Unit 3: Conveying Ownership Flashcards
What is a deed?
A physical, legal document that transfers ownership of a real estate from the grantor (seller) to the grantee (buyer)
Who are the parties in a deed?
1) Owner/seller - GRANTOR
2) Receiver/Buyer - GRANTEE
Who provides the written deed?
The owner/seller. The grantor.
T/F Deeds guarantee or prove ownership.
False. Deeds DO NOT guarantee or prove ownership.
T/F Deeds need to be recorded for title to transfer.
False. Deeds DO NOT have to be recorded for title to transfer; title passes upon acceptance of the grantee.
What are the 7 essential elements of a deed?
WILD CECe
1) Competent grantor
2) Execution by grantor
3) Identifiable grantee
4) Delivery and acceptance (by grantee)
5) Legal description
6) Consideration
7) Words of conveyance
What does it mean to be competent?
18, sane, and sober
What does the legal description describe?
Only the land
What passes when the grantee accepts the deed?
Title
What are the 3 types of deeds?
1) General Deed
2) Special (limited) Warranty Deed
3) Quit Claim Deed
What is alienation?
The act of conveying (transferring) real estate ownership (title).
What is a private grant?
From individuals, using a deed.
What is a public grant?
From the government to an individual, using a land patent.
What is a dedication?
From individuals to the government.
Which deed is the safest and offers the most protection to the grantee?
General Warranty Deed
What are the 5 covenants and warranties of title in a general warranty deed?
SQAWF
1) Covenant of seisin
2) Covenant of quiet enjoyment
3) Covenant against encumbrances
4) Covenant of further assurance
5) Warranty forever
What is the covenant of seisin?
Grantor owns and has right to convey.
What is the covenant of quiet enjoyment?
Grantee will not be “disturbed” by others claiming an interest.
What is the covenant against encumbrances?
No undisclosed encumbrances.
What is the covenant of further assurance?
Future cooperation in signing additional documents.
What is the warranty forever?
Guarantee of defense of title against claims such as liens or easements.
Which deed does not protect against any previous claims?
Special (limited) warranty deed
What does a special warranty deed guarantee?
That the property wasn’t encumbered while the grantor (seller) had ownership.
T/F In a special warranty deed, the grantor is obligated to address any title defects from before they owned the property.
False. In a special warranty deed, the grantor is NOT obligated to address any title defects from before they owned the property.
What deed is the best for the grantor?
Quit Claim Deed
What deed carries no promises, no warranties or covenants?
Quit Claim Deed
What deed would a grantor use when they want no future claims or liabilities?
Quit Claim Deed
What can a quit claim deed be used for?
As a problem solver to amend defects in the title, clear clouds on title.
What is the purpose of a deed?
The voluntary transfer of title between the owner/grantor and the receiver/grantee.
What are the 2 ways that property can be transferred after a death?
1) Testate - by will
2) Intestate - no will
What is probate?
The process of distributing all of a deceased person’s assets.
What is the advantage of having a will when it comes to transferring property after a death?
All the heirs are known and there is no chance of escheat.
What is devise?
The act of transferring a deceased person’s interest in real property to another deed.
What is bequest?
The act of transferring a deceased person’s interest in personal property to another bill of sale.
T/F The law presumes that owners of real property will inspect their property and protect their interest from anyone who is trespassing.
True
T/F Owners who do not inspect their property may lose their rights of ownership.
True
T/F Owners who are aware of possession and use by another and have given permission, can still lose their rights of ownership.
False. Owners who are aware of possession and use by another and have given permission, DO NOT lose their rights of ownership.
What are the 3 ways that real property can be transferred?
1) Voluntary Alienation
2) Through a Will
3) Involuntary Alienation
What is an example of involuntary alienation?
Adverse possession
What is adverse possession?
Ownership recognized by the courts after open, continuous, exclusive, actual, and notorious (hostile) possession of another’s land for a certain time set by states (10-15 years).
Also called “squatter’s rights”. It is basically legalized stealing.
What is the difference between adverse possession and easement by prescription?
Adverse possession deals with OWNERSHIP interest where easement by prescription deals with USE interest.
What is the mnemonic device to remember who can use and possess land?
OCEAN
Open Continuous Exclusive Actual Notorious (hostile)
