Level 5 - Transfer of Title to Real Property Flashcards
Range Columns
run parallel to meridians and create 6 mile ranges
Township Lines
run parallel to baselines and create 6 mile tiers
Bounds
the course or directions used in creating the boundaries that enclose a parcel of real estate
Calls
the distance and direction between monuments or landmarks in a metes and bounds survey
Legal Description
a description of a property that is distinct and precise enough to distinguish it from all other properties.
Metes
the distance measurements used in the description of a metes and bounds survey
Monument
a fixed landmark, whether natural or human-made, used as a reference point in a metes and bounds legal description
Plat
a map indicating the locations and dimensions of lots in a block and lot system
Point of Beginning (POB)
the starting point for a metes and bounds legal description
Section
one of 36 equal square miles in a township
Survey
the process and physical product of finding and measuring the boundaries of a piece of real estate, including the location of improvements, encroachments, and easements.
Township
a square area of land with sides of 6 miles each, consisting of 36 mile sections and identified in reference to a meridian and baseline in the rectangular survey system.
What are the 4 methods of transferring title?
- by descent
- by will
- involuntary alienation
- voluntary alienation
Transferring Title by Descent
a person dies without a will but with known heirs
Transferring Title by Will
a person’s property is disposed of after their death according to their will.
Transferring Title by Involuntary Alienation
usually by an operation of the law
Transferring Title by Voluntary Alienation
usually by sale or gift.
Adverse Possession
involuntary transfer of title from an owner who does not use or inspect their land for a number of years to another person who has some claims o the land and takes possession.
Bequest
a gift of personal property
Condemnation
the legal process through which the government seizes land from a property owner
Deed
a legal written document that transfers real estate title from one party to another
Devise
the transfer of real or personal property through a will
Eminent Domain
the power of government to seize private property for public use; government must pay property owner just compensation for exercising power.
Escheat
the legal doctrine by which the defendants property will pass to the state without their consent if that individual dies without a will, a surviving spouse, lineal descendants, or other known heirs.
Grantee
the person who receives a conveyance of real property in a transaction
Grantor
the person who conveys real property in a real estate transaction
Instrument of Conveyance
a tool that transfers a grantor’s interest in real property.
Intestate
the name for conditions in which the owner of a property dies without having left a valid will
Intestate Succession
transfer by descent that occurs when there is no will dictating how an estate should be passed down
Testate
the name for conditions in which the owner of a property dies having left a valid will.
Title
the actual ownership of a real property that includes the bundle of rights in which a party may own a legal or equitable interest; not an actual document.
What are the 4 types of deed?
- general warranty deed
- special warranty deed
- bargain & sale deed
- quitclaim deed
Which type of deed is not used in NC?
- bargain & sale deed
What are the 5 covenants?
- the covenant of seisin and right to convey
- the covenant against encumbrances
- the covenant of quiet enjoyment
- the covenant for further assurances
- the covenant of warranty forever
The covenant of Seisin and right to Convey
I hold the title of this property and I have to right to convey this property.
The covenant against encumbrances
this property is free from encumbrances other than the ones listed in the deed.
The covenant of quiet enjoyment
the title is good against any third party who might bring a claim.
The covenant for further assurances
I will help you later if someone makes a claim against the title.
The covenant of warranty forever
I will compensate you for losses if the title fails someday.
What are the 4 types of special purpose deeds?
- correction deed
- trustee’s deed
- sherriff’s deed
- deed of gift
Excise Tax
all real estate stales are subject to excise tax. The tax amounts to $1 for every $500 of the property’s sale price, which is always round up to the nearest $500.
Deed of Gift
occurs when title is transferred with little or no consideration
Correction Deed
used to correct some kind of deed error, such as a misspelled name or an inaccurate description of a property.
General Warranty Deed
the transfer or claim of interest in the title free and clear of all liens and encumbrances to real property in public records per state law, aka full covenant and warranty deed
Quitclaim Deed
a type of deed that conveys any interest, title, or right to a parcel of land the grantor has at the time the deed is executed.
Sheriff’s Deed
used in a sheriff’s sale or auction when the owner’s property is sold because of a court decision against them.
Special Warranty Deed
a deed that only protects against defects that occurred while the grantor held title
Trustee’s Deed
used by a trustee to convey property after a foreclosure auction or bankruptcy.
What makes a Marketable Title?
- free from serious defect
- free from legal exposure
- reasonably thought to be sellable should the buyer come a seller at some point in the future
Title Examination
an attorney or paralegal performs a thorough examination of available public records to determine who has rights to the property and whether any defects exist in the chain of title.
What are the two types of title insurance policies?
- owner’s title insurance policy
- lender’s title insurance policy
The Connor Act
makes NC a pure race state (whoever records first will win out on any disputes that may arise) makes the timely recording of documents very important.
What are the two kinds of notice of title?
- constructive notice and actual notice
Abstract of Title
an abbreviated title history of a property, including information on any transfers, grants, wills, conveyances, liens and encumbrances
Action to Quiet Title
a lawsuit brought with a purpose of removing any outstanding ownership claim, title defect, or encumbrance on a property.
Chain of Title
the entire chronological record of a property’s ownership
Color of Title
a title transfer that is defective in a way that is unknown to the new owner.
Constructive Notice
when a property’s ownership is recorded publicly, so everyone can know the contents of recorded documents. Insures Title for which title insurance policy can be procured. Marketable title that is free from significant encumbrances or defects that might otherwise prevent a purchaser from enjoying or eventually selling the property.
Memorandum of Contract
a short version of a contract that can be recorded instead of the entire contract.
North Carolina Marketable Title Act
a state law that aims to clear clouds on titles by stating that if a chain of title can be traced back for 30 years with no other claim arising during that 30-year period, then the title is marketable.
Opinion on Title
the official opinion of an attorney regarding the condition of a property’s title
Pure Race State
refers to recordation statutes that whoever records first will win out on any disputes that may arise.
Torrens System
a recording system used in some states in which the state holds all records of land and title ownership, evidenced by a certificate of title.
