Chapter 5: Transfer Of Title Real Property

Question 1

Deed:

Answer 1

Written evidence of a title that coveys rights of land.

Question 2

Grantor:

Answer 2

• Owner/Seller
• Deeds are ONLY signed by the Grantor(s)

Pg(79)

Question 3

Grantee:

Answer 3

The Buyer

Does NOT sign the deed
79

Question 4

Alienation:

Answer 4

Transferral of property to another.

However, may be given as a gift or sale or involuntary (eminent domain or adverse possession)

(79)

Question 5

Types of Deeds:

Answer 5

• General Warranty D.
• Special Warranty D.
• Quitclaim Warranty D.

(81)

Question 6

General Warranty Deed:

Five Covenants

Answer 6

• Covenant of Seisin: Right to convey title. (Delivery of Seisin is the actual transfer of title.)
• Cov’t against encumbrances: Free of liens
• Cov’t of Quiet Enjoyment
• Cov’t of Further assurance: Promise to obtain & deliver whtever needed to make good title
• Cov’t of Warranty Forever: if title fails grantee will be compensated

(81)

Question 7

Special Warranty Deed

Limited W. Deed

Answer 7

2 Warranties:

1. Warranty that Grantor received title
2. Warranty that property was unencumbered by grantor

Question 8

QuiteClaim Deed

NOT QUICK CLAIM!

Answer 8

• No express or implied covenants or warranties
• Used primarily to convey less than fee simple or to cure a title defect (cloud on title such as misspelled names)
• Also used to convey ownership from one spouse to another after divorce

(84)

Question 9

Cloud on Title

Answer 9

Used to cure/fix a defect on title.

84

Question 10

Excise Tax:

Answer 10

Exemptions to paying:

Government entities; transfers by death; transfer by deed of gift when no consideration is paid or transfers when securing a debt(deed of trust and/or mortgage)
(90)

Question 11

Excise Tax Calculations:

Answer 11

If sales price is not an even $500, round the sales price up to the nearest $500, divide by 500, and multiply by 1.

Ex. $94,750–> $95,000/500*1= $190

(90)

Question 12

Adverse Possession

Answer 12

Hostile possession of another’s land for a certain period.

In NC If no color title, the period of possession is 20 years.

Question 13

Title Insurance:

Answer 13

To protect against loss as a result of defects in title
Lenders often require

Standard coverage - against defects found in public records plus many not found

Extended coverage (provided by an ALTA - American Land Title Associaiton) - includes standard PLUS risks discovered through inspection of property.

(97,98,99)

Question 14

Title Search /
Chain of Title /
Abstract of Title:

Answer 14

• Title Search - Examination of public records
• Chain of Title - Shows record of ownership over period of time
• Abstract of Title - Condensed history of title

Question 15

Marketable Title Act:

Answer 15

Designed to eliminate obsolete defects.

If a chain of title can be tracked backed for 30 years w/o problem it’s a marketable title.

(97)

Question 16

The Conner Act:

Answer 16

State law that provides that many types of real estate documents are not valid to third party claims unelss recorded.

Pure Race Statute: First come; First serve; takes ALL!

(100)

Question 17

7 Essentials of a Deed:

Answer 17

• Competent Grantor
• Execution by Grantor
• Identifiable Grantee
• Delivery & Acceptance by “ee”
• Legal Description
• Consideration
• Words of Conveyance

Question 18

Title:

Answer 18

Right to or ownership of Land

Pg(78)