Chapter 2-Estates, Transfers, and Titles

Question 1

Abandonment

Answer 1

Is the relinquishing of a right or interest with the intention of never again reclaiming it.

One cannot acquire title to abandoned real property without court action, but a landlord can acquire possession of a property that is left (abandoned) by a tenant simply by gaining full control of the property.

In the case of a lease, a financially troubled tenant might negotiate a release or abandon the property, thereby forfeiting part of the deposit.

Question 2

Accession

Answer 2

Occurs when an owner acquires title to additional land by natural causes the additions to the property by natural growth.

Question 3

Actual Notice

Answer 3

Is knowing (or one’s responsibility for knowing) that a transaction has taken place.

ex. Knowing the existence of a lease agreement.

Question 4

Adverse Possession

Answer 4

Is acquiring title to another’s property through continuous and notorious occupancy for five years under a claim of title.

It is the legal way to acquire title without a deed.

The courts will require substantial proof before ruling there is an adverse possession.

In the peoples’ interest, adverse possession is not possible against public or government lands, but only against privately owned lands.

Question 5

Affirmation, Affidavit, Verification

Answer 5

Affirmation– is a solemn and legally binding declaration made under penalty of perjury by a person whose religious or other beliefs prohibit the taking of an oath.

Affidavit– is a verified written statement of facts

Verification– is an oath or affirmation made before a notary public that the content of an instrument is true.

Notices of completion, non responsibility, and the statements used in fling a mechanic’s lien are amongst instruments that must be verified rather than simply acknowledged.

Question 6

Community Property

Answer 6

Community property with right of survivorship transfers ownership to the spouse at death, with income tax benefits.

The goal of the legislation was to combine the right of survivorship benefit of joint tenancy with the favorable tax status of community property under federal tax law.

Question 7

Constructive Notice

Answer 7

Notice of documents presumed by law to have been acquired by a person whether or not they have actually examined them. It can be accomplished by recording a deed or taking possession of the property.

Any recorded notice that can be obtained from the county recorder’s office can be considered constructive notice (and therefore public knowledge)

The act of taking possession (holding an unrecorded deed) gives constructive notice.

Question 8

Corporation

Answer 8

Property held by corporations is owned in severalty, as if by a single individual.

A CORPORATION is a body of persons treated by law as a single ‘legal person’, having a personality and existence distinct from that if its shareholders.

A corporation can go on forever; it does not die.

Question 9

Dedication

Answer 9

The gift (appropriation) of land, by its owner, for some public use.

To be fully dedicated, the land must be accepted for such use by authorized public officials.

Transfer by Dedication may be either voluntary or mandated by statute.

Question 10

Delivery

Answer 10

Property is not transferred until the deed is delivered with the intent of passing title

Question 11

Encroachment

Answer 11

Placement of improvements and permanent fixtures on property that do not legally belong to the person who placed them.

Permanent fixtures attached to the land or buildings by residential tenants must be left with the building

Any improvements that are mistakenly placed on the property must also remain.

Question 12

Escheat

Answer 12

The term used if there is no will and there are no heirs; the property will go to the state of California. This is not automatic.
There is a five year period during which heirs can make claims to the state for the property.

Individuals do NOT acquire property by escheat.

Question 13

Fee Simple Defeasible estate

Answer 13

Or qualified fee estate

A fee estate that is subject to particular limitations imposed by the grantor of the estate.

There are limitations on the title

Question 14

Freehold Estate

Answer 14

An estate of indeterminable duration, e.g., fee simple or life estate.

Real property

Question 15

General and Limited Partnerships

Answer 15

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Question 16

Grant Deed

Answer 16

A document that transfers title (evidence of property ownership), with the key word being ‘grant’

There are IMPLIED WARRANTIES in a grant deed.

The grant (or warranty) aspect of the deed is a promise that:

a. The owner (grantor) has not conveyed title to the property to any other person (grantee)
b. The property is free of any encumbrances (liens or other restrictions) other than those already disclosed to the grantee. A grant deed also transfers any after-acquired title, meaning that rights obtained after the sale has been completed are also conveyed.

A grant deed does not necessarily give one all the rights to a property. EASEMENTS, rights of way, mineral rights, building restrictions, and other types of restrictions may still restrict the use of the property

Question 17

Holographic Will

Answer 17

An entirely handwritten will by the owner, dated, and signed.

Since it is in the owner’s own handwriting, no other formalities and no witnesses are required, unless the will is signed with an ‘x’, in which case it must be witnessed.

Question 18

Intestate Succession

Answer 18

If there is no will, the procedure used for transferring the deceased’s property are complex and dependent upon the relationship of the kin.

The law of intestate succession provides for the disposition of the property.

The rules for dividing the property are complex and dependent upon the relationship of the kin.

Question 19

Joint Tenancy

Answer 19

Occurs when two or more people have identical interests in the whole property with the same right of possession and the right of survivorship.

If one of the joint tenancy owners should die, his or her interest is then split evenly with the surviving owners.

Joint tenancy can never be willed.

Right of Survivorship.

Question 20

Life Estate

Answer 20

Is an ownership interest in real property that only exists for the life of any designated person or persons (often the grantee).

A life estate is an example of a freehold estate.

The usual intent of this type of estate is to provide a lifetime residence for an individual.

A life estate can be created by either a will or a deed.

When that designated person dies, the estate reverts back to the original owner.

A person holding a life estate is free to lease the property to someone else, but this lease is also subject to the lifetime limitation.

Question 21

Notary Public

Answer 21

A person who is authorized by the Secretary of State to witness the acknowledgment of documents.

All notarized documents must be stamped with a notary seal.

Question 22

Prescription

Answer 22

An easement, or the right to use another’s land, which can be obtained through five years of continuous use.

Unlike ADVERSE POSSESSION, prescription is the use of a property, NOT the transfer of the title.

Question 23

Probate

Answer 23

A Superior Court procedure to determine a will’s validity, any creditors’ claims, and establish the identity of the beneficiaries.

There are charges for the court probate action and fees for any related attorney costs.

To prove a will.

Question 24

Quitclaim Deed

Answer 24

A deed that conveys all the present rights or interest that a person may have in a property, without any warranty, title, or interest.

Quitclaim deeds make NO ‘covenants’ (promises); they guarantee nothing. They only convey any rights the grantor may have.

A quitclaim deed can give absolute ownership or only such title as one may hold.
If there is no ownership interest, then nothing can be acquired.

This deed is used primarily to clear a cloud on title from the records.

Question 25

Recording

Answer 25

Delivery through recording– the act of putting the title of record in the grantee’s name at the county recorder’s office.

The grantee must have agreed to the recording.

Question 26

Remainder

Answer 26

If an owner granting a life estate names another person to receive title upon the death of the current life estate holder, that other person claims an ESTATE IN REMAINDER.

When the life tenant dies, the property goes to a third person.

The holder of an estate in remainder or estate in reversion has no right to the use and enjoyment of the property until the current life tenant dies.

Question 27

Reversion

Answer 27

The party (grantor) granting a life estate is said to hold an ESTATE IN REVERSION.

The property will return to the grantor.

Question 28

Severalty

Answer 28

The sole and separate ownership of property by one individual or by a corporation.

The word ‘severed’ means to sever, to cut off or separate. The name severalty is misleading; it means single.

Question 29

Tenancy in Common

Answer 29

When two or more people own property together with the right to will or sell it (however, without survivorship rights or community property rights).

If there is no other agreement, they will each share an equal interest in the property.

All tenants in common have UNITY OF POSSESSION, which means they each have the right to occupy the property.

Question 30

Witnessed Will

Answer 30

A typed document usually prepared by an attorney, dated, signed by the property owners, and declared to e a will by at least two witnesses (three signatures total)

Question 31

Fee Estate

Answer 31

Means an owner has transferred all rights of a property to a new owner for an indefinite duration of time (perpetual)

All transfers are assumed to be fee simple unless the grant part of the deed limits, by the use of conditions, the property’s use.

A fee simple estate is the most complete form of ownership and the most common in California