Ch. 3 Key Terms

Question 1

Alienation

Answer 1

A general term that refers to all of the different methods by which title to real property can be transferred from one person to another.
A person who owns real property is said to have title to it.
Whether accomplished by means of a deed, a will, foreclosure, or in any other way, a transfer of ownership is a form of alienation.

Question 2

Deed

Answer 2

A written instrument that, when properly executed, delivered, and accepted, conveys title or ownership of real property from the grantor to the grantee and is used to transfer real property.

Question 3

Voluntary alienation

Answer 3

Includes transferring property by patent, deed, will, or dedication.

Question 4

Patent

Answer 4

A document that transfers government land to private land for an individual or a company.

Question 5

Conveyance

Answer 5

The transfer of real property from the grantor (property owner) to the grantee (person receiving the property). To carry this out these three steps are important: acknowledgement, delivery, and acceptance.

Question 6

Warranty deed

Answer 6

The deed that provides the greatest protection to a purchaser of real property, because it contains five basic convenants against defects int he title.

Question 7

Warranty Deed Conenants

Answer 7

These are applied automatically whenever a warranty deed is used and are guarantees against title problems that may have developed while the grantor owned the property. Not only that, they also cover problems that may have arisen earlier, before the grantor owned the property.

• Seisin
• Right to Convey
• Against Encumbrances
• Quiet Enjoyment
• Warranty

Question 8

Seisin

Answer 8

The grantor promises that she actually owns the interest that the deed is conveying to the grantee.

Question 9

Right to Convey

Answer 9

The grantor promises that she has the right to convey the interest in question to the grantee.

Question 10

Against Encumbrances

Answer 10

The grantor promises that there are no easements, liens, or other encumbrances against the title that have not been disclosed to the grantee.

Question 11

Quiet Enjoyment

Answer 11

A promise that the grantee’s possession of the property will not be disturbed by the lawful claims of any third parties.

Question 12

Warranty

Answer 12

The grantor promises to defend the grantee’s title against any claims by third parties that existed at the time the conveyance was made.

Question 13

Special Warranty Deed

Answer 13

The covenants cover only problems that arose while the grantor owned the property. It is usually used in various special circumstances such as the grantor is a fiduciary (such as an executor of an estate) who is holding the land only temporarily.

Question 14

After-acquired title

Answer 14

An interest in the property that the grantor acquires after executing the either the warranty deed and special warranty deed.

Question 15

Quitclaim deed, sometimes called a Reformation deed

Answer 15

A deed that conveys and releases any interest in a piece of real property that the grantor may have. It contains no warranties of any kind, but does transfer any right, title, or interest the grantor has at the time the deed is executed. A common reason for using a quitclaim deed is to clear up minor title defects, which are often called clouds on the title.

Question 16

Cloud or Cloud on the title

Answer 16

Problems appearing in the public record that cast doubt on the status of the title.
For example, it might be created by a technical flaw in an earlier deed, such as a typographical error in the property description.
Or result from an unreleased lien, which indicates that there may be an unresolved claim against the property.

Question 17

Sheriff’s deed

Answer 17

Used to convey title to someone who purchases property at a mortgage foreclosure sale.

Question 18

Trustee’s deed

Answer 18

Used to convey title to the purchaser at the trustee’s sale.

Question 19

Tax deed

Answer 19

The foreclosure sale purchaser receives this when the government forecloses on property because the property taxes weren’t paid.

Question 20

Gift deed

Answer 20

Used when one party gives property to another. It is not supported by consideration, and is the easiest for a court to set aside if there is any hint it was executed in order to defraud creditors.

Question 21

Deed Requirements aka. essential elements

Answer 21

• In writing
• Identify the Parties
• Signed by a competent grantor
• Specify a living grantee
• Contain words of conveyance
• Adequately describe the property

Question 22

Deed Requirements - In Writing

Answer 22

The statute of frauds is a state law that requires certain types of contracts and transactions to be put into writing. Under the statute, an oral conveyance of title to real property is not valid.

Question 23

Deed Requirements - Identify the Parties

Answer 23

The deed must identify the parties, the grantor and the grantee. It isn’t absolutely necessary to state the grantee’s name in the deed, as long as it includes a description that makes it possible to identify her.
For example, a deed could be valid if the grantor conveyed title “to my sister,” as long as the grantor had only one sister.

Question 24

Deed Requirements - Signed by the Grantor

Answer 24

A deed must be signed by the grantor. A deed without the grantor’s signature is ineffective, even if it has all of the other elements needed for validity.d
Also, a deed is valid only if the grantor is legally competent when he signs it.
In Washington, a grantor must be at least 18 years old to execute a valid deed.

Question 25

Deed Requirements - Specify a living Grantee

Answer 25

It isn’t necessary for the grantee to be legally competent, but the grantee must be alive at the time of the conveyance.
A valid deed requires a living grantee (or, if the grantee is a business entity, it must be legally in existence).
If the grantee is dead, the deed does not transfer title.
However, the grantee’s signature isn’t necessary. In fact, the grantee ordinarily doesn’t sign the deed.

Question 26

Deed Requirements - Contain words of conveyance

Answer 26

A valid deed must include words of conveyance, sometimes called a granting clause. The deed must explicitly state in some way that the property is being transferred from the grantor to the grantee.
Any of several different words can be used to fulfill this requirement, such as “grant” or “convey.”

Question 27

Deed Requirements - Adequately describe the property

Answer 27

A valid deed must have an adequate property description. Although a complete legal description isn’t required, the deed must make clear what property is being conveyed. A description is adequate if a surveyor could use it to locate the property.

Question 28

Attorney in fact

Answer 28

Here are some important points about the grantor’s signature. If the grantor can’t sign the deed himself, it may be signed by the grantor’s attorney in fact.
An attorney in fact is not necessarily a lawyer; an attorney in fact is someone the grantor has appointed as his representative.

Question 29

Power of Attorney

Answer 29

A document called a power of attorney is used to appoint an attorney in fact.
If the power of attorney specifically authorizes it, a deed can be executed on the grantor’s behalf by the attorney in fact.

Question 30

Grantor’s Signature

Answer 30

When the property being transferred is owned by more than one person, all of the owners must sign the deed as grantors. If the previous deed named several grantees, all of those grantees should be signing the new deed as grantors.

Question 31

Acknowledgement

Answer 31

A formal declaration made before an authorized official, such as a notary public or county clerk, by a person who has signed a document; he states that the signature is genuine and voluntary.

Question 32

Record of Deed transfer

Answer 32

A valid deed will transfer title from grantor to grantee even if it is not acknowledged. BUT in Washington and many other states, a deed cannot be recorded unless it has been acknowledged.

Question 33

Transfer on death deed

Answer 33

This type of deed transfers real property to the grantee automatically (without probate) when the grantor dies.
The deed must state that the transfer will take place on the grantor’s death. Also, the deed must be recorded.

Question 34

Habendum clause aka. “to have and to hold” clause

Answer 34

It defines or limits the grantee’s estate. It may specify fee simple ownership or some lesser interest, such as a life estate. For example, it might read: ‘To have and to hold unto Dennis Morrison, grantee, a life estate in the property described herein.’ If a warranty deed doesn’t have a this clause, it is presumed to convey a fee simple absolute. So if the grantor means to convey anything less than a fee simple absolute, it’s important to include this clause making that clear. (Optional Clause)

Question 35

Exclusions and reservations clause aka. encumbrances

Answer 35

Most deeds contain a brief statement concerning encumbrances. This is sometimes called an exclusions and reservations clause. It lists any easements, private restrictions, or liens that will burden the grantee’s title.
Note that valid encumbrances ordinarily continue in effect even if they aren’t listed in the deed. (Optional Clause)

Question 36

Recital of Consideration

Answer 36

The consideration for the conveyance is the purchase money that the grantee gave the grantor in exchange for the property. The consideration exchanged in a transaction doesn’t have to be stated in the deed for the document to be valid. The recital usually doesn’t state the actual purchase price. Instead, it says something like ‘for $1.00 and other valuable consideration.’ The purpose of the recital of consideration is to indicate that the property wasn’t a gift from the grantor to the grantee.
If the property were a gift, the grantor’s creditors might still be able to assert their claims against it.

Question 37

Date of execution

Answer 37

Although it may seem surprising, a deed can be valid even though it’s undated. But as a matter of convenience, it’s important to include the date of the conveyance on the deed.