Transfer of Title

Question 1

Deeds-Transfers of Title

Answer 1

By descent-When a person dies intestate property passes to heirs
By Will-
By involuntary Alienation-Escheat, Eminent domain, To satisfy Debts, Natural forces (accretion, erosion, avulsion, reliction
Adverse Possession -ONCHA
Voluntary Alienation-either gift or sale

Question 2

Deeds

Answer 2

written instruments of converyance from owners (grantors) to the recipients (grantees)
General Warranty, Special Warranty, Bargain and Sale, Quitclaim

Question 3

Types of Proof of Title

Answer 3

Abstract of title and lawyer’s opinion, Torrens System, Certificate of Title, Title Insurance

Question 4

Deed Requirments

Answer 4

Grantor, Grantee must be named, Consideratin-something of value , Granting clause- must contain words that state the grantors intention to convey the property, Habendum Clause-follows granting clause when necessary to define the terms of ownership to be enjoyed by the grantee, Description of the Real Estate, Signature of the Grantor, Delivery & Acceptance, Exceptions and reservations (subject to clauses)

Question 5

RESPA

Answer 5

created to ensure the buyer and seller have knowledge of all the settlement cost before closing
Lenders must give a copy of the special info booklet, Settlement Costs and You, to each loan applicant
Borrowers must provide a GFE no later than 3 busines days after receipt of loan app
loan closing expenses must be prepared on a Uniform Settlement Statement (HUD1 Form)
RESPA only applies to transactions involving new first mortgage referral loans for a one to four family dwelling generally financed by the federally related mortgage loan

Question 6

Tax Benefits-Capital Gains

Answer 6

Homeowners who file as individuals are entitled to a $250K exclusion each/ Married couples may exclude as much as $500K from cap gains tax for profits on a sale of a principal residence if they file jointly/
no limit on the # of times homeowners may take advantage of this benefit, as long as the homeowners have occupied the property as their residence for at least 24 months of the past 5 years.

Question 7

Home-related expenses that are tax deductible for the owners

Answer 7

Some loan origination fees
Interest paid on mortgages on first and second home
Real Estate taxes but not penalties for the late payment
Discount points on loans
Prepayment penalties on loans

Question 8

1031 Tax-Deferred exhange

Answer 8

1031 provides an exception and allows you to postpone paying tax on the gain if you reinvest the proceeds in similar property as part of a qualifying like-kind exchange. Gain deferred in a like-kind exchange under IRC Section 1031 is tax-deferred, but it is not tax-free