(Lesson 2) Transfer of Title (Unit #12)

Question 1

Define title

Answer 1

Title to real estate means the right to ownership or actual ownership of land; it represents the owners bundle of rights.

Title is a way of referring to ownership, it is not an actual document.

Question 2

Define Deed

Answer 2

deed is the document by which the owner transfers the title to another.

Question 3

Define Voluntary alienation

Answer 3

Voluntary alienation is the term used to describe voluntary transfer of a title.. Either by gift or by sell.. To transfer during one lifetime, the owner must use some form of deed conveyance.

Question 4

Define grantor vs grantee

Answer 4

The owner in which conveying the title, is the grantor.. the one receiving the title is the grantee

Question 5

Requirements for valid deed

Answer 5

the following requirements are the minimum required for valid deed in Illinois:

• Grantor, who has the legal capacity to execute (sign) the deed
• grantee named with reasonable certainty to be identified
• Recital of consideration
• Granting clause (words of conveyance, together with any words of limitation)
• Accurate legal description of the property conveyed
• any relevant exceptions or reservations
• Signature of the grantor, sometimes with a seal, witness, or acknowledgment
• Delivery of the deed and acceptance by the grantee to pass title

Question 6

What makes a sound and just grantor

Answer 6

Of lawful age 18, also must be of sound mind. Typically any grantor that can understand the action is mentally capable of executing a valid deed.

**Real estate owned by someone who is legally incompetent can be conveyed only with courts approval.

**If the grantor had a name change from which the deed was originally given.. then both names must be on the deed of conveyance to the grantee

Question 7

Define grantee and what relates to them for the deed

Answer 7

To be valid, the deed must name a grantee. The deed must specifically identify the name of the grantee.. such that so the deed can identify the person from the deed itself. ** the grantee does not sign the deed itself

Question 8

Variations of deed, and deed rights

Answer 8

The deed must also identify the rights of which is being conveyed to the grantee(s)…

• tenants in common,
• tenants by entirety
• joint tenants

Question 9

consideration in a deed

Answer 9

a valid deed must contain a clause of acknowledging that the grantor has received consideration.. consideration for selling the land typically of money, if the grantor is giving the real estate as a gift “love and affection” may be sufficient consideration.. However usually an exchange is more proficient such as “$10 and other good and valuable consideration”

Question 10

Define granting clause

Answer 10

a deed must contain a granting clause (words of conveyance) the granting clause states the intention of conveying the property. depending on the circumstance for what was given as consideration for the grantor the following options might be used:

• I, Kent long, convey and warrant” (creates a warranty deed)
• I, Kent Long, remise, release, alienate, and convey” (creates a special warranty deed)
• I, Kent Long, grant, bargain, and sell” creates a bargain and sale deed.
• I, Kent Long, “remise, release, and quitclaim” (creates a quitclaim deed.

**The deed must also state for how long..

-“To ABC and to their heirs, and assigns forever”
OR
-“To ABC for the duration of her natural life”

Question 11

Legal description of real estate in a deed

Answer 11

To be valid, the deed must also contain an accurate legal description of the real estate conveyed.. Where a competent surveyor could locate the property being described.

Question 12

Define exceptions and reservations for a deed

Answer 12

Sometimes a deed might include specific property rights in which the grantor is conveying. A grantor might keep ownership of some easements, or even create limitations on what can be done to the property.

Question 13

signature of grantor

Answer 13

to be valid all grantors signatures must be on deed.

Question 14

define acknowledgment/ notarization

Answer 14

An acknowledgment is 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.

Question 15

Delivery and acceptance

Answer 15

a title is not considered transferred until the deed is actuarially delivered and acceptance by the grantee.

The grantor may deliver to them personally or by a third party (settlement agent or escrow agent)..

The deed must be delivered and accepted in the grantors lifetime and grantees lifetime.

Question 16

Execution of corporate deeds

Answer 16

Two basic rules (because laws vary state to state) for a corporations right to convey real estate:

• a corporation can convey real estate only by authority granted by its bylaws or upon resolution passed by its board of directors. If all or a substantial portion of a corporations real estate is being conveyed, a resolution authorizing the sale must usually be secured from the shareholders.
• deeds to corporate real estate can be signed only by an authorized officer.

Question 17

Types of deeds

Answer 17

The most common deed forms are:

• general warranty deed
• special warranty deed
• bargain and sale deed
• quitclaim deed
• deed in trust
• trustees deed
• deed and executed pursuant to a court order

Question 18

Define general warranty deed

Answer 18

General warranty deed provides the greatest protection of all deeds. It is called general because the grantor is uphold to certain warranties (promises).. the basic warranties for this kind of deed are:

• Covenant of seisin: the grantor warrants that she owns the property and has the right to convey it. The grantee may recover damages to the full price if this covenant is broken.
• covenant against encumbrances: the grantor warrants that the property is free from liens or encumbrances except for any specifically stated in the deed. if not true the grantee may Sur for the cost of removing the encumbrances
• covenant of quiet enjoyment: the grantor guarantees the title will be good against third parties who might bring court actions against the property.
• covenant of further assurance: the grantor promises to obtain and deliver any instrument needed to make the title good and valid.
• covenant of warranty forever: the grantor promises to compensate the grantee for the loss sustained if the title fails at any time in the future

Question 19

define special warranty deed

Answer 19

a special warranty deed contains the following two basic warranties:

• warranty that the grantor received the title
• warranty that the grantor was not encumbered during the time the grantor held the title, except otherwise those listed in the deed.

Question 20

define bargain and sale deed

Answer 20

In some states bargain and sale deed contains no express warranties against encumbrances. It does however imply that the grantor holds title and possession of the property.

Question 21

define quitclaim deed

Answer 21

a quitclaim deed has the least protection for the grantee.. it carries not covenants or warranties and generally conveys only whatever interest the grantor may have when the deed is delivered.

**a quitclaim could be used as a quick fix in some cases

Question 22

define deed in trust:

Answer 22

conveyance from trustor to trustee for the benefit of a beneficiary

Question 23

define trustees deed

Answer 23

it is used when a trustee conveys real estate held in the trust to the beneficiary.

Question 24

deed executed pursuant to court order

Answer 24

executors and administrators deeds, masters deeds, sheriffs deeds, and many other types are all deeds executed pursuant to a court order.

Question 25

define transfer tax

Answer 25

transfer tax: many states have enacted laws providing for a state transfer tax on conveyance of real estate.

Question 26

real estate transfer declaration

Answer 26

the amount considered used for determine transfer taxes and deed must be shown on the real estate transfer declaration form.

*When the actual consideration for conveyance is less than $100, the transfer is considered a gift and is exempt from paying taxes

Question 27

define involuntary alienation

Answer 27

when the title to the property is transferred without the owners consent. maybe because of delinquent tax or mortgage liens

Question 28

Transfer of a deceased persons property, by testate (with will) or intestate (without will)

Answer 28

if the property has made a testate, then the property left over has been handles in the will. Without will, intestate, a real estate and personal property to pass to the descent heirs according to the states statute of descent and distribution.

Question 29

Transfer of title by will

Answer 29

A will is an instrument made by an owner to convey title to real or personal property after the owners death.

Question 30

define devise

Answer 30

the gift of real property by will is called devise, and a person who receives property by will is called devisee

Question 31

define bequest

Answer 31

The gift of personal property by will is called bequest and a personal who receives the personal property is called a beneficiary

also:
legacy; legatee

Question 32

define probate proceedings

Answer 32

probate is a formal judicial process that:

• proves or confirms the validity of a will
• determines the precise assists of the deceased person,
• identifies the persons to whom the assets are to pass.