Chapter 10 Mastering Real Estate:Transferring Title

Question 1

Define alienation and define the two kids.

Answer 1

Transferring the title to real estate.
Voluntary alienation: with the owner’s control and consent
Involuntary: without the owner’s control or consent

Question 2

If a person leaves a will what is it called? What if they don’t?

Answer 2

Testate - with a will

Intestate -w/o a will

Question 3

What is disposition of real estate in a will called? Personal property?

Answer 3

Devise = Real estate
Bequest = Personal property

Question 4

What is a holographic will?

Answer 4

Created by the testator’s writing and NOT WITNESSED

Question 5

What is a codicil?

Answer 5

An amendment or addition to a will.

Question 6

What is a noncupative will?

Answer 6

Will created orally

Question 7

What are the six parts to make a will valid?

Answer 7

(WILL She Fly?)
Witnessed
In writing and signed
Legal age (18)
Last Will
Sound mind
Free Will

Question 8

What are three other ways a title can be voluntarily transferred? (Besides by a will)

Answer 8

Gift
Sale
Dedication (transferring privately owned to public use without compensation)

Question 9

Is transfer by descent a voluntary or involuntary alienation?

Answer 9

Involuntary because the laws of the state determines the disposition of the property.

Question 10

What is condemnation?

Answer 10

The process of taking private land for the public good (eminent domain).

Question 11

What are five ways of involuntary alienation?

Answer 11

Transfer by descent
Eminent Domain
Lien Foreclosure Process
Escheat
Adverse Possession
Transfer by Accession

Question 12

What are the requirements of adverse possession?

Answer 12

Payment of property taxes
Open and Notorious- well-known to others
Actual Possession
Continuous and uninterrupted for 20 years
Hostile - use w/o owner knowledge
Exclusive to that person 
 (POACHER)

Question 13

Define and explain transfer tax: how much, to who, when due, and exemptions.

Answer 13

Based on selling price
Assessed by govt where property is located
Due when deed is recorded (USUALLY paid by seller)
Govt and tax-exempt organization are exempt

Question 14

Define General Warranty Deed.

Answer 14

Guarantees that good and marketable title is given to the grantee. Highest protection for grantee.

Question 15

What 5 covenants are in a general warranty deed?

Answer 15

Seisin - owner can convey title
Encumbrances - free
Quiet Enjoyment - from other parties
Further Assurance - clear title
Warranty Forever - Reimburse for damages

Question 16

What is a special warranty deed?

Answer 16

It warrants the grantor has title and limits the liability to encumbrances against the property that happened after their acquired title.

Question 17

What is a bargain and sale deed?

Answer 17

No expressed warranties, but it implies grantor holds title and right to convey it.

Question 18

What is a quitclaim deed?

Answer 18

Least protection to grantee. Used to fix technical errors on title.

Question 19

What is a grant deed?

Answer 19

Like a special warranty deed; used in western states.

Question 20

Name the twelve kind of special purpose deeds

Answer 20

1. Gift Deed
2. Release deed
3. Adminstrator’s deed
4. Deed in Trust
5. Executor’s deed
6. Sheriff’s deed
7. Deed in lieu of Foreclosure
8. Tax Deed
9. Trust deed
10. Trustee’s deed
11. Guardian’s deed
12. Referee’s deed
    (GRADES Don’t Take 3 Gr….)

Question 21

What are the requirements for a valid deed?

Answer 21

Deed in WRITING
NAMES if grantor and grantee must appear
Grantor must have LEGAL capacity
Consideration described
Granting clause
Habendum clause
LEGAL description
Signed by grantor
DELIVERY and ACCEPTANCE of the deed
Deed should be RECORDED

(Consider writing your name legally because it must legally be signed, delivered, accepted and recorded.)

Question 22

What is a granting clause?

Answer 22

Words of conveyance - states the type of ownership given

Question 23

Define habendum clause

Answer 23

Defines or limits ownership being granted to grantee.

Question 24

What is acknowledgement?

Answer 24

Voluntary declaration before a notary that the grantor’s signature is valid and a voluntary act. Not needed to make valid, but may be needed to record.