Chapter 4 Flashcards
Transfer Title of Real Property
alienation
The transfer of ownership or an interest in property from one person to another, by any means
Metes and Bounds
A legal description that starts at an easily identifiable point of beginning (POB), then describes the property’s boundaries in terms of bounds (compass directions) and metes (distances), ultimately returning to the point of beginning.
Point of Beginning (POB)
a point in the metes and bounds system that is reasonably easy to locate and tied to a reference point that is well established
Government Rectangular System
Legal description for land referencing principal meridians and baselines designated throughout the country
Description by Reference
A valid legal description that refers to a recorded plat or other publicly recorded document
Testate
when property is distributed from a a valid will to heirs of the person who died
Intestate
when property is distributed without a valid will to heirs of the person who died
Bequest
gift of personal property with a will
Legacy
gift of cash with a will
Devise
gift of real property with a will
Descent
Gift of real property without a will
Beneficiary
Heir of the will
Probate
legal process to distribute an estate
Testattor
the person who made the will
Executor
carries out the will
Administrator
“executor” for those without a will
What are the four types of involuntary alienation?
Lien foreclosure, adverse possession, escheat, and eminent domain
What are the 7 requirements to consider a deed valid? (WIGS Deliver Legal Words promptly)
Writing (in writing)
Identity (identify parties)
Grantor’s Capacity (to execute deed)
Signed (by grantor)
Deliver (delivery & acceptance by grantee)
Legal (description)
Words (of conveyance)
A brief, chronological summary of the recorded documents affecting title to a
particular parcel of real property.
Abstract of Title
Recognition of validity; a document signer’s declaration to an authorized
official (usually a notary public) that he is signing voluntarily
Acknowledgement
The open, notorious, hostile, adverse, exclusive, and continuous
possession of another person’s property for a statutory number of years, after which time the
adverse possessor may seek to obtain title to the property
Adverse Possession
s Refers to boundaries; used with the word “metes” in the metes and bounds method of land description.
Bounds
The chronological succession of changes in ownership of a piece of property
from one owner to the next, as disclosed in the public record.
Chain of Title
A claim, encumbrance, or defect that could place the title to real property in
question, reducing its marketability
Cloud on Title
a defective claim to a title
Color of Title
the exercise/process of the power of eminent domain. The taking of private property for public use by paying just compensation
Condemnation
requires certain documents to be recorded to be enforceable (DREAMOIL)
NC Connor Act
Notice of a fact on the public record that is considered to be known to everyone, even though he or she has not actually been notified of such fact. Everyone is bound by this knowledge
Constructive Notice
a promise in a deed that there are no encumbrances against the title except those set forth in the deed
Covenant Against Encumbrances
a promise in a deed (or lease) that the grantee (or leasee) will not be disturbed in his or her use of the property because of a defect in the grantor’s (or leasor’s) title
Covenant of Quiet Enjoyment
a promise in a deed that the grantor has the legal capacity to convey title
Covenant of Right to Convey
a promise in a deed assuring the grantee that the grantor has the title being conveyed
Covenant of Seisin
a promise in a deed that the grantor will guarantee and defend the title against lawful claimants
Convent of Warranty
a written instrument that transfers an interest in real property when signed by grantor and delivered to the grantee
Deed
Devisee
recipient of a gift of real property by a will
the power of government to take private property for public use
Eminent Domain
the power of government to take title to property left by a person who has died without leaving a will or qualified heirs
Escheat
a state tax that a grantor must affix to a deed when being transferred. It provides a rough indication of purchase price and is a valuable data source for the broker’s records. Revenue stamps
Excise Tax
Executrix
a woman appointed in a will to carry out the will
the legal procedure in which the lender sells the collateral in order to pay off the existing loan in the event of default by the borrower
Foreclosure
A type of land description by townships and sections
Government Rectangular Survey System
Grantor
one who conveys title to real property by a deed
Grantee
one of receives title to real property by a deed
a deed executed by an official with court authorization
Judicial Deed
Legal Description
a description of land recognized by law
a sale of real property at public auction to satisfy a specific or general lien against the property
Lien Foreclosure Sale
NC legislation designed to extinguish old defects in the title by providing that when a chain of title can be established for 30 years without conflicts, claims outside this chain are extinguished
Marketable Title Act
North-south (vertical) lines designated and named throughout the country for use
with the government survey system
Meridian
an area of land described by the rectangular survey system consisting of 640 acres and being 1 square mile
Section
a deed containing a limited warranty of title limited to the time the seller owned the property
Special Warranty Deed
a law in effect in all states requiring certain contracts to be in writing to be valid (DREAMOILS)
Statute of Frauds
a suit brought before the court to eliminate a cloud on a title or to establish title
Suit to Quiet Title
The formal process of locating and measuring the boundaries of a property and identifying the improvements, encroachments, and easements that are associated with that
parcel.
Survey
a search of the public record to determine the quality of a title to real property
Title Examination
an insurance policy protecting the insured from a financial loss caused by a defect in a title to real property
Title Insurance
a unit pertaining to the Government Rectangular Survey System that measures six square miles and is divided into 36 equal parcels called sections
Township
the legal instrument to dispose of a decedent’s property according to his/her instructions
Will
wording in a deed demonstrating the definite intention to convey a particular title to real property to a named grantee
Words of Conveyance
What are the four types of deeds?
- General Warranty Deed
- Special Warranty Deed
- Bargain & Sale Deed (Sheriff’s Deed)
- Quit-Claim Deed
This type of deed is considered the highest and most common. Grantors usually deliver these and they have the most promises
General Warranty Deed
“I have the right to convey. There are no encumbrances. You have the right to quiet enjoyment and I warrant it against all claims back to the beginning of time”
General Warranty Deed
- requires sellers to deliver a general warranty deed to buyer
NC Offer to Purchase Contract
This type of deed has limited promises and is limited to the term of the grantor’s ownership. Often used by lenders to convey title to foreclosed properties. Often used for new construction homes
Special Warranty Deed
“I have the right to convey. I didn’t create any encumbrance and I warrant it back to the time I took ownership”
Special Warranty Deed
This type of deed is very limited and only contains the covenant of seisin. usually delivered by trustees, banks, foreclosures, estates. Not used in NC. Used in Lien Theory states where sheriff’s perform foreclosures.
Bargain & Sale Deed (Sheriff’s Deed)
“I have the right to convey. I make no promises or warranties about encumbrances or the rights of others”
Bargain & Sale Deed (Sheriff’s Deed)
This type of deed is the lowest form. It contains no promises. Often used as a correction or release or to clear a cloud on title
Quit-Claim Deed
“I transfer to you my rights and interests, IF I have any”
Quit-Claim Deed
What are the four special purpose deeds?
- Correction deed
- Trustee’s deed
- Sheriff’s deed
- Gift Deed
This type of special purpose deed transfers with little or no consideration. It is void if not recorded within 2 years. No excise tax is required
Gift Deed
What are the 7 requirements for a valid deed transfer? (WIGS Deliver Legal Words Promptly)
- In writing
- Identification of parties
- Grantor’s capacity
- Signed by the grantor
- Delivery and & acceptance by grantee
- Legal description
- Words of conveyance
What effects does condemnation have on a tenant in a lease?
- Terminates the existing lease
- Compensation owed to property owner AND tenant
When must deeds be notarized and acknowledged?
To be recorded
