1-5 General Property Law
Define real property versus personal property.
Answer: Property that is associated with land permanently attached to real property, real property includes all buildings. Everything else is regarded as personal, such as all furniture.
How do property titles get transferred in deeded properties?.
Answer Deeds are contracts that transfer deed of title/ownership of ownership of real properties from one to another.
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- https://insightfullawhelp.com/30-property-law-myths-debunked-by-legal-experts/
- https://insightfullawhelp.com/40-property-law-faqs-for-real-estate-investors/
Explain the contrast between freeholds and leasehold properties.
Answer. Freehold properties give outright ownership, whereas leasehold properties are owned for a certain period of time after which they revert to the landlord.
What is a title search?
Answer. A title search is an examination of the public records in respect to the seller’s ownership of a property and providing a report on any liens or claims.
What is a lien on property?
A lien is a type of claim in some property that is usually taken as collateral when someone owes a debt. Their sale must be ascertained before transferring ownership.
6–10: Purchasing Property
What does a real estate attorney do in an acquisition?
They vet the contract, guarantee that a seller’s title is clean, and represent the buyer at closing to safeguard his rights.
A down payment made by the buyer who is serious about purchasing the property, held in escrow until the sale closes.
What are contingencies in a real estate contract?
Answer: Conditions under which the sale will occur, such as completing home inspections or obtaining financing.
What is escrow in property transactions?
Answer: Holding of funds and documents by a neutral third party until all conditions for the sale are satisfied.
What is a property survey, and why is it important?
Answer: A survey maps property boundaries and identifies issues like encroachments or zoning violations.
11–15: Selling Property
What disclosures are required from sellers?
Answer: Sellers must disclose known defects, such as structural issues or environmental hazards, based on state laws.
What is a real estate closing?
Answer: The final step in a property sale where ownership is transferred, documents are signed, and funds are exchanged.
Can a seller cancel a signed contract?
Answer: Only if specific conditions described by the contract are not met, such as contingencies, or they risk being sued.
What happens if the buyer’s financing fails?
Answer: If financing is a contingency, the buyer can usually walk away from the contract without penalties, but the seller may keep the earnest money under some circumstances.
What are capital gains taxes on property sales?
Answer: Taxes on the profit from selling property, exempted under specific conditions for a primary residence.
16–20 Miscellaneous Property Law Questions
What is adverse possession?
Answer: A legal principle whereby a person may acquire ownership of land based on open, overt, hostile occupation for a statutory period without permission from the owner.
What are zoning laws?
Answer: Rules governing the use of land, such as residential, commercial, or industrial, which may determine the property’s use and value.
What is a home warranty, and should buyers buy one?
Answer: A home warranty covers repairs for major systems and appliances, giving buyers peace of mind after closing.
What happens to property in a divorce?
Answer: Property is divided according to state laws, either through equitable distribution or community property rules.
What is a property easement?
Answer A legal right granted to use a part of another’s property for some specific purpose, such as utility access or shared driveway.
