Real Estate Law Study Guide PDF

Real Estate Law Study Guide I. PROPERTY OWNERSHIP & TRANSFER DEEDS & OWNERSHIP TRANSFER - Deed Delivery: A deed that has not been delivered is VOID. - Grantor Clause: "Grantor hereby grants, bargains, sells, and conveys..." (Only a lawyer can say this). - Habendum Clause: Defines the extent of own...

Real Estate Law Study Guide I. PROPERTY OWNERSHIP & TRANSFER DEEDS & OWNERSHIP TRANSFER - Deed Delivery: A deed that has not been delivered is VOID. - Grantor Clause: "Grantor hereby grants, bargains, sells, and conveys..." (Only a lawyer can say this). - Habendum Clause: Defines the extent of ownership (e.g., "to have and to hold"). - Possibility of Reverter: If a condition on a property is violated, ownership may revert to the original owner. - Right of Reservation: The original owner retains certain rights when transferring property. FIXTURES & TRADE FIXTURES - Fixture: An item attached to real property that becomes part of it (e.g., a built-in bookshelf). - Trade Fixture: A business-installed fixture (e.g., a restaurant oven), which can be removed by the tenant. - Fixture Filing: A legal filing that secures an interest in fixtures. II. CONTRACTS & AGREEMENTS CONTRACT FUNDAMENTALS - Mutual Assent: Both parties must agree ("meeting of the minds"). - Consideration: A contract needs something of value exchanged (e.g., deposit). - Privity of Contract: Legal relationship between contracting parties. - Specificity: Contracts must be detailed to be enforceable. - Capacity: The parties involved must be legally capable of entering into a contract (e.g., not minors, mentally incompetent). - Offer & Acceptance: One party makes an offer, and the other must accept it exactly as presented (Mirror Image Rule). - Legality: The subject of the contract must be lawful. TYPES OF CONTRACTS - Soft Contract: Prior to a deadline, more flexible. - Hard Contract: Post-deadline, legally binding. - Conditional Proceeding: A contract dependent on certain conditions. STATUTE OF FRAUDS (SOF) - Certain contracts MUST be in writing (e.g., real estate sales, long-term agreements). - Parol Evidence Rule: Verbal agreements cannot contradict a written contract. - Memorialization: Formalizing a contract in writing. III. REAL ESTATE FINANCE & SECURITIES LOANS & MORTGAGES - Promissory Note: A document representing a promise to pay (a paper of value). - Collateral: Property pledged as security for a loan. - Mezzanine Financing: A hybrid of debt and equity financing. - Foreclosure: Does not require a deputy; exclusion sale does. LENDING & CREDIT FACTORS - Ability to Pay: Borrower's income and financial stability. - Willingness to Pay: Borrower's credit history and behavior. - Net Interest Margin (NIM): Lender's profit margin from interest. IV. REGULATIONS & LEGAL PRINCIPLES REGULATIONS & PROFESSIONAL REQUIREMENTS - Regulation of Professions: Governs surveyors, architects, engineers, etc. - Subdivision Regulations & Zoning: Local laws controlling land use. - EA (Enrolled Agent): A tax advisor authorized to represent taxpayers before the IRS. ANTITRUST & SECURITIES - Antitrust Laws: Prevent monopolies and promote fair competition. - Securities: Investment instruments (e.g., stocks, bonds). - Dark Pool: Private securities exchange not visible to the public. V. ENVIRONMENTAL & LAND USE LAWS - CERCLA: Addresses hazardous waste sites (Superfund law). - RCRA: Governs hazardous waste disposal. - Brownfield Legislation: Encourages redevelopment of contaminated properties. - Rent Roll: A list of tenants and rental income. VI. MISCELLANEOUS LEGAL DOCTRINES - Mirror Image Rule: Contract acceptance must exactly match the offer. - Assent vs. Consent: - Assent: Agreeing mentally. - Consent: Explicit permission given. - 1066 Norman Conquest: The Norman Conquest brought the feudal system to England, shaping modern property law. Under this system, all land was ultimately owned by the Crown and granted to lords, who in turn leased it to tenants. This laid the foundation for land tenure systems, property rights, and recording practices used in modern real estate transactions. STUDY TIPS: - Use color-coding to differentiate key concepts. - Highlight important terms in bold for quick recall. - Utilize visual aids, such as charts and diagrams, to remember relationships between legal principles. - Practice with flashcards for definitions and legal rules. - Understand practical applications of laws (e.g., how foreclosure works in real life).