chapter one an introduction to real estate investments: legal concepts
Post on 22-Dec-2015
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CHAPTER ONE
AN INTRODUCTION TO REAL ESTATE INVESTMENTS:
LEGAL CONCEPTS
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Chapter Objectives
• Define Property Rights and Estates
• Define types of deeds and titles
• Methods of title assurance
• Understand the purpose of a mortgage and a note
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Property Rights and Estates
• Real Estate includes land and improvements
that are permanently attached
• Real Estate also includes certain intangible
characteristics known as property rights
(real property)
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Property Rights and Estates
• Property rights include the right of a person to:– Possession– Use– Quiet enjoyment (legal term)– disposal
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Property Rights and Estates
• Real Estate can include possessory and non-possessory interests– Easements– Mortgage
• Freehold (indefinite time period) and non- freehold (definite time period) estates
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Freehold Estates
• Fee simple absolute
• Life estates
• Future life estates– Reversion– remainder
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Non Freehold Estates (Leasehold)
• Estate for years
(exact duration)
• Estate from year to year
(period to period)
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Assurance of Title and Deeds
• Title is a term used to refer to documents, records, and acts that prove ownership.
• Abstract of title
• Deeds convey title– Grantor and grantee
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Assurance of Title and Deeds Continued
• General Warranty Deed
• Special Warranty Deed
• Quitclaim Deed
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Assurance of Title and Deeds Continued
• Abstract and Opinion Method
• Title Insurance Method
• Owners Policy
• Lenders Policy
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Recording Acts
• Establishes priority among competing claimants
• Senior Mortgages vs. Junior Mortgages
• Mechanics Liens
• Tax Liens
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Limitations on Property Rights
• Public Restrictions
• Private Restrictions
• Police Power