Unit 5: Transfer of Title to Real Property

Question 1

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

Answer 1

abstract of title

Question 2

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

Answer 2

action to quiet title

Question 3

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.

Answer 3

adverse possession

Question 4

this clause prevents the borrower from letting someone else assume the debt without the lender’s approval

Answer 4

alienation clause

Question 5

a title insurance policy that protects the interest in a collateral property of a mortgage lender that originates a new real estate loan

Answer 5

American Land Title Association (ALTA)

Question 6

a deed that carries with it no warranties against liens or other encumbrances but that does

Answer 6

bargain and sale deed

Question 7

the succession of title conveyances, from some accepted starting point, whereby the present holder of real property derives title

Answer 7

chain of title

Question 8

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.

Answer 8

cloud on the title

Question 9

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.

Answer 9

condemnation

Question 10

A NC law that requires many types of real estate documents to be recorded for protection against claims from third parties.

Answer 10

Connor Act

Question 11

the notice given to the world by recorded documents

Answer 11

constructive notice

Question 12

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.

Answer 12

covevant

Question 13

a written instrument that, when executed and delivered, conveys title to or interest in real estate; evidence of title

Answer 13

deed

Question 14

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.

Answer 14

delivery and acceptance

Question 15

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

Answer 15

eminent domain

Question 16

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.

Answer 16

escheat

Question 17

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.

Answer 17

excise tax

Question 18

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.

Answer 18

general warranty deed

Question 19

a person who receives a conveyance of real property from a grantor

Answer 19

grantee

Question 20

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.

Answer 20

granting clause

Question 21

the property owner that is transferring title to or an interest in real property to a grantee.

Answer 21

grantor

Question 22

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.

Answer 22

intestate

Question 23

a good or clear title, reasonably free from the risk of litigation over possible defects.

Answer 23

marketable title

Question 24

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.

Answer 24

Marketable Title Act

Question 25

the state law of descent that dictates the distribution of the real and personal property of the deceased that died without a will.

Answer 25

North Carolina Intestate Succession Act

Question 26

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.

Answer 26

quit claim deed

Question 27

the act of entering or recording documents into the public record at the recorder’s office established in each county.

Answer 27

recording

Question 28

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.

Answer 28

special warranty deed

Question 29

the right to or ownership of land (the evidence of ownership of land)

Answer 29

title

Question 30

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.

Answer 30

title insurance

Question 31

the search of public records to determine the current state of ownership of real estate; examining chain of title.

Answer 31

title search

Question 32

a written document, properly witnessed, providing for the transfer of title to property owned by the deceased.

Answer 32

will