Property Rights

1
Property Rights

• Dr. Jim Burton
• Marketing Real Estate
• Richards College of Business

2
Overview

• Real Estate Terms
• Types of Estates
• Title
• Mortgage Instruments
• FNMA Uniform Mortgage
• Non-standard Clauses
• Other Financing
• Mortgage Default

3
Real Estate Terms

• Real Estate - physical land/improvements
• Real Property - ownership rights
• Personal Property
• Estate - possessory right, use
• Easement - nonpossessory right

4
Types of Estates

• Freehold - indefinite term,Owner
• Leasehold - definite term (use)
• Fee Simple - Freehold/Owner
• Life Estate
• Reversion - right to regain
• Remainder - future right to regain

5
Title

• Title Abstract - owners history
• Deeds - General warranty, Limited warranty,
  quit claim
  
• Title Insurance
• Recording - priority of claims
• Taxes
• Date of Recording
• Mechanics Liens

6
Mortgage Instruments

• Note
• Deed to Secure Debt
• Deed of Trust
• Title Theory
• Lien Theory

7
FNMA Uniform Mortgage

• Payments
• Tax/Insurance Escrow
• Late Charges
• Maintain Property
• Inspection
• Personal Liability
• Due-on-Sale Clause

8
Non-standard Clauses

• Acceleration
• Lender in possession
• Release
• Appraisal waiver
• ARM rider
• Assumption vs subject to

9
Other Financing

• Purchase Money Note
• Package Mortgage
• Land Contract
• Junior Mortgages
• Wraparound Mortgage

10
Mortgage Default

• Default - Payment or Other
• Workouts
• Restructure
• Transfer to new owner
• Transfer to Mortgagee
• Friendly Foreclosure
• Bankruptcy

11
Foreclosure

• Judicial - sue, judgement, take property.
• Redemption - until sale is confirmed, pay debt,
  interest costs.
  
• Junior liens may be lost.

12
Bankruptcy

• Chapter 7 - discharge all debts
• Chapter 11 - reorganize business debt
• Chapter 13 - wage earner debt reorganization