RP UNIT6 Flashcards
What is the definition of title in real estate?
The right to and evidence of ownership of land
What is voluntary alienation?
The owner intentionally conveys the ownership of property using some form of deed; may be a gift or a sale
Who is the grantor in a property transaction?
The owner who conveys the ownership
Who is the grantee in a property transaction?
The person receiving title
What is one requirement for a valid deed?
A grantor who has legal capacity to sign the deed
What must be included in a deed regarding the grantee?
A grantee named and readily identified
What is a granting clause in a deed?
The words of conveyance
What is the purpose of a habendum clause?
Defines the ownership taken by the grantee
What should a valid deed contain regarding property description?
An accurate legal description of the property being conveyed
What is the requirement for acknowledgment in a deed?
Notarization of the signature of the grantor
What is the process of delivery in a deed?
The delivery of the deed to and its acceptance by the grantee
What is a general warranty deed?
A deed that may contain express and implied warranties regarding the title
What does the covenant of seisin guarantee?
The owner has full ownership and the legal right to convey the title
What does the covenant against encumbrances ensure?
The title is free from all liens and encumbrances except those specifically stated
What is the special warranty deed?
Warrants only that the title was not encumbered while the grantor held it
What does a bargain and sale deed imply?
Implies that the grantor holds title and possession, but contains no warranties against encumbrances
What is a quitclaim deed?
Provides the least protection to the grantee and carries no covenants or warranties
What is the purpose of a deed of trust?
Used by a trustor to convey property to a trustee for the benefit of a beneficiary
What is a reconveyance deed?
Executed by the trustee to return title property held in trust to the trustor
What is the role of a trustee’s deed?
Used to convey property out of a trust to anyone other than the trustor
What is a deed executed pursuant to a court order?
Typically a statutory deed form used to convey title as directed by a court
What are transfer tax stamps?
Usually payable when the deed is recorded
Who typically pays transfer tax stamps?
Paid by the seller, buyer, or split, depending on local custom or law
What types of deeds are exempt from transfer tax?
- Gifts of real estate
- Deeds not made in connection with a sale
- Conveyances to or between government bodies
- Deeds by charitable, religious, or educational institutions
- Deeds securing debts or releasing property as security for a debt
- Partitions
- Tax deeds
- Deeds pursuant to mergers of corporations
- Deeds from subsidiary to parent corporations for cancellation of stock
What is involuntary alienation?
Transfers without the owner’s consent
What is one method of transfer by operation of law?
Eminent domain through condemnation
What is adverse possession?
Possession by the trespasser must be open, notorious, continuous, hostile, and adverse to the true owner’s right of possession
What is a codicil?
A modification of or an amendment to a will
What is a holographic will?
A will in its maker’s own handwriting
What are the requirements for a valid will?
- The maker must be of legal age
- The testator must be of sound mind
- It must be a free and voluntary act
- The signing must be witnessed by two or more persons
What is the process of probate?
A legal process that confirms the validity of the will and determines asset distribution
What must happen to a decedent’s debts before property can be disbursed?
The decedent’s debts must be satisfied
