Chapter 21 Flashcards
This transfer of title to real estate, also called _______________, occurs voluntarily and involuntarily.
Alienation
When the transfer of title to real estate uses a written instrument, the transfer is called a _______________.
Conveyance
_____________is an unforced transfer of title by sale or gift from an owner to another party.
Voluntary alienation
If the transferor of title to real estate is a government entity and the recipient is a private party, the conveyance is a _________________.
Public grant
If the transferor of title to real estate is a private party, the conveyance is a ______________.
Private grant
A living owner makes a private grant by means of a _________________.
Deed of conveyance, or deed
A private grant that occurs when the owner dies is a ____________________.
Transfer by will
A _________ is a legal instrument used by an owner to transfer title to real estate voluntarily to another party.
Deed
In Texas, the minimum requirements for a valid deed include:
1) properly identifies the parties involved
2) includes consideration
3) contains a sufficient and identifiable
description of the property
4) contain words of conveyance
5) signed by the competent grantor or authorized representative
6) be delivered to a legitimate grantee and accepted
A number of deeds are used to convey real estate. They include the following:
1) Full covenant and warranty deed
2) Special warranty deeds
3) Bargain and sale deed with covenants
4) Bargain and sale deed without covenants
5) Quitclaim deed
6) Executor’s deed
7) Referee’s deed
A ___________________ is the deed most used in real estate transfers and offers the greatest protection of any deed. With this type of deed the grantor gives certain covenants or warranties that promise the grantee will have ownership of the property that is unchallenged.
full covenant and warranty deed
True or false: A warranty deed warrants the title, not the construction of the real property.
True
A full covenant and warranty deed usually has five covenants.
1) Covenant of seizen
2) Covenant against encumbrances
3) Covenant of quiet enjoyment
4) Covenant of further assurance
5) Covenant of warranty forever
This covenant assures that the grantor owns the estate to be conveyed and has the right to do so.
Covenant of seizen
This covenant assures that there are no encumbrances on the property except those specifically named in the deed.
Covenant against encumbrances
This covenant assures that the grantee will not be disturbed by third party title disputes.
Covenant of quiet enjoyment
This covenant assures that the grantor will assist in clearing any title problems discovered later.
Covenant of further assurance
This covenant assures that the grantee will receive good title, and that grantor will assist in defending any claims to the contrary.
Covenant of warranty forever
The two warranties found in Texas, if there would be language in the deed to imply a warranty, are:
1) the covenant of seisin
2) covenant against encumbrances
The overall general warranty covenant is:
“I own and I will defend.”
The overall special warranty covenant is:
“I own and will defend against my acts only.”
In a ____________________, the grantor warrants only against title defects or encumbrances not noted on the deed that may have occurred during the grantor’s period of ownership or trusteeship. The deed does not protect the grantee against claims that predate the owner’s period of ownership. Also known as bargain and sale deeds with covenants, these deeds are often used by trustees and grantors who acquired the property through a tax sale.
Special warranty deed
With the special warranty deed known as a _____________________, the grantor covenants that the title is valid but does not warrant against encumbrances or promise to defend against claims by other parties. This form of deed implies that the grantor has title to the property, but the grantee doesn’t have much recourse if the title comes up with defects down the road. This form of deed is common in foreclosures and tax sales.
bargain and sale deed without covenants
The overall bargain and sale covenant is:
“I own, but won’t defend.”