CHAPTER 2 -- TRANFER OF PROPERTY Flashcards
How is a deed indexed when it is recorded?
A deed is indexed by the names of the parties (grantor and grantee)
What three things need to happen in order for a deed to convey title to real property?
The deed needs to be –
Executed
Delivered
Accepted
What are the 7 things essential for a valid deed?
- Grantor competent to convey (no non-emancipated minors)
- Adequate description of the property
- Grantee capable of receiving (not a fictitious person)
- Action clause (granting clause) – “grant,” “transfer,” or “convey”
- Proper description of the parties
- In writing
- Grantor’s signature (executed)
Deeds are indexed at the County Recorder’s office by:
(A) legal descriptions; (B) sales price; (C) names of grantor and grantee; (D) tax assessors parcel number.
(C) names of grantor and grantee
A valid deed may be:
(A) assigned to another grantee; (B) foreclosed by the lender; (C) revoked at a later date by the grantor; (D) signed by an “X.”
(D) signed by an “X.”
A valid grant deed passes title when the deed is:
(A) notarized; (B) Signed; (C) Delivered; (D) recorded.
(D) recorded
Does a deed need to be acknowledged in order to be recorded?
Yes, a deed must be acknowledged (a declaration before a notary) in order to be recorded.
Can an employee of a corporation who is a notary notarize a deed involving the corporation?
Yes, as long as they don’t have a personal interest in the subject matter of the transaction.
What are four examples of documents that need to be recorded to be effective?
- Mechanic’s liens
- Homestead exemptions
- Lis pendens
- Abandonment of homestead
What are the two types of notice?
Actual and constructive (legal)
What are the two implied warranties of a grant deed?
- The grantor has not conveyed title to any other person.
- The estate is free from undisclosed encumbrances.
Which of the following is not essential to a valid deed?
(A) the parties are competent to convey and capable of receiving title; (B) a granting clause; (C) the deed must be acknowledged; (D) the deed must be in writing.
(C) the deed must be acknowledged
The recording of a deed gives what kind of notice?
(A) actual notice; (B) positive notice; (C) negative notice; (D) constructive notice.
(D) constructive notice
Adam sold his home to Tim, but negotiated a two year leaseback and remained in possession. Tim immediately placed the deed he received in a safe deposit box for safe keeping. Adam then sold this same home to Sally. Sally recorded the deed. Who owns the home?
(A) Tim, because he received the first deed; (B) Sally, because she recorded her deed; (C) Adam, because he still has three more deed ready to be sold; (D) Adam, because both sales were improper.
(B) Sally, because she recorded her deed
How do trust deeds and reconveyance deeds differ from grant deeds?
They are loan documents, not deeds.
What are the four unities of joint tenancy?
Time
Title
Interest
Possession
What is the one thing that a joint tenant can’t do?
They can’t will their interest to anyone due to right of survivorship.
Are the parties of a joint tenancy liable to creditors of a deceased joint tenant who holds unforeclosed liens?
No, they are not liable.
Can a joint tenant sell their share of the joint tenancy?
Yes. The new party becomes a tenant in common, though.
Each of the following deeds will contain at least some implied covenants from the grantor, EXCEPT:
(A) grant deed; (B) warranty deed; (C) quitclaim deed; (D) gift deed.
(C) quitclaim deed
A brother and sister held title to an apartment building as joint tenants. Other than this building, their business and personal affairs were conducted separately. At the time of the brother’s death, he was insolvent and owed creditors substantial unsecured amounts of money. Title to the apartment building would now be held by the sister:
(A) subject to the processes of a probate sale; (B) subject to the claims of the unsecured creditors; (C) free and clear of the debts of the brother; (D) as tenant in common with the creditors of the deceased brother.
(C) free and clear of the debts of the brother
Which of the following would NOT terminate a joint tenancy between two owners?
(A) foreclosure on one of the joint tenant’s interest; (B) the sale of one joint tenant’s interest; (C) one of the joint tenants deeding his interest to a third party; (D) one joint tenant having a trust deed or mortgage recorded against his or her interest in the property.
(D) one joint tenant having a trust deed or mortgage recorded against his or her interest in the property
What is the one unity of tenancy in common?
Possession
Can a tenant in common grant an easement?
No, they cannot grant an easement