Deeds Flashcards
What is the purpose of a Habendum Clause in a deed?
It specifies exceptions or additions to rights in the deed, such as mineral rights or inclusion of rights to common areas
It may also subject these rights to easements for utility access.
What does ‘lis pendens’ mean?
Pending legal action
What are the essential elements of a deed?
- Intent of grantor
- Granting clause
- Signature of grantor
- Names of parties
- Legal description of property
- Consideration
- In writing
- Delivery
What is the Covenant of Seisin?
It ensures the grantor has rightful ownership and the right to convey the property.
What does the Covenant Against Encumbrances guarantee?
That there are no encumbrances against the title.
What does the Covenant of Quiet Enjoyment provide for the grantee?
Unimpaired use and unrestricted enjoyment of the property.
What is the Covenant of Further Assurance?
It obligates the grantor to take action to perfect the grantee’s title if found defective.
What does the Covenant of Warranty Forever entail?
The grantor will defend the buyer against anyone who claims superior title to the property.
What is a General / Full Warranty Deed?
A deed where the seller grants all covenants and is liable for title defects, making it the most comprehensive and protective deed.
What distinguishes a Special Warranty Deed from a General Warranty Deed?
It provides a clear title but only for the period the seller owned the property, limiting liability for title defects before their ownership.
What is a Quit Claim Deed?
It clears title defects and transfers whatever rights the seller had in the property without guaranteeing those rights.
What are Special Purpose Deeds?
Deeds with specific purposes, such as Trustees Deed and Personal Rep Deed.
What is a Deed of Trust used for?
To secure a loan by conveying equitable title to a trustee.
What is a Deed of Conveyance?
A document that transfers ownership of property.
What is the function of a Deed of Reconveyance?
It clears the lender’s lien when the mortgage is fully paid off.
What is Non Judicial Foreclosure?
A foreclosure process without court proceedings, utilizing the Power of Sale clause.
Describe the statutory foreclosure process.
- Notice of Default filed
- 90-day redemption period
- Public notice and auction scheduled
- Trustee sale open for public auction
What is a Judicial Foreclosure?
A court-ordered foreclosure where a judge issues a decree and a Sheriff’s Sale is held afterward.
What is a Judicial Deed?
Any deed issued under court order, often a Sheriff’s Deed.
What does a Deed in Lieu of Foreclosure accomplish?
It allows the borrower to convey all interest in the property to the lender to satisfy the loan and avoid foreclosure.
What is the process to stop foreclosure?
Request a payoff quote from the lender and bring the loan current using the reinstatement quote.
What is REO (Real Estate Owned)?
Property that goes back to the bank after no bids at auction, which can still be offered on post-foreclosure.
