40 Property Law FAQs Explained for Beginners

General Property Law Fundamentals

What is property law?

Property law is concerned with the rights, use, and transfer of property, whether it be real estate or personal property.

It encompasses land and buildings and any other personal effects.

What are the two general categories of property?

Real property: land and improvements, and personal property: movable items, such as automobiles or jewelry.

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What is real estate?

Real estate is the land and improvements permanently attached to it, including houses or commercial buildings.

What rights do owners of property possess?

Ownership rights, which include possession, control, exclusion, enjoyment, and alienation, relate to the capability of transferring a property.

Ownership of Property

What is Fee Simple Ownership?

It is ownership of a whole property that involves full control with rights to possession, use, and inheritance

What is Deed?

The transfer of rights to a title in a document.

What is Joint Tenancy?

A manner of coownership in which all people involved have rights of survivorship and equal share

What is Tenancy in Common?

A form of co-ownership where shares can be unequal and there are no survivorship rights.

What is community property?

A legal concept in some states where property acquired during marriage is jointly owned by both spouses.

What is adverse possession?

A legal process where someone gains ownership of property by occupying it openly and continuously for a certain period.

Property Transactions

What is a title?

A legal document that proves property ownership.

What is a title search?

A review of public records to ensure the property has no liens or ownership disputes.

What is escrow?

A third-party service holding funds and documents until all conditions of a property sale are met.

What are contingencies?

Conditions that must be fulfilled for a real estate transaction to be completed (e.g., home inspection, financing).

What is earnest money?

A deposit made by a buyer to show serious intent to purchase a property.

Leases and Tenancy

What is a lease?

A type of contract whereby a person allows another to utilize property for some time in exchange for rent.

Responsibilities of the landlord

Upkeep of the premises, habitability, and obedience to local regulations on rentals.

Rights of a tenant

Protection from eviction that is unlawful and safe living condition, privacy among others.

Eviction

What is an eviction? A legal proceeding whereby a tenant is removed from a premise either for failure to pay or non-compliance with the terms and conditions of tenancy.

What is a sublease?

When a tenant lets someone else occupy their leased premises.

Zoning and Land Use

What is zoning?

Rules of the local government on what property can be used for, such as residential or commercial.

What is an easement?

The right of another to use part of your property for a specific reason, such as utility access.

What is eminent domain?

Government’s right to take private property for public use under just compensation to the owner.

What are restrictive covenants?

Restrictions imposed on a property to limit its use (for example, HOA restrictions).

What is a land survey?

An expert measurement of property boundaries.

Mortgages and Financing

What is a mortgage?

A loan taken to buy a property, the loan is tied to the property itself.

What is foreclosure?

The process when a lender takes back a property if the borrower fails to pay.

What is loan-to-value ratio (LTV)?

The ratio of a loan amount to the appraised value of the property.

What is a closing?

The last stage of a real estate transaction, where the ownership is transferred officially.

What are closing costs?

Costs incurred at the end of a real estate transaction, such as taxes, fees, and title insurance.

Disputes and Remedies

What is a boundary dispute?

A disagreement between neighbors about the location of the property lines.

What is trespassing?

Entering someone else’s property without permission.

What is nuisance?

An action or condition that interferes with someone’s enjoyment of their property.

What are encroachments?

When a structure illegally extends onto someone else’s property.

What is quiet title action?

A legal proceeding to resolve disputes and clarify ownership.

Taxes and Legal Obligations

What are property taxes?

Taxes levied by local governments based on the property’s assessed value.

What is capital gains tax?

A tax on the profit made from selling property.

What is a 1031 exchange?

A tax-deferred exchange that enables a property owner to reinvest sales proceeds into another property.

HOA dues. Fees paid for the maintenance of and community services by a homeowners association.

A homestead exemption. A provision in law by which primary homes are exempt from certain amounts of property taxes.

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