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Real Estate Licensing > Chapter 5 Transfer of Title to Real Property > Flashcards

Chapter 5 Transfer of Title to Real Property Flashcards

1
Q

Voluntary Alienation

A 
aka Transfer
gift
sale
consent of property owner
Deed must be used
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2
Q

Valid Deed of Conveyance in NC

A 
*in writing (NC statute of frauds : oral deed cannot be enforced)
grantor has legal capacity to execute
grantor & grantee identified
Adequate words of conveyance
Legal Description is accurate
signed by Grant-ors
Delivered to and accepted by Grant-ee
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3
Q

Grantor

A

legal existence
lawful age
legally competent even while intoxicated–>
deed is voidable but not void

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4
Q

Granting Clause words of Conveyance

A 
convey & warrant
grant
bargain
sell
remise
release
& quitclaim
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5
Q

Signature of Grantor

A
  • Deed must be signed by all the grantors or authorized agents
  • if married both must sign even if one is named
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6
Q

Delivery and Acceptance of Deed

A
  • from Grantor to Grantee or third party
  • in NC recordation of deed by buyers or their agent is recognized as acceptance.
  • Effective date is date of delivery
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7
Q

NOT required for Deeds

A
  • DO NOT have to be witnessed
  • DO NOT have to be dated
  • DO NOT have to include statement
  • DO NOT have to be acknowledged/notary
    Note: notarization required before recordation.
  • DO NOT have to be recorded to be valid
    Note: Conner Act says grantee must record the valid deed for 3rd party protection.
    *DO NOT have to be sealed
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8
Q

Signing “under seal”

A

not required but

* extends statute of limitations protecting parties rights from 3-10 years

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9
Q

General Warranty Deed

A
  • Greater protection than any other deed
  • BEST deed for Grant-ee
  • Grant-or has greatest liability
    ALL below extend back to origin
    1) Covenant of Seisin
    2) Covenant against Encumbrances
    3) Covenant of quiet Enjoyment
    4) Covenant of Warranty Forever
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10
Q

Covenant of Seisin & right to convey: General Warranty

A
  • Grantor is the legal owner of property & has
    right to convey title to it.
  • Delivery of Seisin IS the actual transfer of
    title
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11
Q

Covenant against Encumbrances: General Warranty

A

Grantor warrants that property is free of liens or encumbrances except those of record

* free of Mortgages
* free of Mechanic's lien
* free of Real Estate Tax lien
* free of Protective Covenants
* free of Easements
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12
Q

Covenant of Quiet Enjoyment: General Warranty

A

Grantor gaurantees that title will be good against third parties who might bring court actions to establish superior title to property.
* Ownership

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13
Q

Covenant of Warranty Forever: General Warranty

A

Grantor guarantees that if title fails in future that Grantor will compensate grantee for the loss sustained.
*buyer should get title insurance

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14
Q

Special Warranty Deed/Limited Warranty Deed

A
  • Only 2 covenants
  • Grantor warrants that they received title to the land and it was not encumbered during time they held title.
    Contain words
    • Remise
    • Release
    • Alienate
    • Convey
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15
Q

Bargain & Sale Deed

A
  • no express warranties against encumbrances
  • IMPLIES grant-or holds possession & title
    Contain words
    *grants and releases
    • bargains
    • and sells
      used in forclosure & tax sales
  • buyer should get title insurance
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16
Q

Quitclaim Deed/ Non Warranty Deed

A

Grant-ee with LEAST protection

  • No covenant or warranties
  • Grant-or only remises, releases, and quitclaims an interest in the property
  • *transfer ownership with no gaurantees
    • Cure a defect aka CLOUD ON TITLE
17
Q

Special Purpose Deeds

A 
Correction Deed
Deed of Gift
Deed of Release
Deed in lieu of Foreclosure
Trustee's Deed
Timber or Mineral Deed
Deeds Executed pursuant to Court Order
18
Q

Correction Deed: Special Purpose

A

Used when Error in previous deed

such as errors in description of property, names or dates.

19
Q

Deed of Gift: Special Purpose

A

Grantor gives property as gift

  • Must be recorded within 2 years or void
  • No need to pay excise tax
20
Q

Deed of Release: Special Purpose

A

When real estate loan has been paid in full

21
Q

Deed in Lieu of Foreclosure: Special Purpose

A

To avoid foreclosure, debtor gives lender a deed in lieu (INSTEAD OF) forclosure
* tax issues arise

22
Q

Trustee’s Deed : Special Purpose

A

when trustee is named in a
will, trust agreement, or trust deed conveys the real estate to anyone other than trustor.
* Used to transfer title after a foreclosure

23
Q

Timber or Mineral Deed: Special Purpose

A

harvesting land or timber

24
Q

Deed executed pursuant to court order: Special Purpose

A 
Sheriff's Deed
Tax Deed
Guardians Deed
Executors Deed
Convey property that is transferred by court order or by will.
25
Q

Excise Tax

A

based on sales price of property

  • Register of Deeds must mark document showing PD prior to recording
  • $1 for ever $500
  • Whole dollar amount
  • Type of financing used has No effect
  • ROUND sales price up to nearest $500
26
Q

Exempt from Excise Tax

A
  • Transfer by gov’t entity
  • Transfer by Will or intestate succession due to death
  • transfer by Deed of Gift , no consideration
  • transfer by Merger or consolidation
  • transfer by lease for a term of years
  • transfer by instruments securing debt
    - mortgage
    - deed of trust
27
Q

Involuntary Alienation

A

Forced Transfer
- Escheat
- Eminent Domain
may be by government condemnation of land for public use to the sale of property to satisfy tax debt

28
Q

Escheat: Involuntary Alienation

A

intestate = without a will

* no heirs and title passes to the state

29
Q

Eminent Domain: Involuntary Alienation

A

Gov’t has right to acquire privately owned real estate for public use.

  • Federal, State and Local Governments
  • school boards
  • some gov’t agencies
  • public & quasi- public corporations & utilities
  • NC says eminent domain may only be sued to take a blighted parcel.
30
Q

Condemnation

A

Process by which Gov’t exercises eminent domain

  • NC quicktake - when authorized by law, title and possession of private property can immediately be transferred to public authority.
  • Taking of leased property terminates any lease
31
Q

Lien Foreclosure

A

land transferred without an owners consent to satisfy debts contracted by the owner that have become liens against real property.

32
Q

Adverse Possession

A

OCEAN

Open
Continous
Exclusive
Adverse
Notorious

Real Estate Licensing (42 decks)

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