Transfer Of Title

Question 1

Title

Answer 1

Has 2 functions
Means the right to or ownership of the land. Represents owners bundle of legal rights. ALSO serves as evidence of that ownership.

Question 2

Voluntary alienation

Answer 2

The legal term for the transfer of title during the property owners lifetime. Can transfer by making a gift or selling the property.

Question 3

Deed

Answer 3

A document by which an owner of real estate conveys right, title, or interest owned in the parcel of real estate to someone else. Statute of frauds requires all deeds be in writing.

Question 4

Grantor

Grantee

Answer 4

Owner who transfers the property.

Person who receives the property.

Question 5

Deed generally must contain these elements

Answer 5

-grantor who can execute deed
-grantee named with certainty to be identified
-statement of consideration
-granting clause (words of conveyance)
-habendum clause -denies ownership right received
-accurate description of property conveyed
-any relevant exceptions or reservations
-acknowledgment (notarization) of the signature of grantor
-delivery of deed and acceptance by the grantee to pass title
May include any limitations on the conveyance of a full fee simple estate and a statement of any exceptions and reservations that affect title

Question 6

Grantor

Answer 6

Usually at least 18 years old. Deed executed by a minor is generally voidable. Must be legally competent. Name must be spelled correctly. And if changed following marriage both names should be shown

Question 7

Consideration

Answer 7

A valid deed must contains acknowledging that the grantor has received some form of consideration; that is, something in return for feeding the property to the grantee. Usually stated in dollars. It can be a small amount

Question 8

Granting clause

Answer 8

Words of conveyance; that states the grantors intention to convey the property. Uses words like convey and warrant…remise, release, alienate and convey….grant, bargain, and sell….remise, release, and quitclaim.
Conveying entire fee simple interest contains wording such as “to ABC and to her heirs and assigns forever”. If less than complete fee simple interest “to ABC for the duration of her natural life.”

Question 9

Habendum Clause

Answer 9

When it is necessary to define or explain the ownership to be enjoyed by the grantee, a habendum clause may follow the granting clause. Begins with words like to have and to hold.

Question 10

Exceptions and reservations

Answer 10

Notes any encumbrances, reservations, or limitations that affect the title being conveyed. A grantor may reserve some right in the land for grantors use. May place certain restrictions on a grantee’s use of the property.

Question 11

Acknowledgement

Answer 11

A formal declaration under oath that the person who signs a written b does so voluntarily and that the signature is genuine. Made before a registered notary public or an authorized public officers. This is not essential to the validity of a deed unless it is required by state statute. Well

Question 12

General warranty deed

Answer 12

Provides the greatest protection to the buyer because the grantor is legally bound by certain convenants (promises) or warranties using specific words in covenants.

Question 13

Special warranty deed

Answer 13

Contains two basic warranties

• that the grantor received title
• that the property was not encumbered during the time the grantor held title, except otherwise noted in deed. Convey warrant or warrant generally

Question 14

Bargain and sale deed

Answer 14

Contains no express warranties against encumbrances, but it does imply that the grantor holds the title and possession of the property.
Warranty is not specifically stated so the grantee has little legal recourse if title defects appear later. Buyer should buy title insurance.
If a convenant against encumbrances initiated by grantor is added to bargain and sale deed it is équivalant to a special warranty deed.

Question 15

Quitclaim deed

Answer 15

Provides the grantee with the least protection of any deed. It carries no covenants or warranties and generally conveys only whatever interest the grantor may have when the deed is delivered. Can be as effective as a warranty deed if the grantor has good title when deed delivered. Grantor only remises, releases, and quitclaims the grantor interest in property if any.
Quitclaim deed is the only type of deed used to convey less than a fee simple estate. Also used to cure a title defect. Used for inherited property that is not certain on validity of title. And used most common for simple transfer of property from one family member to another.

Question 16

Deed of trust

Answer 16

The means by which a trustor conveys real estate to a trustee for the benefit of a beneficiary.

Question 17

Re conveyance deed

Answer 17

Used by a trustee to return the title to the trustor. In a “lien theory” state in which a deed of trust is treated as creating a lien on property, rather than transferring title, a document called a satisfaction of mortgage fulfills this sales purpose.

Question 18

Trustees deed

Answer 18

A deed executed by a trustee. It is used when a trustee conveys real estate held in the trust to anyone other than the trustor. The deed must state that the trustee is executing the instrument in accordance with the powers and authority granted by the trust instrument.

Question 19

Transfer tax

Answer 19

Aka grantors tax. It’s payable when the deed is recorded. In some states the taxpayer purchases stamps from the recorder of the county and must be affixed to the deed before it can be recorded. Can be paid by either seller or buyer or both. Tax rate varies.

Question 20

Transfer declaration form

Answer 20

States:
Full sales prices
It's legal description
The type of improvement 
The address, date, and type of deed
Whether the transfer is between relatives or in accordance with a court order.

Question 21

Deeds exempt from tax

Answer 21

Gifts of real estate
Deeds not made in connection with a sale
Deeds by charitable, religious, or educational institutions
Deeds securing debts or releasing property as security for debt
Partirions
Tax deeds
Deeds pursuant to mergers of corporations
Deeds from subsidiary to parent corporations for cancellations of stock

Question 22

Involuntary alienation

Answer 22

Title to property may be transferred without the owners consent. Usually carried out by operations of law, such as condemnation, foreclosure of a mortgage loan, or sale to Satisfy delinquent tax or mortgage liens.

Question 23

Intestate

Answer 23

When a person dies without a valid will, the title to the real estate passed to the heirs identified in the states law of intestate succession. If no heirs found, state will acquire the property by escheat.

Question 24

Adverse possession

Answer 24

Another means of involuntary transfer. Someone who makes a claim to a certain property takes exclusive possession of it by excluding the true owner in any other title claimants, and uses it, it may take the title away from an owner who fails to use our inspect the property for a period of years.

Question 25

Claimant must have the following characteristics ONCHA

Answer 25

Open- obvious to anyone who looks
Notorious- known by others
Continuous- uninterrupted
Hostile- without the true owners consent
Adverse- against the trust owners right of possession

Question 26

Testate

Answer 26

A person who dies testate has a prepared a will indicating how the personal property will be disposed at the time of death.

Question 27

Probate

Answer 27

The judicial process a title must go trough when being passed by will it descent. Takes place in the county in which the descendent last resided.

Question 28

Will

Answer 28

Made by property owner to convey title to real and personal property after the owners death. This differs from a deed which must be delivered during the lifetime of the grantor and that conveys a present interest in property.

Question 29

Testator

Answer 29

The person who makes a will, is alive, any property included in the will can still be conveyed by the owner:

Question 30

Devise

Answer 30

The gift of real property by will. Cannot supersede the state laws of dower, curtesy, and homestead.

Question 31

Heirs

Answer 31

The surviving spouse and children by birth or adoption or other close blood relatives identified in the event the decedent has no surviving spouse or children.

Question 32

Sample statutory distributions

Answer 32

Illustrates how a states statue of descent and distribution might provide for an interstates estate.

Question 33

Covenant of seisin

Answer 33

Grantor warrants that he or she owns the property and has the right to convey title to it. The grantee may recover damages up to the full purchase price if covenant is broken.

Question 34

Covenant against encumbrances

Answer 34

The grants warrants that the property is free from liens or encumbrances, except for any specifically stated in the deed. Encumbrances generally include mortgages, mechanics liens, and easements. If this cabinet is breached, the grantee miss you for the cost of removing the encumbrances.

Question 35

Convenant of further assurances

Answer 35

The grantor promises to obtain and deliver any instrument needed to make the title good.

Question 36

Covenant if quiet enjoyment

Answer 36

The grantor guarantees of the grantees title will be good against any third-party who might bring a court action to establish superior title to the property. If the grantee is the title is found to be inferior, the grantor is liable for damages.

Question 37

Covenant of warranty forever

Answer 37

The grantor promises to compensate the grantee for the loss of sustained if the title fails at anytime.