Chapter 12 - Title & Recording Documents Flashcards
What is title
ownership - right to ownership
Title is all bundle of rights
Deed
What does it transfer
the document
used to convey title
Deed is used to transfer real property
Bill of sale is used to transfer personal property
Requirements for valid deed
Grantor - giver (legal age and sound mind), must sign
Grantee
- doesn’t need to sign, be of legal age or identified
Consideration - anything of value
Granting Clause - to grate title to someone
Habendum Clause (to have and to hold)
Habendum Clause
to have and to hold
Deed to be valid
Property description (legal)
Exceptions and reservations if any
Signature of all grantors
Delivery & Acceptance - make attempt to get it to grantee
Recording Documents (public records)
Doesn’t have to be done
IF you don’t record, you can’t sell
Recording provides CONSTRUCTIVE NOTICE and establishes whos in line first for ownership or liens
Notarized signatures are required
What are the 4 types of deeds to convey title?
1) general warranty deed
2) Special deed
3) Bargain & sales Deed
4) quit claim deed
General warranty deed
most common, strongest rights for owner
- covenant of seisin: ‘i’m owner with right to sell’
- covenant of quiet engoyment
- against encumbrances
- further assurance: you do whatever it takes to make sure grantee has no title problems
- warranty forever
Special Warranty Deed
Like general but warranty only covers time the property was owned by grantor
Bargain and Sale Deed
Doesn’t include warranties as to the title (small town deed- buyers trust the sellers)
Quit Claim Deed
makes no promises, a release deed - used to clear a cloud on title or correct error
Non-voluntary deeps
against owners will
- tax deed
- sheriffs deed
- trustees deed = given upon foreclosure of sale
Quiet Title Suit
claims title when there is a cloud, if one owner is unlocatable, quiet title relinquishes the rights of that person
severalty
ownership by one person or corp
Tenants in common
Condominium owners
ownership by 2 or more people (can be equal or not)
- Each person can sell or will portion
- If parties can’t agree - can file partition suit
Joint Tenants
Unity of ownership by FOUR unities
1 time - everyone takes title at same time
2 title - all parties are on same title on deed
3 interest - all parties have EQUAL interest
4 possession - all have undivided interest in whole party
right of survivorship
in a joint tenant, the remaining tenants are considered owners in severalty
Tenants by entirety
HUSBAND AND WIFE
Can’t sue the other
Right of survivorship
cOMMUNITY pROPERTY
derived by spanish law
property before marriage remains to single person
property purchased during is both
Alliodial System
private ownership in US
Difference between condo and co-op / cooperative
Condominium - ownership of real estate
Cooperative - ownership of stock in a co-op
Cooperative
Co-op owns property in severalty (corporation)
- you buy stock and get a lease
- have to have securities license to sell since it’s stock
- if co-op doesn’t make mortgage or tax payments, it could be foreclosed on and members can lose
Condo
Fee simple owenership of units (interior)
Common ground owned with others
You can be foreclosed on without impact of other owners
Master deed or declaration is recorded
HOA exists
Both residental and commerical condos exist
WILLS - how is property transferred
Testator - person who dies and leaves will
Testate - dying and have will
Intestate - dying without will
Devise - to give real property
Bequest - to give personal property
Descent - to die intestate and court creates will
Salable
means the TITLE is free from defects and people want it
Marketable Title
Good or clear title free from risk of litigation / salable
Ways to prove marketable title
- Abstract of title: contains histroy
- Certificate of title: statement of opinion by title company
- Title insurance - insurance pays off if there is litigation. The beneficiary will then subrogate
Subrogate
giving up of yoru rights
schedule of exceptions
what isn’t covered on title insurance policy
known issues with title
cloud on title
means there are unclear issues with title
REIT
REAL ESTATE INVESTMENT TRUST
syndicate - uses a trust form of ownership for favorable tax advantages
takes securities license to sell
syndicate
group of investors purchase real estate
Recommend your client to a __________ for title issues
attorney
