Lecture Notes - Real Estate
Lecture 1
• Real property vs personal property o Real → the land and anything there (dirt and building)
• Ranch, building, shopping center, etc.
• IF YOU own real property, it must be in writing o Personal → everything else
• Title o The ownership of that real property o Proof: deed
• The deed evidences the title o Recording of the deed
• Take the deed to the court office to record it
• Recording is to claim ownership
• Lessor & Lessee o Lessor → the owner of the property (landlord) o Lessee → rentor or tenant
• Lessor does not give up any ownership rights in that property
• Buying a home o Cost of house is $750,000 o Need collateral = assets that you are putting up for this loan
• Mortgage o You give the bank a mortgage
• The mortgage is a document that says the bank lent John Smith the loan and the mortgage has a lien against that property o The bank gives you a loan o Mortgager = borrower o Mortgage = lender
• Classification of estates o Fee simple – own the dirt → most complete form of ownership o Leasehold
• Long term lease on property
• 50-100 year ground lease
• Buy dirt/land, then lease it to someone to build on it and pay yearly lease o Life Estate
• Someone owns the land/house but needs money so she sells the house but retains life estate
• So she has the right to line there till her death
• Habitant pays taxes/utilities o Future Estate
• Grandma lives in the estate but agrees to give it to you when she passes
• *** The single family home you move into is not an investment → Pay your debt
• Types of Deeds o General Warranty Deed- Most common and desirable deed
• Property has no problems on it o Special Warranty Deed
• List encumbrances hindrance on that was on property while owner owned that property o Bargain and Sale deed
• Conveying property without any warranties on it o Sherriff’s deed
• Bank owned property – ordered by the courts, the sheriff issues that dead o Executor deed
• When someone
• Real property vs personal property o Real → the land and anything there (dirt and building)
• Ranch, building, shopping center, etc.
• IF YOU own real property, it must be in writing o Personal → everything else
• Title o The ownership of that real property o Proof: deed
• The deed evidences the title o Recording of the deed
• Take the deed to the court office to record it
• Recording is to claim ownership
• Lessor & Lessee o Lessor → the owner of the property (landlord) o Lessee → rentor or tenant
• Lessor does not give up any ownership rights in that property
• Buying a home o Cost of house is $750,000 o Need collateral = assets that you are putting up for this loan
• Mortgage o You give the bank a mortgage
• The mortgage is a document that says the bank lent John Smith the loan and the mortgage has a lien against that property o The bank gives you a loan o Mortgager = borrower o Mortgage = lender
• Classification of estates o Fee simple – own the dirt → most complete form of ownership o Leasehold
• Long term lease on property
• 50-100 year ground lease
• Buy dirt/land, then lease it to someone to build on it and pay yearly lease o Life Estate
• Someone owns the land/house but needs money so she sells the house but retains life estate
• So she has the right to line there till her death
• Habitant pays taxes/utilities o Future Estate
• Grandma lives in the estate but agrees to give it to you when she passes
• *** The single family home you move into is not an investment → Pay your debt
• Types of Deeds o General Warranty Deed- Most common and desirable deed
• Property has no problems on it o Special Warranty Deed
• List encumbrances hindrance on that was on property while owner owned that property o Bargain and Sale deed
• Conveying property without any warranties on it o Sherriff’s deed
• Bank owned property – ordered by the courts, the sheriff issues that dead o Executor deed
• When someone