1. CHAPTER ONE AN INTRODUCTION TO REAL ESTATE INVESTMENTS: LEGAL CONCEPTS

2. Chapter Objectives Define Property Rights and Estates Define types of deeds and titles Methods of title assurance Understand the purpose of a mortgage and a note

3. Property Rights and Estates Real Estate includes land and improvements that are permanently attached Real Estate also includes certain intangible characteristics known as property rights (real property)

4. Property Rights and Estates Property rights include the right of a person to: –Possession –Use –Quiet enjoyment (legal term) –disposal

5. Property Rights and Estates Real Estate can include possessory and non-possessory interests –Easements –Mortgage Freehold (indefinite time period) and non- freehold (definite time period) estates

6. Freehold Estates Fee simple absolute Life estates Future life estates –Reversion –remainder

7. Non Freehold Estates (Leasehold) Estate for years (exact duration) Estate from year to year (period to period)

8. Assurance of Title and Deeds Title is a term used to refer to documents, records, and acts that prove ownership. Abstract of title Deeds convey title –Grantor and grantee

9. Assurance of Title and Deeds Continued General Warranty Deed Special Warranty Deed Quitclaim Deed

10. Assurance of Title and Deeds Continued Abstract and Opinion Method Title Insurance Method Owners Policy Lenders Policy

11. Recording Acts Establishes priority among competing claimants Senior Mortgages vs. Junior Mortgages Mechanics Liens Tax Liens

12. Limitations on Property Rights Public Restrictions Private Restrictions Police Power