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AB Worksheets > Real Property _ Titles > Flashcards

Real Property _ Titles Flashcards

1
Q

Deeds
What does it do?

DEEDS

A
  • Transfers legal title on day of closing
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2
Q

Present Warranties (3)

DEEDS

A
  • Warranty of Seisin: The grantor promises that they actually own the property and that no other person has a conflicting present or future possessory interest
  • Right to Convey: The grantor asserts they have the legal right to convey or transfer legal title to the property.
  • Covenant Against Encumbrances: The grantor warrants that there are no encumbrances (like easements, mortgages, real covenants, liens or outstanding claims) on the property

Note: If Present Warranties are breached, they are breached on the day of closing

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3
Q

Rules Regarding Breach of Covenant Against Encumbrances
(Majority v Minority)

DEEDS

A

Under the majority rule, a covenant against encumbrances is breached even if the buyer knows of an
encumbrance.

Under the minority rule, there is no breach if the seller knows of a physical encumbrance.

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4
Q

Future Warranties

DEEDS

A
  • Warranty of Quiet Enjoyment: The grantee will not be disturbed by any future claims against the property.
  • Warranty: The grantor promises to defend the grantee against future claims that may arise.
  • Warranty of Further Assurances: The grantor agrees to do whatever is necessary to fix any defects in the title in the future.

Note: Future Warranties last forever

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5
Q

DEEDS

General Warranty Deed:

A
  • Promise for all 6 warranties since property was developed/created

RULE: The grantor of a warranty deed conveys six covenants with the deed: (1) the covenant of seisin; (2) covenant of right to convey; (3) covenant against encumbrances; (4) covenant of quiet enjoyment; (5) covenant of warranty; and (6) covenant of further assurances.

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6
Q

DEEDS

What are the typical limitations on a grantee’s damages in case of a breach of one of the covenants of title?

A

When a grantor breaches one of the covenants of title, the grantee’s damages are generally limited to the purchase price received by the grantor plus incidental damages.

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7
Q

DEEDS

Special Warranty Deed:

A
  • Promise for all 6 warranties since seller had title

“everything is okay while I HAD TITLE not anything previous to me”

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8
Q

DEEDS

Quitclaim Deed:

A
  • No promises regarding title

quitclaim deed = no promises, no assurances. i giving you what title i have today, can’t promise it’s good title.
- can’t sue the buyer, bc you didn’t sell good title w/ promises

“it isss what it issss”

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9
Q

Writing

FORMALITIES OF CLOSING

A
  • To satisfy Statute of Frauds
  • the deed must be in writing, SOF part performance allowed
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10
Q

Delivery of Deed:

FORMALITIES OF CLOSING

A
  • Intent of the seller to give up control

INTENT to transfer title, relinquish all control to give grantee/buyer the deed

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11
Q

Acceptance of Deed:

FORMALITIES OF CLOSING

A

Acceptance is presumed, unless grantee/buyer rejects it or gives it back to seller/grantor!

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12
Q

Merger

FORMALITIES OF CLOSING

A
  • On the day of closing, the contents of the real estate contract merge into the deed.
  • All terms, obligations, and conditions are then governed by the deed itself.
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13
Q

Description of the Property:

FORMALITIES OF CLOSING

A
  • Must be “reasonably definitive”
  • Unique, distinctive features can suffice if they clearly differentiate the property (e.g., a house with a large, unique rock or a distinctive lawn marking).
  • Generic descriptions (like a white fence) are insufficient in neighborhoods where multiple properties share similar features.
  • The key is whether a reasonable person can identify the property based on the description given
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14
Q

Conveyance of Deed by Inter Vivos Trust

TRANSFER OF PROPERTY BY WILL OR LAW

A

A landowner may transfer property by deed when there is (1) donative intent, (2) delivery, and (3) acceptance (which is presumed).

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15
Q

TRANSFER OF PROPERTY BY WILL OR LAW

Donative Intent

Conveyance of Deed by Inter Vivos Trust

A

Courts examine whether the grantor intended to pass title; no physical transfer of a deed is required.

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16
Q

Delivery

Conveyance of Deed by Inter Vivos Trust

A
  • Recording a deed implies a presumption of delivery, even if the Grantee does not know about the deed.
  • In many jurisdictions, an oral condition set by the grantor is often ignored, and delivery is considered complete.
  • If the grantor dies and the deed is still with them, it is presumed there was no delivery. However, this presumption can be contested and potentially overturned by the grantee.
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17
Q

Transfer by Will

TRANSFER OF PROPERTY BY WILL OR LAW

A
  • Property can be transferred through a will.
  • If no will exists, property passes by intestate succession according to state laws.
18
Q

Ademption

TRANSFER OF PROPERTY BY WILL OR LAW

A
  • Occurs when property bequeathed in a will is sold by the testator before they die.
  • The beneficiary loses the bequest as the specific property is no longer part of the estate.
19
Q

Lapse

TRANSFER OF PROPERTY BY WILL OR LAW

A
  • If a beneficiary predeceases the testator, the bequest lapses.
  • The property then typically goes into the residuary estate.

RULE:
* Under common law, if the beneficiary died before the testator, the gift in the will lapsed and the gift was void.
* Under modern law, most states have adopted anti-lapse statutes that prevent lapse by allowing a gift to pass to certain relatives of the pre-deceasing beneficiary.

20
Q

Exoneration of Liens

TRANSFER OF PROPERTY BY WILL OR LAW

A
  • If property left in a will has liens or encumbrances, the estate usually pays these off.
  • This ensures the beneficiary receives the property free of such encumbrances.
21
Q

What are the ELEMENTS of ADVERSE POSSESSION (5) (list it out)

ADVERSE POSSESSION

A

Acquire legal title if:
1) Continuous for Statutory Period
2) Actual
3) Open and Notorious
4) Hostile
5) Exclusive

22
Q

Continuous

ADVERSE POSSESSION

A

A person’s use is continuous when she uses the property as the property owner would

23
Q

Statutory Period

ADVERSE POSSESSION

A

A person must be on the land for the statutory period. Under common law, the statutory period is 20 years.

24
Q

Tacking

ADVERSE POSSESSION

A
  • Intentional transfer from one person to another
  • A person may tack (i.e., add) successive periods of adverse possession with another individual to meet the statutory period requirement.
  • Note: Can’t tack disabilities!
25
Q

Impact of Disability on Adverse Possession:
Starting Before vs. After AP Period

A

Disability Before AP Period Begins:
If the true property owner is under a legal disability (minor, incompetent, imprisoned) at the start of the adverse possession, the statutory period is paused or extended until the disability is removed.

Disability After AP Period Begins:
If the property owner acquires a disability after the adverse possession period has begun, it does not affect the adverse possession timeline. The statutory period continues to run regardless of the new disability.

26
Q

Actual

A

The possessor must physically use the land

27
Q

Open and Notorious

A

The use should be visible and obvious so a reasonable person would notice someone is using the land

28
Q

Hostile

Adverse Possession

A

Use of the land is without the owner’s permission and in a manner that appears to claim ownership.

29
Q

Exclusive

A
  • The possessor does not share the use of the land with the owner or others
30
Q

Drafting Documents:

DRAFTING & ENFORCING DOCUMENTS

A
  • Non-attorney can draft documents
  • BUT not give legal advice
31
Q

Equal Dignity Rule:

A
  • Agent may sign deed on behalf of grantor
  • Need permission in writing
32
Q

Exceptions – Equal Dignity Rule:

A

1) Officer of Corporation with authority
2) Signing agent
3) No writing – Grantor is estopped if he tried
to induce reliance

Basically - these are people whose only job it is to sign at the grantor’s request

33
Q

List the Three (3) Types of Recording Acts/Statutes

RECORDING STATUTES

A

There are three types of recording acts/statutes: (1) notice, (2) race, and (3) race notice.

34
Q

Notice Statute

A

Notice
A notice statute protects subsequent bona fide purchasers who take without notice of the earlier conveyance.

  • Key words: “subsequent purchaser for value without notice”
  • Last Bona Fide Purchaser prevails
35
Q

Race Statute

A

Race
In a race jurisdiction, the first person to record wins. A subsequent purchaser need not be a bona fide purchaser

  • First person to record prevails
  • No requirement to be a BFP.
  • Statutory language focuses on the act of recording.
  • “no conveyance shall be good against…”
36
Q

Race-Notice Statute

A

A race-notice statute protects all subsequent bona fide purchasers for value who take without notice and are the first to record.

  • First Bona Fide Purchaser to record
  • Key words: “first recorded”
37
Q

Bona Fide Purchaser:

A
  • Pay for property
  • Take property without notice

A bona fide purchaser is a purchaser for value who takes without notice of a burden.

Examples:
BFP:
o Mortgagee

Not BFP:
o Creditor
o Gift
o Will
o Adverse possession

38
Q

Shelter

A

One who takes from a BFP will prevail against anyone the transferor-BFP would have prevailed against

39
Q

**Shelter Rule Hypo:
**
Scenario: O conveys property to A on Monday, but A does not record. Then, O conveys the same property to B on Wednesday, and B records. B later gives the property to C as a gift.

(1) Who wins in a notice JX
(2) Who wins in a race-notice JX
(3) Is C “sheltered?”

A

In a Notice or Race-Notice Jurisdiction:
B, as the subsequent bona fide purchaser who recorded, would prevail over A.

Shelter Rule Application:
Even though C, who received the property as a gift, is not a bona fide purchaser, C wins against A. This is because C is “sheltered” by B’s status. Since B would have prevailed against A, C also prevails due to being sheltered by B.

40
Q

Wild Deed:

A
  • A recorded deed outside the chain of title

(This occurs when a deed is not traceable back to the original grantor in the chain of title.)

41
Q

Wild Deed Hypo

Scenario: Original Grantor (O) conveys Greenacre to A, who doesn’t record. Then A conveys to B. Meanwhile, O separately conveys Greenacre to C.

(1) Would B have notice?
(2) Who will win?

A

(1) B would not know of O’s transactions because the conveyance A to B is a “wild deed”. It’s outside the chain of title since B can’t trace the deed back to the original grantor (O).

(2) C, the third grantee, would win against B because B’s deed (from A) is not part of the original chain of title that starts with O. This makes the A to B deed a wild deed, untraceable to O

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