Business Law – Chapter 26

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adverse possession.
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the acquisition of title to real property by occupying it openly, without the consent of the owner, for a period of time specified by a state statute. the occupation must be actual, open, notorious, exclusive, and in opposition to all others, including the owner.
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closing.
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the final step in the sale of real estate – also called settlement or closing escrow. the escrow agent coordinates the closing with the recording of deeds, the obtaining of title insurance, and other concurrent closing activities. a number of costs must be paid, in cash, at the time of closing, and they can range from several hundred to several thousand dollars, depending on the amount of the mortgage loan and other conditions of the sale.
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commercial use.
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use of land for business activities only; sometimes called business use.
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community property.
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a form of concurrent ownership of property in which each spouse technically owns an undivided one-half interest in property acquired during the marriage. this form of joint ownership occurs in only a minority of states and Puerto Rico.
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concurrent ownership.
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joint ownership.
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condemnation.
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the process of taking private property for public use through the government’s power of eminent domain.
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conveyance.
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the transfer of a title to land form one person to another by deed; a document (such as a deed) by which an interest in land is transferred from one person to another.
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deed.
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a document by which title to property (usually real property) is passed.
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easement.
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a non-possessory right to use another’s property in a manner established by either express or implied agreement.
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eminent domain.
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the power of a government to take land for public use from private citizens for just compensation.
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escrow account.
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an account that is generally held in the name of the depositor and escrow agent. the funds in the account are paid to a third person only on fulfillment of the escrow condition.
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fee simple absolute.
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an ownership interest in land in which the owner has the greatest possible aggregation of rights, privileges, and power. the owner can use, possess, or dispose of the property as he or she chooses during his or her lifetime. on death, the interest in the property passes to the owner’s heirs.
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fixed-term tenancy.
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a type of tenancy under which property is leased for a specified period of time, such as a month, a year, or a period of years; also called a tenancy for years.
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grant deed.
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a deed that simply recites words of consideration and conveyance. under statute, a grant deed may be impliedly warrant that at least the grantor has not conveyed the property’s title to someone else.
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implication.
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a way of creating an easement or profit in real property when it is reasonable to imply its existence from the circumstances surrounding the division of the property.
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implied warranty of habitability.
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an implied promise by a landlord that rented residential premises are fit for human habitation – that is, in a condition that is safe and suitable for people to live in.
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industrial use.
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land use for light or heavy manufacturing, shipping, or heavy transportation.
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inverse condemnation
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the taking of private property by the government without payment of just compensation as required by the U.S. Constitution. the owner must sue the government to recover just compensation.
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joint tenancy.
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the joint ownership of property by two or more co-owners in which each co-owner owns an undivided portion of the property.on the death of one of the joint tenants, his or her interest automatically passes to the surviving joint tenants.
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lease.
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in real property law, a contract by which the owner of real property (the landlord, or lessor) grants to a person the (the tenant, or lessee) an exclusive right to use and possess the property, usually for a specified period of time, in return for rent or some other form of payment.
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leasehold estate.
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an estate in realty held by a tenant under a lease. in every leasehold estate, the tenant has a qualified right to possess and/or use the land.
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license.
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in the context of intellectual property, a contract permuting the use of a trademark, copyright, patent, or trade secret for certain purposes. in the context of real property, a revocable right or privilege of a person to come on another person’s land.
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life estate.
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an interest in land that exists only for the duration of the life of some person, usually the holder of the estate.
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marketable title.
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title to real estate that is reasonably free from encumbrances, defects in the chain of title, and other matters that affect title, such as adverse possession.
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metes and bounds.
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a system of measuring boundary lines by the distance between two points, often using physical features of the local geography.
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necessity.
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in criminal law, a defense against liability.
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non-possessory interests.
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interests in land that do not include any rights to possess the property. includes easements, profits, and licenses.
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periodic tenancy.
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a lease interest in land for an indefinite period involving payment of rent at fixed intervals, such as week to week, month to month, or year to year.
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prescription.
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a way of creating an easement or profit in real property by openly using the property, without the true owner’s consent, for the required period of time (similar to adverse possession).
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profit.
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in real property law, the right to enter onto and remove things from the property of another (for example, the right to enter onto a person’s land and remove sand and gravel therefrom).
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quitclaim deed.
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a deed intended to pass any title, interest, or claim that the grantor may have in the property but not warranting that such title is valid. a quitclaim deed offers the least amount of protection against defects in the title.
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recording statute.
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statutes that allow deeds, mortgages, and other real property transactions to be recorded so as to provide notice to future purchasers or creditors of an existing claim on the property.
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residential use.
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use of land for construction of buildings for human habitation only.
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restrictive covenant.
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a private restriction on the use of land. if its benefit or obligation passes with the land’s ownership, it is said to “run with the land.”
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special-use permit.
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a permit that allows for a specific exemption to zoning regulations for a particular piece of land in a location that has a particular zoning characteristic. local zoning authorities grant special-use permits.
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special warranty deed.
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a deed that warrants that the grantor or seller held good title during his or her ownership of the property.
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taking.
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the taking of private property by the government for public use. under the fifth amendment to the constitution, the government may not take private property for public use without “just compensation.”
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tenancy at sufferance.
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a type of tenancy under which one who, after rightfully being in possession of leased premises, continues (wrongfully) to occupy the property after the lease has been terminated. the tenant has no rights to possess the property and occupies it only because the person entitled to evict the tenant has not done so.
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tenancy at will.
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a type of tenancy under which either party can terminate the tenancy without notice; usually arises when a tenant who has been under a tenancy for years retains possession, with the landlord’s consent, after the tenancy for years has terminated.
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tenancy by the entirety.
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the joint ownership of property by a husband and wife. neither party can transfer his or her interest in the property without the consent of the other.
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tenancy in common.
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co-ownership of property in which each party owns an undivided interest that passes to his or her heirs at death.
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title insurance.
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insurance commonly purchased by a purchaser of real property to protect against loss in the event that the title to the property is not free from liens or superior ownership claims.
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variance.
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a form of relief or exception from zoning and other laws that is granted to a property owner.
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warranty deed.
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a deed n which the grantor guarantees to the guarantee that the grantor has title to the property conveyed in the deed, that there are no encumbrances on the property other than what the grantor has represented, and that the grantee will enjoy quiet possession of the property; a deed that provides the greatest amount of protection for the grantee.
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waste.
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the abuse or destructive use of real property by one who is in rightful possession of the property but who does not have title to it. waste does not include ordinary depreciation due to age and normal use.
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zoning laws.
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the rules and regulations that collectively manage the development and use of land.

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