Title Flashcards
What’s the difference between an owner’s title insurance policy and a lender’s title insurance policy?
An owner’s title insurance policy protects only the owner of the policy and successors by operation of law, a lender’s title insurance policy follows assignment of a mortgage loan
What must a deed contain to be lawfully executed?
It must be in writing and be signed by the grantor. It must also identify the parties, contain an unambiguous description of the land, and contain words of intent to transfer.
What law is applied in actions involving real property?
The choice of law rules of the state where the property is located governs which substantive law applies. Usually the same state, but may be the law of the state with the greatest interest in the dispute.
What are the requirements for liability for a seller of land’s failure to disclose latent material defects?
The seller knew of the defects, the seller knew it would be difficult for the buyer to discover the defects, and the defects is serious enough that it would cause the buyer to reconsider the transaction
What are the six covenants contained in a general warranty deed?
Covenant of seisein, covenant of the right to convey, covenant against encumbrances, covenant of quiet enjoyment, covenant of warranty, covenant for further assurances
What are the covenants implied by the word “grant”, in a statutory special warranty deed?
That the grantor has not previously conveyed the estate or any interest therein to someone other than the grantee, and that the property is free from any encumbrances made by the grantor
When is a buyer protected as a bona fide purchaser under notice + race notice recording statutes?
When they are a purchaser (or mortgagee), for value, and did not have actual/inquiry/record notice of previous conveyances
What are the elements of adverse possession? (COAH)
Use must be continuous for the statutory period, open and notorious, actual and exclusive use, and hostile to the title holder
When may subsequent adverse possessors “tack” onto each other’s time to satisfy the continuous requirement?
When there is privity (transfer from one adverse possessor to another) or a non-hostile nexus between the possessors
When is constructive possession established for purposes of adverse possession?
When the possessor enters a unitary tract of land under color of title, and is in actual possession of a reasonable portion of that land sufficient to put the owner on notice
What is the difference between equitable and statutory redemption of a mortgage?
Equitable redemption allows the mortgagor to extinguish the mortgage at any time prior to foreclosure by paying the balance of a loan, statutory redemption allows the mortgagor to redeem the property for a fixed period after foreclosure by paying the amount of the foreclosure sale
What is the warranty of marketable title?
Every contract for the sale of land contains an implied warranty by the seller that title is free from doubt and the threat of litigation
What is the procedure by which a buyer must raise a breach of the warranty of marketable title?
Buyer must notify the seller of any defect in title and give the seller an opportunity to cure, seller has until the closing date to cure (or date of last payment in installment K) but the closing may be extended
What are the rules regarding encumbrances and the warranty of marketable title?
Very slight encumbrances do not render title unmarketable, and the buyer may waive encumbrances explicitly or by implication where the encumbrance is beneficial, visible, or known to buyer
What is the doctrine of equitable conversion?
A contract for the sale of land conveys equitable title to the buyer (enforceable in equity, risk of loss passes to buyer), while the deed conveys legal title.
