Key Terms Flashcards
The right to ownership or actual ownership of land
Title
___ represents the owner’s bundle of rights
Title
The evidence of ownership of land
Title
The document by which the owner transfers the title to real estate to another
Deed
A written instrument that, when executed and delivered, conveys title to or an interest in real estate
Deed
The deed must be ___ to give public notice of new ownership
Recorded
Transfer of real estate by sale or gift
Voluntary
Transfer or real estate by operation of law
Involuntary
Legal term for voluntary transfer of title, such as by gift or sale
Voluntary alienation
The owner who transfers the title
Grantor
The person who acquires the title
Grantee
A deed is executed only by the ___.
Grantor
Words of conveyance, together with any words of limitation
Granting Clause
If more than 1 grantee is involved in a deed, the ___ should specify their rights in the property.
Granting Clause
Words of conveyance
Granting clause
Clause stating the grantor’s intention to convey the property
Granting clause
The words “convey and warrant” creates a(n) ___ deed.
Warranty
the words “remise, release, alienate, and convey” creates a(n) ___ deed.
special warranty
The words “grant, bargain, and sell” creates a(n) ___ deed.
bargain and sale
The words “remise, release, and quitclaim” creates a(n) ___ deed.
Quitclaim
In Illinois, who can sign for a grantor, and must act under a power of attorney?
Attorney in fact
The specific written authority to execute and sign one or more legal instruments for another person
Power of attorney
A formal declaration made before a notary public, that the person who signs a written document does so voluntarily and that her signature is genuine.
Acknowledgment
A third party who delivers the deed to the grantee on behalf of the grantor as soon as certain requirements have been satisfied (2 names)
Settlement agent or Escrow agent
The only person who can sign a deed to corporate real estate
Authorized officer
Deed providing the greatest protection
General warranty
A deed in which the grantor fully warrants good clear title to the premises
General warranty deed
Type of deed used in most real estate deed transfers
General warranty
Grantor warrants that she owns the property and has the right to convey title to it
Covenant of seisin
Another word for possession
Seisin
Grantee may recover damages up to full purchase price if this covenant is broken
Covenant of seisin
Grantor warrants that the property is free from liens or encumbrances, except for any specifically stated in the deed
Covenant against encumbrances
Generally includes mortgages, mechanics’ liens, and easements.
Encumbrances
If this covenant is breached, grantee may sue for the cost of removing the encumbrances
Covenant against encumbrances
The grantor guarantees that the grantee’s title will be good against third parties who might bring court actions to establish superior title to the property.
Covenant of quiet enjoyment
Under the covenant of quiet enjoyment, if the grantee’s title is found to be inferior in a court of law, who is liable for damages?
The grantor
The grantor promises to obtain and deliver any instrument needed to make the title good.
Covenant of further assurance
The grantor promises to compensate the grantee for the loss sustained if the title fails at any time in the future
Covenant of warranty forever
What are the 2 basic warranties in a special warranty deed?
1) Warranty that grantor received title
2) Warranty that property was not encumbered during the time grantor held title, except as otherwise noted in the deed
A deed in which the grantor warrants, or guarantees, the title only against defects arising during the period of her tenure and ownership of the property and not against defects existing before that time
Special warranty deed
Generally contains the words “Grantor remises, releases, alienates, and conveys”
Granting clause
Deed that contains no express warranties against encumbrances, but implies that the grantor holds title and possession of the property
Bargain and sale deed
A deed that carries no warranties against liens or other encumbrances but implies that the grantor has the right to convey title, and that the grantor may add warranties to the deed at his discretion
Bargain and sale deed
In Illinois, who holds a fee simple estate in a bargain and sale deed?
Grantor
In Illinois, a bargain and sale deed states that the title is free from ___ made by the grantor except those listed.
Encumbrances
In Illinois, a bargain and sale deed states that the grantor warrants ___.
Quiet enjoyment
Under the Illinois Conveyances act, the words in the granting clase “Grant, bargain, and sell” creates a(n) ___ deed.
Bargain and sale
Deed that provides the least protection to the grantee
Quitclaim
A conveyance by which the grantor transfers whatever interest she has in real estate, without warranties or obligations
Quitclaim deed
A(n) ___ deed is frequently used to cure a defect called a cloud on the title.
Quitclaim
A quitclaim deed only carries ___.
the grantor’s interest
Deed that conveys in fee all the grantor’s existing legal and equitable rights held at the time of delivery
Quitclaim deed
The means by which a trustor conveys real estate to a trustee for the benefit of a beneficiary
Deed in trust
An instrument that grants a trustee under a land trust full power to sell, mortgage, and subdivide a parcel of real estate.
Deed in trust
Under a deed in trust, the ___ controls the trustee’s use of its powers under the provisions of the trust agreement.
Beneficiary
A deed executed by a trustee
Trustee’s deed
Deed that is used when a trustee conveys real estate held in the trust to the beneficiary
Trustee’s deed
The trustee’s deed must state that the ___ is executing the instrument in accordance with the powers and authority granted by the trust instrument
Trustee
Deeds that are established by state statute and are used to convey title to property that is transferred by court order or by will.
Deed executed pursuant to court order
When must transfer tax be paid in Illinois?
Prior to recording of the deed
Tax stamps required to be affixed to a deed by state and/or local law
Transfer tax
Transfer tax is paid by purchasing ___ from the county recorder or city offices
Tax stamps
Tax stamps are affixed to the ___.
Deed
The amount of consideration used for determining transfer taxes must be shown on the ___ form in Illinois.
Real Estate Transfer Declaration form
Form used in Illinois that provides for the inclusion of the property description, manner of conveyance, and type of financing used
Real Estate Transfer Declaration Form
In Illinois, a completed ___ must accompany every deed presented to the recorder fro recording.
declaration form
Title to property may be transferred without the owner’s consent by ___.
Involuntary alienation
Involuntary transfers are usually carried out by…
operation of law
The act of transferring property to another through eminent domain or adverse possession
Involuntary alienation
Adverse possession is a means of ___ transfer
involuntary
Squatter’s rights
Adverse possession
A person who dies ___ has prepared a will indicating how the person’s property should be handled.
Testate
Dying without a will
Intestate
If a person dies intestate, real estate and personal property pass to their heir’s according to the state’s ___.
Statute of descent and distribution
Dying with a will
Testate
Instrument made by an owner to convey title to real or personal property after the owner’s death
Will
A will is a(n) ___ instrument
Testamentary
When does a will take affect?
After death
The person who makes a will
Testator
Only property owned by the ___ at the time of death may be transferred by will.
Testator
The gift of real property by will
Devise
A person who receives property by will
Devisee
The gift of personal property by will
Bequest
Also called legacy
Bequest
A person who receives personal property by will
Beneficiary
Also called a legatee
Beneficiary
Illinois law that governs intestate distribution
Illinois Law of Descent and Distribution
The purpose of ___ is to see that assets are distributed correctly.
Probate
Assets distributed through ___ are those that do not otherwise distribute themselves.
Probate
The person who has possession of the will
Executor
A personal representative appointed by the court to administer affairs of the estate after a person dies intestate
Administrator
Whether or not a will is involved, the ___ or ___ is responsible for having the estate’s assets appraised and for ensuring that all the decendent’s debts are satisfied.
Executor or administrator
Whether or not a will is involved, the ___ or ___ is responsible for paying federal estate taxes and state inheritance taxes out of the assets
Executor or administrator
The specific words of ___ in the granting clause are critical in determining the form of deed
conveyance
The specific words of conveyance in the ___ are critical to determining the type of deed
Granting clause
