“or” and “ees

• OFFER Offeror/Offeree

• CONTRACT OF SALE Vendor/Vendee

• OPTION Optionor/Optionee

• LEASE Lessor/Lessee

• DEED Grantor/Grantee

• MORTGAGE Mortgagor*/Mortgagee

• PROMISSORY NOTE Obligor*/Obligee

*Mortgagor is the Borrower

*Obligor is the Borrower

Property of THE Real Estate School LLC, All Rights Reserved

“or” and “ees”

Real Property

Property Ownership Rights

(Bundle of Rights)

• Possession

• Control (use)

• Enjoyment

• Disposition (alienation)

• Exclusion

• Sale of real property

accomplished with “Deed”

Personal Property

• Any kind of property that is not “Real Property”

• Movable

• Any interest in real estate of less than a lifetime (lease)

• Personal property is also called “Personalty”

• Tangible Personal property is called “Chattels”

• Sale of personal property is accomplished with “Bill of Sale”

Chapter 5

Property of THE Real Estate

School LLC, All Rights Reserved

What is Real Estate?

Fixtures

Five Tests for a Fixture

• Method of Attachment

• Adaptation to the property

• Relationship of the parties

• Intent of the parties

• Agreement of the parties

Trade Fixtures (owned by a

commercial tenant) are personal

property

Other Terms

• Hereditament

• Severance

• Plantings

– Annual Plantings

(crops/emblements)

– Perennial plantings (not

harvested)

• Littoral and riparian rights

Chapter 5



What is Real Estate?

Estates

Freehold Estates Fee Simple

• Fee Simple Absolute

(Indefeasible)

Qualified Fee (aka Conditional or

Determinable Fee)

Life Estate

• In Reversion

• In Remainder

• Pur Autre Vie

Chapter 6



Statutory Life Estates

• Dower & Curtesy

• Right of Possession

Encumbrances

Financial Claims

Liens:

• Voluntary v. Involuntary

• General lien v. Specific lien

• Priority of liens

• Lis Pendens

Specific liens

• Mortgages

• Property taxes/assessments

• Mechanic’s liens

Physical Condition

• Easements

• Licenses

• Encroachments

• Deed Restrictions

Chapter 6



General liens

• Judgments

• Other liens (estate,

inheritance, IRS, Dept. of

Treasury)

• Easement Appurtenant vs. Easement in Gross

• Dominant (Easement Holder) vs. Servient

(Land Owner)

• Easement by Prescription or Necessity

• Easement versus License

Chapter 6



Easements

In Severalty • Ownership by only one individual or entity

Co-Ownership • Tenancy in Common

• Joint Tenancy (PITT – Possession, Interest, Time and Title)

• Tenancy by Entirety

Non Individual Ownership

• Condominiums

• Co-Operatives



Ownership Methods

Chapter 7

Contracts

What Makes a Contract “Valid”

• Offer & acceptance

• Consideration

• Competent Parties

• Reality of Consent

• Legal Object

“Voidable”

• Enforced or rejected by one side

(Unilateral Mistake/

Misrepresentation/ Fraud/ Undue

Influence/ Intoxicated/ Minor)

“Enforceable”

Can be enforced in a court of law?

• Statute of Frauds (Does the contract

have to be in writing?)

• Statute of Limitations (Has the time

period to file a claim expired?)

• Unconscionable (Are the contract

terms shocking to the conscious?)

Chapter 11



Contracts

Classifying Contracts

• Expressed vs. Implied

• Unilateral vs. Bilateral

• Executed vs. Executory

Know how to classify different types of

contracts. Example:

Classify a Deed:

A Deed is an expressed, unilateral,

executed contract.

Remedies for Breach

Chapter 11



Generally

• Compensatory damages-actual

demonstrable financial loss

• Rescission of the contract

• Specific performance

Additional Seller Remedy

• Retain buyer’s deposit -contractual

remedy if contract contains a well

drafted liquidated damages clause

that is not a “penalty”

Contracts

Three Day Attorney Review

• What contracts can a licensee prepare?

• When is the three day attorney review applicable?

• Who can disapprove contract?

• How to count the time?

Chapter 11



“Agent/ Fiduciary”

RE Broker

Salesperson

Attorney In Fact

Principal / Client (Not Minors or Mentally Ill but can be

Individual or Entity)

Seller

Buyer

Landlord

Tenant

RE Broker

Principal (granting Power of Atty)

3rd Party / Customer

Buyer

Seller

Tenant

Landlord

Fiduciary Duty/ Obligation Fair Dealing, Accurate Information,

Disclosure of Material Fact

Contract (Expressed or IMPLIED!)

Listing Contract,

Buyer Agency

Contract

Property Mgmt Contract

Employment Contract

Power of Atty

THE Real Estate School, All Rights Reserved

Chapter 3

Agency

Listings

Three types of listings

At listing presentation, give

client:

• Consumer Information Statement

• Attorney General Memo

• Copy of listing contract

immediately if they sign

Also know:

• Net listing

• Waiver of Broker Cooperation



Chapter 10

1. Open Listing*

2. Exclusive Agency Listing

3. Exclusive Right to Sell

*No termination date required

• Gross Lease

• Net Lease

• Percentage Lease

• Variable Lease

– Graduated or Index

• Ground Lease (Reversionary

clause)

• Oil and Gas Leases

Leases

Types of Leases

Also know:

• Actual v. Constructive eviction

• Assignment of lease v. Sublease

Truth in Renting

• Security deposit rules

Chapter 12



Leasehold Estates • Estate for Years

• Periodic Tenancy

• Tenancy at Will

• Tenancy at Sufferance

“or” and “ees

Documents

Transcript of “or” and “ees