Chapter 12- Transfer Of Title Flashcards
What is Title?- Title has two meanings
Title to real estate means that right to ownership or actual ownership of the land; it represents the owners bundle of rights.
Title also serves as evidence of that ownership. A person who holds the title would, if challenged in court, be able to recover or retain ownership or possession of a a parcel of real estate.
Deed: is the written instrument by which an owner of real estate intentionally conveys the right, title, or interest in a parcel of real estate to someone else…
The document by which the owner transfers that tile to another. The deed must be recorded to give public notice of new ownership.
Real estate may be transferred voluntary by sale or gift.
Alternatively, it may be transferred involuntary by operation of law. Real estate may be transferred at any time while the owner lives or by will or descent after the owner dies.
Transfer of Title-
Voluntary Alienation
Is the legal term for the voluntary transfer of title. It may be transfer by a gift or selling the property.
The statue of frauds requires that all deeds be in
Writing
The owner who transfers the title is called the
Grantor
The person who acquires the title is called the..
Grantee
A deed is executed only by the grantor, or seller.
Requirements for a Valid Deed:
Grantor, who has the legal capacity to execute (sign) the deed
Grantee named with reasonable certainty to be identified
Recital of consideration
Granting clause (words of conveyance, together with any words of limitations)
Accurate legal description of the property conveyed
Any relevant exceptions or reservations
Signature of the grantor, sometimes with a seal, witness, or acknowledgment
Delivery of the deed and acceptance by the grantee to pass title.
Grantor
Must be of lawful age, at least 18yrs old. A deed executed by a minor is usually voidable.
Must also be of sound mind.
The grantors name must be spelled correctly and consistently throughout the deed
Grantee
To be valid, a deed must name a grantee, the grantee must be specifically named so that the person to whom the property is being conveyed can be readily identified from the deed itself. However the grantee does not sign the deed.
What is required of the purchaser or grantee as an element for the deed in order to be valid?
Grantee’s present address
Consideration
A valid deed must contain a clause acknowledging that the grantor has received consideration. Generally, the amount of the consideration is stated in dollars…..In most states, however, it is customary to recite at lest a nominal consideration, such as “$10 and other good and valuable consideration.”
Granting Clause (also words of conveyance)
A deed must contain a granting clause that states the grantor’s intentions to convey the property. Depending on the type of deed and the obligations agreed to by the grantor, the wording would be similar to one of the following
“I, Kent Long, convey and warrant…” created a warranty deed
“I, Kent Long, remise, release, alienate and convey…”creates a special warranty deed.
“I, Kent Long, grant, bargain,and sell…”creates a bargain and sale deed.
“I ,Kent long, remise, release, and quitclaim…” creates a quitclaim deed.
Legal Description of Real Estate
To be valid, a deed must contain an accurate legal description of the real estate conveyed.
Exceptions and Reservations
What does a valid deed needs to specify?
It needs to note any encumbrances, reservations, or limitations that affects the title being conveyed.
This might include such things as restrictions and easements that run with the land.
True or False
In order for the deed to be valid, document must be sign by a one grantor only.
False, if more then one grantor, all grantors named in the deed needs to sign.
What is an attorney -in-fact mean?
It means that it can act as a power of attorney-the specific written authority to execute and sign one or more legal instruments for another person.
True or False
In Illinois a grantor’s spouse is expected to sign any deed of conveyance to waive homestead rights.
True-
Seals are not required in Illinois for individuals grantor’s signature.
Acknowledgments (also called notarization)
Is a form of declaration made before a notary public,that the person who signs a written document does so voluntarily and the her signature is genuine.
In Illinois, This is not essential to the validity of the deed.
Most title insure a companies require acknowledgment/notarization for deeds covered by their policies.
Delivery and Acceptance
A title is not considered transferred until the deed is actually delivered to and accepted by the grantee.
when a deed is delivered in escrow, the date of delivery generally relates back to the date of deposit with the escrow agent (third party)
Execution of Corporate Deeds-
The laws governing a corporation’s right to convert real estate vary from state to state.
What are the two basic rules that must be followed when dealing with Execution of Corporate Deeds?
-A corporation can convey real estate only by authority in its bylaws or upon resolution passed by its board of directors
-Deeds to corporate real estate can be signed only by an authorized officer.
Note:
An attorney should be consulted for all corporate conveyances.
What are the most common types of Deeds?
-General warranty deed
-Special Warranty deed,
-Bargain and sale deed,
-Quitclaim deed,
-Deed in trust,
-Trustee’s deed, and
-Deed executed pursuant to a court order
What are the five covenants for General Warranty Deed?
-Covenant of seisin (means possession)
-Covenant against encumbrances
-Covenant of quiet enjoyment
-Covenant of further assurance
-Covenant of warranty forever
What does covenant of seisin mean?
The grantor warrants that she owns the property and has the right to convey title to it. The grantee may recover damages up to the full purchase price if this covenant is broken.
