Lesson 4: Acquisition fo Title

Question 1

Adverse possession:

Answer 1

The acquiring of title to real property owned by someone else, by means of open, notorious and continuous possession for the statutory period of time.

Question 2

Bargain and sale deed:

Answer 2

A deed that recites a consideration and conveys all the grantor’s interest in the property to the grantee.

Question 3

Conveyance:

Answer 3

The transfer of title to real property by means of written instrument such as a deed or an assignment of lease.

Question 4

Deed:

Answer 4

A written instrument by which a property owner ‘‘grantor” transfers to a “grantee” an ownership in real property.

Question 5

Grantee:

Answer 5

The person who receives from the grantor a grant of real property.

Question 6

Grantor:

Answer 6

The person transferring title to, or an interest in, real property. A grantor must be competent to convey; thus, for example, an insane person cannot convey title to real property.

Question 7

Habendum clause:

Answer 7

That part of the deed beginning with “to have and to hold” following the granting clause and reaffirming the extent of ownership that the grantor is transferring.

Question 8

Quitcla deed:

Answer 8

A deed of conveyance that operates, in effect, as a release of whatever interest the grantor has in the property; sometimes called a release deed.

Question 9

Special warranty deed:

Answer 9

A deed in which the grantor warrants or guarantees the title against only defects arising during the period of his tenure and ownership.

Question 10

Warranty deed:

Answer 10

A deed in which the grantor fully warrants good clear title to the premises. It is also called general warranty deed.

Question 11

Alienation

Answer 11

One of the rights of real estate ownership is the right to transfer ownership to another . This is the right of alienation . We also refer to the transfer of ownership as a conveyance .

Question 12

Types of alienation

Answer 12

A conveyance can take place in four ways : (1) by voluntary alienation, (2) by involuntary alienation, (3) by descent and (4) by will.

Question 13

Deeds

Answer 13

Deeds are written legal instruments, properly executed and delivered, with which a grantor (owner) conveys an interest in real estate to a grantee.

Question 14

Essential Elements of Deed

Answer 14

It must be in writing, name the grantor and grantee, contain words of conveyance, contain and recite the consideration, accurately describe the property conveyed, be signed by the grantor, and be delivered and accepted.

Question 15

Types of consideration:

Answer 15

Love and affection, or the like, are termed GOOD consideration, as opposed to VALUABLE consideration, which is some amount of money.

Question 16

Habendum Clause

Answer 16

The habendum usually follows the granting clause with the words “to have and to hold.”

Question 17

There are 4 major kinds of deeds:

Answer 17

general warranty deeds, special warranty deeds, bargain and sale deeds, and quitclaim deeds.

Question 18

General warranty deeds

Answer 18

General warranty deeds, also called full covenant and warranty deeds, provide the greatest number of warranties and are the most widely used of deeds.

Question 19

General warranty deeds contain all five covenants or warranties:

Answer 19

the covenant of seizin, the covenant against encumbrances, the covenant of quiet enjoyment, the covenant of further assurance, and the covenant of warranty forever.

Question 20

Covenant of Seizin

Answer 20

With this covenant the grantor guarantees that he owns the property and has the right to convey it.

Question 21

Covenant of Quiet Enjoyment

Answer 21

This covenant guarantees that the grantee will not be evicted or disturbed by someone else’s claim to the property.

Question 22

Covenant of Further Assurance

Answer 22

This covenant requires that the grantor get and deliver any documents necessary to make the grantee’s title good.

Question 23

Covenant of Warranty Forever

Answer 23

This warranty guarantees that the grantee will have uninterrupted title and possession and that if necessary the grantor will pay the cost of defending the grantee’s title in court.

Question 24

Special Warranty Deeds

Answer 24

The grantor warrants title only against defects occurring while he owned the property, not against defects existing prior to the his ownership.

Question 25

The special warranty deed is used by…

Answer 25

… trustees and executors–that is, someone conveying for someone else (trustee) or an estate (executor)–because the trustee or executor cannot warrant the acts of the principal’s title. They are also used for foreclosed property.

Question 26

Bargain and Sale Deed

Answer 26

A bargain and sale deed usually does not warrant the title to the conveyed property. The grantor, however, implies ownership of the property, and the deed may contain a covenant against the grantor’s acts.

Question 27

Quitclaim Deed

Answer 27

To quitclaim is to renounce all rights or interests. A quitclaim deed warrants nothing.
A quitclaim deed is often used to eliminate technical defects in title or to release liens against the property.

Question 28

Sheriff’s Deed

Answer 28

This deed is used when real estate is sold because of a court- ordered foreclosure sale.
Not in Colorado

Question 29

Trustee’s Deed

Answer 29

This deed is also used with foreclosed properties-those foreclosed under a deed of trust. The trustee’s deed conveys the interests and warranties of the foreclosed party at the time the property was deeded to the trustee.

Question 30

Dedication

Answer 30

A gift of land to the public is a dedication.

Question 31

Statutory dedication

Answer 31

The builder would propose a map showing the lots, streets, etc.; have it approved by the appropriate governmental agency; then record it.

Question 32

Involuntary alienation…

Answer 32

… is the transfer of real property without the owner’s consent.

Question 33

Adverse Possession or

Squatter’s Rights

Answer 33

By occupying someone else’s land without permission for a long enough period of time, one can, under certain conditions, obtain ownership of that land by adverse possession.

Question 34

Adverse Possession in Colorado is…

Answer 34

…eighteen years. Seven years if property taxes were payed.

Question 35

Tacking in adverse possession is…

Answer 35

…Moreover, in accumulating the necessary years to claim ownership, a party in possession may add his time of possession to a prior claimant’s. This is called tacking.

Question 36

Escheat

Answer 36

As previously defined, escheat is the reversion of real property back to the state when a person dies without heirs and without leaving instructions of how to dispose of the land.

Question 37

Bankruptcy

Answer 37

Bankruptcy is a condition in which one is legally declared unable to pay one’s debts.

Question 38

Liquidation

Answer 38

The property of the debt is vested in a court-appointed trustee who converts the property to cash (liquidates it) and pays the creditors.

Question 39

There are four types of bankruptcies:

Answer 39

Chapter seven
Chapter eleven
Chapter twelve
Chapter thirteen

Question 40

Chapter seven bankruptcy

Answer 40

A chapter seven is often referred to as a liquidation. A court appointed trustee liquidates the property if it has any value. Secured property can be kept by creditors or foreclosed upon. Other property is liquidated to pay unsecured creditors.

Question 41

Chapter Eleven bankruptcy

Answer 41

A chapter eleven is business reorganization in which the debtor remains in possession and control.

Question 42

Chapter twelve bankruptcy

Answer 42

This form of bankruptcy is for the family farmer with 80% or more of his debts coming from the operation of the farm and with a regular annual income. The debtor remains in possession and arranges a payment plan.

Question 43

Chapter thirteen bankruptcy

Answer 43

Chapter Thirteen
This kind of bankruptcy calls for a payment plan. Since payment of the debts is anticipated, regular income and specific debt limitations are required.

Question 44

Transfer by decent

Intestate succession

Answer 44

Title is transferred by descent when a person dies without a will.

Question 45

Intestate person

Answer 45

A person who dies without leaving a last will and testament is said to have died intestate–that is without a testament.

Question 46

How is intestate’s property divided in Colorado?

Answer 46

Colorado law stipulates that the intestate’s property goes one- half to the spouse and one-half equally to the surviving children and descendants of the children if the children are not those of the surviving spouse.

Question 47

Tesate person

Answer 47

Title to property may be transferred by will. A person who dies with a valid will is said to have died testate, meaning he left a testament with instructions for the disposal of property.

Question 48

How is the maker of the will called (if a man) or (if a woman) ?

Answer 48

The maker of the will is the testator (if a man) or testatrix (if a woman) .

Question 49

What is a devise and who is a devisee in transfer by will?

Answer 49

Real property that is willed is a devise and the person receiving the property is the devisee.

Question 50

What is a legacy and who is a legatee in transfer by will?

Answer 50

Personal property that is willed is a bequest or legacy, and the recipient, the legatee

Question 51

Who is a personal representative in transfer by will?

Answer 51

The testator usually names a personal representative to carry out the will’s instructions. If one is not named, the court will appoint one.

Question 52

There are three types of wills…

Answer 52

There are three types of wills–formal or witnessed wills, holographic wills, and nuncupative or oral wills.

Question 53

Formal Will

Answer 53

A formal or witnessed will is a written document signed by the testator in the presence of witnesses and signed by the witnesses as witnesses. This type of will is accepted in all states.

Question 54

Holographic Will

Answer 54

This type of will is handwritten, dated, and signed by the testator. There are no witnesses, however.

Question 55

Nuncupative or Oral Will

Answer 55

A nuncupative or oral will is spoken by a person very near death to a witness who must then put the spoken word into writing.
Such a will can convey only personal property and is not recognized in Colorado.

Question 56

Condominium ownership is…

Answer 56

…lawful title to real property consisting of an individual interest in a unit and an undivided common interest in common areas.
Condominium ownership is sometimes referred to as horizontal ownership.

Question 57

What are separate and common elements in condo ownership?

Answer 57

Separate elements are areas owned exclusively by individual owners. These can be seen as the area between the interior surfaces of a unit and between the floor and ceiling. Everything else is a common element. Thus the shell of the building, the land the building has been constructed on, hallways, stairways, recreational areas, lawns, and parking lots are common elements.

Question 58

Owners’ Associations

Answer 58

These are a legal framework established by the developer by which the individual owners will govern themselves. Each individual owner is automatically a member of the association.

Question 59

Bylaws

Answer 59

These are the rules by which owners’ associations operate.

Question 60

Covenants, Conditions and Restrictions

Answer 60

CC&R’s, by which anyone buying a unit in the complex must live.
They establish such things as parking rules, what can be stored on balconies, what an owner can do or not do to the exterior of his unit, and so on.

Question 61

Unit Deed

Answer 61

Each purchaser of a unit receives a deed from the developer or previous owner.
The deed describes the location of the unit and the common elements, type of ownership transferred, and so on. The deed should be recorded, just as should a deed to a single unit structure.

Question 62

Board of Directors

Answer 62

Condominium bylaws require the election by the association members of a board of directors. The board handles the affairs of the condo complex

Question 63

Management Company

Answer 63

Management companies are usually hired by condo associations to advise the board of directors and handle the day-to-day work.

Question 64

Maintenance Fees

Answer 64

Maintenance fees, also called association dues, are usually collected monthly from the owners to pay for maintaining common elements.

Question 65

What is a declaration in condo ownership

Answer 65

The declaration is a required instrument which defines the character, duration, rights, obligations, and limitations of condo ownership.

Question 66

Converson

Answer 66

Condominium converting is transforming an income-producing property, such as an apartment complex or hotel, into a condominium.

Question 67

Cooperatives

Answer 67

Cooperative housing corporations may be formed by any three or more adult residents of this state.
The specified purpose of such corporation shall be to provide each stockholder in said corporation with the right to occupy, for dwelling purposes, a house or an apartment in a building owned or leased by said corporation.

Question 68

Two types of time share estates:

Answer 68

Interval estates

Time span estates

Question 69

Interval estates

Answer 69

With interval estates title (right of possession)
circulates among owners according to a fixed schedule and reverts at the end of the term.
Interval estates are leasehold estates.

Question 70

Time span estates

Answer 70

With time span estates, on the other hand, the owner has an undivided interest in fee simple in a unit, combined with an exclusive right of possession during an annually recurring period (a day, week, month, etc.)