Deeds Flashcards
Alienation
transfer of title to REAL property as described in law
Two types of alienation
Involuntary & voluntary
Involuntary Alienation During Life (without consent)
Lein Foreclosure Sale
Adverse Possession
Condemnation Under Eminent Domain
Lein Foreclosure Sale
To satisfy outstanding debit owed against the property
Adverse Possesson
Takes land under certain conditions:
- Possession is well known to others
- Occupant has reasonable basis to believe they are entitled (colored title)
- Without permission of true owner
- Continuous and uninterrupted for 20 years
Condemnation
Government acquires possession through the power of eminent domain
Involuntary Alienation After Death
Person dies without will (intestate) or qualified heirs (escheat). Property “escheats” to the state. Only example of involuntary alienation after death.
Voluntary Alienation After Death
Title transfer as a result of a valid or will or qualified heirs to receive title to property
Testator/Testatrix
Deceased person who left a valid will; died “testate”
Executor/Executrix
Person appointed in will to carry out provisions of the will
Devise
A gift of real property by will; recipient is a devisee
Bequest
A gift of personal property by will; recipient is the beneficiary.
Voluntary Alienation During Life
Primary importance in real estate business. Voluntary transfer of title from the grantor to the grantee during the life of both parties
Grantor
The one conveying the title
9 Key Elements to a Deed
Grantor Consideration Words of conveyance Grantee Property description habendum Covenants Execution Acknowledgement
Grantee
The one receiving the title
Consideration
Evidence that consideration to transfer title was given. “for one dollar and other good and valuable consideration”
Words of conveyance
Words demonstration the grantor’s intention to transfer title to the grantee; “as granted, sold, and conveyed”
Property description
Adequate legal description of the property including the mailing address; Maine most common means - metes and bounds
habendeum clause
describes the type of estate being granted
- Fee simple title: “to have and to hold”
- Life estate: “remainder of the natural life of the herein named grantee”
Execution
Deed must be signed by each grantor conveying interest in the property. Grantees do not sign
Acknowledgement
Grantor must appear before a public officer who is eligible (notary) and state the signing was done by grantor and done voluntarily
Deed Recording Statutes (3)
Notice - person who buys property without notice of earlier conveyance prevails over original grantee who did not record.
Race - Whoever records first prevails
Race notice - priority depends on lack of notice and priority of the record (2nd = unaware, records first; 1st = if records first)
Deed Recording Statutes (3)
Notice - person who buys property without notice of earlier conveyance prevails over original grantee who did not record.
Race - Whoever records first prevails
Race notice - priority depends on lack of notice and priority of the record (2nd = unaware, records first; 1st = if records first)
6 Covenants of a Warranty Deed
Covenant of seisin Covenant of right to convey Covenant against encumbrances Covenant of quiet enjoyment Covenant for further assurances Covenant of warranty
Covenant of seisin
“grantor covenants that he is seisin of said premises in fee”; assurance that the grantor holds title (example is fee simple title)
Covenant of right to convey
“and has the right to convey the same in fee simple”; follows seisin and ensures there are no encumbrances against title except those on record
Covenant of quiet enjoyment
“shall quietly and peacebly have, hold, use, possess, and enjoy the premises”; assurance that the grantee will not be disturbed in the use/enjoyment of property because of a defect in the title being conveyed
Covenant for further assurances
Requires grantor to perform acts necessary to correct a defect that may exist in the title or any deficiencies that may exist in the deed itself
Covenant of warranty
“will warrant and defend the title to the grantee against lawful claims of all persons whomsoever”; best form of warranty for protection of the grantee
Quitclaim deed
Contains ZERO warranties; simply a deed of release; used to clear cloud on a title
Quitclaim with Covenant
aka limited warranty deed; grantor covenants to “warrant and forever defend” claims for title by persons “claiming by, through, or under” him. Warrants title against problems arising since they acquired the property vs warranty which protects since the origin of the property
Limited Warranty Deed
aka Quitclaim with covenant; grantor covenants to “warrant and forever defend” claims for title by persons “claiming by, through, or under” him. Warrants title against problems arising since they acquired the property vs warranty which protects since the origin of the property
Metes and Bounds
property description used in the 13 states that were the original 13 colonies (and Maine); used to describe small, irregular land areas. metes are distances from point to point and bounds are the directions from one point to another
Rectangular survey system
Used in Northern Maine townships; north/south = principal meridians; east/west = baselines
Township size
6x6 miles; 640 acres
Title examination
determines quality of a title
chain of title
list of historical owners
Title insurance
Protects the grantee from financial loss from a defect in the title (ex: forged deed)
Owner’s Policy
Protects the owner; insures against actual loss, resulting from the covered risks set forth in in the policy. Remains in effect for the duration of the insured’s ownership of the property.
