Unit 4, Title Transfer Flashcards
Alienation
The act of granting real estate ownership (title)
Private Grant
From individual using a deed
Public Grant
Gov to Individual using a land patent
Dedication
Individual to gov - using a recorded plat
ex: Builder dedicating road to gov to maintain, or electrical wires
Warrenty Deed
Warrenty Deed provides the greated protection to a purcahser because the granto proomises marketable (Merchantable)title - ownership free from unknown encumberances. The granto futther agrees to prtect the grantee against any and all existing claims against the property.
Competent Grantor
18/sane/sober - can’t bet it away drunk or have dementia
Seller = grantor
Buyer = grantee
Identifiable Grantee - EXAM
Needs to be identifyable, but not competent
Consideration
Money, promises, or anything of valyue
One dollar and other goods, and valuable consideration
Habendum Clause
Names the type of estate - Fee Simple Absolute, Life Estate. To have and to hold in Fee Simple Absolute forever.
Seizan (Seisan) EXAM
clause warrants ownership in fee simple and the complete right to dispose of the property
- Grantor owns the land
- Has the authority to sell it
Warranty CLause
- Guarantor gurantees the title
2. Grantor will defent the title against all claims
Encumberance Clause
There will be no unspecified encumberances - no surprises. If there are, grantor defends them.
Execution by all grantors and signed by 2 witnesses
Seller signs, and 2 witnesses sign the deed. The buyer does not
Delivery to and acceptance by the grantee EXAM
THE TITLE PASSES WHEN THE BUYER ACCEPTS
Execution by all grantors and signed by 2 witnesses
Seller signs, and 2 witnesses sign the deed. The buyer does not sign
Quitclaim Deed
Used as a problem solver to transfer property or rights to a new owner without guarantee about the title. What Ive got, now is yours. Solve problem when you want to give up rights - homestead in a divorce, undo an easment,
Types of deed used when the record owner either can not or will not sign a deed.
- Certificate of title
- Personal Representative (deceased)
- Guardian’s Deed (minor)
Certificate of Title
Given at mortgage FORCLOSURE sale administred by clerk of circuit court. Conveys forclosed party’s interest.
Personal Representative Deed
Conveys interet of the deceased party. Rep appointed by will or court to settle estate of deceased person.
Guardian’s Deed
Convey’s a minor’s interest.
Guardian’s Deed
Convey’s a minor’s interest.
Committee’s Deed
Given by a committee authorized to act on behalf of an owner who is declared legally incompetant.
Other ways of obtaining title - EXAM
Voluntary Transfer. Testate means dying with a will, Intestate means dying without. Transfer by Will is considered voluntary. Died Testate.
Adverse posession
Involuntary Transfer. Ownership recogonized by the courtsafter actual open continuous notorious hostile and exclusive posession of another’s land for 7 years.
Public Recording System
Policies and procedures that regulate recording are establisehed by state law. In FL, each county has an Official Records dept. that is responsible for organizing and maintaingn recoreded docs.
System allows us to POST Claims
- First in time is first in right - first person to record is the one in the first position.
- In the public record - post it for the world to see
System allows us to SEARCH claims
- Search physical property for visible Claims
2. Search pubic record for recorded claims.
System allows us to SEARCH claims
- Search physical property for visible Claims
2. Search pubic record for recorded claims.
Documentary Stamp Taxes
Must be paid upon recording a deed or a new or assumed note. Stams are purchased ONLY in full increments of $100
Documentary Stamps paid
upon recording a deed or new or assumed note, stamps are purchased ONLY In full increments of $100
Document Stamp Tax by Seller
Tax to Deed property - $0.70
SO, Price of house, divided by $100, times .7
Documentary Stamp Tax paid by Borrower
On each new or assumed mortgage, on BORROWED money = $0.35. House price, divided by $100, times .35
Intangible Tax
Only on NEW MORTGAGE, not assumed. INTANGIBLE TAX IS 2 Mills - House price x .002
Marketable (Merchantable) titld
A title free from unknow encumberances. The buyers goal is to obtain marketable title
Abstract of Title
- Summary of all recoreded documents affercting title to a given parcel of land
2 Seller expected to furnish updated abstract to show a history of conveyances linking seller to all previous owners. - Buyer gives abstract to attorney who may raise objections before accepting a deed.
- Seller must clear “clouds on title” or encumberances.
Committment for title insurance
A title insurance policy provides protection against losses due to undiscovered title defects or encumberances.
Step 1. Title Examiner
Traces the chain of title to determine marketability
- History of conveyances linking present owner to original source
- Seeks unbroken chain: no missing links
Step 2. After tracing chain of title,
a committment for title insurnance is issued.
SChedule A
states an offer to insure the title
Schedule B, Part I
lists requirements that must be met by the insured prior to coverage.
Schedule B, Part II
lists policy exceptions: defects and encuberances that have been discovered or that may exist and which are NOT Covered by the policy
How far back does title insurance go today?
30 years back from the last conveyance
Buyer Debit
Anything that increased the amount of money a buyer brings to the closing ):
Credit to buyer
Decreases what buyer brings to closing (:
Seller Debit
Anything that decreases the amount of money a seller takes from the closing ):
Credit to Seller
Anything that increases what the seller takes home from the closing (:
Deed
The docment that conveys title to real estate
Money, promises, or anything of value given in exchange for something else is called
Consideration
Deed best for the GrantEE
Warrantee Deed, - guards against unspecified encumberances and defended by seller.
Constructive Notice
Legal notice through the RECORDING of a doc. Deeds do not need to be recorded to be valid.
