Unit 3: Ownership and Title Transfer

Question 0

2 parties to a deed

Answer 0

Grantor

Grantee

Question 1

Deed

Answer 1

• Written legal document by which ownership of property is transferred from one party to another
• Must be signed by the grantor to convey title
• does not pass to the grantee until the deed is delivered and accepted
• must have legal description to be valid
• executed by grantor signing
• recording is not essential
• voluntary alienation of real property

Question 2

Covenant of Quiet enjoyment

Answer 2

Assurance to the grantee that he will not be disturbed by someone else with a lawful interest in the property

Question 3

Quit claim deed

Answer 3

Conveys whatever interest in the property the grantor holds at the time of conveyance and contains no covenants or warranties

Grantor conveys nothing

Used to clear clouds on title and release interest in property (divorce)

Grantor wants no future claims or liability

Question 4

Special Warranty Deed

Answer 4

Deed with warranties that apply only to the period the grantor owned the property

*corporation buys your house in moving package

No protection against previous claims

Used by banks to,transfer title to foreclosed property

Question 5

Severally

Answer 5

Property owned by one person

Upon death goes to heirs or devises

Question 6

Tenants in common

Answer 6

Form of concurrent ownership in which each tenant owns an undivided ownership share in the entire property

Has no right of survivorship to other owners

Interests go to heirs or devises upon death

Owners must buy at the same time

Shares can be equal or unequal

Married couple who divorce and still own property together

Question 7

General warranty deed

Answer 7

Considered the best deed for a grantee

Question 8

Joint tenancy

Answer 8

Concurrent ownership in which all of the owners have equal shares in the property

Has right of survivorship, overrides a will

Does NOT require com owners to go thru probate to obtain title

Not typical in NC

If 1 owner sells share, new owner will be a tenant in common

Question 9

Time share

Answer 9

Undivided interest in a resort condominium as a tenant in common for at least 5 times over 5 years

No set number of days or years required unless created by state law

Question 10

Condominium

Answer 10

Created by filing a declaration

Common elements are owned by all current owners as tenants in common . Elements owned as ‘tenants in common’

Deed transfers fee simple interest in unit plus undivided interest in common elements

Question 11

Cooperative

Answer 11

A person who holds stock in a building owned by a corporation and owns rights

Question 12

Adverse possession

Answer 12

An owner who fails to inspect her real property and give notice to a trespasser might loose the right of ownership

Ownership recognized after pen, continuous , exclusive , actual and notorious (hostile) possession of another’s land for a certain period of time set by state law

Can not be adverse possession if all parties know and agree to the possession

Question 13

Tacking

Answer 13

Group of people who have continuously used a path over private property may gain the right to prescriptive easement thru this process

In NC the period in which to make a claim is 20 yrs

Question 14

Tenants by the Entirety

Answer 14

Married couples in NC typically take title as this

Each spouse owns equal, undivided interest regardless of financial contribution

Automatic survivorship, spouse becomes owner in severalty

Will can not over ride

Question 15

Covenant of Seisin

Answer 15

Covenant affirms that grantor holds title and has the right to convey it to another

Question 16

Probate process

Answer 16

Required if party died testate

Act of distributing all of a deceased person’s assets

Question 17

Title to real property

Answer 17

Occurs at the moment the deed is delivered and accepted

Question 18

Syndication

Answer 18

2 or more people or firms joining together as an entity to own real estate

Corporation, partnership, trust, real estate investment trust (REIT)

Question 19

4 essential elements of Joint Tenancy

Answer 19

1) Possession
2) Interest
3) Title
4) Time

Question 20

Partition lawsuit

Answer 20

Can divide property among co owners

Question 21

Townhouse

Answer 21

Horizontal units that own land under unit

Common elements owned by HOA

Question 22

Cooperative

Answer 22

Corporation gets tax wrote off and pays the taxes

Owned by the corporation which allows owners occupancy

Buyers receive membership in association, shares of stick, proprietary lease which gives right of possession

Question 23

Alienation

Answer 23

Act of conveying real estate title

Thru:

Private grant : from individuals using deed

Public Grant: from the gov to individuals using a land patent

Dedication : from individuals to the government

Question 24

Essential elements of a valid deed:

Answer 24

1) competent grantor : 18, sane and sober
2) identifiable grantee (does not have to be competent)
3) words of conveyance: (granting clause) states seller is making a grant that conveys warranties of the deed
4) legal description
5) consideration : money or something of value
6) execution by the grantor : must be signed by all owners in order to convey
7) delivery to and acceptance by the grantee

Question 25

5 covenants and warranty to title in a deed

Answer 25

1) covenant of Seisin- grantor owns and has the right to convey
2) covenant of quiet enjoyment- guaranteed owner will not be ‘disturbed’ by 3rd party claims
3) covenant against encumbrances- all liens removed
4) covenant of further assurance - cooperation in signing additional documents
5) warranty forever - guarantee of defense of title against claims such as liens or easements

Question 26

Correction deed

Answer 26

Used to correct title issues such as misspelling

Typically not used to release interest in a property

Question 27

Other deeds

Answer 27

1) bargain in sale deed: no warranties against liens, but warrants grantors right to convey title
2) Trustee deed/sheriffs deed/certificate of sale: transfers title at the end of a foreclosure
3) Reconveyance deed: used when borrowers pay off a loan secured by deed of trust

4

Question 28

NC Special Purpose Deeds:

Answer 28

1) timber deed - transfers timber rights
2) mineral deed- transfers subsurface rights
3) tax deed- given at tax foreclosure sale
4) deed of gift: used to make gift of real property

Question 29

Devise

Answer 29

Act of transferring a deceased per dibs interest in real estate by deed

Question 30

Bequest

Answer 30

Act of transferring a deceased person’s assets by bill of sale

Question 31

Intestate secession (no will)

Answer 31

Heirs/descendants determined by stare laws of descent

NC uses system of intestate succession, not statutory marital estates

Question 32

OCEAN (easement by prescription)

Answer 32

O: open - visible use

C: continuous

E: exclusive -distinct

A: actual

N: notorious (hostile)

Adverse possession : possession
Prescriptive easement: use

Question 33

Seller’s disclosure statement :completed by seller (not broker) to the best of their knowledge

Answer 33

Should cover:

1) Land/soil and environmental conditions
2) structural issues and condition of fixtures
3) lot size, encroachments, easements etc
4) all material defects
5) tax liens or special assessments

Question 34

Broker disclosure

Answer 34

Must do a visual inspection

1) disclose all material defects found
2) request that seller disclose any latent defects