Chapter 3 Flashcards
When conveying a property, what two components are necessary to convey?
- Tangible property
2. Intangible bundle of rights
Instrument of conveyance
Anything that conveys a real property right (aka pencil)
What is the primary instrument of conveyance (for real property interests)?
The deed (ex. fee simple absolute, life est., etc.)
Is an easement an instrument of conveyance?
Yes
What type of conveyance is a mortgage
Lien
General warranty deed
Best for grantee because most covenants/promises included. Three covenants…
- Siezen: I convey I have the right to sell this land.
- Quiet enjoyment: Arnold Schwarzenegger claim. If someone comes and claims a right I promised I’ll be back to defend!
- No encumbrances: All claims and rights are disclosed.
Special warranty deed
Includes three covenants of general warranty but LIMITED TO PERIOD OF GRANTOR’S OWNERSHIP. If someone got a pencil from before the grantor, grantor won’t defend.
Quitclaim deed
No covenants at all, may be used for gifting estates. Grantee gets what grantor’s got but no defense from grantor if problems arise in the future.
What is the difference in conveyance of property between the three deeds (general warranty, special warranty, quitclaim)
No difference. Ex. Buying a Best Buy TV, you can buy different warranties but the TV is the same.
Voluntary exceptions to statute of frauds
- Oral/verbal lease (≤ 1 year)
- Implied easement. Ex. if I sell front lot and driveway goes through front to back lot, the easement doesn’t need to be in writing.
- Easement by estoppel. Allowance & reliance.
What is the involuntary exception to statute of frauds?
Adverse possession/prescriptive easement. Aka squatter’s rights.
What is the CO law for adverse possession/prescriptive easement?
Possessor must prove, by clear and convincing evidence, that his or her possession was actual, adverse, hostile, exclusive, and uninterrupted for at least 18 years…all with a good-faith belief that he/she was the property’s actual owner.
Good-faith belief is new in law, you must believe that you are the owner. Sometimes now you’ll still have to pay fair market value for the land.
Title
The collection of evidence revealing who possesses what rights in a property.
Chain of Title
Sequence of conveyances passing property rights/interests down through time beginning with first conveyance from sovereign (“patent”)
Why can no single deed prove chain of title?
Because you need to make sure that you’re getting the pencils that the grantor’s got! If he’s selling pencils he doesn’t have, you’re buying rights you won’t get.
What is recording and what is its function?
Recording your property in the public records of the property’s county puts the world on notice. Everyone has CONSTRUCTIVE notice
What is possession and what is its function?
Puts the world on notice. Every person has ACTUAL notice of any claim accompanied by open, continuous and apparent use of property.
I buy a house and immediately go back to the apartments to tell everyone. Meanwhile Taylor buys the same house and goes to Boulder county clerk to record. Who gets property?
Taylor because she recorded first! Race-notice recording statute in effect.
My professor sells me a property and I don’t record but I go to property and start moving in. He then sells to another buyer who records. Who gets the property?
I get the property because I took possession!
Race-notice recording statute
A grantee w/out notice (constructive/actual) who paid fair value (“good faith/bona fide purchaser”) and records first wins against an earlier grantee who failed to record or take possession!
My mom sells someone a house. They don’t record because they’re leaving the country. She immediately sells me house and tells me that first purchaser didn’t record. Who gets the house?
The first purchaser because I didn’t buy the property in GOOD FAITH. Race-notice recording statute doesn’t apply.
Metes and bounds survey
A sequence of directed distances describing property boundary. All points compass-directed.
E 45˚ 00’ 00” S 100’. What does this mean?
Start facing E. Turn 45˚ S. Then walk 100 feet.
S 60˚ 15’ 20” W 130’. What does this mean?
Start facing S. Turn 60 degrees, 15 minutes, and 20 seconds west. Then walk 130 feet.
Recorded plat map
A recorded metes and bounds survey with each separately surveyed parcel identified by a name.
Rapid expansion into the Western Territories following the Revolutionary War required an efficient means of surveying/conveying vast lands. What was the solution?
Public land survey system (PLSS)
Where and when did the PLSS begin?
Beginning in 1785 at a point on PA/OH border
Where did the most recent PLSS survey take place?
Alaska in 1950s
Title abstract
Form of EVIDENCE OF TITLE. Summary of all records in chain of title - seldom used today
Title commitment/insurance
Form of EVIDENCE OF TITLE. Insurance policy disclosing who owns what and protecting grantee [insured] against title problems and resulting losses if it’s wrong - widely used today
Torren’s title certificate
Form of EVIDENCE OF TITLE. Like a car title certification - not allowed in CO anymore.
Legal description (of property)
A legally sufficient description of the tangible property used for conveyance
Three methods of legal description (of a property)
- Metes and bounds survey
- Plat map
- Public Land Survey System
Which way do range lines go?
North-South
Which way do tier lines go?
East-West
How far apart are range and tier lines?
6 miles
Where is section 1 in a tier/range section?
Top left. Snakes right and left down the section to 36.
How big is a SECTION for PLSS?
640 acres, or 1 sq mile
Which way do latitude lines go?
East-West
How big is a TOWNSHIP for PLSS?
36 sections, 6 miles squared
