Chapter 12. Transfer of Title Flashcards
Title
- The right to ownership of land
- Serves as evidence of ownership
Voluntary Alienation
Voluntary transfer of title
Deed
A written document by which the owner conveys right title or interest.
Grantor
The owner transferring the deed
To be valid, a grantor must sign the deed
Grantee
The person who receives the deed
Consideration
- That received by the grantor in exchange in exchange for deed.
- Something of value that induces someone to enter into a contract.
Granting clause ( words of conveyance)
- must be contained in the deed.
- Must state the grantors intention to convey the property.
Habendum clause
- follows the granting clause.
- begins with “to have and to hold”.
- Defines the extent of ownership
Legal description of real estate in deed
To be valid, a deed must contain a legal description.
Exceptions and reservations
A valid deed must note any encumbrances
Requirements for a valid Deed
- grantor must be legally competent.
- grantee must be identified.
- statement of consideration
- granting clause
- habendum clause
- legal description
- any exceptions and reservations
- notarized signature of grantor
- acceptance and delivery
Acknowledgment
- a formal declaration under oath that the person who signs a document does so voluntarily and the signature is genuine
Delivery and Acceptance
Title is not considered to be transferred until it is delivered and accepted by grantee
Types of deeds
- General warranty deed
- Special warranty deed
- Bargain and sale deed
- quitclaim deed
General warranty deed
Provides the greatest protection because it binds the grantor. It must include:
- Covenant of seisin
- Covenant against encumbrances
- Covenant of further assistance
- Covenant of quit enjoyment
- Covenant of warranty forever
Covenant of seisin
Possession.
Guarantees that grantor has ownership and the right to convey the title
Covenant against encumbrances
Guarantees that property has no undisclosed encumbrances
Covenant of quiet enjoyment
Guarantees that no one has a superior title
Covenant of further assurance
Guarantees to obtain and deliver any instrument needed to make title good
Covenant of warranty forever
The grantor promise to compensate grantee for losses if title fails in the future
Special warranty deed
Two warranties
1 Warranty that grantor received the title
2. Warranties that the property was unencumbered by grantor
- Grantor is not liable for encumbrances previous to ownership.
- May include remiss, release, alienate, convey
Bargain Sale Deed
- Grantor holds title
- No warranties of encumbrances
- used in foreclosures and tax sales
- buyer should get title insurance
Quitclaim Deed
- Least protection guaranteed
typically used for:
- to fix clerical defect in title
- conveying less then Fee simple title
- to transfer among family
- to transfer among heirs
Deed of trust
How a trust conveys title
Reconveyance Deed
How a trustee conveys title back to trustor
Trustee’s Deed
How the trustee conveys deed to anyone other then the trustor
Must state the the. Trustee has the right
Deed executed pursuant to a court order
Conveys title that is transferred by court order or will
Transfer stamps
Many states have a transfer tax to transfer a title. Transfer stamps are purchased and attached to the deed when recorded
Involuntary Alienation
Title being transferred without owners consent
- Tax sales
- Foreclosure
- When someone dies without heirs
Transfer by adverse possession
A matter of state law.
Squatters
Conveyance of descendent’s property
When someone dies without a will, this is how it is transferred.
Transfer of title by will
- gift of real property by will is “Devise”
- person receiving gift is devisee
- this process must go through probate court
Probate proceedings
- Proves validity of will
- Determines precise assets
- Identifies who gets them
transfer of declaration form
AKA
Affidavit of real estate
Required in some states.
Must me signed by buyer or seller or their agents
