in the property. In some cases, encumbrances may adversely affect both the use and the value of the property. In extreme cases, the land may be so encumbered that it would be valueless for the potential purchaser. Conversely, some public or private land-use restrictions may enhance the value of a property by protecting it from detrimental actions by others.

more correctly known as a profit a prendre, is a nonpossessory interest in real property that permits the holder to remove part of the soil or produce of the land. It is similar to an easement, although the holder of a profit ahs the right to remove specified resources, such as soil, produce, wild animals, coal, or other minerals, or timber, but the holder of an easement does not. A profit a prendre runs with the land unless terminated using one of the methods similar to those of terminating easements.

is an unauthorized invasion or intrusion of a fixture, a building, or other improvement onto another person’s property. Examples are a fence that strays across the property line and a driveway or patio that is constructed partially on the adjoining property.

is a revocable persona privilege to use land for a particular purpose. Whereas easements are permanent in nature, licenses are generally temporary and can be revoked at will. A landowner might, for example, allow a friend to park his car on her land anytime he wishes, as long as his doing so doesn’t inconvenience her. The benefits under a license and the burdens to the grantor’s land are temporary in nature and do not pass to successive owners.

is a right given to one party by a landowner to use the land in a specified manner. The landowner does not have to give up his or her land, but rather coexists with the holder of the easement. For example, property owners may grant a utility company the right to run a power line across their land, or one landowner may allow an adjoining owner to build a driveway across her property. From the perspective of the property that is subject to the easement, easements are restrictions of property rights.

while the easements discussed so far are “affirmative easements” that allow specific uses of real estate by nonowners of the property, a conservation easement is a type of “negative easement” that prevents specific uses of the real estate by the owner.

-conservation easements are an incredibly popular way for property owners to protect land from future development. Conservation easements are almost always created by express grant or reservation.

What are promises made by a land owner/developed that you find in deeds restrictive convenants or deeds restriction?

he deed may also include promises (covenants and warrantie) that the grantor is making to the grantee. These promises are defining features of the different types of deeds.

-identification of the parties,

-consideration given for the conveyed interest

-legal description of the property,

-specification of the interests conveyed, and

-signatures of the proper parties

-The grantor must sign the deed. Before a deed can be recorded, most states require that the grantor sign in the presence of one or more witnesses (who must also sign the document.) Notice that the grantee’s signature is not required on the deed in some states. The grantors sign this deed along with two witnesses, one of whom is a public notary. Once the deed is properly signed, it is said to have been executed, or subjected to all requirements that establish its validity.

he warranty deed is the broadest type of all deeds. In a warranty deed, the grantor makes promises that cover the traditional covenants and warranty. The grantor assures the grantee that no liens or encumbrances other than those on public record exist against the property (covenant against encumbrances), that the grantor has a fee simple interest in the property, and that he or she is in full possession of the interest being conveyed, and, thus, has the right to convey it (covenant of seisin).

A special warranty deed is similar to a warranty deed except the special warranty deed limits the extent of the grantor’s warranties to events that occurred during the grantor’s period of ownership. It does not protect the grantee against encumbrances that may have arisen before the grantor took title . The grantor’s warrants cover only title defects that occurred during the grantor’ s ownership. For example, a corporation might give a special warranty deed to protect itself against any potential liabilities resulting from a foreclosure that happened before it owned the property.

A quitclaim deed transfers any interest that the grantor may have in the property described but does not imply that the grantor has any valid interest in it. The quitclaim deed is most commonly used to clear defects in the title to property. For example, suppose Bob wished to sell land he alledgedly owned to David, but Clare, Bob’s sister claimed to own a one-fourth interest in the land. Before, David would be willing to purchase the land, he would want Clare to give Bob a quitclaim deed that would extinguish any claim she might have on the property. Then, David can accept a deed from Bob knowing that Clare has no claim on the property. The quitclaim deed would indicate that Clare had relinquished any claim she might have had in the property, but she would not be liable for any defects in the title. If David wished to get full clear title to the land, he typically would insist on receiving a general warranty deed from Bob, as well as a quitclaim deed from Clare.

Similarly, a quitclaim deed is sometimes used to release martial interests in a property. The grantee who takes property under a quitclaim deed must understand that he may be receiving nothing of value. Under a quitclaim deed, the grantor conveys all the interests possessed without any assurances that any rights of ownership exist.

some states recognize a system of property rights between husbands and wives generally called community property. In these states all property acquired during the marriage, whether real or personal, is considered property of the “marital community.” In other words, property ownership is divided equally between husband and wife. This division may disregard the financial contribution each spouse actually made to the property’s acquisition.

proper legal description of a property involved is essential in all documents that affect title to real estate. When it comes to the actual transfer of title to real estate through a deed, for example, a precise legal description is necessary. Specification of the exact boundaries of the land being conveyed is essential for a valid transfer. In the US, three methods commonly are used to obtain a precise legal description of land-

1)the metes and bounds system,

2)the rectangular survey system, and

3) reference to recorded plats.

Each property has a unique legal description.

-1. Metes and Bounds

-the original way to achieve a formal legal description of the exact boundaries of any piece of land was to refer to its corners and boundary lines in a metes and bounds description.

-metes are the distances used in a description, and bounds are the directions of the boundaries that enclose a piece of land. A metes and bounds description starts at a designated point of beginning and, through specific distances, directions, and reference points, locates the boundary lines and corners of the parcel of land. When a surveyor uses the legal description to identify the exact boundaries of a parcel of land, he or she usually drives an iron pin or stake deep into the ground at each corner of the property. These pins serve as the reference points in the legal description and can be easily located (perhaps with a metal detector) many years after they are placed in the ground.

-in modern metes and bounds descriptions, distances are measured in feet to the nearest one-tenth or one hundreth of a foot, and the angles are measured in degrees, minutes, and seconds.

-a metes and bounds description simply describes the boundary lines and corners of the parcel of a particular parcel of land. Each metes and bounds description must start with a point of beginning (POB). Thereafter, each boundary is detailed- its length, its direction, and the points where it begins and ends. It is vital that the boundaries described actually enclose the property involved. In other words, each boundary must begin at the preceding boundary’s end and end at the next boundary’s beginning

-the metes and bounds method easily addresses irregular shaped parcels of land, even those with curved boundary lines. Curved boundary lines are described by referring to the length of the curve and its radius.

-shortly after the end of the revolutionary war, when the westward movement from the original states began, a method of describing wilderness land was required. The US Congress approved a description method known as the rectangular survey system. With the exception of Texas, land descriptions in all states west of the Mississippi, the five states formed from the northwest territory, and most of Alabama, Florida and Mississippi are based on this method.

-Principal Meridans and Base Lines: the rectangular survey system is based first on principal meridians running north and south and base lines running east and west. Placement of these meridians and base lines generally concides with an established landmark, such as the mouth of the Ohio River. Because the earth is round, lines that are drawn to run north and south eventually converge at the north and south poles. Surveyors use reference points created by “guide meridians” and “standard parallels” to account for this convergence when locating the corners of a property using the rectangular survey method.

-Townships: the land on each side of the principal meridian is divided into six-mile wide strips by range lines, which run north and south and are numbered consecutively east or west of the principal meridian. Similarly, the land above and below the base line is divided into six-mile wide strips by township ines, which run east and west and are numbered consecutively north and south of the base line. The range and township lines form the base unit of the rectangular survey, the township, an area of land six miles square.

-Sections: the rectangular survey system divides each township into 36 equal sized sections. Within any given township, sections are numbered beginning in the northeast corner, moving westerly, then southerly one section, and back easterly. The process continues until all sections are numbered. Each section consists of one square mile, or 640 acres.

Townships: the land on each side of the principal meridian is divided into six-mile wide strips by range lines, which run north and south and are numbered consecutively east or west of the principal meridian. Similarly, the land above and below the base line is divided into six-mile wide strips by township ines, which run east and west and are numbered consecutively north and south of the base line. The range and township lines form the base unit of the rectangular survey, the township, an area of land six miles square.

Sections: the rectangular survey system divides each township into 36 equal sized sections. Within any given township, sections are numbered beginning in the northeast corner, moving westerly, then southerly one section, and back easterly. The process continues until all sections are numbered. Each section consists of one square mile, or 640 acres.

a common alternative and supplement to these methods of legally describing real estate is to refer to engineers’ drawing of parcels of real estate called plats that have been recorded as part of the official public record. Plats show the streets, blocks, and lots as they actually exist. The plat contains the precise distances and directions (metes and bounds) of each property boundary. Once this document is part of the official public record, properties can be described simply by reference to the numbers of the lots as they appear in the plat of the block of the subdivision in which the lot is located.

-in the case of a condominium, each individual unit of the complex is described separately by referring to a previously recorded plat of the complex. In addition, a condominium description includes a reference to the fractional share (based on the number of units) of the common areas within the complex.

an interesting problem of legal description arises when the property involves an air lot, which means the property does not actually touch the ground. In these cases, vertical distances are measured from a point of known vertical height. The most common vertical reference is mean sea level, but official benchmarks that can be used as reference points for both horizontal and vertical distances have been established throughout the united states by the coast and geodetic survey. Thus, the air lot of a a 32^nd floor condominium might be described by identifying the parcel of land underneath and the vertical measurements of the airspace above the ground

the traditional form of concurrent ownership is tenancy in common Each of the joint owners holds an undivided, proportional interest in the entire property.

-tenants in common who become unhappy with the joint relationship can demand a partition of the property. Voluntary partitions result when cotenants agree how to divide the property. If they cannot agree, however, a court may order a compulsory partition

-joint tenancy is similar to tenancy in common except it carries with it the right of survivorship. If a co-owner should die, the other owner or owners automatically divide the share owned by the deceased. This type of ownership often is used to ensure the continued operation of an investment property should one of the owners die. The joint tenancy ends if any tenant sells his or her share of the property to a third party. The joint tenancy then converts to a tenancy in common.

-historically, to establish a valid joint tenancy, the four unities of time, title, interest, and possession had to be present. To satisfy the unity of time, the joint tenants’ ownership had to be created at the same time by the same conveyance. The unity of title exists when the owners have the same estate in the land, such as free simple estate, a life estate, or another estate discuesed in this chapter.

-joint tenants meet the unity of interest requirement only when they have the same percentage interest in real estate. For example, two joint tenants must each own 50 percent of the undivided property, three must own 33.33 percent, etc. Finally, joint tenants have unity of possession only when each owner has the right to possess all of the real estate subject to the other owners’ rights of possession.

there are two types of underground water. Water that flows in a defined channel is called an underground or subterranean stream, while water in pockets not clearly located is known as percolating water. Issues involving underground streams generally are resolved by applying the same principles that would be used if the body of water existed on the earth’s surface. In the case of percolating waters, states generally apply a reasonable use test: A landowner may use the water beneath the land for industrial, agricultural, or other purposes necessary to the beneficial use of the land. However, if withdrawing the water depletes the underground water supply of adjoining landowners, the courts may restrict such actions.

Above Ground water use

Nonnavigable

Nonnavigable:

-the rights of a landowner to use water from nonnavigable lake or stream that flows across the land are more complex. The two dominant theories with regard to an owner’s rights to nonnavigable bodies of water are riparian rights doctrine and the prior appropriation doctrine. The dominant theory in the eastern US is the riparian rights doctrine. Under this theory, all owners whose land underlies or borders the water have equal rights to the water. This concept allows all riparian landowners to use all the water needed as long as the use does not deprive other landowners who are also entitled to some of the water.

-in contrast, many states west of the Mississippi are extremely arid and, consequently, have rejected the theory of riparian rights and adopted the prior appropriation doctrine. Under this concept, the first person to use a body of water for some beneficial economic purpose has a right to use all the water needed, even if landowners who later find a use for the water may be precluded from using it. This “first-come, first-served” concept is based on the premise that there is an insufficient supply of water to satisfy everyone’s needs; therefore, the first landowner using the water for some worthwhile purpose should be allowed to use all of the water.

Navigable:

-the owner whose land joins a navigable body of water, such as an ocean, a sea, or certain rivers, generally owns the land to the high-water mark (the government usually owns the land beneath the water)

-the owners of such adjoining lands are called littoral proprietors

-disputes regarding the use of water from these waterways seldom occur because there usually is sufficient water to be shared.

-the principal issue involving navigable waters has been pollution. Laws exist at both the federal and state levels to hold polluters of such waters responsible for their actions.

43,560

640

-Legal analysis concepts

-Market analysis concepts

-Real estate service industry concepts

-Financial and investment analysis concepts

-License – a revocable personal privilege to use land for a particular purpose(parking)

-Profit - profit a prende – a non-possessory interest that permits the holder to remove specified resources from the land(Hunting, fishing, firewood)

-covenant against encumbrances: an assurance made by the grantor that no liens or encumbrances other than those of public record exist against the party

-covenant of seisin: an assurance made by the grantor that he or she is in full possession of the interest being conveyed by a deed and thus has the right to convey it

-covenant of further assurances: an assurance made by the grantor that the grantor will execute any futher documents needed to perfect the grantee’s title

-warranty forever: an assurance made by the grantor to always defend the title conveyed to the grantee

-covenant of quiet enjoyment: an assurance made by the grantor that no other party will disturb the grantee claiming to own the property or to have a lien on it; a promise from the lessor that the tenant has the right of exclusive possession of the property during the term of the lease.

-the land on each side of the principal meridian is divided into six-mile wide strips by range lines, which run north and south and are numbered consecutively east or west of the principal meridian. Similarly, the land above and below the base line is divided into six-mile wide strips by township lines, which run east and west and are numbered consecutively north and south of the base line. The range and township lines form the base unit of the rectangular survey, the township, an area of land six miles square.

-to identify a specific township, reference is made to the intersection of the township and range lines.

-both appurtenant easements and easements in gross may be established in a number of ways. The most common method is by an express grant or reservaton, but easements also may be established by implication and by prescription.

most easements are created by either express grant or express reservation. Suppose Scott sells half of his ten-acre lot to Darlene. If the property Darlene is purchasing has no road frontage, Scott may expressly grant her the right to use a portion of his remaining property for a driveway. In this case, Scott owns the serviant estate, and Darlene owns the dominant estate. The deed Scott gives Darlene should specify the easement appurtenant that has been created.

-an easement also may be established by an express reservation. If Sam were to sell half of his land to Bob, the remainder of Sam’s property would be landlocked because it does not front on a public road. In the deed that transferred ownership of the frontage land to Bob, Sam could reserve a right of passageway through Bob’s newly acquired land. Sam owns the dominant estate, and Bob owns the burdened (servient) estate. By this express reservation in the sale of the land, an easement appurtenant has been created

-sometimes, when one or more parcels are severed from a larger tract under common ownership, the right to use the land may be implied from the factual circumstances even when an easement is not expressly created. The easement supposedly reflects the intentions of the parties and is called an easement by implication.

-If Scott sold land to Darlene, and he allowed her to use the road on the property he retained, an easement by implied grant would be established.

-Likewise, if Sam were to sell half of his land to Bob, and the remainder of Sam’s property were landlocked because it does not front on a public road and Sam’s continued to use the passageway over the land granted to Bob, this would create an easement by implied reservation.

-in both of these situations, the implied easement arises from necessity. In the absence of the easements, the properties would have no access and virtually no value. Of course, even when an easement can be implied, it is best that all easements be stated expressly in writing.

-an easement by prescription may be created when someone other than the owner uses the land “openly, hostilely and continuously” for a statutory time period. To use the land openly means that the user comes onto the land and acts entitled to be there. Such a user does not use the land secretly, as if to hide the use. Hostile use means the user treats the land as if he or she is the true owner of an easement. If the landowner has given specific permission for the use of land, hostility does not exist. To be continuous, the use must be uninterrupted for the time period provided by the applicable statute, usually between 7 and 20 years.

-in modern metes and bounds descriptions, distances are measured in feet to the nearest one-tenth or one hundreth of a foot, and the angles are measured in degrees, minutes, and seconds. Recall that there are 360 degrees in a circle and that a circle can be divided into four quadrants: northeast, southeast, southwest, and northwest. Each quadrant contains 90 degrees; each degree contains 60 minutes, and each minute contains 60 seconds.

-the original way to achieve a formal legal description of the exact boundaries of any piece of land was to refer to its corners and boundary lines in a metes and bounds description.

-metes are the distances used in a description, and bounds are the directions of the boundaries that enclose a piece of land.

 What are height/bulk/FAR/minimum lot size and setback regulation, minimum lot size is most common method of regulating developmental density?

-within each zone, governments may specify the intensity of use, or the extent to which land in the zone may be used for its permitted purposes. The government can regulate intensity of use, also known as development density, in several ways, including placing restrictions on building height and bulk, specifying minimum lot sizes and establishing setback requirements.

-Height and Bulk Limitations

-height limitations regulate the maximum height of buildings in feet or stories.

-bulk limitations control the percentage of the lot area that may be occupied by buildings. Both serve to control the volume of a structure on the land and, therefore the intensity of use

-Floor Area Ratio

-another measure by which building volume may be controlled is the floor area ratio (FAR). The FAR is the relationship between the total floor area of a building and the total land area of the site. For example, an allowable ratio of 4 to 1 would permit a 4-story building to occupy the entire area of its lot; an 8-story building would be permitted to occupy only half of the site’s surface area; while a 16-story building could occupy only one-forth of the land area.

-Minimum Lot Size and Setback Requirements

-the most common method of regulating development density is through provisions for minimum lot size.

-zoning ordinances generally provide for setback of buildings from the street and minimum size of side yards in residential districts.

height limitations regulate the maximum height of buildings in feet or stories.

-bulk limitations control the percentage of the lot area that may be occupied by buildings. Both serve to control the volume of a structure on the land and, therefore the intensity of use

-another measure by which building volume may be controlled is the floor area ratio (FAR). The FAR is the relationship between the total floor area of a building and the total land area of the site. For example, an allowable ratio of 4 to 1 would permit a 4-story building to occupy the entire area of its lot; an 8-story building would be permitted to occupy only half of the site’s surface area; while a 16-story building could occupy only one-forth of the land area.

the most common method of regulating development density is through provisions for minimum lot size.

-zoning ordinances generally provide for setback of buildings from the street and minimum size of side yards in residential districts.

What constitutional amendments protect us from government taking our property without paying us 5^th and 14^th?

-under the power of eminent domain, a government can acquire property for public use even if the owner doesn’t want to sell, as long as the owner receives just compensation. This power comes from the Fifth Amendment to the US Constitution which, among other things, states that property shall not be taken from any person for public uses without the payment of just compensation.

-although this provision applies specifically to the Federal government, it has been extended to the states through the due process clause of the Constitution’s fourteenth amendment.

Cooperative:

-in the cooperative form of ownership (often abbreviated as co-op) the land and building usually are owned by a nonprofit corporation specifically created for the purpose of owning the property. Individual residents own stock in the corporation that owns the property and thus have the right to occupy a particular unit -rather than a fee simple ownership of real property, owners in a co-op have a proprietary lease for a specific unit. The lease period is typically indefinite because it is tied the the tenant’s interest in the cooperative corporation. The lease does not require the tenant to pay rent, but the tenant must pay a periodic fee to the co-op for the tenant’s proportionate share of maintenance, repairs, mortgage payments, taxes, and so on. The tenants vote for and elect a board of directors or officers for the cooperative pursuant to the organization’s bylaws.

-Condominum:

-the condominum and cooperative are two other ways to own real estate jointly In a condominium (condo) all owners typically have fee simple titles to their personal units, while common areas such as sidewalks, yards, entrances, hallways, pools, tennis courts, and other recreational facilities are jointly owned in a tenancy in common or some other form of concurrent ownership.

-a condominium association handles the maintenance of the common areas, and each unit pays a mandatory fee to cover the expenses of the association. The officers or directors of the association are typically elected by majority vote from all of the unit owners.

-all states have laws governing the formation of condominiums. These statutes require that three basic documents be filed- the condominium declaration, the bylaws, and deeds covering the individual units.

-the purchase of a condominium is legally more complex and potentially more demanding than the typical single-family home purchase.

even though someone may own the entire fee simple ownership rights in a parcel of real estate, this interest is often limited by certain restrictions placed on the property by public or private entities. These restrictions and limitations, known collectively as encumbrances, generally run with the land; in other words, they are binding on anyone who gains a subsequent interest in the property. In some cases, encumbrances may adversely affect both the use and the value of the property. In extreme cases, the land may be so encumbered that it would be valueless for the potential purchaser. Conversely, some public or private land-use restrictions may enhance the value of a property by protecting it from detrimental actions by others.

Title examinations are not required for cash transactions. Should be done for all transactions.

-Two processes

1. Title examination

2. Closing

Title Examination=

-The process of verifying the ownership rights being offered by the seller of a property

-Marketable title -one free and clear of all past, present or future claims, sometimes a minor issue or removable cloud-outstanding mortgage

-Insurable title –one that a reputable title insurance co will insure (may have defects-encroachment: fence or garage

-Title perfect of record – examination shows no defects or clouds

a title search reveals the ownership history, or chain of title, of property. An examination of the chain of title might show that the seller has good title, or it could show that the seller is only one of several parties claiming to own the real estate being sold. The title search is made possible by the recording system provided by each state.

-detailed examination of all public records that reveals the ownership history of a property-Chain of Title

-Recording requirements: each state’s recording statute provides that any document affecting title to real estate must be recorded. Although recording systems vary from state to state, the purpose of all such systems is to to protect the potential interest holder, including the fee simple owner, the tenant, and the mortgagee. The documents related to those interests, are, of course, the deed, the lease, and the mortgagee. As a result of the recording requirement, anyone concerned with the validity of a real estate title can determine that validity by means of a title search.

What are the characteristics of Title Insurance-one time premium, protects past events, etc…

-Title insurance is a policy that insures the title received by the grantee against any deficiencies that may have been in existence at the time the title was transferred.

-paid for in full at the time the policy is issued

-not transferable (may be reissued at a lower price sometimes)

-protects only against past events that were in existence but undiscovered at the time the policy was issued

property in land and buildings (technically consists of the physical land and structures)

consists of legal interests associated with the ownership of the physical real estate

movable property such as automobiles, furniture, boats, and clothing

When property use is restricted or lost from the use of police power- no compensation is paid. Just compensation is paid only in condemnation/takings/eminent domain cases

Property taxes are based on percentage values of the real property known as ad valorem. How are taxes calculated in Pitt Co. Assessed value is market based by state statute. How often re-assessed?

What are the powers of government (public restrictions) that are used to regulate or restrict property? How are they used? What are their differences? Taxation, escheat, police powers, eminent domain?

-under the power of eminent domain, a government can acquire property for public use even if the owner doesn’t want to sell, as long as the owner receives just compensation. This power comes from the Fifth Amendment to the US Constitution which, among other things, states that property shall not be taken from any person for public uses without the payment of just compensation.

-although this provision applies specifically to the Federal government, it has been extended to the states through the due process clause of the Constitution’s fourteenth amendment.

-in an eminent domain proceeding, also known as a condemnation proceeding, the government must establish that the land is needed for public use or benefit and that the amount of money offered to the landowner is the reasonable value of the land being taken. The concept of public use is quite broad, going beyond the taking of land for public facilities such as roads and schools. It has been extended to include the condemnation of private land for resale to other private individuals or firms for urban renewal. The concept has also been extended to include quasi-public organizations such as utility companies, railroads, and pipelines.

-the final power government have over private property is known as the power of escheat. In the very unlikely event that a landowner dies without leaving either a valid will or living relatives, the state government becomes the new owner of the property. This power prevents real estate from simply “becoming unowned.”

-under police power, governments have the power of regulation, which gives them the ability to protect the public health, safety, morals, and general welfare. In addition to obvious actions such as protecting against crime and health hazards, governments have also relied on these police powers to enact a variety of controls over the way landowners can use their properties.

-the use of a particular parcel of land is affected greatly by other nearby land uses and depends heavily on public investments and the economic vitality of the surrounding neighborhood and community. It is this interdependence of land uses that creates the need for public land-use controls. Generally speaking, the use of land affects the owners of other nearby properties more than the use of any other type of private property. Conversely, financial returns for the real estate developer or investor may be greatly affected by the land uses that are permitted by the governments or by the allowable intensity of the land use. Consequently, the issue of public land use controls if of vital importance to all who are concerned with real property.

the first power of government over private property to be considered is the power of taxation. The government exercises this power by levying both property taxes and income taxes.

-the property tax is an ad valorem tax; that is, it is levied as a percentage of value. It is a tax on the value of property, as opposed to a tax on the income earned from the property. Property taxes are often expressed in millage rates rather than percentage rates. One mill is equal to one dollar of tax for everyone one dollars of value. One percent is equal to one dollar of ax for every one hundred dollars of value. Stated another way, one mill equals 1/1000 of $1.

-in some jurisdictions, only a portion of the market value of property is subject to taxation, where market value is generally defined as the price that the property probably would bring in the market, given knowledgeable and willing uyers and sellers who act under no unusual pressures and who have a reasonable time to complete the transaction. The portion of market subject to taxation is called the assessed value. The fraction used to determine assessed value from market value is called the assessment ratio.

-furthermore, some jurisdictions exempt certain amounts of a property’s assessed value to provide tax relief for certain types of property owners (full-time residents, disabled persons, the elderly, etc). The exemptions effectively shift some of the tax burden away from the properties that qualify for the special treatment toward properties that do not qualify. Subtracting the amounts of exemptions from assessed value gives the property’s taxable value.

a nonconforming use is a continuing use that was legal before zoning ordinances was passed but that no longer complies with the current zoning regulation. Such a use generally is allowed to continue for some period of time unless the nonconforming structure is substantially destroyed or abandoned. Regulations concerning nonconforming use usually do not permit the existing structure to be enlarged or substantially changed in use. They may also require that the nonconforming use be discontinued after a stated period of time, a process known as amortization.

POB is most critical in metes and bounds description. It locates the tract

-perhaps nothing in real estate law is so upsetting to property owners as adverse possession, which allows individuals to acquire title to land they do not own because they have openly possessed it for a statutory period of time, usually 7 to 20 years.

-for title to be transferred by adverse possession, such possession must be “actual and exclusive, open and notorious, hostile, and continuous” for a statutory period of time. The phrase actual and exclusive does not require that the adverse possessor physically occupy the land at all times.

-another important prerequisite for adverse possession in some states is that the possession be under a “claim of right.” This means that the adverse possessor must have a basis for believing he or she owns the real estate claimed. A tenant who takes possession of a house while acknowledging the landlord’s ownership cannot adversely possess the leased property. If a claim of right is based on a written document, such as an invalid deed, the claim is said to be made under “color of title.” Some states require that the possessor have color of title to possess land adjustments while other states reduce the number of years required for continuous possession if written color of title is present.

-adverse possession is much more common in connection with boundary disputes than with possession of entire tracts. Boundary disputes involving adverse possession are of particular importance in residential areas.

-zoning refers to the process of dividing a community’s land into districts in which only certain uses of the land are allowed. For example, an area might be zoned to allow only single-family residences on lots of at least one-half acre in size, another area might be zoned to allow only commercial uses, and yet another area might allow only industrial uses.