Transfer Of Title Pt 2 Flashcards
Grantee’s right to recovery
A guarantee that the grantee will receive reimbursement due to breach of the warranty.
Includes encumberances
Special warranty deed
The warranty is limited to the owners time of possession of the property rather than unlimited in a general warranty deed
Quitclaim deed
Contains no warranties whatsoever but is simply a deed of release
May be used to clear a cloud on a title
Cloud on a title
Occurs when someone has possible claim on the title
Bargain and sale deed
Not used in NC
Similar to a quitclaim or non warranty deed
Trustee’s deed
Used by the trustee to hold title until it is conveyed to the proper person (in the case of a trust)
Sheriff’s deed
Rare in NC
Conveyed by the sheriff when it is necessary to involve law enforcement in a transfer of deed situation
Deed of gift
Can be conveyed with or without warranty (general or quitclaim)
Warranties cannot be enforced against the grantor because of it being a gift
This type of deed cannot be used to satisfy creditors rights
Must be recorded within two years to remain valid
Excise tax
Revenue or transfer stamp
To be paid by the seller
$1 per every $500 of total price of sale
(Ie 74000/500 = $148 tax)
County transfer tax
A few counties in NC impose a tax for transferring a title. The REALTOR association doesn’t like this because they try to make home ownership more affordable
Covenants of title in deeds
Assurance for the grantee that if the grantor breaches covenant that they can be sued
Title examination
Done by an attorney
Attorney looks for flaws in the title as far back as the law notes
Only concerned with public record
30 years (marketable title act)
Title insurance
Becomes active when policy is enabled
Protects the purchaser or mortgage against loss due to a defect in title or other things listed in the policy
One time premium and last as long as the buyer or his heirs have interest in the property
Title insurance rate
$2 per every $1,000
Until 100,000 then $1.50 for every $1,000
(Ie 200,000 payment = $350 insurance premium)
Owners policy
For the protection of the owner and is written for the amount the owner paid for the property
Remains in effect for the duration of ownership as well as to benefit his or her heirs
Mortgagees policy
Protects lender against any defects in the title
Diminishing liability as the house is paid off
Generally offered in package with the owners policy and often cost little to no extra cost
Leasehold policy
Protects lessee or mortgagee against defects in title
Issued when mortgagor has pledged a leasehold interest instead of fee simple title as security for the mortgage
Title recordation
Not required in NC
But should be considered essential by all people
Constructive notice is established
The conner act
Provides that certain documents are not valid against third parties until recorded creating need for security because NC is a pure race state
Most written documents need to be recorded in order to protect against this
Pure race state
The first party to record ownership shall be recognized as rightful owner or the higher priority lien
DREAMOIL
Deeds, Restrictive covenants, Easements, Assignments, Mortgages, Options, Installment land contracts, and Leases
Marketable title act
Aims to extinguish old defects in title by providing that if a chain of title can be established for 30 years without blemish then claims outside the chain would be dissolved.
The torrens system
Similar to car title registration
When ownership is transferred the old deed must be destroyed and replaced with a new one
Doesn’t allow property to be taken by adverse possession
Lengthy and costly
Action to quiet title
The due process of adverse possession.
No marketable title unless court rules in favor of the lessee
