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Real Estate 101 > Topic 5 > Flashcards

Topic 5 Flashcards

Real Estate Title Transfer

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1
Q

Involves the intentional conveyance of title, by sale or gift, from one owner to another by means of a deed or a patent.

A

voluntary transfer or voluntary alienation

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2
Q

Three types of voluntary transfer…

A
  1. ) Public grant
  2. ) Private grant
  3. ) Public dedication
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3
Q

Transfers legal title to land from the gov’t to a private party. Seldom used today.

A

Public grant

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4
Q

A formal document conveying a part of the public domain to a private citizen

A

Patent

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5
Q

transfers title to real property from one private person to another. Most common type of voluntary transfer. Title is generally conveyed by deed.

A

Private grant

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6
Q

Party conveying title

A

Grantor

*LA, Vendor

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7
Q

Party receiving title

A

Grantee

*LA Vendee

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8
Q

Voluntary conveyance of title as a gift from a private owner to the gov’t

A

Public dedication

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9
Q

A written instrument by which title to real property is formally transferred from one party to another. Must be properly executed to be valid. Must be conveyed to and accepted by the party to whom title is being transferred.

A

Deed

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10
Q

To be valid, a deed must meet the following requirements…

A
  1. ) Must be in WRITING
  2. ) Grantor must be IDENTIFIED by NAME, MARITAL STATUS, and must be COMPETENT, LEGALLY OF AGE, and CAPABLE OF CONVEYING the ownership rights being transferred.
  3. ) Grantee must be IDENTIFIED by NAME, MARITAL STATUS, and must be CAPABLE OF HOLDING TITLE to the property conveyed. HE NEED NOT BE MENTALLY COMPETENT OR LEGALLY OF AGE TO ACQUIRE TITLE.
  4. ) A STATEMENT of some consideration was given, as money, love or affection must be included, although the amount need not be specified.
    * In LA, the amount MUST be specified in order to avoid a suit of lesion beyond moiety, b/c of forced heirship laws*
  5. ) Property being conveyed must be accurately DESCRIBED
  6. ) Specific WORDS OF CONVEYANCE stating the grantor’s intention to convey title, and the type of property interest being conveyed, that is fee simple estate, life estate, etc. must be included.
  7. ) Any RESTRICTIONS must be stated
  8. ) TITLE must be acquired in the PRESENT, not the future.
  9. ) Grantor must SIGN
  10. ) There myst be DELIVERY AND ACCEPTANCE of the deed.

Recordation of the deed isn’t required, but is necessary to give notice to 3rd parties.

In LA, there’s no deed actually given, but the conveyance is recorded at the Court House

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11
Q

Types of deeds…

A
  1. ) Warranty Deed
  2. ) Quitclaim Deed
  3. ) Bargain and Sale Deed
  4. ) Specialty Deeds
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12
Q

Contains covenants, or promises, of warranty. Guarantees that the title it conveys is good.

A

Warranty Deed

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13
Q

offers a more comprehensive guarantee of title than any other type of deed. The grantor certifies that the title he is conveying is free of defects which may have arisen either before or during the time he owned the property. This is the best type of deed because it contains all covenants warranting back through all previous owners. Can not absolutely guarantee good title. It can not remedy actual flaws of title, unrecorded title claims, undisclosed encumbrances, or fraud, but compensation can be won for breach of covenant.

A

General Warranty Deed

*LA - Sale with warranty

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14
Q

The following five covenants are included in a general warranty deed:

A
  1. ) Covenant of seizen
  2. ) Covenant against encumbrances
  3. ) Covenant of further assurance
  4. ) Covenant of quiet enjoyment
  5. ) Covenant of warranty forever
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15
Q

assures that the grantor fully possesses or is “seized with” the title he is conveying.

A

Covenant of seizen

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16
Q

assures the grantee that the property is free from liens and encumbrances, other than those specified in the deed.

A

Covenant against encumbrances

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17
Q

promises that the grantor will defend the grantee’s title against all claims which may arise from the period prior to transfer.

A

Covenant of further assurance

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18
Q

protects the grantee’s rights to physical possession of the property without being disturbed by other parties making claims against his rights.

A

Covenant of quiet enjoyment

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19
Q

underwrites each of the other four covenants and guarantees absolutely the grantees ownership rights and title. The grantor agrees to compensate the grantee for losses suffered from the breach of any of the deed’s covenants.

A

Covenant of warranty forever

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20
Q

In LA, instead of these warranties, the grantor gives…

A

delivery

peaceful possession

warranty against latent defects

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21
Q

This deed contains only one covenant. In this covenant, the grantor guarantees the condition of title only for the time he actually owned the property. He claims no responsibility for title claims arising from past periods of ownership, or for encumbrances other than those he himself has incurred and specifically listed in the deed.

A

Special Warranty Deed

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22
Q

deed makes no promises at all. The grantor simply relinquishes any claim to title which he may or may not have had. Conveys whatever title the grantor possesses, whether it is a clear, unimpaired title, a defective title claim or no title interest at all. Used frequently for removing clouds on title.

A

Quitclaim Deed

*LA - Sale without warranty

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23
Q

a lingering, often vague or uncertain claim or encumbrance that impairs an owner’s title

A

A cloud on title

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24
Q

guarantees more than the quitclaim, but not as much as a warranty deed. It conveys title without explicit guarantees, but does imply that title is good. There is an assurance that the grantor does in fact, possess the rights which he is conveying.

A

Bargain and sale deed

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25
Q

a special type of bargain and sale deed which includes a covenant assuring the grantee that the grantor has done nothing to encumber the property during the time he has owned it. This covenant, in effect, turns the deed into a special warranty deed.

A

Bargain and Sale Deed with Covenant

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26
Q

a variety of deeds used for special purposes.

A

Specialty Deeds

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27
Q

used to convey property of an intestate deceased.

A

administrator’s deed

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28
Q

used to convey a private owner’s road, street or alley rights to a public governmental body.

A

cession deed

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29
Q

used for placing property in a land trust.

A

deed in trust

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30
Q

used for conveying title to a trustee as security for a loan.

A

deed of trust

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31
Q

conveys property out of trust.

A

trustee’s deed

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32
Q

conveys property of a testate deceased.

A

executor’s deed

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33
Q

conveys property given as a gift.

A

gift deed

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34
Q

conveys property of minors or incompetents.

A

guardian’s deed

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35
Q

conveys severed interests of co-owned property resulting from a court ordered partition.

A

partition deed

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36
Q

conveys property sold by court order to satisfy a debt.

A

sheriff’s deed

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37
Q

used by a trustee to return title to a trustor.

A

reconveyance deed

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38
Q

identifies the grantor and grantee, may include their addresses.

A

vesting clause

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39
Q

expresses the grantor’s intention to convey, grant, give, sell or release his real property interest to the grantee, using specific WORDS OF CONVEYANCE.

A

Granting clause

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40
Q

specifies the kind of estate being transferred, that is, fee simple, life, etc., and also lists any covenants, warrants, or promises. Deed restrictions and encumbrances are usually listed immediately following this clause.

A

Habendum Clause

Habendum comes from the Latin, habendum et tenendum, meaning “to have and to hold”.

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41
Q

includes the signature of the grantor, the date of signing, the signatures of witnesses, and a seal, if required. In transferring co-owned property, all co-owners must sign. In transferring dower or curtesy rights, the grantor’s spouse must sign.

A

Execution clause

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42
Q

Follows the signatures of grantor and witnesses. A formal declaration before an authorized person, usually a public notary, made by the person signing the deed, that he is the grantor and that he has signed the deed of his own free will.

A

Acknowledgment

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43
Q

Title to real property may be transferred without the owner’s consent. Most are effected through the action of the law, through government bodies or the courts.

A

Involuntary Transfer or involuntary alienation

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44
Q

Most common ways for involuntary transfer…

A
  1. ) Eminent Domain
  2. ) Partition Sale
  3. ) Escheat
  4. ) Judicial Action
  5. ) Adverse Possession
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45
Q

the acquisition of private property, by government, for public use. Lands thus acquired must be used for specific public purposes and the owners affected must be justly compensated for their loss of title.

A

Eminent Domain

46
Q

The government’s right of eminent domain is expressed through court action known as…

A

condemnation

*LA - expropriation

47
Q

Joint tenancy and tenancy in common can be dissolved this way. Only one of the co-owners need initiate such a suit. The tenancy can be dissolved this way whether all owners agree to it or not. The outcome of the suit is usually a court ordered sale of the property. The proceeds of the sale are divided proportionately among the co-tenants.

A

Partition sale

48
Q

When an owner dies without leaving a will and without heirs, his property title reverts to the state. Since property can not be allowed to remain ownerless, the state must assume ownership where there is not legal claim to title.

A

Escheat

49
Q

This involves transfer by foreclosure, attachment and tax sale. This occurs when an owner defaults on a debt and his creditors file suit. If a judgment is entered against the owner, his property will be sold, and the proceeds of sale used to pay off the debt. The property may also be sold at a tax sale for failure to pay property taxes.

A

Judicial Action

50
Q

This is the acquisition of title to property by possession of the property for a statutory number of years. In order to claim title, the occupancy and possession of the property must be continuous, open, hostile, exclusive and notorious. The adverse possessor must occupy the property he claims continuously, for a period of from five to thirty years, as determined by state law. Payment of property taxes by the adverse claimant may also be a necessary condition.

A

Adverse Possession

*LA - acquisitive prescription. If a claimant occupies a parcel of property in good faith, it may become his in ten years; if in bad faith, it takes thirty years.

51
Q

If two or more adverse claimants occupy the same property in succession, the years of their occupancy may be combined for the benefit of the most recent claimant. This adding together of years to meet the statutory requirements of possession is known as…

A

tacking

52
Q

Title to real property may be…

A

transferred by will

53
Q

written instrument by which a person arranges for the conveyance of his property to take effect after his death. A person who dies leaving this is said to have died testate.

A

will

54
Q

one who inherits property in a will.

A

A legatee

55
Q

Types of wills…

A
  1. ) statutory will
  2. ) holographic will
  3. ) nuncupative will
  4. ) mystic will
56
Q

a formally prepared will, usually by an attorney, which is witnessed and signed.

A

statutory will

*LA - notarial will

57
Q

a will completed entirely in the testator’s own handwriting, dated and signed by him, but not witnessed by any other person. Some states do not recognize. The testator must be legally competent to be binding.

A

holographic will

*LA - olographic will

58
Q

a will made orally by a testator who is near death. Only personal property may be transferred by this type of will. It must be witnessed, and the witness must commit the testator’s words to writing. The testator must be legally competent to be binding.

A

nuncupative will

59
Q

must be in writing, signed by the testator, sealed, and notarized with three witnesses.

A

mystic will

60
Q

Effective July 1, 1999, Louisiana recognizes only two forms of wills…

A

holographic and notarial

61
Q

an addition to an existing will by which changes in the provisions of the will are made.

A

codicil

62
Q

When a testator dies, his will is admitted to ________. This is a court proceeding designed to establish the validity and authenticity of the will, and allow the legatees, creditors, and other interested parties to claim their shares of the estate.

A

probate

*LA - succession

63
Q

An _______ is usually appointed in the will to carry out the instructions of the will. If not, the court will appoint an ______ for that purpose.

A

executor, or executrix, if female

administrator

64
Q

In LA, real property transferred by will is known as the ______. The person to whom such real property is transferred is known as the ______. An ______ is used to convey title to real property to the devisee).

A

devise

devisee

executor’s deed

65
Q

a wife’s interest in her husband’s estate at his death.

A

Dower

66
Q

the husband’s interest in his wife’s estate.

A

Curtesy

67
Q

When a person dies without leaving a valid will, he dies ________. State law determines how his property will be divided.

A

intestate

68
Q

An ______ is named by the court to administer an intestate succession.

A

administrator

69
Q

Laws of succession vary from state to state, but typically, they will satisfy the interest of heirs in the following order:

A

surviving spouses and children
deceased’s grandchildren

parents

siblings

other more distant relations

70
Q

In states recognizing community property as a form of husband and wife co-ownership, the entire estate is transferred to…

A

the surviving spouse

71
Q

In most other states, the deceased’s estate is usually divided among …

A

the surviving spouse and children

72
Q

In LA, the law that parents, when making a will, must leave a certain portion of their estate to their children. This is called the forced portion. The amount of the estate that is forced depends upon the number of children.
If there are no children, there is no forced portion.
If there is only one child, 1/4 of the estate is the forced portion.
If there are two or more children, 1/2 of the estate is the forced portion.

A

forced heirship

73
Q

In LA, there are twelve ways in which a child may be disinherited in Louisiana, including….

A
  1. ) conviction of murder or attempted murder of one or both parents
  2. ) marrying prior to the age of majority without parental consent
  3. ) not attempting to raise ransom money if a parent is kidnapped.
74
Q

In LA, the children are called…

A

naked owners

75
Q

In LA, upon the death of a parent, the children are given the right to sell or mortgage the property and the right to the proceeds from the sale

A

abusus

76
Q

In LA, the surviving spouse is given the right of enjoying the use of the property and the income produced by the property.

A

usufruct

77
Q

In LA, the portion of the estate that is not forced

A

disposable portion

78
Q

In LA, a gift in a will

A

donation mortis causa

79
Q

involves the acquisition of real property interests through natural or artificial causes, or acts of God. Although this is a type of involuntary transfer, it is treated separately because no deeds or other legal instruments are involved.

A

transfer by accession

80
Q

Principal forms of transfer by accession are…

A
  1. ) Accretion
  2. ) Reliction
  3. ) Erosion
  4. ) Attachment
81
Q

the gradual, physical increase in the size of a property as the result of some natural process, usually the action of water.

A

Accretion

82
Q

The action of the sea or a river in forming new land by deposition

A

alluvion

83
Q

the gradual exposure of land behind a receding waterline. When the water level of a lake, river, or stream drops, the land exposed becomes a part of the adjoining property.

A

Reliction

84
Q

the loss of property by wearing away of soil by wind, water, etc.

A

Erosion

85
Q

Real property interests may be gained, lost or transferred by artificial means. Improvements on real property, for example, fixtures, may become permanent property additions. Even improvements made in error, a garage built on the wrong lot, for example, can, in some cases, become part of the property to which they are attached, if they were made without the owner’s consent.

A

Attachment

86
Q

Ownership of real property is vested in the _____.

A

title

87
Q

If a title is clouded by defects, such defects will be passed along to the next person who acquired the property…

A

unless the title is cleared

88
Q

All documents that create, transfer or encumber a property must be recorded in the public records, to protect the interest of the grantee and insure future marketability of title. Public recording involves the registration or enrollment of an instrument - deed, mortgage, etc. - with some local government official, usually the county clerk or county recorder.

A

constructive notice

89
Q

In order to establish that a document which is to be recorded has been willingly signed by its true executor, proof of validity is required…

A
  1. ) Acknowledgement
  2. ) Verification
  3. ) Affidavit
  4. ) Affirmation
90
Q

a statement that the person executing a document has done so of his own free will, and that he is in fact the person whose signature appears on the document.

A

Acknowledgement

91
Q

an oath confirming the truth of a document’s contents.

A

Verification

92
Q

a written confirmation of the truth of a set of circumstances.

A

Affidavit

93
Q

a declaration made by a person prohibited from giving an oath by his religious beliefs.

A

Affirmation

94
Q

first hand information regarding a property which is known by a single interested party, or which should be known by this party.

involves the notice a person gives through his physical occupation of a property, or by his public announcement of his interest in a property.

A

actual notice

95
Q

Method is based on an attorney’s examination of the history of the title

A

The Attorney’s Opinion

96
Q

a brief summary of all recorded instruments which have affected the title, including records of taxes, special assessments, judgments, mortgages and trust deeds.

a condensed version of the information available in the public records about a particular property. It is a complete chronological, historical summary of all documents that affect the title to a property.

A

Abstract Title

97
Q

a continuous linking of owners stretching back, ideally, to the time when the land’s first owner received it by patent or grant from the government.

A

chain of title

98
Q

After the abstract is done, it is then sent to an attorney for legal examination of the title evidence. The attorney gives an opinion as to who the owner is and as to anyone else with a legitimate interest in the property. The attorney then gives a ________, which is his opinion, written, signed, and attached to the abstract. Gives a professional evaluation of the current condition of the title, but offers no guarantee of the title’s soundness

A

certificate of title

99
Q

A ______ may be filed which is a legal action in which the court is asked to resolve any possible clouds on the title.

A

suit to quiet title

100
Q

began as protection for attorneys for any errors they might make in abstracts. It is now available to anyone who wishes to buy it. It is used to protect the owner and lender against possible claims by third parties. It offers financial protection if the title proves unsound.

Protects only against the past, not the future. Title policies are taken out with a one time, lump sum payment, and are not transferable.

A

title insurance

101
Q

A title insurance company determines whether the title is insurable based on a review of the public records. Once the title company makes a payment to settle a claim, the company generally acquires the right to any remedy or damages available to the insured. This right is called _______.

A

subrogation

102
Q

protects the lender who takes the property as collateral for a loan. It protects only the amount owed on the loan, and the insured amount is reduced as the loan is paid off.

A

Mortgagee’s or Lender’s Policy

103
Q

is good for the full amount of coverage as stated on the policy and for as long as the owner or his heirs have an interest in the property.

A

Mortgagor’s or Borrower’s Policy

104
Q

normally insures the title as it is known from the public records, and against such hidden defects as forged documents, conveyances by incompetent grantors, incorrect marital statements, and improperly delivered deeds.

A

A standard coverage policy

105
Q

includes the protections of a standard policy plus additional protections against defects such as rights of parties in possession, examination of a survey and certain unrecorded liens.

A

Extended coverage

106
Q

The right of the title company to any remedy or damages available to the insured, when the title company has made a payment to settle a claim covered by a policy.

A

Subrogation

107
Q

unauthorized intrusion of a building or other improvement onto the land of another person. The owner of the land that is being encroached upon has the right to force the owner of the encroachment to remove it. Failure to do so may injure his title.

A

enroachments

A survey identifies an enroachment.

108
Q

unrecorded easements and information based on incorrect and inaccurate surveys.

A

technical errors

109
Q

such as any omission or error in public records, such as misfiling, etc.

A

Hidden defects in public records

110
Q

are other defects which can present problems in a title.

A

Uncancelled mortgages and prior judgments

111
Q

A title defect, or cloud on a title may be removed in several ways…

A
  1. ) paying unpaid taxes.
  2. ) filing a Suit to Quiet Title.
  3. ) Use of the Quitclaim Deed, whereby a third party releases any claim to the title.
112
Q

gives an owner the right to sell, will, lease, or give away his property rights.

A

The right of disposition

Real Estate 101 (11 decks)

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