Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Arizona School of Real Estate > Chapter 3 > Flashcards

Chapter 3 Flashcards

Transfer of Title and Title Insurance

1
Q

what is a title

A

the actual lawful ownership of property. it includes the bundle of rights. (disposition, exclusion, enjoyment, possession, and control DEEP-C). it is NOT the doc. its the concept of ownership

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

what is a deed

A

the ownership document

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

who is the grantor

A

the person transferring title to

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

who is the grantee

A

the person who receives the conveyance of real property

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

what is the original title

A

title passed from the government

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

what is the derivative title

A

title transfer from person to person

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

what is the legal term for transferring ownership to real property from one person to another

A

alienation. may be transferred through voluntary or involuntary alienation.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

what are the ways owners act in voluntary alienation

A

sale. will (aka testament). dedication and gift.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

what are the terms used to describe the different type of property conveyed in a will

A

devise: testamentary transfer of real prop.
bequest: transfer of personal property
legacy: transfer of money or property bequeathed.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

what happens when a will goes into probate

A

it is a legal process where

  • determines the validity of a will
  • pays the debts of the deceased and
  • distributes the remaining assets.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

what is the executors job and what happens if no will exists or the executor is not named

A

named in the will to carry out the wishes of the testator and handle the estate. if not named or no will, the court appoints the administrator.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

what is a holographic will

A

written, dated, signed in the testator’s handwriting, but NOT witnessed. AZ recognizes these wills

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What is a codicil

A

a supplement or an addition to a will that does not revoke the entire will. must be executed with the same formalities as a will and be witnessed by the required number of ppl.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

what is the weakest type of will

A

a nuncupative. it is oral and usually delivered by person who is near death to at least two witnesses. cannot distribute personal property and not real property. not valid in AZ

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

what is dedication in a voluntary alienation

A

governmental entity. ie. if someone gifts prop to state so that it can be used for beneficial public use.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

define consideration

A

is something of value which is given in exchange for something from another

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

name all the types of involuntary alienations

A
  • laws of descent
  • eminent domain
  • enforcing leins
  • adverse possession
  • escheat
  • natural forces
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

explain laws of descent

A

person dies without a will (intestate) and has heirs, the state determines the disposition of the prop. ie. spouse first, then children, parents, etc.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

explain eminent domain

A

gov. power to take private land for the good of the public with fair and just compensation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

explain enforcing leins

A

the person who gives the lien takes it back. ie forclosure and bank takes back the property

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

explain adverse possession and what are the requirements to aquire land by adverse possession

A
  • open use
  • notorious use
  • continuous use
  • hostile use (w/out owners permission)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

what is an alternative way to avoid losing title to property through adverse possession

A

giving permission, aka giving a license.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

explain escheat

A

person dies without a will (intestate) and with no heirs prop goes to state. abandoned prop also escheats.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

explain natural forces

A

title to real prop can be affected by forces of nature that can cause land to move or change shape. if natural sources move property out of property lines, X will lose title to the soil and Y will own it.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

what is erosion

A

the gradual loss of soil due to the action of wind, water , or other forces.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

what is avulsion

A

violent and sudden loss of land by floods, earthquakes, and other natural forces

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

what is accretion

A

gradual addition to dry land. ie deposits waterborne sediment on shoreline property. the deposits are called alluvion or alluvium.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

what are the elements of a valid deed

A

must be in writing. with 2 exceptions:

  • broker-to-broker agreements (commission splits)
  • leases for one year or less (not less than one year)

must have a competent grantor

must have definite grantee: must be transferred to a legal person.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

what are the two types of consideration that can be used in a deed

A
  • valuable consideration : anything having monetary value

- good consideration : love and affection, usually a fift for kindred of blood or marriage.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

what is a granting clause

A

affirms grantor is giving up ownership and clarifies which type of interest is conveyed.

  • fee simple (higher ownership interest)
  • life estate (estate lmtd to the duration of life)
  • easement (non possessory use of prop owned by someone else
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

what is a habendum clause

A

part of the deed beginning with “to have and to hold”. identifies the extent of ownership being transferred.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

what happens in a discrepancy between a habendum clause and a granting clause

A

granting clause prevails

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

what is CC&Rs

A

covenants, conditions, and restrictions

the rules that stick with the property with anyone who it gets transferred to

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

what is the only signature needed on the deed

A

the grantor, the party conveying. if married, need both

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

explain acknowledgment

A

means deed is notarized to assure that the signer is actually the seller/giver and the signature is given without duress.

36
Q

is the grantee required to sign the deed

A

not always. however, when the grantee takes title with right of survivorship (WROS) then they must sign and must do so before a notary

37
Q

what must happen with the grantee before the deed is valid

A

must be delivered to and accepted by the grantee

legal delivery does not refer to the act of manually transferring the doc. but it refers to the intention of the grantor. (ie sending to escrow)

38
Q

what are the different types of deeds

A

they are considered conveyance deeds

  • general warranty deed
  • special warranty deed
  • bargain and sale deeds
39
Q

explain the general warranty deed

A

the grantor warrants the title against the defects that might have arisen before or during his period of ownership.

broadest possible protection

with this it guarantees:
covenant of:
-seizin
-quiet enjoyment
-against encumbrances
-further assistance: agree to perfect or correct title if necessary
-warranty forever : grantor warrants he shall defend grantee’s interest against all lawful claims of title.

40
Q

explain special warranty deeds

A

i own and i will defend against

aka limited warranty deed

grantor warrants the title only against defect arising during the time that he owned the property not against defects arising before that time.

  • guarantees there are not any encumbrances he created
  • promises to defend title against anyone claiming under his ownership

usually used in land transactions

41
Q

what is a bargain and sale deed

A

“i own but i won’t defend”

grantor makes no promises regarding title. nor does the grantor guarantee that he even has the right to convey title.

lower quality than other deeds and offer the least protection to grantee.

often used to convey property from foreclosure

42
Q

what are some of the bargain and sale deeds and explain what they mean.

A
  • sheriff’s deed -conveys prop after mortgage forclosure for failure to make house pays
  • treasurer’s deed-conveys prop after forclosure for failure to pay prop taxes
  • trustee’s deed-conveys prop placed in trustee’s hands for disposal, often result of bankruptcy or deed of trust forclosure
43
Q

what is a quitclaim deed

A

after ownership

conveys any interest in real prop. the grantor has at the time the deed is executed.

used to clear up problems with title, known as clouds on the title

44
Q

what is a disclaimer deed

A

prior to ownership

statement denying legal responsibility

often used in marital situations to deny a spouse’s interest in prop.

45
Q

what is a fiduciary

A

someone in an appointed position of trust acting on another’s behalf

46
Q

whose responsibility is it to have the deed recorded

A

grantees

recordation is not necessary to make a deed valid

47
Q

when does recordation occur

A

when a docket and page number are assigned

and will be processed in the order they are filed

48
Q

when are lien priority recorded

A

lien priority is normally determined by the time and date recorded . there are two exceptions:

  • prop tax liens and special assessments are unrecorded. they always take first priority even over those liens previously recorded.
  • in AZ the priority of mechanic’s liens is another exception.
49
Q

when must a mechanic’s liens be filed

A

within 120 days of the completion of the job but revert back to the day the first person was on the job or the materials were delivered.

50
Q

what is the affadavit of value

A

when a deed is submitted it must be accompanied by a notarized affidavit of value. its a sworn statement attesting to the purchase price and signatures of buyer and seller or their agents

51
Q

what are the 3 types of notices that people receive when they have conflicting claims

A

constructive notice (written)

actual notice (seen first hand, saw, heard or read)

inquiry notice (additional questions. some indication of a claim or other that would lead a person to be alerted to a possible problem and cause further inquiry)

52
Q

what is the proper recording of a document

A

the County Recorder’s Office gives constructive notice

53
Q

what is a marketable title

A

aka clear title

free and clear from undisclosed encumbrances or other defects that would expose a purchaser to litigation or impeded a purchases ability to enjoy the property or to later sell the property easily.

54
Q

what is the succession of property owners called

A

the chain of title

this lists the owners not the leins or encumbrances

55
Q

what happens if there is a missing link in the chain of title

A

considered a gap in the chain

56
Q

what is a cloud on title

A

any claim or encumbrance that may impair an an owner’s title on the property that is considered a cloud on title.

57
Q

how do you remove a cloud on title?

A

an owner may need to initiate a suit to quiet title.

58
Q

what are the two deeds that may be necessary to close a gap and clear a cloud on the title

A

a quitclaim deed or a correction deed

59
Q

what is a color of title

A

refers to a claim of title that appears to be good but is not.

60
Q

what are the 3 evidences of title that are generally recognized evidences used to establish ownership of the property

A

abstract with attorney’s opinion

  • an abstract is a summary of the history of prop
  • an attorney renders an opinion about the quality of the title aka certificate of title

Torren’s system
-landowners registers the prop w/ the state who researches the title and issues a Torrens cert. NOT used in AZ

Title Insurance
-insurance po. that protects the po. holder against loss or damage from defects in the title, such as leins or claims against title, whether recorded or unrecorded.

61
Q

what is accretion

A

the natural addition of land by its addition to real estate already owned, through human actions or natural processes.

62
Q

what is adverse possession

A

acquiring title to land because of a long term, open, and notorious use of the land . legal process called prescription - required time period is 10 years

63
Q

define bequeath

A

to transfer property to someone else via a will. the gift of personal property is bequest

64
Q

define codicil

A

an addition to a will that does not revoke the entire will

65
Q

define erosion

A

a gradual loss of soil due to natural causes, such as the movement of wind or water

66
Q

define habendumn clause

A

a clause in a deed that describes the type of estate granted, known as the “to have and hold” clause

67
Q

define intestate

A

a person who dies without making a will

68
Q

define quitclaim deed

A

a a deed that grants any interest in property that the grantor must have

69
Q

what is testate and testator

A

testate, someone who died and left a will. testator someone who made a will or given a legacy

70
Q

what is a warranty deed

A

a deed in which the grantor fully warrants good and clear title to the property and agrees to defend the premises against the lawful claims of third parties (aka General Warranty Deed)

71
Q

what is probate

A

the legal process of:

determining the validity of a will
paying the debts of the deceased
and distributing the remaining assests

72
Q

what is a fee simple

A

highest ownership interest possible

73
Q

what is a life estate

A

estate that is limited to the duration of the life of its owner or a designated person

74
Q

what is an easement

A

non-possesory use of property owned by someone else

75
Q

what is the habendum clause

A

part of the deed beginning with “to have and to hold”

identifies the extent of ownership being transferred

76
Q

does the grantee always need to sign the deed?

A

no

77
Q

what makes the transfer of ownership valid

A

the deed must be delivered to and accepted by the grantee before it is valid

78
Q

what are the 3 types of deeds

A

general warranty deed - grantor warrants title against defects that might have arisen . before or during his period of ownership

special warranty deed - aka limited warranty deed - grantor warrants title only against defect arising during the time he owned the property

bargain and sales deed - without warranties

79
Q

what is a quitclaim deed

A

(after ownership) conveys an interest in real property the grantor has at the time the deed is executed

80
Q

what is a Disclaimer Deed

A

(prior to ownership) a statement denying legal responsibility

often used for marital situations to deny a spouse’s interest in property

81
Q

what is an affidavit of value

A

when deed submitted for recordation it must be accompanied by a notarized affidavit of value. includes a sworn statement attesting to the purchase price and signatures of buyer and seller or their agents.

82
Q

when does recordation occur

A

when the docket and page number are assigned

83
Q

what are the 3 types of notices given

A 
constructive notice (written) 
actual notice (seen first hand)
inquiry notice (additional questions)
84
Q

what is marketable title guaranteed by

A

title insurance. protects the policy holder against loss or damage from the defects in the title weather recorded or not recorded

85
Q

what is subrogation

A

a company issuing title insurance usually reserves the right to pursue third parties to regain any claim money paid. subrogation is the process

Arizona School of Real Estate (11 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions