Deeds Flashcards
What document is a contract by which a property owner (grantor) transfers his rights to a property to another (grantee)?
A deed
What are the 3 possible types of warranty provided by a grantor in a deed?
- General warranty
- Special or limited warranty
- Quitclaim
What type of deed is this?
A grantor assures he has title, can convey the property, and will forever defend the grantee’s rights. This gives the grantee the strongest assurance of ownership.
General warranty deed
What types of deed is this?
Grantor warranties title for the period of his ownership but not for any time prior to ownership. The grantor may or may not assure the buyer that he has title or whether he has encumbered the property.
Special or limited warranty deed
True or False?
A special/limited warranty deed often includes deeds from trustees, administrators, and referees in bankruptcy.
True
What type of deed offers no warranty?
Quitclaim deed
What type of deed is this?
The grantor provides no assurance of ownership. Whatever ownership interest the grantor had, if any, is transferred.
Quitclaim deed
A quitclaim deed is often used to remove_____.
A cloud on title
To be valid, a deed must include what 5 things?
The signature of the grantor (who must be legally competent), the name of a grantee, and a description of the property, consideration must be stated, and the deed must have words of conveyance and the interested being conveyed.
List the 5 parts of a deed
- Premises
- Habendum
- Testimonium
- Execution
- Acknowledgement
What is included in premises?
names of parties, consideration, property description
What is habendum?
“to have and to hold” clause that limits the estate granted
What is included in testimonium?
Warranties, if any
What is included in execution?
Signature of grantor, date, seal
What is the acknowledgement?
Notarization required for recording
True or False: Recording is required for a deed to be valid.
False. Recording is not a requirement.
Where is a deed recorded?
Often in a county courthouse
What is constructive notice?
Notice to the world of the existence of the deed given during recording of a deed
True or False: Recording does not assure the deed’s validity.
True.
True or False: The signature of the grantor must be notarized for a deed to be recorded
True.
What does it mean for a deed to be acknowledged?
Acknowledged refers to notarization. The signature of the grantor must be notarized for the deed to be recorded.
If a grantee fails to record a deed, can a seller sell the property again to someone else? Who owns the property?
Yes. If the 2nd buyer bought in good faith and recorded his deed first, courts will award ownership to the 2nd buyer
Why is a title search important?
Sellers can move away or refuse to honor the warranty. So no matter the type of deed, it is important that a qualified party conduct a title search to be certain that the seller is the owner of the property and can convey title.
What is title insurance?
Lenders often require this for a real estate loan. The equity holder can also purchase that type of insurance.
What is alienation?
A term meaning the transfer of property. It can be a voluntary act of the owner, as would be needed to get a mortgage loan, or a sale.
What is involuntary alienation?
When ownership is transferred as demanded by someone else, such as a foreclosure or condemnation
What contract does not provide a deed at closing?
Land contract (contract for deed or installment land sale contract)
Describe a land contract (or contract for deed)
A seller-financed transaction without the seller providing a deed at closing. Often used in the sale of low-down payment resort property, this type of contract transfers the deed after the buyer makes final payment, often after many years of installment payments. This makes it easier for the lender to continue ownership if the buyer defaults on payments.
