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Real estate > Chapter 3- Transfer of Title > Flashcards

Chapter 3- Transfer of Title Flashcards

1
Q

Methods of transferring title

A

1) Voluntary Alienation
A)Public Grant
B) Private Grant

2) Involuntary Alienation
3) Descent
4) Will

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2
Q

Voluntary Alienation

A

Own free will transfer title

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3
Q

Involuntary Alienation

A

Don’t want to do- will transfer title through the courts.

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4
Q

Who will prepare the document deed

A

Grantor transfers title to real property.

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5
Q

Two parties involved in transferring title

A

Grantor- Gives the deed (Not always the owner)- Can be to as many people as you want.

Grantee- Receives the deed,

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6
Q

Basic requirements for writing a deed (To be valid)

A

1) Competent Grantor- Someone with sound mind.
2) Identifiable Grantee- Grantee does not need to sign
3) Granting Clause- Grantor must agree.
4) Legal Description- Description of address. Will be on Purchase contracts, deeds, mortgages, trust deeds.
5) Legal Consideration- money, barter

6) Signature of Grantor- Final step of transferring
(Title Company)

7) Acknowledgment- 3rd party present, showing signed of free will.

8) Delivery to grantee
Actual
Escrow- Title Company

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7
Q

Legal consideration for transferring title

A

1) Valuable- Money or goods- barter

2) Good- Love and affection.

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8
Q

Covenants on all conveying deeds- ( From title company)

A

Promises

1) Covenant of Seizin
2) Covenant of Quiet Enjoyment
3) Covenant against Encumbrances

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9
Q

Covenant of Sezin

A

The grantor owns the property and has the right to convey.

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10
Q

Covenant of Quiet Enjoyment

A

The grantor will defend the grantees title against claims by 3rd party and compensate grantee if title turns out to be invalid or defective.

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11
Q

Covenant against further encumbrances

A

The grantor promises the property is free from encumbrances except those already revealed. If covenant is violated , the grantee can sue.

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12
Q

Warrantees (guarantees) of title company

A

1) Further assurance
Obligates the grantor to perfect title- No perfect title due to taxes. Liens and mortgage. contained in warranty deed forever.
2) Warranty forever- Title insurance will protect.
Requires the grantor to defend the grantee’s title forever. Contained only in a general warranty deed.

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13
Q

Types of Deeds

A

1) Patent Deed
2) Conveying or Granting Deeds
3) Beneficiary (death) deed

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14
Q

A special (limited) warranty contains (Includes)

A

1) Covenant of Seizin
2) Covenant of Quiet enjoyment
3) Covenant against encumbrances
4) perfect title

***Not forever

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15
Q

General Warranty Deed

A

1) Covenant of Seizin
2) Covenant of Quiet Enjoyment
3) Covenant against encumbrances
4) Perfect title
5) Will protect forever

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16
Q

Releasing Deeds

A

1) Quit Claim Deed
2) Gift Deed
3) Disclaimer Deed
4) Correction Deed
5) Fiduciary Deed

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17
Q

Quit Claim Deed

A

1) To remove clouds on Title- Requires quiet title suit (court) Name, or messy title.
2) No covenants or warranties
3) May convey but not designed to convey.
4) Color of Title-Appearance. of ownership, might not be.

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18
Q

Gift Deed

A

1) Type of Quit Claim deed
2) Used between relatives

**For love and affection

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19
Q

Disclaimer Deed

A

1) Used for denial of spouses interest in property
2) Signed at time of purchase.
3) Contains no covenants or warranties.

***Used for second marriage or bad credit.

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20
Q

Correction Deed

A

Correct an original deed that was messed up.

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21
Q

Fiduciary Deed

A

Someone that could handle things if incompacitated.

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22
Q

Is recordation of a deed mandatory?

A

No- Recordation provides notice but not ownership.

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23
Q

Purpose of recordation

A

1) Gives enforceability of the claim to the title.
2) Does not guarantee validity.
3) Shows Chain of Title-order of who owned liens.

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24
Q

Groundless Lien Statute

A

Protect against frivolous claim to title. Could have bogus claim or lien and it is against the law.

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25
Q

Benefits of Groundless Lien Statute

A

Protects property owner.

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26
Q

Penalties with the Groundless Lien Statute

A

$5,000 or triple the damages.

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27
Q

Affidavit of Value/ Affirmation of Value

A

Signed by the seller and records with the deed.

28
Q

Purpose of Affidavit of Value

A

So can asses taxes.

29
Q

Components of a Affidavit of Value/ Affirmation of Value

A

1) Signed by buyer/seller
2) Consideration
3) Legal Description
4) Records with deed

30
Q

Title

A

An accumulation of facts which, if proven, would enable a person to recover or retain possession of a piece of real property.

31
Q

Title composes of

A

1) Constructive Notice- Document is recorded
2) Actual Notice- Handing deed over- usually with title company.
3) Quality of claim to the title.
4) Evidence or proof

32
Q

Quality of claim to a title

A

1) Abstract of title (No deed) and possession- living there.
2) Unrecorded deed and no possession.
3) Recorded deed and no possession.
4) Unrecorded deed and possession.
5) Recorded deed and possession.

33
Q

Proof you have title

A

1) Abstract of title (Certificate of title)-History of title
2) Torrens Certificate (Not in AZ)
3) Title Insurance- Most common in Az.

34
Q

Title Insurance is composed of?

A

1) Benefit of the buyer (vendee)
2) Paid for by the seller (vendor)-Guarantees
3) Paid once-At beginning
4) Issued in the amount of the purchase price
5) valid as long as the buyer or heirs own the property.
6) Void when owner sells the property.

35
Q

Title insurance does not insure against

A 
Items in the public record
Rights of the parties in possession
Unrecorded documents such as mechanics liens
Questions of survey
Gaps in the chain of title
Easements
36
Q

What does Title Insurance insure against

A

Incorrect marital status
Errors by Title Company
Hidden (undiscovered defects)

**Forgery, Incompetent grantors

37
Q

ALTA/ Extended Coverage/Broad Form Coverage

A

Lenders policy that they require:

1) Insures the lender has an enforceable lien against property.
2) For the benefit of the lender (Mortgagor or trustor)
3) Paid for by the borrower.
4) Paid once-at beginning.
5) Issued in the amount of the original loan.
6) Valid if property is collateral-remains valid if property is sold and loan is assumed.
7) Void when loan is paid off.

38
Q

What does ALTA/Extended Coverage/ Broad Form Coverage not insure against?

A

Items in the public records.

Gaps in chain of title.

39
Q

What does ALTA/Extended Coverage/Broad Form coverage Insure against?

A

1) Rights of parties in possession.
2) Unrecorded documents.
3) Questions of survey.

40
Q

Subrogation

A

Give up rights in return for money.

41
Q

Title examiner

A

Examine public records

42
Q

Title plant

A

Collective instruction notice information

43
Q

Preliminary Title Report

A

1) Schedule A- Basic stuff

2) Schedule B- Wont be covered-Needs to be looked at by agent.

44
Q

What’s on a preliminary title report Schedule A

A

1) Name of the insured
2) Legal description
3) Defines the estate covered

45
Q

What’s on a preliminary title report Schedule B

A

1) Standard exceptions

2) Special exceptions- easements, HOA, CCR, Encumbrances.

46
Q

Involuntary Alienation

A

1) Alienation

2) Acquisition

47
Q

Alienation

A

1) Erosion- Gradual wearing away of the land

2) Avulsion- Sudden loss of land- fire, sink hole

48
Q

Acquisition

A

1) Accretion- acquiring land through build up of dirt.
2) Alluvial deposits-soil deposited by accretion.
3) Reliction- Stream that recedes the land will belong to property owner.

49
Q

How can you have loss of land?

A

1) Property tax foreclosure sale
2) Bankruptcy sale
3) Mortgage foreclosure
4) Trustee’s sale
5) Judgment execution
6) Escheat
7) Eminent Domain
8) Adverse possession

50
Q

What is used for property tax foreclosure sale?

A

Treasurer’s Deed

51
Q

What is used for Bankruptcy sale

A

Trustee’s Deed

52
Q

What is used for Mortgage foreclosure

A

Sheriffs Deed

53
Q

What is used for Trustee’s sale?

A

Trustee’s Deed

54
Q

What is used for judgment execution

A

Sheriff’s deed

55
Q

In an Adverse Possession suit it has to be prove possession of the land was

A

1) Open
2) Hostile
3) Notorious
4) By claim of right
5) Continuous or tracking-many owners and 5 years

Method of acquiring title-10 years

56
Q

Most common use for law of Adverse Possession?

A

Boundary disputes, fences and easements

57
Q

Title vs right with Adverse possession

A

If you want to avoid giving title can give them easement.

58
Q

Descent

A

intestate Succession- No will

1) Administrator (personal representative)
2) Statute of descent and distribution set by A.R.S
3) Probate- court approval

Title transfers at death-subject to probate.

59
Q

What is the order of succession if no will?

A

1) spouse
2) children
3) parents
4) siblings
5) grandparents
6) aunt and uncles

60
Q

Types of involuntary alienation

A

1) Natural causes- land changes,
2) Operation of Law- legally
3) Descent- No will

61
Q

Voluntary Alienation

A

Testate succession is voluntary with a will.

62
Q

Testate succession

A

1) Personal Representative-Deceased person decided

2) Probate- courts will decide after probate when you can sell.

63
Q

In a will another name for Real Property

A

device

64
Q

In a will another name for personal property

A

bequest or legacy

65
Q

Types of wills

A

1) Formal or conventional
2) Holographic
3) Nuncupative (Not in AZ)

66
Q

Codicil

A

Amendment to a will. Change or cut people out.

Real estate (14 decks)

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