Chapter 3: Transfer of Real Property Flashcards
Patent
A patent transfers real property from government ownership to private ownership.
Warranty Deed
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.
Special Warranty Deed
A special warranty deed limits its warranties to the period the grantor owned the property.
After-acquired title
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.
Quit-Claim Deed
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.
Name the 6 essential elements of a deed and 3 things required for conveyance.
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.
Define: In Writing
Define: the Habendum Clause
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.
Define: exclusions and reservations clause
A deed may include a list of the encumbrances that will burden the grantee’s title.
This is called an exclusions and reservations clause.
Define: recital of consideration
Many deeds include a recital of consideration as an indication that the conveyance was not a gift to the grantee.
Statutory Dedication
When applying for subdivision approval, a developer is often required to dedicate land within the subdivision to the public for streets and utility easements.
Intestate Succession
When someone dies without a valid will, her property passes to her heirs according to rules set forth in a state statute.
Escheat
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.
Condemnation
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
Quite Title
In a quiet title action, the court resolves claims against a property to clear away clouds and make the owner’s title marketable.
Suite for Partition
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.
Foreclosure
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.
Adverse Possession
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.
Actual Possession
Actual possession is possession and use of the property in a manner appropriate for that type of property.
Open and Notorious Possession
Adverse possession must be open and notorious, not hidden, to put the true owner on notice that someone else is using the property.
Hostile Possession
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.
Exclusive Possession
An adverse possessor must have exclusive possession of the property, rather than sharing possession with the true owner.
Continuous and uninterrupted possession
Adverse possession must be continuous throughout the required time period.
Tacking
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
Accretion
When waterborne silt is gradually deposited on the shore, it’s called accretion.
The landowner acquires title to the newly deposited soil.
Reliction
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.
Avulsion
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.
Trust Funds
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.
Trust Accounts
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.
Commingling
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).
Transaction Folder
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.
Summary Statement
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.
Testator
One who makes a will
Bequeath
to transfer PERSONAL property by will
Legatee
A person who received bequeathed property
Devise
Transfer real property by will
Devisee
Person who receives devised property
Executor
Person appointed by the testator to carry out the instructions in a will
Intestate
Person who dies without leaving a will died intestate
Holographic will
An entirely handwritten will. Valid in some states even if not properly witnessed
Nuncupative will
An oral will spoken by a terminally ill person before two witnesses
