Unit 5: Transfer of Title to Real Property Flashcards
The condensed history of a title to a particular parcel of real estate, consisting of a summary of the original grant and all subsequent conveyances and encumbrances affecting the property and certification by the abstractor that the history is complete and accurate
abstract of title
A lawsuit brought in a court in order to establish a party’s title to real property and to “quiet” any challenges or claims to the title
action to quiet title
the open, continuous, exclusive, adverse, notorious (OCEAN) possession of another’s land under a claim of title. Possession for a statutory period of 20 years in NC may be a means of acquiring title.
adverse possession
this clause prevents the borrower from letting someone else assume the debt without the lender’s approval
alienation clause
a title insurance policy that protects the interest in a collateral property of a mortgage lender that originates a new real estate loan
American Land Title Association (ALTA)
a deed that carries with it no warranties against liens or other encumbrances but that does
bargain and sale deed
the succession of title conveyances, from some accepted starting point, whereby the present holder of real property derives title
chain of title
any document, claim, unreleased lien or encumbrance that may impair the title to real property or make the title doubtful; usually revealed by a title search and removed by either a quitclaim deed or suit to quiet title.
cloud on the title
a judicial or administrative proceeding to exercise the power of eminent domain, through which a government agency takes private property for public use and justly compensates the owner.
condemnation
A NC law that requires many types of real estate documents to be recorded for protection against claims from third parties.
Connor Act
the notice given to the world by recorded documents
constructive notice
a written agreement between two or more parties in which a party or parties pledge to perform or not perform specified acts with regard to property; usually found in such real estate documents as deeds, mortgages, leases, and contracts for deed.
covevant
a written instrument that, when executed and delivered, conveys title to or interest in real estate; evidence of title
deed
the actual delivery of a deed by a grantor and the actual or implied acceptance of the deed by the grantee; recordation of the deed is viewed as acceptance.
delivery and acceptance
the right of a government or municipal quasi-public body to acquire property for public use through a court action called condemnation, in which the court decides that the use is a public use and determines fair compensation to be paid to the owner
eminent domain
the conversion of property to the state, as provided by state law, in cases where a decedent dies interstate without heirs capable of inheriting or when the property is abandoned.
escheat
deed transfer tax paid by the seller and required to be noted on a deed by state law; the rate is $1 per $500 of sales price.
excise tax
a deed in which the grantor fully warrants good clear title to the premises through four covenants in the deed. Used in most real estate deed transfers, a general warranty deed offers the greatest protection to the grantee of any deed.
general warranty deed
a person who receives a conveyance of real property from a grantor
grantee
words in a deed of conveyance that state the grantor’s intention to convey the property at the present time. The clause is generally worded as convey and warrant grant, bargain and sell or the like.
granting clause
the property owner that is transferring title to or an interest in real property to a grantee.
grantor
the condition of a property owner who dies without leaving a valid will. Title of property will pass to the decedent’s heirs as provided in the state of law of decent.
intestate
a good or clear title, reasonably free from the risk of litigation over possible defects.
marketable title
the act is designed to eliminate obsolete defects in a chain of title. If a chain of title can be traced back for 30 years without a problem, it becomes a marketable title.
Marketable Title Act
the state law of descent that dictates the distribution of the real and personal property of the deceased that died without a will.
North Carolina Intestate Succession Act
a conveyance by which the grantor transfers interest in the real estate, if any without warranties or obligations; frequently used to remove clouds on the title.
quit claim deed
the act of entering or recording documents into the public record at the recorder’s office established in each county.
recording
a deed in which the grantor only warrants, or guarantees, the title against defects arising during the period of the grantor’s tenure and ownership of the property and against defects existing before that time, generally using the language by, though, or under the grantor but not otherwise.
special warranty deed
the right to or ownership of land (the evidence of ownership of land)
title
a policy insuring the owner and/or mortgagee against loss by reason of defects in the title to a parcel of real estate, other than encumbrances, defects, and matters specifically excluded by the policy.
title insurance
the search of public records to determine the current state of ownership of real estate; examining chain of title.
title search
a written document, properly witnessed, providing for the transfer of title to property owned by the deceased.
will
