Chapter 5: Transfer of Title to Real Property

Question 1

The condensed history of a title to a particular parcel of real estate, consisting of a summary of the original grant and all subsequent conveyances and encumbrances affecting the property and a certification by the abstractor that the history is complete and accurate.

Answer 1

abstract of title

Question 2

The open, continuous, exclusive, adverse, notorious, (OCEAN) possession of another’s land under a claim of title. Possession for a statutory period of 20 years in North Carolina may be a means of acquiring title.

Answer 2

adverse possession

Question 3

The act of transferring property to another. Alienation may be voluntary, such as by gift or sale, or involuntary, as through eminent domain or adverse possession.

Answer 3

alienation

Question 4

Includes all the protection of a standard policy plus additional protection to cover risks that may be discovered only through inspection of the porperty (including rights of persons in actual possession of the land, even if unrecorded) or revealed by exanimation of an accurate survey.

Answer 4

ALTA (American Land Title Association) policy

Question 5

A deed that carries with it no warranties agaisnt liens or other encumbrances but that does imply that the grantor has the right to convey title. The grantor may add warranties to the deed at his discretion.

Answer 5

bargain and sale deed

Question 6

The succession of title conveyances, from some accepted starting point, whereby the present holder of real property derives title.

Answer 6

chain of title

Question 7

Any document, claim, unreleased lien, or encumbrance that may impair the title to real property or make the title doubtful; usually revealed by a title search and removed by either a quitclaim deed or suit to quiet title.

Answer 7

cloud on the title

Question 8

A judicial or an administrative proceeding to exercise the power of eminent domain, through which a government agency takes private property for public use and justly compensates the owner.

Answer 8

condemnation

Question 9

A North Carolina law that requires many types or real estate documents to be reocrded for protection against claims from third parties. These documents include deeds, mortgages, purchase contracts, installment land contracts, assignments, options, leases exceeding three years, easements, and restrictive covenants; a pure race statute.

Answer 9

Conner Act

Question 10

The notice given to the world by recorded documents. All people are charged with knowledge of such documents and their contents, whether or not they have actually examined them. Possession of property is also considered constructive notice that the person in possession has an interest in the property.

Answer 10

constructive notice

Question 11

A written agreement between two or more parties in which a party or parties pledge to perform or not perform specified acts with regard to property; usually found in such real estate documents as deeds, mortgages, leases, and contracts for deed.

Answer 11

covenant

Question 12

A written instrument that, when executive and delivered, conveys title to or interest in real estate; evidence of title.

Answer 12

deed

Question 13

The actual delivery of a deed by a grantor and the actual or implied acceptance of the deed by the grantee; recordation of the deed is viewed as acceptance.

Answer 13

delivery and acceptance

Question 14

The right of a government or municipal quasi-public body to acquire proeprty for publix use througha court action called condemnation, in which the court decides that the use is a public use and determines fair compensation to be paid to the owner.

Answer 14

eminent domain

Question 15

The reversion of property to the state, as provided by state law, in cases where a decedent dies intestate without heirs capable of inheriting or when the property is abandoned.

Answer 15

escheat

Question 16

Deed transfer tax paid by the seller and required to be noted on a deed by state law; the rate is $1 per $500 of sales price.

Answer 16

excise tax

Question 17

A deed in which the grantor fully warrants good clear title to the premises through four covenants in the deed. Used in most real esate deed transfers, a general warranty deed offers the greatest protection to the grantee of any deed.

Answer 17

general warranty deed

Question 18

A person who receives a conveyance of real property from a grantor.

Answer 18

grantee

Question 19

Words in a deed of conveyance that state the grantor’s intention to convey the property at the present time. This clause is generally worded as voncey and warrant, grant, bargain and sell, or the like.

Answer 19

granting clause

Question 20

(1) The property owner that is transferring title to or an interest in rela property to a grantee. (2) A borrower in a deed or trust loan transaction; also called trustor.

Answer 20

grantor

Question 21

The condition of a property owner who dies without leaving a valid will. Title to the property will pass to the decedent’s heirs as provided in the state law of descent.

Answer 21

intestate

Question 22

A good or clear title, reasonalby free from the risk of litigation over possible defects.

Answer 22

marketable title

Question 23

The act is designed to eliminate obsolete defects in a chain of title. If a chain of title can be traced back for 30 years without a problem, it becomes a marketable title.

Answer 23

Marketable Title Act

Question 24

The state law of descent that dictates distribution of the real and personal property of the decreased that died without a will (intestate).

Answer 24

North Carolina Intestate Succession Act

Question 25

A conveyance by which the grantor trasfers interest in the real estae, if any, without warranties or obligations; frequently used to remove clouds on the title.

Answer 25

quitclaim deed

Question 26

The act of entering or recording documents into the public record at the recorder’s office established in each county. Until recorded, a deed or mortgage ordinarily is not effective against third parties, such as subsequent purchasers or mortgagees.

Answer 26

recording

Question 27

A deed in which the grantor only warrants, or gurantees, the title against defects arising during the period of the grantor’s tenure and ownership of the property and not against defects existing before that time, generally using the language by, through or under the grantor but not otherwise.

Answer 27

special warranty deed

Question 28

(1) The right to or ownership of land. (2) The evidence of ownership of land.

Answer 28

title

Question 29

A policy insuring the owner and/or mortgagee against loss by reason of defects in the title to a parcel of real estate, other than encumbrances, defects, and matters specifically excluded by the policy.

Answer 29

title insurance

Question 30

The search of public records to determine the current state of ownership of real estate; examining chain of title.

Answer 30

title search

Question 31

A written document, properly witnessed, providing for the transfer of title to property owned by the deceased.

Answer 31

will