Chapter 4 Title Closing and Costs Flashcards
Abstract of Title
condensed history of the title (summary of all links in the title chain)
Abstract Continuation
is an update of and abstract title
Actual Notice
notice that is expressly and directly given to a person and received by that person.
Constructive Notice
the entire world is bound by knowledge of the existence of the conveyance of title when evidence of the conveyance is recorded.
Title Closing
the parties and other interested people meet to review and sign the closing documents, pay and receive money, and receive title to real estate.
Title
is evidence of the right to own property.
Survey
is a type of blueprint showing measurements, boundaries, and area of a property
Deed
is the legal document that conveys title to real property.
The deed must recite that the conveyance is SUBJECT TO an easement on the property.
Marketable Title
reasonably free and clear of encumbrances (defects).
Title Search
finds evidence of marketable title.
Chain of Title
tracing the successive conveyances of title.
starting from the current deed and going back an appropriate time ; 40 to 60 yrs
Title Insurance
an insurance contract insuring the policy owner against financial loss if title to real estate is not good.
(title insurance is not for property damage, but is insurance against clear title of the property)
Involuntary alienation
an individual must give up title to real property against his or her will.
Voluntary alienation
the grantors delivery of a valid deed to the grantee while both are alive
Conveyance
It is the document used to convey title legally to real property.
Ex. A deed
Grantor
the person conveying the title
Grantee
the person receiving the title
Consideration
Anything of value, as recognized by law, that is offered as an inducement to contract.
Habendum Clause
describes the estate granted and must agree with the granting clause.
This clause begins with the words “TO HAVE AND TO HOLD”
Involuntary alienation
an individual must give up title to real property against his or her will
Voluntary Alienation
the grantors delivery of a valid deed to the grantee while both are alive
Conveyance
the document used to convey title legally to real property.
A deed is also called an instrument of conveyance
Grantor
the person conveying the title
Grantee
the person receiving the title
Consideration
anything of value, as recognized by law, that is offered as an inducement to contract.
Description
The deed must contain an adequate description of the property
Habendum Clause
describes the estate granted and must agree with the granting clause.
The clause begins with the words “TO HAVE AND TO HOLD”
Acknowledgement/Oath
a formal statement made before an authorized official (notary public) by a person who executed a deed, a contract, or another document that it was a free act
Delivery and acceptance
the grantor must deliver a valid deed to the grantee, and the grantee must accept the deed.
Metes and bounds
metes are the distances from point to point and bounds are the directions from on point to another.
Reference to a plat
refers to a plat (map) and lot number as part of a recorded subdivision
Block & Lot
Property may be described by reference to section, BLOCK & LOT on the tax map, or a prior recorded instrument
Full covenant and warranty deed
contains the strongest and broadest form of guarantee of title of any type of deed
Covenant of seisin: It assures the grantee that the grantor holds the title specified in the deed that he is conveying to the grantee
Covenant of right to covey: usually follows the covenant of seisin in the full covenant and warranty deed, typically reads “AND HAS THE RIGHT TO CONVEY THE SAME IN FEE SIMPLE”. by this covenant the grantor provides an assurance to the grantee that the grantor had legal capacity to convey the title and has the title to convey
Covenant against encumbrances: The grantor assures the grantee that no encumbrances against the title except those set forth in the deed itself exist
Covenant of quiet enjoyment: This covenant usually reads “the grantee, his heirs and assigns, shall quietly and peaceably have, hold, use posses, and enjoy the premises. This covenant is an assurance by the grantor to the grantee that the grantee shall have quiet possession and enjoyment of the property being conveyed.
Covenant for further assurances: This covenant commonly states, “that he (grantor) will execute such further assurances as may be reasonable or necessary to perfect the title in the grantee. “ Under this covenant, the grantor must perform any acts necessary to correct any defeat in the title being conveyed and any errors or deficiencies in the deed itself.
Covenant of warranty: This is the best form of warranty for protecting the grantee and contains no limitations as to possible claimants protected against.
Bargain and sale deeds
an implied representation on the part of the grantor that he has good title and possession of the property
Quitclaim deed
a deed of release that contains no warranty of title; used to remove a cloud on a title.
Cloud of title occurs when someone had a possible claim against a title.
Judicial deed
results from a court order tot he official executing the deed.
Referees deed
used in bankruptcy proceeding and foreclosures.
Codicil
is supplement or an appendix to a will that adds or changes some bequest in the will
Dedication
a developer in the plat of subdivision may set aside a portion of the land for common area, parks, and sidewalks
Dedication by deed
when a developer formally conveys in writing a parcel of land to a municipality.
Public grant
a grant of a power, license, or real property from the state of government to a private individual(s)
Land patent
the instrument conveying the public land
Adverse possession
a person other than the owner can claim title to real property
Real Estate Settlement Procedures Act
The act applies only to residential federally finances or refinanced properties, not to commercial properties, cash deals, owner financed loans. Condo’s and Coops are included as long as they aren’t for business purposes.
The act regulates activities of lending institutions in making mortgage loans for housing.
Closing statement
is prepared before the closing, but records what happens at closing. the statement sets forth the distribution of monies involved in the transaction.
Accession
Real property owners right to all that their land produces or all that is added to the land, either intentionally or by mistake
