Transfer of Title to Real Property

Question 1

testate

Answer 1

with a valid will, property may transfer to others

Question 2

intestate

Answer 2

without a will, property descends to heirs

Question 3

testator

Answer 3

author of the will

Question 4

codicil

Answer 4

amendment or addition to a will

Question 5

bequest

Answer 5

personal property transferred through a will (left to a legatee)

Question 6

holographic will

Answer 6

hand written (may or may not be found valid)

Question 7

nuncupative will

Answer 7

given on one’s deathbed, normally oral (may or may not be found valid)

Question 8

Law of Situs

Answer 8

Real Property is distributed according to the laws of the state in which the property is located

Question 9

Law of Domicile

Answer 9

Personal property is distributed according to the laws of the state in which the deceased held legal residence

Question 10

Statutory Dedication

Answer 10

an owner transfers private property to the state

Question 11

Adverse Possession (acquire title)

Answer 11

Actual, open and notorious, so as to constitute reasonable notice to the owner.
Exclusive and hostile, meaning without the owner’s permission.
Uninterrupted and continuous for the time prescribed by state law (18 years in Colorado).

Question 12

Adverse Possession (prevented by)

Answer 12

Granting the trespasser a lease to possess the property for a limited time.
Action for eviction prior to the time requirement being met.

Question 13

Tacking

Answer 13

consecutive occupation of the property by a successor in interest (heir) may allow adding the two periods together to meet the continuous use requirement.

Question 14

Color of Title

Answer 14

if a person believes she holds a valid deed (when in fact it has some defect) and acts “in good faith” for a period of 7 years, that owner may secure good title.

Question 15

Elements of a Deed

Answer 15

Written Instrument
Date
Named parties (Grantor and Grantee)
Consideration (or recital thereof)
Words of Conveyance (Habendum clause)
Legal Description
Exceptions and Restrictions
Warranties and Covenants - convey all of the grantor’s interest.
Signature of the Grantor
Delivery and Acceptance - intent of the grantor.
Acknowledgment
Recording

Question 16

Proof other than a Deed

Answer 16

A policy of title insurance;
An abstract and opinion;
A Torrens certificate.

Question 17

Marketable Title

Answer 17

good, clear and reasonably free from risk of litigation over defects other than any specified in the sales contract.

Question 18

cloud

Answer 18

a defect that turns up in the title commitment, but was not identified in the sales contract

Question 19

Patent defect

Answer 19

in title is one that is obvious and can be seen by a knowledgeable person

Question 20

Latent defect

Answer 20

title is one that is not obvious, and could not be identified even by a knowledgeable person

Question 21

Owner’s Title Policy

Answer 21

Issued about 4 to 6 weeks after closing.
Will protect the insured against losses arising from title defects (hidden risks), like forged documents.
Does not protect against anything not recorded or taxes and assessments not yet due

Question 22

Mortgagee’s Title Policy

Answer 22

Insurance coverage is equal to the amount of the loan; it reduces as the loan is paid down over time.
Normally paid by buyer; usually a small charge if purchased through the same title insurance company.
Stays in effect as long as the loan remains on the property, regardless of successive owners.

Question 23

Abstract and Opinion

Answer 23

The abstract must be certified to date of sale.
An attorney’s letter of opinion must support the certified abstract to create legal evidence of merchantable title.
An Abstract and Opinion together do constitute legal evidence of title but do not protect against forged documents or anything that has not been recorded.

Question 24

Torrens Certificate

Answer 24

The initial use of the Torrens system is optional, but once property is registered, subsequent transfers must follow the same registration procedures.
For several reasons, most mortgagees require title insurance even for Torrens-registered titles.
Land held under Torrens registration is not subject to claims of adverse possession.