Chapter 2: Forms of Ownership, Transfer, and Recording of Title Flashcards
Quitclaim Deed
- gives NO warranties or guarantees
- offers the least protection
- Used to clear a cloud on the title or to cure a defect in title
Bargain and Sale Deed
- no warranties about the condition of the title
- only promises the grantor has the right to convey the title
Special Warranty Deed
Guarantees title only against defects arising under the grantor’s period of ownership. Defects existing before that time are not covered.
General Warranty Deed
Guarantees and protects against defects. It offers the buyer the best
protection, warrants title to the sovereignty of the soil, and is the most common deed.
A buyer who wishes to ensure that the seller is conveying good title should request a General Warranty Deed.
Alienation
A change of ownership of real property
Littoral Rights
The right to use water from a lake or ocean
Riparian Rights
The right to use water from a river or stream that borders your property
Mineral Rights
Rights to subsurface land and profits
Voluntary Lien vs Involuntary Lien
Voluntary lien is created by the borrower’s actions, like taking out a mortgage or home improvement loan. Involuntary lien is created by law
Specific Lien vs General Lien
Specific lien attaches to one or more specific properties. General lien attaches to all the property of the debtor
Lien
A charge against property as security for a debt
Holdover Tenancy
Holdover tenant pays rent and landlord accepts it
Tenancy at Sufferance
Lease expires and tenant refuses to move out. Landlord is not receiving rent and holdover tenant has no right to be there
Estate/Tenancy at Will
A lease that can be terminated by either party without notice
Periodic Tenancy
Lease with a fixed period that automatically renews. Notice to terminate is usually required. (mtm lease)
Estate for Years
Lease with a specific starting and ending date. No notice is required to terminate. Survives death and sale of the property
What happens when a life tenant leases the property and then dies?
The lease expires and property goes to the remainderman
Life Estate with Reversion
Property goes back to the original owner at the end of the life estate
Life Estate
Ownership for the duration of someone’s life. Owner is called the life tenant.
Fee Simple Defeasible
Ownership with conditions or terms, which, if violated, could cause the ownership interest to be defeated or terminated.
When the ownership is defeated, it reverts or goes back to the original grantor or the grantor’s heirs.
EXAMPLE: a property is donated to a church with the condition that the church must use it for education. If the church decided to place a parking lot in the space rather than a school, it could lose the property altogether. Ownership would revert to the former owner or his or her heirs. Fee simple defeasible can be determinable or condition subsequent
Fee Simple/ Fee Simple Absolute
- considered the best type of ownership
- places the least number of limitations on the owner.
- said to be indefeasible, meaning it cannot be defeated unless someone has a more significant legal claim.
- Fee Simple ownership is always an estate of inheritance*
What legal rights make up the Bundle of Rights
- Disposition: the right to sell, will to heirs or lease
- Exclusion: the right to exclude others
- Possession: the right to use, enjoy, occupy
- Quiet Enjoyment: the right to use uninterrupted by former owners
Syndicate
2 or more parties join together to create and operate a real estate investment
A property held in trust
A property held by one party for the benefit of another
Tenancy by the Entirety
type of joint tenancy where the co-owners are married to one another
Joint Tenancy
Ownership by 2 or more with rights of survivorship. Share goes to surviving co-owners immediately upon your death.
Tenancy in Common
Ownership of land or property by 2 or more in which they control their portion. Is an estate of inheritance.
Example: Condo at Fiesta Harbor. Everyone owns part.
Estate in Severalty
Ownership by one individual or one business entity such as a corporation or partnership
Holdover Tenancy
Holdover tenant pays rent and landlord accepts it
Probate
The judicial process to prove or confirm a will or to settle the estate of a party who dies intestate. Title is then transferred in 30 days
Intestate
Someone without a will
Patent
When the government transfers title to an individual
Covenant of Seizin
Grantor promises to own and have the right to sell the property.
Community Property
All property acquired after marriage is jointly owned by the husband and wife
Dower Rights
The rights a wife has in the property her husband acquires during marriage
Curtesy Rights
The rights a husband has in property his wife acquires during marriage
Subrogation Clause
allows the title company to assume
the rights of a buyer with respect to any claim against a seller if the title company has made payments to that buyer to satisfy that claim.
The property owner cannot collect from both the title company and the seller for one problem.
Abstract of Title
A complete history of title
Chain of Title
Included in the abstract and lists all owners from the first until today
When an individual owns real property, he is said to have a what in that property.
freehold estate
covenant against encumbrances
the only limitations to title are those listed in the deed and there are no unpaid claims against the property
covenant of further assurance
the grantor is responsible for any documentation needed to ensure that title is transferred to the grantee
joint tenancy
- The unique aspect of joint tenancy is the right of survivorship of the tenants.
- When a joint tenant dies, his or her share is equally divided among the surviving joint tenants immediately
- will NOT required
In order to create a joint tenancy, what four unities are required?
- Time – Owners must acquire their interests at the same time.
- Title – They must acquire their interest from the same source (will, contract, deed, etc.)
- Interest – They must hold equal shares.
- Possession – Possession of the property must be shared equally
tenancy by the entirety
- NOT RECOGNIZED IN TEXAS
- ownership by a husband and wife
- basically joint tenancy created between two married individuals.
- When one dies, the other immediately becomes an owner in severalty.
- the signature of both parties is required
