Unit 5 - Transfer of Title to Real Property Flashcards
(1) The right to or ownership of land. (2) The evidence of ownership of land.
Title
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.
Alienation
A written instrument that, when executed and delivered, conveys title to or interest in real estate; evidence of title.
Deed
(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.
Grantor
O pen C ontinuous E xclusive A dverse N otorious
Adverse Possession Requirements
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. Generally worded as convey and warrant, grant, bargain and sell, or the like,
Granting Clause
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
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.
General Warranty Deed
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.
Covenant
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.
Covenant of quiet enjoyment
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.
Special Warranty Deed/Limited Warranty Deed
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.
Bargain and Sale Deed
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.
Quitclaim Deed/Non-Warranty Deed
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
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.
Escheat
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.
Intestate
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
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.
Condemnation
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.
Adverse Possession
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
A written document, properly witnessed, providing for the transfer of title to property owned by the deceased.
Will
The state law of descent that dictates distribution of the real and personal property of the deceased that died without a will (intestate)
North Carolina Intestate Succession Act
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.
Recording
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.
Constructive Notice
A good or clear title, reasonably free from the risk of litigation over possible defects.
Marketable Title
Sales price divided by 500 then round UP to the next dollar
Excise Tax Calculation
The succession of title conveyances, from some accepted starting point, whereby the present holder of real property derives title.
Chain of Title
The search of public records to determine the current state of ownership of real estate; examining chain of title
Title Search
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.
Abstract of 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
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
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 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.
Connor Act
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
First number listed in dimensions (400 x 700)
Front foot
Requirements for a valid conveyance
- 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.
