Transfer Of Title

Question 1

Habendum clause

Answer 1

‘To have and to hold’

Additional detail describing the ownership to be enjoyed by grantee

Question 2

Requirements for valid deed

Answer 2

Legally competent grantor
Identifiable grantee
Consideration
Granting clause
Habendum clause
Legal description
Exceptions and/or reservations
Acknowledgement of signature of grantor
Acceptance by grantee

Question 3

General Warranty Deed

Answer 3

Offers the greatest protection of any deed

Covenants / warranties include:
- Covenant of Seisin: Warrants grantor owns the property and has the right to convey title
- Covenant against encumbrance: Warrants the property is free from encumbrances except those specified in deed
- Covenant of further assurances: grantor promises to obtain and deliver any instrument require to make title good
- Covenant of quiet enjoyment: grantor guarantees the title is good against any third parties who might bring action to establish superior title
- Covenant of warranty forever: grantor promises to compensate grantee for any loss sustained if the title fails at any point in the future

Question 4

Special warranty deed

Answer 4

Limits the grantors defense by warranting:
- the grantor received title
- property was not encumbered during time grantor owned property

Question 5

Bargain and Sale deed

Answer 5

No warranty against encumbrances but does imply the grantor holds title and possession

Question 6

Quitclaim deed

Answer 6

provides least protection with no covenants or warranties, conveying only whatever interest the grantor has when the deed is delivered

Question 7

Deed of trust

Answer 7

Conveyance from truster to trustee

Question 8

Reconveyance deed

Answer 8

Conveyance from trustee back to trustor

Question 9

Trustee’s deed

Answer 9

Conveyance from trustee to third party in accordance with authority granted in trust instrument

Question 10

Deed executed pursuant to court order

Answer 10

deeds established by the state statute and used to convey property title transferred by will or court order

Question 11

Transfer tax stamps

Answer 11

Way of recording transfer tax

Question 12

Adverse possession

Answer 12

Means of involuntary transfer of ownership

ONCHA
Open and obvious to any who look
Notorious - known by others
Continuous - uninterrupted
Hostile - without owner consent
Adverse - against the true owners right

Question 13

Conveyance of decedent property intestate

Answer 13

Based on state statute of descent and distribution

• co-owner / right of survivorship
• parties named in valid will
• statuary heirs

Question 14

probate

Answer 14

When property passes by will or descent - judicial process to recognize successor of property

Question 15

testator

Answer 15

person who makes a will
must have legal capacity (legal age and soul mind)

Question 16

Will

Answer 16

made by property owner to convey title
must be signed by testator in front of 2 or more witnesses (notary)

Question 17

codicil

Answer 17

separate document capturing changes to will

Question 18

UCC (uniform commercial code)

Answer 18

Commercial law concerned with personal property transactions, not real estate. It governs documents when personal property is used to secure a loan. For lender to create security interest in personal property it requires the borrower to sign a security agreement

Question 19

Torrens system

Answer 19

legal registration system used to verify ownership of real estate. Where available ti provides evidence of title with need to search public records