CHAPTER ONE

1
CHAPTER ONE

• AN INTRODUCTION TO REAL ESTATE INVESTMENTS
• LEGAL CONCEPTS

2
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

3
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)

4
Property Rights and Estates

• Property rights include the right of a person to
• Possession
• Use
• Quiet enjoyment (legal term)
• disposal

5
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

6
Freehold Estates

• Fee simple absolute
• Life estates
• Future life estates
• Reversion
• remainder

7
Non Freehold Estates (Leasehold)

• Estate for years
• (exact duration)
• Estate from year to year
• (period to period)

8
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

9
Assurance of Title and Deeds Continued

• General Warranty Deed
• Special Warranty Deed
• Quitclaim Deed

10
Assurance of Title and Deeds Continued

• Abstract and Opinion Method
• Title Insurance Method
• Owners Policy
• Lenders Policy

11
Recording Acts

• Establishes priority among competing claimants
• Senior Mortgages vs. Junior Mortgages
• Mechanics Liens
• Tax Liens

12
Limitations on Property Rights

• Public Restrictions
• Private Restrictions
• Police Power