Unit 5 - Transfer of Title to Real Property

Question 1

(1) The right to or ownership of land. (2) The evidence of ownership of land.

Answer 1

Title

Question 2

The act of transferring property to another. May be voluntary, such as by gift or sale, or involuntary, as through eminent domain or adverse possession.

Answer 2

Alienation

Question 3

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

Answer 3

Deed

Question 4

(1) The property owner that is transferring title to or an interest in real property to a grantee. (2) A borrower in a deed of trust loan transaction; also called trustor.

Answer 4

Grantor

Question 5

O pen
C ontinuous
E xclusive
A dverse
N otorious

Answer 5

Adverse Possession Requirements

Question 6

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

Answer 6

Grantee

Question 7

Words in a deed of conveyance that state the grantor’s intention to convey the property at the present time. Generally worded as convey and warrant, grant, bargain and sell, or the like,

Answer 7

Granting Clause

Question 8

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 8

Delivery and Acceptance

Question 9

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; offers the greatest protection to the grantee of any deed.

Answer 9

General Warranty Deed

Question 10

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 10

Covenant

Question 11

The covenant implied by law by which a landlord guarantees that a tenant may take possession of leased premises and that the landlord will not interfere in the tenant’s possession or use of the property.

Answer 11

Covenant of quiet enjoyment

Question 12

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 not against defects existing before that time, generally using the language by, through, or under the grantor but not otherwise.

Answer 12

Special Warranty Deed/Limited Warranty Deed

Question 13

A deed that carries with it no warranties against liens or other encumbrances but that does imply that the grantor has the right to convey title. The grantor may add warranties to the deed at his discretion.

Answer 13

Bargain and Sale Deed

Question 14

A conveyance by which the grantor transfers interest in the real estate, if any, without warranties or obligations; frequently used to remove clouds on title.

Answer 14

Quitclaim Deed/Non-Warranty Deed

Question 15

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 15

Cloud on the title

Question 16

The reversion of property to the state, as provided by state law, in cases where a decedent dies intestate without heirs capable of inheriting or when the property is abandoned.

Answer 16

Escheat

Question 17

The condition of a property owner who dies without leaving a will. Title to the property will pass to the decedent’s heirs as provided in the state law of descent.

Answer 17

Intestate

Question 18

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 18

Eminent Domain

Question 19

A judicial or an 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 19

Condemnation

Question 20

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 North Carolina may be a means of acquiring title.

Answer 20

Adverse Possession

Question 21

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 21

Action to Quiet Title

Question 22

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

Answer 22

Will

Question 23

The state law of descent that dictates distribution of the real and personal property of the deceased that died without a will (intestate)

Answer 23

North Carolina Intestate Succession Act

Question 24

The act of entering or recording documents into the public record at the recorder’s office established in each county. Until recorded, a deed mortgage ordinarily is not effective against third parties, such a subsequent purchasers or mortgagees.

Answer 24

Recording

Question 25

The notice given to the world by recorded documents. All people are charged with knowledge of such documents and their contents, whether or not they have actually examined them. Possession of property is also considered constructive notice that the person in possession has an interest in the property.

Answer 25

Constructive Notice

Question 26

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

Answer 26

Marketable Title

Question 27

Sales price divided by 500 then round UP to the next dollar

Answer 27

Excise Tax Calculation

Question 28

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

Answer 28

Chain of Title

Question 29

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

Answer 29

Title Search

Question 30

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 a certification by the abstractor that the history is complete and accurate.

Answer 30

Abstract of Title

Question 31

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 31

Marketable Title Act

Question 32

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 32

Title Insurance

Question 33

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

Answer 33

American Land Title Association (ALTA)

Question 34

A North Carolina law that requires many types of real estate documents to be recorded for protection against claims from third parties. These documents include deeds, mortgages, purchase contracts, installment land contracts, assignments, options, leases exceeding three years, easements, and restrictive covenants; a pure race statute.

Answer 34

Connor Act

Question 35

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 35

Excise Tax

Question 36

First number listed in dimensions (400 x 700)

Answer 36

Front foot

Question 37

Requirements for a valid conveyance

Answer 37

• Deed must be in writing
• Grantor must have legal capacity to execute a deed
• Grantee named with reasonable certainty must be identified
• There must be adequate words of conveyance
• There must be an accurate legal description of the property conveyed.
• The deed must be signed by the grantors
• The deed must be delivered to and voluntarily accepted by the grantee.