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Real Estate Class > Chapter 9 -- title transfer and records > Flashcards

Chapter 9 -- title transfer and records Flashcards

1
Q

Title is evidence of…

A

ownership of real estate

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2
Q

Is the title a piece of paper?

A

no. the deed is the piece of paper

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3
Q

If someone is challenged in court about their ownership of a piece of property, what document would they take in court retain ownership?

A

they would take the deed.

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4
Q

What are the 8 requirments for a deed to be vaild?

A
  1. grantor, who has the legal capacity to execute (sign) the deed.
  2. Grantee needs to be identified
  3. recital of consideration
  4. granting clause (words of converyance)
  5. legal descritpion of prop
  6. any execeptions or reservations
  7. signature of grantor
  8. delivery of deed and acceptance from grantee to pass the title.
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5
Q

who is the grantor?

A

seller

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6
Q

who is the grantee?

A

buyer

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7
Q

who signs the deed?

A

the the grantor because they are the seller

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8
Q

if a deed is signed by someone under the age of 18 is it voidable or void?

A

voidable

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9
Q

If more than 1 grantee is involved, the granting clause should specify what?

A

It should specify their rights in the property. The clause might state that the grantees will take title as “joint tenants” or “tenants in common”

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10
Q

what is a granting clause?

A

that portion of the deed that states the grantor’s intention to transfer title and type of ownership interest conveyed. These are words of conveyance.

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11
Q

In Illinois, what is required to make a deed valid?

A

The grantee’s (buyer’s) present address is required in IL to make a deed valid.

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12
Q

In IL, if no specifc form of ownership is selected on the deed, then what type of ownership is assumed?

A

Tenancy in common

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13
Q

what is consideration?

A

something of value that induces one to enter into a contract. consideration may be valuable (money or commodity) or good ( love and affection)

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14
Q

what is acknowledgment?

A

notarization

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15
Q

is the selling price of the property listed on the deed?

A

NO

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16
Q

If a piece of land has an encumberance or an easement, will it be noted in the deed?

A

Yes. It would be noted in the exceptions and reservations section

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17
Q

In IL, is an acknowledgement required for a deed to be valid?

A

No.

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18
Q

If a deed is not acknowledgement in IL can it be used as evidence in court of ownership?

A

No, the owner will need to provide some other proof

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19
Q

what type of deed offers the greatest protection?

A

general warranty deed

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20
Q

what the 5 things included in a general warranty deed?

A
  1. covenant of seisin: seller warrants they own the property and has right to convey title to it. buyer can recover full purchase price if covenant is broken.
  2. covenant against encumberances: seller warrants that the property is free from liens or encumberances, except for those stated in the deed. encumberances generally include mortgages, mechanics liens, and easemenets. if this covenant is broken, the grantee may sue for the cost of removing encumberance.
  3. covenant of quiet enjoyment: the grantor warrants that the title will be good against 3rd parties who might bring court actions to estblish superior title to the property. if the grantee is found to be inferior, the grantor is liable for damages.
  4. convenant of further assistance: the grantor promises to obtain and deliver any instrument needed to make the title good.
  5. convenant of warranty forever: the grantor promises to compensate the grantee for the loss sustained if the title fails at any time in the future.
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21
Q

what are 2 synonyms for a promise?

A

warranty or covenants

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22
Q

what does seisin mean?

A

possession

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23
Q

what is an encumberance?

A

any lien, such as mortgage, tax, or judgemenet lien, an easement, a restriction on the use of land, or an outstanding dower right that may diminish the value of the property.

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24
Q

what are the 2 covenants in a special warranty deed and what is one protection not offered in a special warranty deed?

A

2 covenants:

    • warranty that the grantor received the title and he has possession of the deed.
    • warranty that the property was not encumbered during the time the grantor held title, expect as otherwise noted in the deed.

protection not offered:
– the grantor defends the title against themselves BUT NOT PREVIOUS ENCUMBERANCES.

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25
Q

what is a quitclaim deed?

A

A quit claim deed is considered one of the easiest ways to legally transfer property. That’s because a quit claim deed is often used to transfer property between family members, ex-spouses, and in estate plans (though a transfer on death deed may also be used here, depending on where you live).

It’s important to note that quit claim deeds are rarely used when money exchanges hands—i.e. when the property has a buyer and a seller—as there are no warranties or guaranties that the property is free of liens. This is because liens often specifically prevent the sale of property.

In a quit claim deed, those liens are usually transferred along with the deed itself.

Quit claim deeds carry no guarantee that the seller possesses ownership of the property. They merely promise that any percentage of ownership the seller might have is to be transferred to the buyer named in the Deed.

26
Q

what 7 reasons to use a quitclaim deed?

A
  • You are passing your rights in a piece of property to a spouse or ex-spouse
  • You are gifting your property to another person or family member
  • You are transferring ownership in a property to a trust
  • You are correcting the spelling of a name in a previous deed (removing cloud on title)
  • You are changing tenancy (how the property is owned) between owners
  • You are clarifying if the property is community or separate property after marriage
  • You own a business and you want to buy or sell real property
27
Q

what is involuntary alientation?

A

forced to sale. title to the property can be transfered without the owners consent. usually carried out by operation of the law such as condemenation, or sale to satisfy delinquent tax or mortgage liens.

28
Q

In IL, how long must a person use the land to take possession of it (transfer by adverse possession)?

A

20 years

29
Q

Adverse possession is also known as what?

A

squatters rights

30
Q

What is adverse possession?

A

This takes place when an individual makes claim to a property, takes possesion of it and uses it – they can take the title away from the owner who fails to use or inspect the property for a period of years. This law recognizes that the use of land is an important function of ownership.

31
Q

For a squatter to gain title to a property they must do what 5 things?

A 
open -- not sneaking in and out of property
notorious -- neighbors know
continous and uninterrupted
hostile and without permission
adverse to the true owner's possession
32
Q

What is it called when a person dies without a will?

A

Intestate

33
Q

What happens when a person dies intestate?

A

real estate and personal property pass to the decedent’s heirs according to the state’s statue of descent and distribution.

34
Q

What is probate?

A

A court proceeding to distribute real estate so the new owners can gain title. It verifies the vaildatity of a will and the accounting of descedents assets.

35
Q

In IL when the owner of real estate dies, what dicates who the new owners will be?

A

how the title to the proeprty is held vs. descent and distribution. Ex. Joint tenancy, tenancy by entirety

36
Q

What is the term to describe gifting or giving real property?

A

devise

37
Q

What is the term for the person who receives property by will?

A

devisee

38
Q

what is the gift of PERSONAL PROPERTY by will known as?

A

legacy or bequest

39
Q

what is the name of the person who receives the personal property by will?

A

legatee or beneficiary

40
Q

what is the name of the person who makes the will?

A

testator

41
Q

what are the legal requirments for a will?

A

person must be 18 or older and of sound mind and memory. A will must be in writing, signed, and declared by the maker (testor) in the presence of 2 or more witnesses. WITNESSES CANNOT BE BENEFICIARES

42
Q

What is a codicil?

A

a modiciation, amendment, or addition to a previously executed will.

43
Q

what is a holographic will?

A

a will written in handwriting.

44
Q

does IL accept holographic wills?

A

YES as long as it is written in front of 2 or more witnesses

45
Q

What is the Illinoise Law of Descent?

A

This determines how property is distributed is a person dies intestate.
- spouse, no childern – spouse gets 100%

  • spouse, childern – spouse gets 50%, childern get equal shares of the remaining 50%. If a child is dead, then the children (grandchildren of dead spouse) get the dead mother or father’s share.
  • no spouse, no children – equal shares are distributed to the family members.
  • no spouse, no children, no immidate family members– surving relatives inherit the dead spouses property.
  • no heirs– property escheats to the county in which the property is located.
46
Q

what does recording mean?

A

it is the act of placing documents in public record

47
Q

By Illinois law when must a tax deed be recorded?

A

within 1 year after the redemption period expires. a tax deed that is not recorded or filed within one year becomes null and void.

48
Q

what is constructive notice?

A

it is public notice. the act of recording documents in public record serves as constructive notice to the world. it is the prospective purchaser or lender respinsibility to do their due diligence to discover the interest.

49
Q

what is actual notice?

A

knows for certain by personal service.

50
Q

what does priority refer to?

A

“1st to record, 1st in right.” Taxes take higher order and mechanics liens.

51
Q

In Illinois, is a mechanics lien is not recorded can it still have priority over other liens?

A

Yes

52
Q

what is chain of title?

A

a record of a property’s ownership

53
Q

what happens in a unbroken chain of title?

A

usually it can be traced through linking conveyances from present owner to the earliest recorded owner. if ownership cannot be traced, a gap or cloud is said to exist. in this case, a cloud on the title makes it neccessary to establish ownership by court action called a suit to quiet title.

54
Q

what is a title search?

A

used to determine if any defects exists in the chain of title.

55
Q

what is an abstract of a title search?

A

it is a report summary of what the title search found in public record.

56
Q

what is a marketable title?

A

a good or clear salable title reasonably free from risk of litigation over possible defects; also called a merchantable title.

57
Q

what are the 3 things that make a marketable title?

A
  • disclose no defects
  • not expose purchaser to the possible litigation or threaten the quiet of enjoyment of the property
  • allow the new purchaser to be able to sell or mortgage the house at any time.
58
Q

what is evidence of a marketable title?

A

Proof of ownership is evidence of a marketable title. A deed by itself is not considered sufficent evidence of ownership in Illinois. If someone provided a deed to prove that they owned a property that would not be considered sufficent evidence. Title insurance provides proof.

59
Q

what is title insurance?

A

this is an insurance policy that protects the buy from losses arising from defects in the title.

60
Q

What is the Illinois Title Insurance Act?

A

Requires that parties pay to a contract for the sale of residential real property who are obilgated to provide and pay for title insurance have the right to choose the title insurance company and title insurance agent that will provide the title insurance.

Real Estate Class (11 decks)

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