A-3 Transfer of Title and Title Insurance Flashcards
Four methods through titles are transferred:
Voluntary alienation, involuntary alienation, descent, and will
Transference of a title by choice, is effected through public (government) and private (individual) grants.
Voluntary Alienation
Proceeds against the owner’s will and includes foreclosure, eminent domain, escheat, and adverse possession.
Involuntary Alienation
Where title is passed because an individual dies with heirs but no will, the probate court appoints an administrator to distribute the property among the heirs according to law.
Descent
Deed: a clause that affirms the grantor is giving up ownership and clarifies what is being given up.
Granting clause
Deed: Used when limiting the interest conveyed in a deed, when grantors wish to convey something less than the estate they own. “To have and to hold…”
Habendum clause
In a discrepancy between an Habendum clause and a granting clause which prevails?
Granting Clause
In a deed where an owner reserves the title to a portion of property such as land or mineral rights ; a new right to that which is being granted, such as a life estate.
Exceptions or reservations
A promise that the grantor owns the property and has the right to convey
Covenant of Seizin
A promise that the grantor will defend the grantee’s title against claims by third parties and compensate the grantee if the title turns out to be invalid or defective.
Covenant of quiet enjoyment
The grantor promises the property is free from encumbrances except those already revealed
Covenant against further encumbrances
Contained in both special and general warranty deeds the grantor agrees to perfect or correct the title if necessary during their lifetime
further assurance
Contained only in general warranty deeds. If 3rd party wrests the title the grantee may sue for damages up to the value of the property at time of sale
Warranty forever
First deed in chains of title- transfer real property from the state or federal government to individuals.
Patent deeds
Include bargain and sale, special warranty and general warranty deeds.
Conveying deeds
Deed from which the government commonly sells real property, with no warranties and may be used by private grantors who wish to limit their liability
Bargain and sale deeds
4 types of Bargain and Sale deeds:
- Sheriff’s deeds 2. Treasurer’s deeds 3. Executors deeds 4. Trustee’s deeds
When a grantor accepts responsibility for encumbrances and defects in property arising only during their ownership
Special warranty deed
A deed where the grantor fully guarantees clear title but not the physical condition of the property.
General Warranty Deed
Deed which pass only the right, title and interest the grantor has at the time of release, not any subsequent title or interest acquired. No covenants or warranties.
Quit claim deed.
A type of quit claim deed used between relatives
Gift Deed
A type of deed that is a statement denying legal responsibility. Husband would sign this if wife wants to purchase sole and separate.
Disclaimer deed.
A deed used when one person represents another.
Fiduciary deed.
The loss of property against an owner’s wishes can occur through natural causes and law.
Involuntary Alienation
The process of acquiring land through soil deposits as a result of the movement of rivers and streams is? The soil deposited this way is?
accretion, alluvion
Receding of water from its usual watermark in rivers, streams and littoral bodies of water (lakes and oceans)
Reliction
The property of an individual who dies without a will
Intestate
In the matter of wills real property is termed
Devise
There are 3 basic wills
- Formal (conventional 2. holographic 3. nuncupative
Supplement to a will, seldom revokes the original will, requires the signatures of the maker and two witnesses
Codicil
An accumulation of facts, which, if proven, would enable a person to recover or retain possession of a piece of real property
Title
Constructive Notice
legal notice to the world at large (the law charges the public with responsibility for knowledge of the contents of the chain of title whether or not the public is aware of its existence
Actual Notice
Not as strong as constructive notice. Direct knowledge “see my house on the property, i live there”
A prepared summary of the chain of title and not equivalent to a recorded deed. Attorney’s opinion “certificate of title”
“Abstract of Title”
A conclusive system first developed in Australia (not in AZ)
Torrens’ Certificate
Protects property owners and mortgagees against loss through defects in title, liens, or encumbrances. Covers the past not the future. There are two types
Title insurance- 1. Owners 2. Lenders
Generally referred to as the exchange of a claim for money thereby waiving all further rights, or the substitution of one party for another so the substitute party has the same rights as the former
Subrogation
An employee of a title company who examines public records for problems or aberrations and renders an evaluation
Title Examiner
A storage facility often erected by title companies to store copies of documents obtained from public records and county recording offices.
Title plant
Sets forth the property to be insured, a legal description of the property, the name of the party to be insured, and the type of estate (fee simple)
Schedule A
Sets forth standard and special exceptions not covered by the policy. Standard exceptions (items never covered by title insurance) including property taxes, a loan being assumed and deed restrictions
Schedule B
Insures the lender has an enforceable lien against the property. (Also known as ALTA, Broad form coverage, and Extended Coverage)
Lenders policy
When a condition is placed in a deed a violation of the condition could result in:
Forfeiture
At what point is a recordation take place
When assigned a docket and page number
