Chapter 12 - Title & Recording Documents

Question 1

What is title

Answer 1

ownership - right to ownership

Title is all bundle of rights

Question 2

Deed

What does it transfer

Answer 2

the document
used to convey title
Deed is used to transfer real property
Bill of sale is used to transfer personal property

Question 3

Requirements for valid deed

Answer 3

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)

Question 4

Habendum Clause

Answer 4

to have and to hold

Question 5

Deed to be valid

Answer 5

Property description (legal)
Exceptions and reservations if any
Signature of all grantors
Delivery & Acceptance - make attempt to get it to grantee

Question 6

Recording Documents (public records)

Answer 6

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

Question 7

What are the 4 types of deeds to convey title?

Answer 7

1) general warranty deed
2) Special deed
3) Bargain & sales Deed
4) quit claim deed

Question 8

General warranty deed

Answer 8

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

Question 9

Special Warranty Deed

Answer 9

Like general but warranty only covers time the property was owned by grantor

Question 10

Bargain and Sale Deed

Answer 10

Doesn’t include warranties as to the title (small town deed- buyers trust the sellers)

Question 11

Quit Claim Deed

Answer 11

makes no promises, a release deed - used to clear a cloud on title or correct error

Question 12

Non-voluntary deeps

Answer 12

against owners will

• tax deed
• sheriffs deed
• trustees deed = given upon foreclosure of sale

Question 13

Quiet Title Suit

Answer 13

claims title when there is a cloud, if one owner is unlocatable, quiet title relinquishes the rights of that person

Question 14

severalty

Answer 14

ownership by one person or corp

Question 15

Tenants in common

Answer 15

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

Question 16

Joint Tenants

Answer 16

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

Question 17

right of survivorship

Answer 17

in a joint tenant, the remaining tenants are considered owners in severalty

Question 18

Tenants by entirety

Answer 18

HUSBAND AND WIFE
Can’t sue the other
Right of survivorship

Question 19

cOMMUNITY pROPERTY

Answer 19

derived by spanish law
property before marriage remains to single person
property purchased during is both

Question 20

Alliodial System

Answer 20

private ownership in US

Question 21

Difference between condo and co-op / cooperative

Answer 21

Condominium - ownership of real estate

Cooperative - ownership of stock in a co-op

Question 22

Cooperative

Answer 22

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

Question 23

Condo

Answer 23

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

Question 24

WILLS - how is property transferred

Answer 24

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

Question 25

Salable

Answer 25

means the TITLE is free from defects and people want it

Question 26

Marketable Title

Answer 26

Good or clear title free from risk of litigation / salable

Question 27

Ways to prove marketable title

Answer 27

• 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

Question 28

Subrogate

Answer 28

giving up of yoru rights

Question 29

schedule of exceptions

Answer 29

what isn’t covered on title insurance policy

known issues with title

Question 30

cloud on title

Answer 30

means there are unclear issues with title

Question 31

REIT

Answer 31

REAL ESTATE INVESTMENT TRUST
syndicate - uses a trust form of ownership for favorable tax advantages
takes securities license to sell

Question 32

syndicate

Answer 32

group of investors purchase real estate

Question 33

Recommend your client to a __________ for title issues

Answer 33

attorney