Conveyance of Real Property** Flashcards
What is alienation?
The process of transferring ownership interests in proeprty.
4 Characteristics of Value
Demand, Utility, Scarcity, Transferability (DUST)
What is transferability?
The ability to freely buy, sell, encumber, or dispose of property in any way the owner sees fit.
What is voluntary alienation?
The most common way to transfer ownership of land. It is an action that the property owner undertakes of his or her free will and may be accomplished in 4 ways.
4 Ways that voluntary alienation can be accomplished
- Sale of property, in whihc the owner agrees to hand over title in exchange for consideration; usually completed with a deed
- Gift of a deed in which the owner may transfer title without receiving something of value from the recipient
- Grant, as when the government transfers the title to land to an individual
- Dedication of private property for public use.
What is involuntary alienation (transfer)?
Transfer of title in an interest in real property against the will of the owner or without action by the owner, occurring through operation of law, natural processes, or adverse possession
What is adverse possession?
legal concept that allows a trespasser, whether stranger or neighbor, to gain legal title over the land of a property owner. 10years in NY
What is Accession (involuntary alienation)
Acquisition of title to land by its addition to real estate already owned, through human actions or natural processes.
Accession gives property owners the right to everything produced by their land
What are the 3 natural processes that cause accession?
Accretion, avulsion, and erosion
What is accretion?
The gradual addition to dry land by the forces of nature.
The land through accretion is known as…
Alluvion
What is erosion?
When does avulsion happen?
Happens when land is lost due to sudden acts of nature such as floods or earthquakes
What is eminent domain(involuntary alienation)
Government’s constitutional power to take private property for public use, as long as the owner is paid just compensation.
What is the actual act of taking private property for puplic use through eminent domain known as ?
Appropriation OR condemnation
T/F foreclosure is a way of involuntary alienation
True
What is redemption (involuntary alienation)?
the right that gives borrowers the chance to pay the outstanding debt on a mortgage or tax bill after default but before foreclosure occurs.
Mike granted a deed to the local school district for 10 feet of land for a walkway beside his house to the elementary school. This property was transferred by….
Dedication - Mike voluntarily transferred private property for public use.
What are the two options to transfer real propert after death?
Descent and Devise
What happens with descent? (transfer after death)
When a person dies without a will, property automatically descends to natural heirs or next of kin provided for by state law, which include spouses, children, and other relatives.
What happens with devise (transfer after death)
When a person dies with a will, the property is transferred to heirs (the devisees) as indicated in the will.
What do you call the heirs who are left land via a will?
devisees
What do you call the person responsible for carrying out the transfer of property via the will?
The executor
What is the process by which the deceased’s property is distributed called?
probate
What is a deed (conveyance)?
- an instrument/written document that convey’s a grantor’s interest in real property to someone else, the grantee
- Deed is evidence that the transfer of title took place
What is a title?
-NOT a document, but the actual lawful ownership of real property
What is an equitable title?
NOT the same as having title, but whomever hlds equitable title still enjoys certain rights and privileges
-an interest in property created on the execution of a valid sales contract, whereby actual title will be transferred by deed at a future date, such as at the closing.
T/F A TITLE is a document that proves actual lawful ownership of real property
False - title is NOT a document. It is the theory of lawful ownership
What are the 4 common types of deeds?
- Full covenant and warranty deed (aka general warranty deeds)
- Grant (aka special warrant deed or limited warranty deed)
- Quitclam deed (deed of release)
- Bargain and sale deeds
4 Characteristics of Full Covenant and Warranty Deeds
- strongest and broadest type of title guarantee
- legally bind the grantor to certain guarantees, promises, or warranties, regarding status of title
- guarantee against defects occurring during any previous ownership, not just the grantor’s period of ownership
- give the grantee the most protection
6 Characteristics of a Quitclaim Deed
- convey whatever right, title, or interest the grantor holds in the property or parcel of land without representation that there is any interest at all
- make no warranties regarding the title, if any, held by the grantor
- usually involve just a partial interest in the property
- may be used to clear up any claims, encumbrances, or defects that make the title to real property unmarketable
- may be used to remedy clouds on a title, or title problems
- typically may be used to convey an easement
T/F The most preferential deed from the point of view of the grantor would be a general warranty deed
False - a grantor or seller wishes to give a deed that has absolutely no warranties in it, so the seller is subject to the least liability.
What is an administrator/executor deed? (judicial deed)
a type of judicial deed in which the executor of an estate as named in the will or an administrator named by the court in the absence of a will grants a deed to convey that real estate to a new owner.
What is a gift deed? (judicial deed)
When the consideration for the conveyance of a property is love and affection (good consideration), the deed is called a gift deed.
What is a sheriff’s/referee’s deed? (judicial deed)
When a buyer purchases property through a foreclosure sale. Comes from a court order.
What is a correction deed/deed of confirmation? (judicial deed)
Used to correct an error in a previous deed
Mike bought a house at a foreclosure sale. What type of deed is given?
Sheriff/Referee’s deed - used to convey title to a property sold due to foreclosure
Jane died and named her granddaughter, Kylie, sole heir of her estate in her will/. What is Kylie considered?
Devisee
Characteristics needed for a valid deed
- must be in writing (doesn’t need to be in ink)
- names of parties
- consideration
- granting clause
- habendum clause
- legal description
- execution
- recitation
T/F Can a grantor or grantee be a corporation or partnership?
Yes
What does the granting clause state?
Granting clause states the grantor’s intent to convey title to the land.
What does the act of conveyance/words of conveyance identify the document as?
Identifies the document as one which involves the transfer of interest from one person to another.
Habendum Cluase
To have and to hold - describes the type of estate granted, which must be consistent with any estate indicated in the granting clause
James and Mya own a property as tenants by the entirety. Can James sell the property without Mya’s signature?
No, both signatures are needed.
T/F Deed has no legal effect until there has been delivery and acceptance?
True
T/F For a deed to be valid, it must include the signature of the grantee
False, onlt the grantor’s signature is required
Which elements are required in order for a deed to be valid?
Acknowledgement, Consideration, execution, granting clause
Consideration, execution, granting clause
T/F Are deeds required to be recorded to be valid?
False
What is Donative Intent?
Intent by the grantor to transfer title immediately and unconditionally
A statement that follows the words of conveyance in a deed that includes “to have and to hold” is called the…
habendum clause
T/F
For a deed to be valid, it must include the signature of the grantee
False - need the signature of the grantor. Grantee must accept the deed
T/F
Deed must be delivered and accepted while the grantor is alive
True
If not, not legally enforceable.
T/F
Deeds must be recorded to transfer title of real estate
False - deed does not have to be recorded to transfer title.
Purpose of recording deed is to give notice to others and prove ownership.
What does Recording documents provide?
- Provides notice so that the public is able to determine who holds interest in any piece of property
- allows property owners to defend their estae, right, or interest against third parties claiming a subsequent interest
- protects property buyers and lenders against secret conveyances and encumbrances
- may be required for any legal document that affects title to real estate
- requires the acknowledgement of an authorized official that certifies that the signatures on the document are voluntary and genuine
- does not make an invalid document valid
What is actual notice (aka actual knowledge)?
- includes what someone personally saw, heard, read, or observed
- may be provided to an individual, but it’s not practical to expect the general public to have actual notice
- failing to record a document does not impact the validity of the document between the parties to the document and other people who have actual notice of its existence
What is constructive notice (aka legal notice)?
- law holds that everyone has constructive notice of recorded documents
- even if someone didn’t know about a particular recorded document, they could have found it by searching the public record
- the law expects a buyer or lender to search the public record for his or her own protection.
What is inquiry notice?
- when there is an indication of a claim or other situation that would alert a reasonable person to further inquire about the title
- someone who does not find a claim against a property through the failure to look further may still be held to have a inquiry notice of a claim
- when someone is in possession of land, a buyer is held to have inquiry notice of the possessor’s claim even if the buyer never visited the land
Chris is going to buy Lori’s house. At settlement, Chris brings his money, and Lori signs the deed and hands it to Chris. Who now owns the property?
Chris - there has been delivery and acceptance of a deed, he now owns the property
Why are real estate instruments recorded in the county in which the property is located?
to give constructive notice of an interest in a particular parcel of real estate
Otis sells land to Amy, who dies before she records the deed. Otis then sells the same land to Beatrice, who records the deed. If Amy’s heirs prove that Beatrice Saw Otis grant the deed to Amy, Beatrice has what kind of notice?
Actual notice and Amy’s heirs have right to the land
Deliver and acceptance are required to….
Transfer title
What is NOT required for a valid deed?
- consideration
- identifiable grantor
- signature of notary
- words of conveyance
signature of notary - this is only needed for the deed to be recorded
The voluntary transfer of private property for public use is alienation by…
dedication
Who executes a deed?
Grantor
Lucy inherited property from her Aunt Ethel. Which type of deed was most likely used?
Executor’s Deed - used to convey property as part of an inheritance
