1. Introduction to Real Estate Finance and Investments
CHAPTER 1
Introduction to Real Estate Finance and Investments

2. Rights Realty vs. Personalty Statute of Frauds Property Rights
Possess, Use, Enjoy, Dispose
Holder of an interest in property right

3. Estates Possessory estates Freehold NonFreehold: Leasehold Estates
Fee Simple Estates
Qualified Estates
Life Estates
NonFreehold: Leasehold Estates
Estate for Years
Estate from Year to Year

4. Estates Nonpossessory Estates: Future Estates Reversion Remainder
The right retained by a grantor or grantors heirs
Remainder
Contingent
Example: Must graduate from college
Vested
No contingency attached

5. Additional Interests Easements: Right of Use Encumbrance
Easement in Gross
Example: Utility company easement
Servient estate only
Appurtenant Easement
Dominant and servient estates
Encumbrance

6. Title Assurance A Good & Marketable Title What is title? Abstract Term
Quantity of Rights Conveyed
Abstract of Title
Title Chain

7. Title Assurance Deeds Grantor & Grantee General Warranty Deed
Covenants: Seisin, Quiet Enjoyment, Against Encumbrances, Further Assurance, Warranty Forever
Strongest deed for a grantee to receive
No encumbrances on title except those noted

8. Title Assurance Deeds Special Warranty Deed Quit Claim Deed
Limits the covenants to the ownership duration of the current grantor.
No guarantees on the ownership of prior grantors.
Quit Claim Deed
No Covenants
The least protection to the grantee
Grantor conveys whatever right “may exist”

9. Title Assurance Abstract & Opinion Title Search
Grantor-Grantee Index
Mortgagor-Mortgagee Index
Lawyer’s Opinion on Title
Is it good and marketable?
Are there any title clouds?
Is there a break in the title chain?

10. Title Assurance Title Insurance One time premium
Unseen Hazards in the Public Record
Risk is spread among many property owners
Owners’ Policy
Insures the interest of a new owner
Lender’s Policy
Insures the interest of the lender

11. Recording Acts Recording protects the interest of the owner
Constructive Notice
A person has whatever information is in the public record
Mechanics Liens
Relation Back Doctrine
Affidavit of Title

12. Limitations on Property Rights
Government (Public) Restrictions
Police Power
Zoning: land use restriction
Building Codes
Eminent Domain
Private Restrictions
Deed Restrictions: Qualified Fees
Subdivision Restrictions