ALP Real Estate & Property Law Flashcards

What is the purpose of a 'title search' in a real estate transaction?

Answer: To examine public records and verify clear ownership and identify any encumbrances

A title search reviews recorded public documents to identify liens, easements, judgments, or other defects that could affect the seller's ability to convey clear title.

A 'lis pendens' recorded against real property gives notice that:

Answer: There is pending litigation involving the property

A lis pendens is a recorded notice that serves as constructive notice to the public that the described property is subject to pending litigation.

In a 'joint tenancy' ownership arrangement, what occurs when one co-owner dies?

Answer: The surviving co-owner(s) automatically receive the deceased's share by right of survivorship

Joint tenancy includes the right of survivorship, meaning a deceased joint tenant's interest automatically vests in the surviving joint tenant(s) by operation of law.

What is 'adverse possession' in U.S. property law?

Answer: Acquiring legal title to land by openly and continuously occupying it for a statutory period

Adverse possession enables a person who has openly, continuously, exclusively, and hostilely occupied another's land for the statutory period to claim legal title.

In real estate financing, a 'mortgage' is best described as:

Answer: A security interest in real property given to a lender to secure repayment of a loan

A mortgage creates a lien on real property as collateral for a loan, giving the lender foreclosure rights if the borrower defaults on repayment.

What is 'escrow' in the context of a real estate closing?

Answer: A neutral third party holding funds and documents until all closing conditions are satisfied

An escrow arrangement involves a neutral third party holding money, signed documents, and instructions until all conditions of the transaction are fulfilled and closing can occur.