Prop - Titles Flashcards
What does the deed do?
transfer legal title on the day of closing
What r the 6 warranties in a deed
sesin
right to convey
covenant against encumbrances
warranties of quiet enjoyment
warranty
warranty of further assurances
What are the 3 present warranty deeds
sesin
right to convey
covenant against encumberances
What are the 3 future warranties
warranty of quiet enjoyment
warranty
warranty of further assurances
What are present warranties breached
only on the day of closing
Sesin (present warranty)
I promise I own the property
Right to convey (present covenant)
right to convey
Warranty of quiet enjoyment (future )
owner will not be bothered by any future claims
When is a Warranty of quiet enjoyment breached?
only if someone with superior title actually interferes with the grantee’s possession or enjoyment by asserting a valid claim to any part of the property.
Warranty (Future warranty)
I will defend you if it did
Warranty of further assurance (future)
promise to fix any problems if they come up
Future warranties last
forever
General warranty deed means that you promise which warranties and from what time
all 6 and since the property was created even if it was before you owned it
Special warranty means you promise to warranty
everything that has been okay since the seller had title
quit claim deed
not promising any warranty
Elements of a deed
Deed needs to be in writing to comply with SOF
Delivery of the deed to S to B
Acceptance is presumed unless the facts say otherwise
Merger
Legal description of the property be reasonably definite
Identifiable grantees
For delivery of the deed what do you focus on to ensure the deed has been delivered
intent as there needs to be unconditional unequivocal intent
Is there an exception to the SOF requirements of the deed
yes, a parol gift via a verbal conveyance
Parol Gift
The exception applies if the grantee takes possession of the property in reasonable reliance on the grantor’s promise to convey and makes such substantial improvements that fairness requires enforcement.
Other than a deed, how can you transfer a property
via law or will
What happens if there is no will
intestate sucession
If there is will and there is ademption (ie sold or given away) → do you get anything
no
If the Beneficiary dies before the person will and there is a lapse, it will go to
residuary estate
What if there is a lien on the property
Estate will pay of the liens so you could the property clean of any encumbrances
Adverse possession elements
Adverse
Hostile
Open and Nortious
Exclusive
Continuous for the SOL
What is one way to defeat the continue amount for the SOL
if they tack with another person
Actual, Open and Notorious is based on
A reasonable person would know someone is using the land
Who can Draft the deed
can be a non attorney, real estate broker, mortgage broker, closing agent
Regarding drafting the person must not
give legal advise
What are the 3 types of statutes
Race
Notice
Race notive
A notice statute will say what in the fact pattern
No conveyance shall be good against any subsequent purchaser for value with no notice unless the same be recorded into law.
Who is a BFP
someone who pays value and has no notice
Mortgagees are one
Who is not considered a BFP
Creditors
People who have judgements against you
Gift
Will
Adverse possession
Who will always win in a notice statute
the last person in the chain who has no notice
Race statute means
the first person to record even if there is a BFP
Race notice
the first BFP to record
what words must be included in Race Notice
first recorded or recorded first
Shelter rule
Someone who would normally win would be sheltered by her previous grantor would prevail
Wild deed is when
there is a deed out of the chain title
O to A then A to B then O to C
A to B is a wild deed because B would have no notice of the O to C deed
Who will win
O to C because they had no notice of the deed and the chain of title always reverts back to the original grantor
After acquired title
When you convey title you didnt have at closing but subsequently you get it, once the title is acquired from the person who thought had title, you are protected from him taking it back
Equal dignities rule
Agent for the grantor may sign a deed on behalf of the grantor
But the authority granting the agent to do it, must be in writing
Hypo will say “The grantor is estopped from using the lack of writing as a defense” mean
If you have no writing saying you had authority to sign
And you did something to show the authority induced reliance on somebody elses part
If you happen to see a question where someone was hired to do this on someone’s behalf, generally, you need the piece of paper that grants my permission or the authority to do the writing unless
you are an officer of a company and you have permission to do it
If I’m now trying to use the fact that there was no writing as a defense, but the facts, the facts talked about that I was basically trying to induce reliance on someone else,
then I can’t use the lack of writing as a defense.
A title insurance policy insures that
good record of title of the property exists as the policies date and agrees to defend the record title if litigated
Who can take out title insurance
either the owner of the property or the mortgage lender
Owner policy
protects only the person who owns the policy ie the property lender or mortgage lender and does not run w/ land to subsequent purchasers
Lender policy follows who in the chain of title
any assignment of the mortgage loan
To make a deed effective, the grantor must have the legal capacity to execute the deed. Incapacity can result from
infancy, mental incompetence, insanity, or other factors.
If the grantor lacks capacity, then the deed is generally considered
voidable
When will a court find a deed void
if the grantor was legally declared incompetent and placed under guardianship before executing the deed.
A void deed is
ineffective to convey title
voidable deed is effective between the grantor and grantee unless
grantor chooses to void it, or a court otherwise declares the deed void on the grantor’s behalf.
