17 Deeds and Titles Flashcards
Title
The evidence of ownership.
Deed
A written instrument that transfers ownership from a grantor (owner) to a grantee (buyer).
Acknowledgement
States that the grantors signature is genuine and its a free and voluntary act. Deed must be acknowledged before deed can be recorded.
General Warranty Deed
Provides the greatest protection of any deed.
Special Warranty Deed
The grantor only warrants that the property was no encumbered during he time the grantor held title except as noted in the deed.
Bargain and Sale Deed
Contains no warranties and states that the grantor holds an interest in the property. Used in foreclosures and tax sales.
Quitclaim Deed
Least liability to a grantor, least protection for a grantee. It transfers only what interest the grantor may have, in any. Used to remove cloud on title.
Deed of Trust
Used as security for a lien owed by the borrower (trustor) which delivers bare, legal title to a 3rd party (trustee) to be held for the benefit of the lender (beneficiary).
Deed of Reconveyance
This instrument is used to reconvey title back to the trustor once the debt is repaid in full.
Disclaimer Deed
Relieves a party (wife) from being named on the deed and having any future interest.
Trustee’s Deed
A deed originating form a trustee that transfers to anyone other than a trustor. Foreclosure.
Beneficiary Deed - test
A deed that conveys interest in real property to a beneficiary designated by the owner and transfers upon the owners death.
Voluntary Alienation
This is transfer by gift or by sale during someone’s lifetime.
Involuntary Alienation
Transferred without the owners consent.
Involuntary Alienation Types
- Escheat - dying without a will and no heirs. Property goes to state
- Eminent domain - Gov’t takes property for public benefit.
- Foreclosure - Sold to satisfy an outstanding debt
- Adverse Possession - The right to claim land with continuous use for 10 years.
Transfer Tax Stamp
A tax that is paid by the grantor when the deed is recorded.
Transfer by Will
This happens when a person dies testate (leaving a will and has heirs). A will is a testamentary instrument that becomes effective after the death of the maker.
Requirements for a Will
- Legal age
- Sound mind
- In writing
- Free will
- Last will
- Witnessed (2)
Testate
Dying with a will and having heirs
Testator
Maker of the will
Devise
Real property left in a will
Devisee
The party receiving real property through the will
Bequest
Personal property left in a will
Legacy
Money left in a will
Executor
The person named in the will to oversee the provisions.
Executrix
A female executor
Administrator
Appointed by the courts when no executor is named in the will
Holographic Will
A will prepared in handwriting by the testator.
Codicil
An amended will.
Noncupative Will
A verbal will.
Transfer by Descent
This occurs when a person dies intestate (Will, but no heirs) and the property passes according to state laws.
Probate
A judicial process to confirm the validity of a will.
Granting Clause
Words of Conveyance
Recording the Deed - 3
- Reason for recording is to prove to world ownership
- Always recorded in the county where the property is located.
- Whoever records deed first is owner
Constructive Notice
This is notice by inquiring into public records regarding facts about a property.
Actual Notice
This is having first hand knowledge by inspecting the property.
Title Search
An exam of public records to determine condition of title and to see if there are any defects.
Cloud on Title
An encumbrance or a claim on title that can impair an owners title on property.
Chain of Title
Is the history of the property ownership. CHAIN a gap in the chain can be re-established by a lawsuit called suit to quiet title.
Abstract of Title
A condensed history of all recorded docs relating to the property.
Marketable Title
Free from major defects which can deter a potential buyer from wanting to purchase the property.
Certificate of Title
An opinion by a title company, abstractor or attorney on the status of the title.
Title Insurance
Protects the policyholder against loss due to title defects.
Subrogation
Allowing your insurance company to act of your behalf. Allows insurance company to go after parties that caused injury to recover money that has been paid out.
Torrens System
Registration system used for assuring and recording title.
