SAEE Property Rights and Legal Considerations Flashcards

A buyer purchases a property without knowledge that a judgment lien exists against the seller. The title company later discovers the lien. Under the doctrine of constructive notice, the buyer:

Answer: Is charged with knowledge because the lien was recorded

Constructive notice holds that any lien or encumbrance properly recorded in public records is legally presumed to be known by all parties, regardless of actual knowledge.

Two adjacent property owners share a driveway under a written easement agreement. When one owner sells their property, the easement:

Answer: Transfers automatically with the land as an easement appurtenant

An easement appurtenant runs with the land and automatically transfers to subsequent owners of both the dominant and servient estates.

A state law requires that all real property transfers be documented in writing to be legally enforceable. This requirement comes from the:

Answer: Statute of Frauds

The Statute of Frauds requires contracts for the sale of real estate to be in writing and signed to be legally binding and enforceable.

An appraiser is asked to determine value for property tax assessment purposes. The legal standard for this type of value is typically defined by:

Answer: State statutes governing assessment practices

Property tax assessment standards and definitions of assessed value are established by individual state statutes, which appraisers must follow alongside USPAP.

A property is subject to a deed restriction prohibiting commercial use. The current owner wants to open a small retail shop. Which party can MOST directly enforce this restriction?

Answer: The neighboring property owners who benefit from the restriction

Deed restrictions (restrictive covenants) are private agreements enforceable by the parties who benefit from them, typically neighboring property owners in the same subdivision.

A property owner dies without a will and has no living heirs. Under the legal concept of escheat, the property:

Answer: Reverts to the state government

Escheat is the legal process by which property reverts to the state when an owner dies intestate with no heirs or when property is abandoned.

Which of the following BEST describes the legal effect of recording a deed in the county recorder's office?

Answer: It provides constructive notice of ownership to the public

Recording a deed in the public records provides constructive notice to the world that the grantee has an interest in the property, protecting against subsequent competing claims.