CH 8 - Transfer of Title Flashcards
When a property’s creditors are not fully repaid out of the proceeds of a foreclosure sale, they may make an owner personally liable for the balance due by bringing legal action for a ____________.
Deficiency Judgment
When a deed or lien is placed in the public records to make them publicly available, this is _____________.
Providing Constructive Notice
Abstract of Title
condensed history of all grants, conveyances, and judicial proceedings affecting the title
A property owner sold his house for $280,125. Seller experienced a gain of $48,000. How much will the seller owe in transfer taxes (deed stamps)?
$1037.85
- Round UP to $280,500
- (280 * $3.70) + $1.85 = $1037.85
Title of Patent or Patent
the process of conveying title of government land
Judicial Sale
the court seizes and sells the property to pay a creditor
What is acceptable evidence of marketable title?
title insurance
Name the two types of title insurance policies
Mortgagee’s Policy and Owner’s Policy
Equitable Title
interest held by buyer under contract of sale
Legal Title
granted by deed or will, represents proof of legal ownership of real property
Marketable Title
a title to real estate that is free and clear of liens and other title defects
Acceptable evidence of Marketable Title is what?
- Torrens Certificate
- Title Insurance Policy
- an abstract and legal opinion
General Warranty Deed
this deed is the most common, allows grantee to hold grantor liable if future issues arise
Special Warranty Deed
guarantees title only against defects arising during the period of his or her ownership
Habendum
to have and to hold
Granting Clause
some words of conveyance
Testimonium (part of a deed)
buyer does not sign here
Purpose of Acknowledgment (deed)
to certify the genesis of the grantor’s signature (notarize)
When is transfer by deed effective?
once the valid deed has been delivered and accepted
Constructive Notice
gives notice to the general public that a conveyance has been made, accomplished by filing a deed with the county registrar
A third party holds title to property on behalf of someone else through the use of this.
deed in trust
Real estate that is inherited from a person who died testate is referred to as a ________.
devise
Is the signature of a grantee required for a deed to be valid?
No, just their name
What is adverse possession?
title is acquired by possessing property without challenge from the owner for an extended period of time
What does the granting clause do?
in the Premises paragraph of a deed, conveys rights and privileges of ownership
Who pays transfer taxes (deed stamps)
seller
