Property Flashcards
Equitable Conversion-Property Sales
Before a deed is delivered, the contract of sale is signed. Under equitable conversion, as soon as the contract is signed, the buyer’s interest is real property and the risk of loss passes to them.
Validity of Deed
To be valid, a deed must identify the buyer and the seller, describe the land, contain words denoting present intent to convey, and be signed by the grantor.
Quitclaim Deed
A quitclaim deed gives no covenants and the grantee gets whatever the grantor has and takes the land subject to a defect in title or other issue
Present Covenants
A warranty deed contains three present covenants. The right to convey, the covenant of seisin, and the covenant against encumbrances.
Future Covenants
A warranty deed contains three future covenants. The covenant of further assurances, the covenant of quiet enjoyment, and a covenant of warranty
Property Sale Merger
On the closing date, the contract for sale merges into the deed, so the buyer can only sue on the deed, not the contract
Recording Statutes- Common Law
Under the common law, a grantor can convey only those rights that the grantor had at the time of the conveyance. This is also called the first in time first in right principle.
Notice Statute
Notice statutes protect subsequent bona fide purchasers for value who take without notice of the earlier transaction
Race-Notice Statute
Race notice statutes protect subsequent bona fide purchasers for value who take without notice and are the first to record
Joint-Tenancy Creation
A joint tenancy requires the four unities- time, title, interest, and possession along with a right of survivorship
Adverse Possession
Adverse possession requires a showing that the possession is continuous, hostile, actual, open and notorious, exclusive, and exceeds the statutory period.
Lien Theory
In states that follow a lien theory, a mortgage is regarded as a lien on title,and one joint tenants execution of the mortgage does not cause a severance.
Title Theory
Under the title theory, a mortgage is recorded as a transfer of title and severs a joint tenancy.
Covenant Against Encumbrances
The covenant against encumbrances assures that there are no visible or invisible encumbrances against the title. This includes easements and mortgages.
Easement Termination
An easement is a non possessory right to use someone’s land. It may be terminated when the easement owner demonstrates by physical action, the intent to permanently abandon the easement. Mere non use is insufficient.
