Practical Real Estate Law, 8th Edition PDF by Daniel F Hinkel

By

Practical Real Estate Law, 8th Edition

By Daniel F. Hinkel

Practical Real Estate Law, 8th Edition

Contents:

Preface Xvii

Acknowledgment Xx

C H A P T E R 1

Introduction To The Law

Of Real Property 1

Real Property Law 2

Laws That Govern Real Property Transactions 2

History of American Real Property Law 2

Real Property versus Personal Property 3

Fixtures 3

Physical Elements of Real Property 4

Case: Ex Parte Brown 5

Ownership of Real Property 8

Modern-Day Estates in Real Property 8

Fee Simple or Fee Simple Absolute 9

Fee Simple Determinable 9

Fee Simple on Condition Subsequent 9

Life Estate 10

Future Interests 11

Estate for Years 12

Estate at Will 12

Methods of Acquiring Ownership

to Real Property 12

Inheritance and Devise 12

Gift 13

Contract and Sale 14

Adverse Possession 14

Transfer of Ownership (Conveyances) 15

The Role of Paralegals in Real Estate

Legal Practice 16

Research Materials for Real Property Law 16

Ethics: Introduction 17

Summary 18

Key Terms 18

Review Questions 19

Case Problems 19

Practical Assignments 20

C H A P T E R 2

CONCURRENT OWNERSHIP 21

Types of Concurrent Ownership 21

Joint Tenancy with Right of Survivorship 22

Tenancy in Common 23

Tenancy by the Entirety 25

Community Property 26

Agreements of Cotenancy 28

Ethics: Unauthorized Practice of Law 35

Concurrent Ownership and the Role of

the Paralegal 35

Other Legal Entities 36

Corporation 36

General Partnership 36

Limited Partnership 37

Limited Liability Company 37

Summary 37

Key Terms 38

Review Questions 38

Case Problems 38

Practical Assignments 39

Addendum 39

C H A P T E R 3

SURVEYS AND LAND

DESCRIPTIONS 44

The Survey 45

Preparation of Surveys and Survey

Standards 45

Land Descriptions 47

Government Rectangular Survey Description 47

Platted Description 52

Metes and Bounds Description 52

Practice Tips for Reviewing A Survey 57

Ethics: Competency 59

Summary 59

Key Terms 59

Review Questions 60

Practical Assignments 60

Addendum 60

Platted Description Survey 61

Metes and Bounds Survey and Description

(including Curve with Description) 62

Metes and Bounds Survey—Mason Mill

Property 63

Metes and Bounds Survey—River Trail

Property 64

Metes and Bounds Survey—Lonesome Valley

Road Property 65

Metes and Bounds Survey with Legal

Description—Shallow Creek Property 66

Survey Review Checklist 67

C H A P T E R 4

PUBLIC REGULATION AND PRIVATE

ENCUMBRANCES 69

Public Regulation 70

Zoning 70

Building Codes and Subdivision Regulations 71

Environmental Protection Laws/CERCLA 71

Case: Shackford & Gooch, Inc. et al. v.

The Town of Kennebunk et al. 72

Power of Eminent Domain 76

Taxation 77

Federal and State Income Tax Liens 78

Private Encumbrances 78

Judgment Liens 78

Mechanic’s and Materialmen’s Liens 78

Mortgages and Trust Deeds 79

Easements 79

Restrictive Covenants 80

Ethics: Abandonment of Work 80

Summary 81

Key Terms 81

Review Questions 81

Case Problems 82

Practical Assignments 82

Addendum 82

R-4 Single-Family Residential District

Regulations 83

C-1 Community Business District Regulations 86

C H A P T E R 5

EASEMENTS AND LICENSES 91

Easements 92

Creation of Easements 92

Case: Russakoff v. Scruggs 99

Termination of Easements 101

Licenses 101

Practice Tips for the Paralegal 102

Ethics: False Witness 103

Summary 103

Key Terms 103

Review Questions 104

Case Problems 104

Practical Assignments 105

Addendum 105

Sanitary Sewer Easement and Ingress and Egress

Easement 106

Electric Power Company Right-of-Way

Easement 109

C H A P T E R 6

CONTRACTS 110

Requirements for a Valid Contract 110

Legal Capacity to Contract 111

Mutual Agreement 115

Consideration 115

Lawful Purpose 115

Written Agreements 116

Remedies for Breach of a Real

Estate Contract 117

Specific Performance 117

Money Damages 117

Rescission 118

Liquidated Damages 119

Real Estate Brokers 119

Case: Southeastern Land Fund,

Inc. v. Real Estate World, Inc. 120

Agency Relationship 122

Services Provided by a Real Estate Broker 123

Listing Agreements 124

Open Listing 124

Exclusive Listing 124

Exclusive Right-to-Sell Listing 124

Real Estate Brokers and the Internet 133

Taxation and the Sale of Real Property 134

Federal Income Tax 134

Federal Income Tax on the Sale of a Home 134

Federal Income Tax on the Sale of

Commercial Property 135

Ethics: Commingling of Client Funds 136

Summary 136

Key Terms 137

Review Questions 137

Case Problems 137

Practical Assignments 138

C H A P T E R 7

PREPARATION AND REVIEW

OF A REAL ESTATE

CONTRACT 139

Elements of a Real Estate Contract 140

The Parties 140

Consideration 141

The Agreement 141

The Property 141

The Price 142

The Method of Payment 143

Quality of Title 145

Possession of the Property 146

Closing or Settlement 147

Closing or Settlement Documents 147

Proration, Closing Costs, and Financial

Adjustments 149

Condition of the Property and Risk of Loss 150

Earnest Money 151

Brokers 152

Merger 153

Assignment of Contract 154

Time Is of the Essence 154

Warranties of the Parties 154

Contingencies 156

Definitions 157

Default 157

Notice 157

Entire Agreement 158

Applicable Law 158

Additional Provisions 158

Offer and Acceptance 158

Execution 159

Caveat Emptor and the Seller Disclosure

Form 160

Short Sale Contracts 160

Special Commercial Contract Issues 161

Description of the Property 161

Representations, Warranties, and Covenants 161

Purchaser’s Inspection or Free Look 162

Closing Documents 162

Rent Prorations 165

Lease Commissions 166

Security Deposits 166

Seller’s Covenants Regarding Operation

of Property 167

Hazardous Materials 167

Indemnification 168

Seller’s Disclaimer of Warranty 169

Options 169

Contracts and Computers 170

Ethics: Illegal or Fraudulent Activity 174

Summary 175

Key Terms 175

Review Questions 176

Case Problems 176

Practical Assignments 177

Addendum 178

Contract for Purchase and Sale of a Home 179

Contract for Purchase and Sale of a Large Tract

of Vacant Land 187

Seller’s Property Disclosure Statement 193

Contract for Purchase and Sale of a Retail

Shopping Center 200

Option to Purchase 217

Acknowledgment 178

C H A P T E R 8

DEEDS 218

Historical Development of Deeds 218

Types of Deeds 219

General Warranty Deed 219

Case: Lunsford v. King 221

Limited (Special) Warranty Deed 221

Quitclaim Deed 222

Executor’s and Administrator’s Deeds 222

Trustee Deeds 223

Basic Requirements of a

Valid Deed 223

Written Instrument 223

Competent Grantor 223

Identity of the Grantee 224

Words of Conveyance 224

Description of the Property 224

Consideration 224

Signature of Grantor 224

Witnesses of Deeds 224

Delivery to Grantee 225

Preparation of a Valid Deed 225

Caption 225

Premises or Preamble 225

Granting Clause 225

Description 226

Habendum 227

Warranty Clause 227

Testimonium 227

Completing Sections of a Deed 227

Preamble 227

Granting Clause 228

Description 228

Testimonium 229

Practical Exercises in Deed

Preparation 231

Correction of Deeds 234

Reformation and Cancellation of Deed 234

Practical Tips for The Paralegal 236

Grantor 236

Grantee 236

Legal Description 237

Witnessing a Deed 237

Ethics: Falsification of Documents 238

Summary 238

Key Terms 239

Review Questions 239

Case Problems 239

Practical Assignments 240

Addendum 240

Sample Warranty Deed 241

General Warranty Deed—North Carolina 242

General Warranty Deed—Texas 244

Warranty Deed Joint Tenancy—Illinois 246

Limited Warranty Deed—Georgia 247

Grant Deed—California 248

Quitclaim Deed—Georgia 250

Quitclaim Deed—California 251

Executor’s Deed—New York 252

Administrator’s Deed—Georgia 254

Trustee Deed—Georgia 255

C H A P T E R 9

FINANCING SOURCES IN REAL

ESTATE TRANSACTIONS 256

Sources of Mortgage Loans 256

Savings Banks 256

Commercial Banks 257

Life Insurance Companies 257

Credit Unions 257

Pension Funds 258

Mortgage Banking Companies 258

Residential Nonbank Lenders 258

Issuers of Mortgage-Backed Bonds 258

Types of Loans 259

Conventional Loans 259

Insured or Guaranteed Loans 259

Subprime Lending 260

Secondary Market 261

Fannie Mae and Freddie Mac 261

Permanent and Construction Loans 262

Interest 262

Payment Plans 264

Ethics: Overbilling 265

Summary 266

Key Terms 266

Review Questions 266

Case Problems 266

Practical Assignments 267

Addendum 267

Amortization Calculator 268

Amortization Schedule of Direct Reduction

Loan 268

C H A P T E R 1 0

LEGAL ASPECTS OF REAL ESTATE

FINANCE 273

Promissory Note 274

Endorsement 275

Payment 276

Prepayment 277

Usury 278

Execution 279

Practice Tips for the Paralegal 279

Case: Acord v. Jones 279

Guaranty 282

Mortgages, Deeds of Trust, and

Security Deeds 282

Mortgage 282

Deed of Trust 283

Deed to Secure Debt 283

Requirements of a Mortgage 283

Parties to a Mortgage 283

Secured Debt 284

Secured Property 284

Assignment of Mortgage 285

Transfer of Property Encumbered by a

Mortgage 285

“Subject to” versus “Assumption” 286

Cancellation or Satisfaction of Mortgage 287

Second Mortgage Loans 288

Foreclosure and other Mortgage

Remedies 289

Foreclosure 290

Grounds for Foreclosure 290

Waiver of Default 294

State Limits on Foreclosure 294

Debtor’s Remedies and Defenses to

Foreclosure 294

Injunction 295

Suit for Conversion or Wrongful Foreclosure 295

Bankruptcy 295

Ethics: Confidentiality of Client

Information 296

Summary 297

Key Terms 297

Review Questions 297

Case Problems 298

Practical Assignments 299

Addendum 299

Fannie Mae/Freddie Mac Residential Fixed-Rate

Note 300

Fannie Mae/Freddie Mac Residential Adjustable-

Rate Note 303

Commercial Loan Note 308

Payment Guaranty 312

Florida Mortgage 315

North Carolina Deed of Trust 318

Georgia Commercial Deed to Secure Debt 320

C H A P T E R 1 1

MORTGAGE FORMS AND

PROVISIONS 323

Residential Mortgage Covenants 323

Transfer of Rights in the Property 324

Uniform Covenants 324

Nonuniform Covenants 342

Commercial Mortgage Provisions 343

Assignment of Rents and Leases 343

Security Agreement 344

Books, Records, and Financial Statements 344

Hazardous Waste 345

Nonrecourse or Exculpation Provisions 346

Cross-Collateralization and Cross-Default 347

Miscellaneous Commercial Loan

Documents 349

Security Agreement and Financing

Statement 350

Assignment of Rents 352

Construction Loan Agreement 352

Role of the Paralegal 354

Ethics: Misrepresentation 354

Summary 355

Key Terms 355

Review Questions 355

Case Problems 356

Practical Assignments 357

Addendum 357

Assignment of Leases and Rents 358

Construction and/or Development Loan

Agreement 361

C H A P T E R 1 2

TITLE EXAMINATIONS 368

Bona Fide Purchaser for

Value Rule 369

Recording Statutes 371

Case: City of Richland Hills v.

Bertelsen 372

Practice Tips for Ordering a

Title Examination 373

Information Needed to Do an

Examination 374

Examining Title to Real Property 374

Where to Search 374

Period of Examination 374

What to Search 375

Reviewing the Various Instruments in

the Chain of Title 377

Other Things to Examine 377

Preliminary Title Report 379

Title Examination Example 380

Title Defects and Problems 382

Record Title Holder 382

Breaks in the Chain of Title 383

Errors in Prior Recorded Deeds 383

Name Variances 384

Improper or Missing Power of Attorney 384

Sales Contracts, Options, and Leases 384

Unsatisfied or Unreleased Mortgages 384

Notice of Lis Pendens 385

Easements 385

Restrictive Covenants and Conditions 385

Mechanic’s and Materialmen’s Liens 386

UCC Financing Statements 386

Judgment Liens 386

Tax Liens 387

Title through Estates 387

Role of a Paralegal and Practice Tips 388

Record Rooms and Electronic Records 389

Ethics: Document Falsification 390

Summary 392

Key Terms 392

Review Questions 392

Case Problems 393

Practical Assignments 394

Acknowledgments 394

C H A P T E R 1 3

TITLE INSURANCE 395

Title Assurance and Title Insurance 396

Owner’s Policy 397

Insuring Provisions of an ALTA Owner’s Policy:

Basic Provisions 398

Case: Title & Trust Company of

Florida v. Barrows 399

Exclusions from Coverage 402

Schedule A 405

Schedule B 407

Mortgage or Loan Policies 410

Insurance Provisions 410

Miscellaneous Provisions 412

Endorsements 412

Construction Loan Title Insurance 414

Commitments for Title Insurance 414

Practice Tips for the Preparation and Review of a

Title Insurance Commitment 415

Practice Tips for the Preparation and

Review of a Title Insurance Policy 417

Ethics: Personal Conflict of Interest 418

Summary 420

Key Terms 420

Review Questions 420

Case Problems 421

Practical Assignments 422

Addendum 422

Owner’s Policy—ALTA 423

Owner’s Affidavit 434

Completed Owner’s Policy of Title Insurance 435

Loan Policy—ALTA 437

Zoning Endorsement 451

Comprehensive Endorsement 452

Survey Endorsement 454

Access Endorsement 455

Contiguity Endorsement 456

Usury Endorsement 457

Utility Facility Endorsement 458

Subdivision Endorsement 459

Tax Parcel Endorsement 460

Future Advance Endorsement 461

Title Commitment 462

Title Opinion 467

Sample Title Commitment 469

Title Examination Form for Practical

Assignment 470

Title Commitment Forms for Practical

Assignment 472

Acknowledgments 422

C H A P T E R 1 4

REAL ESTATE CLOSINGS 474

Real Estate Closing 475

The Parties and Environment 476

Anatomy of a Real Estate Closing 478

File Creation 478

Information Gathering 479

Reviewing the Real Estate Contract 479

Contact with Seller, Purchaser,

and Broker by the Paralegal 484

Ordering the Title Examination 485

Ordering the Survey 485

Ordering Hazard and Fire Insurance 486

Obtaining the Termite Clearance

Letter or Bond 487

Reviewing the Title Examination 488

Satisfaction of Loans and Liens 488

A Paralegal’s Review of the Mortgage

Loan Commitment 488

Parties 489

Loan Amount 489

Interest Rate 489

Term of Loan 489

Repayment Terms 489

Prepayment Terms 489

Security 489

Appraisal 490

Insurance 490

Escrow for Taxes and Insurance 490

Title Insurance 490

Survey 490

Hazardous Waste 491

Compliance with Law 491

Financial Documents 491

Documents 491

Defaults and Late Charges 491

Commitment Fee 491

Loan Expenses 491

Closing and Commitment Expiration Date 492

Disbursement of Loan Proceeds 492

Acceptance of a Loan Commitment 492

Assignability 492

Special Provisions in a Construction Loan

Commitment 499

Leasehold Loan Commitment 500

The Closing and Aftermath 500

Disbursing, Recording, and Transmitting

Final Documents 501

Final Closeout by the Paralegal 502

Closing the Short Sale 505

Truth-in-Lending Right of Rescission 505

New Methods of Closing 507

Technology for Document Production 507

Use of Email 508

Ethics: Conflicts of Interest 510

Summary 510

Key Terms 511

Review Questions 511

Case Problems 511

Practical Assignments 512

Addendum 512

Sample Contract for Closing Checklist 513

Mortgage Loan Commitment 517

Escrow Instruction Letter 522

Rescission Model Form (General) 525

Nonrescind Statement 525

Acknowledgments 512

C H A P T E R 1 5

REAL ESTATE CLOSING FORMS

AND EXAMPLES 526

Affidavits 527

Title Affidavit 527

Hazardous Waste Affidavit 527

Affidavit of No Change 528

Same Name Affidavit 528

Similar Name Affidavit 529

Foreign Person Affidavit 530

Sale and Transfer Documents 531

Deed 532

Bill of Sale 532

Assignment of Warranties 533

Assignment of Leases 533

Assignment of Contracts 535

Mortgage Loan and Other Real Estate

Closing Documents 537

Loan Documents 537

Corporate Resolution 537

Agreement Regarding Survival of Loan

Commitment 539

Indemnity of Fees 539

Attorney’s Opinion 540

Compliance Agreements 542

1099-B Report Form 543

Settlement or Closing Statement 544

Closing Example 552

Title Examination 552

Title Commitment 553

Survey 553

Corporate Resolution 553

Foreign Person Affidavit 553

Owner’s Affidavit 553

Transfer Tax Certificate 553

Warranty Deed 554

Bill of Sale 554

Termite Letter 554

Borrower’s Affidavit 554

Promissory Note 554

Deed to Secure Debt 554

Hazard Insurance 554

Settlement Statement 554

Ethics: Case Problem 557

Summary 558

Key Terms 558

Review Questions 558

Case Problems 559

Practical Assignments 559

Addendum 560

Sales Contract 561

Loan Commitment 563

Title Examination 564

Corporate Resolution 564

Foreign Person Affidavit 565

Owner’s Affidavit 566

Transfer Tax Certificate 567

Warranty Deed 568

General Warranty Bill of Sale 569

Owner’s Affidavit 570

Promissory Note 571

Security Deed 574

Settlement Statement 590

C H A P T E R 1 6

CONDOMINIUMS AND COOPERATIVES 592

Condominiums 592

Birth of a Condominium 593

Articles and Bylaws of a Condominium

Association 594

Case: Forest Villas Condominium

Association, Inc. v. Camerio et al. 596

Subcondominiums 597

Practice Tips for the Paralegal 598

Cooperatives 599

Differences between Condominiums and Cooperatives 599

Time-Shares 600

Ethics: Paralegal Correspondence 600

Summary 601

Key Terms 601

Review Questions 602

Case Problems 602

Practical Assignments 602

Addendum 603

State Condominium Act Requirements for Declaration 604

Condominium Declaration 607

State Condominium Act Requirements for

Condominium Plat 617

Articles of Incorporation 619

Condominium Association Bylaws 622

C H A P T E R 1 7

LEASES 629

Common Law and Leases 630

Commercial Lease Provisions 630

Parties to Lease 630

Premises 631

Use 631

Term 631

Possession and Commencement of the Lease 632

Rent 632

Percentage Rent 632

Gross versus Net Lease 635

Rent Escalation Clauses 636

Security Deposit 637

Maintenance and Alterations of Premises 637

Insurance 638

Damage or Destruction to the Premises 639

Obligation to Repair 639

Condemnation and Eminent Domain 639

Default 640

Landlord’s Remedies for Tenant’s Default 640

Landlord’s Right to Perform Tenant’s

Obligations 640

Landlord’s Lien 643

Grace Periods 643

Tenant’s Remedies for Landlord’s Default 643

Quiet Enjoyment 643

Surrender of the Premises 644

Estoppel Certificate 644

Memorandum of Lease 645

Limitation on the Landlord’s Liability 645

Assignment, Subletting, Or Mortgaging of the Leased Premises 645

Special Sublease Issues 647

Provisions Normally Contained in a

Sublease 648

Landlord or Tenant Mortgage 648

Miscellaneous Lease Issues 649

Lease Guaranty 649

Rejection of Leases in Bankruptcy 649

Uniform Residential Landlord and Tenant Act 650

Protection of Residential Tenants from Eviction after a Foreclosure Sale 651

Ethics: Legal Needs of the Poor 655

Summary 655

Key Terms 656

Review Questions 656

Case Problems 656

Practical Assignments 657

Addendum 658

Estoppel Certificate 659

Short-Form Memorandum 660

Subordination, Attornment, and Nondisturbance

Agreement 661

Guaranty of Lease 664

Apartment Lease 666

Small Commercial Retail Space Lease 668

Acknowledgment 658

GLOSSARY 671

INDEX 679

This book is US$10. Order for this book:
(Request for free sample pages click on "Order Now" button)

Book Order
Or, Send email: [email protected]

Share this Book!

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.