Transfer Title Flashcards
A document that shows the history of a property
It shows the correct and previous titleholders of the property and any other recordings that may affect the property
Abstract
Insurance that covers title defects or clouds of title
Title insurance
Contains the following covenants
1.Covenant of seisin
2. Covenant of right to convey
3.Covenant for quiet enjoyment
5.covenant of warranty
6. Covenant of further assurances
Warranty Deed
A promise that the grantor did not create any title defects but does not promise anything that occurred prior to the current ownership
Special warranty deed
Does not make any promises only conveys what interest the grantor holds in the land
Quitclaim deed
A third party obtains holds, and distributes money and property for the two primary parties (the buyer and the seller)
This occurs from the moment of an executed purchase agreement to the closing of the transaction
Escrow
The culmination of the real estate transaction
Closing
Holds property in trust as a neutral third party until contractual conditions are fulfilled
They bear fiduciary responsibility to both involved parties
Shows the transference of money between the parties
The statement shows the money in the form of debit and credits of value to the parties
Closing statement
The title insurance, origination fees, inspection fees, recording fee, flood certification, and other one-time costs that need to be paid before the sale closes
The buyer pays these costs unless other arrangements have been made (such as by concession from the seller)
Closing costs
The process of placing documents into public record
This is done to give legal notice and protect interests within certain properties
Recording
The profit that is realized from the sale of capital asset
It is the difference between the original purchase price and the increased sales price is lower than the original purchase price, the difference is referred to as capital loss.
Capital gain
A tax deferral transaction that an investment property may enter
This is not a tax avoidance transaction. Instead, it allows taxes to be paid at a later time rather than upon the sake of an investment property
1031 exchange
The term used for when real property is conveyed under the term of a will
Example: in my grandparents will they device the property to my parents
Devise
The term used for when personal property is transferred under the terms of a will and may be shown under a bill of sale depending on whether it was a gift or from the sale the property
Bequest
When a property owner without a will
Interstate laws of the jurisdiction will apply in determining proper heirs and which heir shall receive the personal and real property. These
Vary among jurisdictions
Interstate
Ownership acquired by a non-owner for open continuous actual notorious hostile and exclusive possession of the owners property for the required statutory period (state law determines the duration)
Adverse possession
An easement acquired by a non-owner due to open continues, actual, notorious hostile use of the owner land for the required statutory period
This does not require exclusive possession
Prescriptive easement
The opportunity for a borrower to redeem a property that has entered foreclosed back from the lender
Equity of redemption occurs before the foreclosed sale, while right of redemption occurs after
Redemption
When a borrower pays a defaulted mortgage loan in full, plus Interest and expenses that have accrued time frame and terms of the contract
This is the last chance for the borrower to retain the property
Equity of redemption (prior to foreclosure sale)
Allows a borrower a window of time to pay the lender the balance of a delinquent loan,plus interest and expenses
In some states, this allows the borrower to regain possession of their home even after it has already been sold in foreclosure. However,the right of redemption does not exist in all states
Right of redemption (after foreclosure sale)
in judicial foreciosure states, the lender
Will file lawsuit asking the court for the
Right sell the home and appiy the proceeds
the debt.Judicial foreciosure states, the lender
does not have to go through che court system to foreclosure on the home, so it may go through the process more quickly
Title taken by lender
A court ruling that holds the borrower
responsible for any outstanding balance still
remaining on the loan after the foreclosure sale
The lender requests a deficiency judgment from
The court, who then makes a ruling on the case.
This process does not exist in every state
Deficiency Judgement
When a property owner sells their property
for a lower price than the amount due on the
property’s mortgage
The mortgage lender approve the decision
to pursue a short sale, and all proceeds from a
short sale go to the lender, not the seller.
Short sale
A property owned by a lender or the
government after the property failed to sell at a foreclosure auction
The lender will retawnership until the property that meets the lender’s
satisfaction.
Real Estate owned (REO)
Which legal document
transfers a title of real estate from
oneperson to another?
A. Deed
B. Promissory note
C. Reversion
D. Plat
A: A deed is a legal document that transfers
title of property. A promissory note is a legal
document between the and the buyer
regarding the financing purchase. A reversion
is a property interest,a document. A plat is a
document used for legal descriptions.
Which of the following may
NOT be required in a deed?
A Legal description
B Words of conveyance
C Common address
D ldentfcation of the grantor and grantee
C: A common address states where a property
approximately located.its not required to be in
a deed
Which deed contains six covenants regarding the prior and the current title?
A. Quitclaim Deed
B. Warranty Deed
C. Specialty Deed
D. Legal Deed
B: A warranty deed contains the six covenants to a titie. A quitclaim deed does not make promises
regarding the title. A specialty deed does not
cover the titie prior to the current owner’s
ownership. A legal deed is not a type of deed.
Richard gives Samar a warranty
deed. This deed contains
covenants regarding title. Which of the
following is not an applicable covenant?
A. Covenant of seisin
B. Covenant of right to convey
C. Covenant of intenticons
D. Covenants of further assurances
C Choice C is not a title covenant. Choices A B
D are covenants of title
awaranty deed.
Which of the following is the term
for a title that is free of reasonable doubts
or a threat of litigation?
A. Abstract
B. Quitclaim deed
C. Warranty deed
D. Marketable title
D: A marketable title is a title that is free
from reasonable doubts or a threat of
litigation. An abstract, or abstract of titie, is a
document that shows the the history of a property A warranty deed is a legal
transfers a title along with six specific covenants.
A quitclaim deed does not maxe any promises
and onily conveys what interest the grantor holds in the land.
