Chapter 3: Transfer of Real Property

Question 1

Patent

Answer 1

A patent transfers real property from government ownership to private ownership.

Question 2

Warranty Deed

Answer 2

The covenants in a warranty deed (sometimes known as a general warranty deed) cover title defects arising before and during the grantor’s period of ownership.

A warranty deed offers the grantee the most protection, and gives the grantor the most liability.

Question 3

Special Warranty Deed

Answer 3

A special warranty deed limits its warranties to the period the grantor owned the property.

Question 4

After-acquired title

Answer 4

Warranty deeds and special warranty deeds convey after-acquired title.

If the grantor did not own the property when the deed was executed, but acquires title later, then title passes to the grantee.

Question 5

Quit-Claim Deed

Answer 5

A quitclaim deed offers no warranties, conveys no after-acquired title, and creates no liability for the grantor.

It is typically used to clear away clouds on title.

Question 6

Name the 6 essential elements of a deed and 3 things required for conveyance.

Answer 6

A deed must be in writing. It must identify the parties, be signed by a competent grantor, and specify a living grantee.

It must include words of conveyance and an adequate property description.

The deed must also be acknowledged, delivered, and accepted.

Question 7

Define: In Writing

Question 8

Define: the Habendum Clause

Answer 8

The habendum clause in a deed defines or limits the type of estate that is being transferred to the grantee.

If there is no habendum clause, the deed is presumed to convey a fee simple absolute.

Question 9

Define: exclusions and reservations clause

Answer 9

A deed may include a list of the encumbrances that will burden the grantee’s title.

This is called an exclusions and reservations clause.

Question 10

Define: recital of consideration

Answer 10

Many deeds include a recital of consideration as an indication that the conveyance was not a gift to the grantee.

Question 11

Statutory Dedication

Answer 11

When applying for subdivision approval, a developer is often required to dedicate land within the subdivision to the public for streets and utility easements.

Question 12

Intestate Succession

Answer 12

When someone dies without a valid will, her property passes to her heirs according to rules set forth in a state statute.

Question 13

Escheat

Answer 13

If a person dies intestate and the probate court can’t locate any heirs, then the intestate person’s property passes to the state under the law of escheat.

The state may also take ownership of abandoned property through escheat.

Question 14

Condemnation

Answer 14

Eminent domain is the government’s power to take private property for a public use.

Condemnation is the legal procedure used to force an unwilling property owner to sell.

The government must pay just compensation to the owner

Question 15

Quite Title

Answer 15

In a quiet title action, the court resolves claims against a property to clear away clouds and make the owner’s title marketable.

Question 16

Suite for Partition

Answer 16

In a partition suit, the court divides property owned by two or more people among the co-owners.

If the property itself can’t be divided, then it will be sold and the sale proceeds will be divided up.

Question 17

Foreclosure

Answer 17

In a foreclosure, a creditor with a lien against property asks the court to have the property sold.

The lien will be paid off out of the foreclosure sale proceeds.

Question 18

Adverse Possession

Answer 18

Under Washington law, an adverse possessor generally acquires title after ten years of possession that has been actual, open and notorious, hostile, exclusive, and continuous.

Question 19

Actual Possession

Answer 19

Actual possession is possession and use of the property in a manner appropriate for that type of property.

Question 20

Open and Notorious Possession

Answer 20

Adverse possession must be open and notorious, not hidden, to put the true owner on notice that someone else is using the property.

Question 21

Hostile Possession

Answer 21

Possession is hostile to the owner’s interest if the adverse possessor is acting as if he owns the property.

Someone who is in possession of property with the permission of the true owner cannot gain title by adverse possession.

Question 22

Exclusive Possession

Answer 22

An adverse possessor must have exclusive possession of the property, rather than sharing possession with the true owner.

Question 23

Continuous and uninterrupted possession

Answer 23

Adverse possession must be continuous throughout the required time period.

Question 24

Tacking

Answer 24

Successive periods of possession by a series of adverse possessors can be added up to fulfill the ten-year requirement.

This is known as tacking

Question 25

Accretion

Answer 25

When waterborne silt is gradually deposited on the shore, it’s called accretion.

The landowner acquires title to the newly deposited soil.

Question 26

Reliction

Answer 26

When a body of water recedes slowly, exposing land that’s been underwater, it’s called reliction.

The adjoining landowner acquires title to the newly exposed land.

Question 27

Avulsion

Answer 27

Avulsion occurs when flowing water or wave action violently tears away land and deposits it elsewhere, or when a sudden change in a watercourse exposes land.

Unlike accretion and reliction, avulsion does not necessarily result in involuntary alienation of the land that has been moved or exposed.

Question 28

Trust Funds

Answer 28

Trust funds are money or other things of value received by an agent and held by the agent on behalf of clients or customers.

Trust funds received by a real estate firm must be deposited into a trust account within one business day of receipt, unless a written agreement provides otherwise.

Question 29

Trust Accounts

Answer 29

A trust account is a specially designated bank account in a brokerage firm’s name, for depositing funds that the firm is holding on behalf of its clients or customers.

The purpose of a trust account is to keep trust funds segregated from other money, such as the brokerage firm’s general business funds.

Question 30

Commingling

Answer 30

Commingling refers to illegally mixing trust funds together with other funds (such as a licensee’s own money, or money in the firm’s general business account).

Question 31

Transaction Folder

Answer 31

A transaction folder includes all of the contracts and other documents connected with a particular transaction.

Brokerage firms must keep all transaction folders for at least three years after the transaction closes.

Question 32

Summary Statement

Answer 32

A summary statement is a brief report a property manager prepares for a client, showing the managed property’s financial status over a certain time period.

Question 34

Testator

Answer 34

One who makes a will

Question 35

Bequeath

Answer 35

to transfer PERSONAL property by will

Question 36

Legatee

Answer 36

A person who received bequeathed property

Question 37

Devise

Answer 37

Transfer real property by will

Question 38

Devisee

Answer 38

Person who receives devised property

Question 39

Executor

Answer 39

Person appointed by the testator to carry out the instructions in a will

Question 40

Intestate

Answer 40

Person who dies without leaving a will died intestate

Question 41

Holographic will

Answer 41

An entirely handwritten will. Valid in some states even if not properly witnessed

Question 42

Nuncupative will

Answer 42

An oral will spoken by a terminally ill person before two witnesses