Chp. 10 - Deeds

Question 1

Alienation

Answer 1

transfer of title in real estate can be voluntary or involuntary

Question 2

Conveyance

Answer 2

act of transferring property from one party to another

Question 3

Voluntary alienation

Answer 3

unforced transfer of title by sale or gift from an owner to another party

Question 4

public grant

Answer 4

transferor from government to private party

Question 5

public grant

Answer 5

transferor is private party

Question 6

deed of conveyance/deed

Answer 6

legal instrument used by an owner to transfer title to real estate voluntarily to another party

Question 7

transfer by will

Answer 7

private grant occurs when the owner dies

Question 8

Involuntary alienation

Answer 8

transfer of title to real property without the owner’s consent (ie, descent and distribution, escheat, foreclosure, eminent domain, adverse possession, and estoppel).

Question 9

elements of a deed

Answer 9

grantor, grantee, act of conveyance, consideration, legal description, habendum clause, designation of limitation, exemptions and reservations affecting the title, signature of the grantor, delivery and acceptance of the deed, acknowledgement, recording

Question 10

grantor

Answer 10

person who transfer the title to the real property and be at least 18 years old

Question 11

grantee

Answer 11

person who receives the property from the grantor.

Question 12

act of conveyance/granting clause

Answer 12

deed must express grantor’s desire and intention to transfer legal title to the grantee. (ie, “I hereby grant and convey unto John Jones)

Question 13

consideration

Answer 13

deed must be accompanied by valuable (monetary) or good consideration (love and affection)

Question 14

legal description

Answer 14

identifies the boundaries of the subject parcel of property by:

1- Metes and bounds
2 - Lot, block and subdivision
3 - Government survey

Question 15

Habendum clause

Answer 15

type of estate being conveyed and the extent of ownership grantor is transferring.

Habendum clause is not a crucial part of the deed.

Question 16

Designation of Limitations

Answer 16

how property may or may not be used

Question 17

Exemptions and reservations affecting the title

Answer 17

know as “subject to” clause

Question 18

signature of the grantor

Answer 18

deed must be signed by the grantor

Question 19

delivery and acceptance

Answer 19

execution of a valid deed does not convey title. It is necessary for the deed to be delivered to and accepted by the grantee for title to pass.

Question 20

acknowledgement

Answer 20

grantor must declare before a notary that the grantor’s identity and signature are genuine and execution was free, voluntary act.

Grantor will receive a certificate of acknowledgement signed by the notary.

Question 21

recording

Answer 21

is not necessary to make a deed valid but the recording gives the public constructive notice of the grantee’s ownership.

Question 22

legal description of real property

Answer 22

locates and identifies the boundaries of the subject parcel to a degree acceptable by courts of law in the state where the property is located.

Question 23

metes and bounds

Answer 23

boundaries of a parcel of real estate using reference points, distances, and angles.

Identifies an enclosed area by starting at an origination point called point of beginning/POB

Metes and bounds begins with description identifying city, county, and state where the property is located. Next, it identifies the POB and describes the distance and direction from the POB to the first monument.

Question 24

rectangular survey system

Answer 24

based on sets of interesting lines meridians (running north and south) and parallels (running east and west).

Works well for describing properties that are square or rectangular in shape but not for irregular shapes like triangle/rectangular.

Question 25

range

Answer 25

north-south area between consecutive meridians is called a range

All ranges are 6 miles wide

Question 26

Tier

Answer 26

east-west area between two parallels is called tier or township strip.

All tiers are 6 miles wide.

Question 27

Township

Answer 27

area enclosed by the intersection of two consecutive meridians and two consecutive parallels.

It is 36 square miles and a section is one square mile or 640 acres.

Question 28

lot and block system/recorded plat method

Answer 28

Often used to describe residential, commercial and industrial subdivisions.

Tracts of land are subdivided into lots. The entire group of lots comprises the subdivision. In a large subdivision, lots may be grouped together into blocks for ease of reference.

The surveyor incorporates the survey data into a plat of survey or subdivision plat map

Question 29

What situation requires a legal description?

Answer 29

public recording, creating valid deed of conveyance or lease, completing mortgage documents, executing and recording other legal documents

Question 30

6 types of deeds are used in NY

Answer 30

1 - Full convenant and warranty deed
2 - Bargain and sale deed with convenants
3 - Bargain and sale deed without covenants
4 - Quitclaim deed
5 - Executor’s deed
6 - Referee’s deed

Question 31

Full covenant and warranty deed

Answer 31

most often used and offers greatest protection.

Grantor gives certain covenants or warranties that promise the grantee will have ownership of the property that is unchallenged.

Question 32

5 basic covenants are:

Answer 32

covenant of seizen - assures that the grantor owns the estate to be conveyed and has the right to do so

covenant against encumbrances - no encumbrances on the property except those specifically named in the deed

covenant of quiet enjoyment - assures that the grantee will not be disturbed by third party title disputes

covenant of further assurance - grantor will assist in clearing any title problems discovered later by obtaining and delivering any instrument needed to make the title good

covenant of warranty forever - grantee will receive good title and that the grantor will assist in defending any claims to the contrary.

General warranty covenant is: “I own and I will defend.”

Question 33

Bargain and Sale Deed with covenants/special warranty deed

Answer 33

grantor warrants only against title defects or encumbrances not noted on the deed that may have occurred during the grantor’s period of ownership or trusteeship. Deed does not protect the grantee against claims that happened before the owner’s period of ownership.

Special warranty covenant is: “I own and will defend against my acts only.”

Question 34

Bargain and Sale Deed without Covenants

Answer 34

Grantor has title to the property but the grantee doesn’t have much recourse if the title comes up with defects later.

Overall bargain and sale covenant is: “I own, but won’t defend.”

Question 35

Quitclaim deed

Answer 35

grantor makes no claim to any interest in the property being conveyed and offers no warrants to protect the grantee. Provides least protection for the grantee.

Commonly used for transfers in the family and divorce settlement.

Overall quit claim covenant is: “I may or may now own, and I won’t defend.”

Question 36

Dedication by deed

Answer 36

subdivision developer turns the subdivision road or common ground over to the local government.

Question 37

Special purpose deeds

Answer 37

tailored to the requirements of specific parties, properties and purposes

Question 38

Transfer tax

Answer 38

state law requires payment of a documentary stamp tax on a conveyance of real property.

Exemption of transfer tax:

• Transfer within immediate family
• Consideration less than a certain amount
• Transfer between government entities or non-profit organizations
• Trust deed transfer and reconveyance
• Tax deed

Question 39

last will and testament

Answer 39

voluntary transfer of real and personal property after the owner’s death.

It is an amendatory instrument meaning that it can be changed at any time during the maker’s lifetime.

A will takes one of the following forms:

-Witnessed - in writing and witnessed by two people
-Holographic - In the testator’s handwriting, dated and signed
Approved - On pre-printed forms meeting the requirements of state law
Nucupative - made orally, and written down by a witness (but not valid for transfer of real property)

Question 40

In order for a will to be valid:

Answer 40

1 - Testator be of legal age and mentally competent
2 - Testator indicates that the will is the “last will and testament”
3 - The will be signed
4 - The completion of the will be witnessed and signed by the witnesses
5 - The will be completed voluntarily without duress or coercion

Question 41

Probate

Answer 41

The probate court’s objectives are to:

• Validate the will, if one exists
• Identify and settle all claims and outstanding debts against the estate
• Distribute the remainder of the estate to the rightful heirs

Probate of real property occurs under jurisdiction of courts in the state where the property is located, regardless of where the deceased resided.

Question 42

Testate

Answer 42

decedent died with a will. First in line are the superior liens: those for real estate taxes, assessment taxes, federal estate taxes, and state inheritance taxes.

Once all the claims have been satisfied the remaining balance would go to heirs free and clear of all liens and debts.

Question 43

Intestate involuntary alienation

Answer 43

title-holder dies without a valid will

Question 44

Intestate with heirs

Answer 44

estate passes to lawful heirs according to the state’s laws of descent and distribution or succession.

Question 45

Intestate without heirs

Answer 45

the estate escheat or reverts to the state or county after all claims and debts have been validated and settled.

Question 46

Adverse possession

Answer 46

someone who enters, occupies and uses another’s property without the knowledge or consent of the owner or with an owner who fails to take any action over a statutory period of time.

To claim legal title, the adverse possessor must:

• claim right or color of title as reason for the possession
• have notorious possession (possession without concealment)
• maintain a consistent claim of hostile possession which is a claim to ownership and possession regardless of the owners claims or consent
• Occupy property continuously for statutory period of time
• pay taxes

Question 47

Claim of right

Answer 47

based on the adverse possessor’s occupying and maintaining the property as if he or she were the legal owner

Question 48

Color of title

Answer 48

grantee had obtained a defective title or received title by defective means but occupies the property as if he or she were the legal owner

Question 49

Notorious possession/hostile possession

Answer 49

gives constructive notice to the public, including the legal owner that a party other than the legal owner is occupying and claiming to own the property.

In NY the possession must be continuous and uninterrupted for 10 years. Known as tacking and the 10 years does not have to be from the same owner.

Question 50

Avoiding adverse possession

Answer 50

avoid by periodically inspecting the property within statutory deadlines and evicting any trespassers found.

Question 51

Accession rights

Answer 51

rights that property owners have to everything that is produced by their land

Question 52

accretion

Answer 52

gradual addition of land by alluvial deposits of soil. Any land added to the bank becomes the property of the owner. Material added to property is called alluvion.

Question 53

avulsion

Answer 53

loss of land result of being washed away.

Question 54

reliction

Answer 54

gradual receding of water from its usual watermark. If land that was once covered becomes uncovered it’s called alluvion.