Unit 1 Chapter 10 Flashcards
Transfer of title
to real estate, also called alienation, occurs voluntarily—by grant, deed, or will— and involuntarily—by descent, escheat, eminent domain, foreclosure, adverse possession, estoppel, or dedication. When the transfer uses a written instrument, the transfer is called a conveyance.
A deed or deed of conveyance is
a legal instrument used by an owner, the grantor, to transfer title to real estate
voluntarily to another party, the grantee.
In order to be valid, a deed must:
- Be delivered and accepted.
- Have a competent grantor and legitimate grantee.
- Be in writing.
- Contain a legal description.
- Contain a granting clause.
- Include consideration.
- Be signed by the grantor.
- Be acknowledged.
Conveyance clauses
describe the details of the transfer.
The principal conveyance clauses are:
• Premises clause- contains the conveyance intentions; names the parties; describes the property;
indicates nominal consideration.
• Habendum clause- describes the type of estate being conveyed.
• Reddendum clause- recites restrictions and limitations to the estate being conveyed.
• Tenendum clause- identifies property being conveyed, in addition to land.
Covenant (or Warrant) clauses
present the grantor’s assurances to the grantee.
Warrant of seizen
assures that the grantor owns the estate to be conveyed, and has the right to do so.
Warrant of quiet enjoyment
assures that the grantee will not be disturbed by third party title disputes.
Warrant of further assurance
assures that the grantor will assist in clearing any title problems
discovered later.
Warranty forever; warranty of title
assures that the grantee will receive good title, and that grantor will assist in defending any claims to the contrary.
Warrant of encumbrances
assures that there are no encumbrances on the property except those expressly named.
Warranty against grantor’s acts
states the assurance of a trustee, acting as grantor on behalf of the owner, that nothing has been done to impair title during the fiduciary period.
statutory deeds
The most common deeds are statutory deeds, in which the covenants are defined in law and do not need to be
fully stated in the deed. The prominent types are the following.
• Bargain and sale- “I own but won’t defend”
• General warranty- “I own and will defend”
• Special warranty- “I own and warrant myself only”
• Quitclaim- “I may or may not own, and won’t defend”
a special-purpose deed is
one tailored to the requirements of specific parties, properties, and purposes. The principal types are: personal representative’s deed, guardian’s deed, sheriff’s deed, deed of trust, deed in trust, master deed, partition deed, patent deed, and tax deed.
Forms of involuntary title transfer:
• Descent and escheat: no will
• Abandonment
• Foreclosure: lose title by forfeiture
• Eminent domain: lose title to public for the greater good
• Adverse possession: by claim of right or color of title; continuous, notorious, hostile possession; may have
to pay taxes
• Estoppel: barred by prior acts or claims
• Escheat
• Dedication