Unit 4 Flashcards
Alienation
Is the act of granting real estate ownership
Private grant
From government to individual using a deed
Public grant
From government to individual using a land patent
Dedication
From individual to government using a recorded plat
Deed
Conveys title to real estate
Bill of sale
Conveys title to personal property
Competent grantor
18/sane/sober
Seller = grantor; buyer = grantor
Identifiable grantee
Need not be competent
Consideration
Money, promises, anything of value
Granting Clause
Words of conveyance
Seller is making a grant
Habendum Clause
Name type of estate
Seizin
Grantor owns the land
Grantor has lawful authority to sell
Encumbrances clause
No unspecified encumbrances
Delivery to and acceptance by the grantees
Title passes upon acceptance by the grantee
Personal representatives deed
Conveys a deceaseds interest
Guardians deed
Conveys a minors interest
Committees deed
Conveys an incompetents interest
Other ways of obtaining title
Transfer by will is considered voluntary
Adverse possession
Involuntary transfer
Establishes priority of interests
“First in time, first in right”
System allows us to search claims
Inspect property for visible claims
Inspect public records for recorded claims
Documentary stamp tax paid _____ upon recording a deed
by seller
How much is the stamp
$.70 per $100 (or portion) of price
$99,910 ./. $100 each stamp
(999.1) 100 stamps
Documentary state tax paid _______ on each new or assumed note
by borrower
Intangible tax paid _______ upon recording a new mortgage only
by borrower
$.002 (2 mils) per $1 of new mortgage recorded
80,000 x .002 = 160
Deed tax =
100,000/100 =1,000 stamps x.7 =700
Note tax
80,000/ 100 =800 stamps x .35 =280
Intangible tax =
$.002 x $80,000 =$160
Total tax sellers =
$700 deed tax ;
Total tax toborrow =
$280 note tax + $160 intangible tax =$440
Testate means dying with a will; intestate means without a will
Transfer by will is considered voluntary
Adverse possession
Involuntary transfer
Establishes priority of interests
“First in time, first in right”
System allows us to search claims
Inspect property for visible claims
Inspect public records for recorded claims
EXTENDED COVERAGE POLICY
Also protects against problems that are not recorded but would probably be discovered by inspection of the property:
A. Adverse possession
b. Encroachment
C. Easement by prescription
d. Unrecorded construction lien
Owners policy (traditionally standard coverage)
Protects owners and heirs while they have an interest
Not transferable
Mortgage lenders policy
Protects lender and assigns for the loan amount
Transferable
Debit to buyer is anything that increases the amount of money the buyer brings to the closing
Bet
Earnest money
New mortgage to lender
Seller responsibility for unpaid taxes
New mortgage to seller
Seller responsibility for interest on assumed mortgage
Assumed mortgage
Credit to seller is anything that increases the amount of money the seller takes from closing
Sales price, prepaid taxes, mortgage escrow balances
