Unit 6 Flashcards
What is the legal term for the transfer of title during the property owner’s lifetime
voluntary alienation
What requires that a deed be in writing
statute of frauds
What is the name of the person transfering their title
grantor
What is the name of the person receiving a title
grantee
the deed being executed means what
its signed
What are the requirements for a valid deed
Grantor who has the legal competency to execute the deed
Grantor who has the legal competency to execute the deed
Grantee named with reasonable certainty to be identified
Statement of consideration (usually required for recording of the deed)
Granting clause (words of conveyance)
Habendum clause, which defines the ownership right received by the grantee
Accurate legal description of the property conveyed
Any relevant exceptions or reservations to conveyance of full title
Acknowledgment (notarization) of the signature of the grantor
Delivery of the deed and acceptance by the grantee to pass title
If a grantors name has changed during is ownership what name should be listed on the deed before alienation
both names
What is a consideration clause
a clause stating that something has been given in return for the deed
What might the consideration clause say if the deed is given as a gift
they might list love and affection as the consideration
What is a granting clause
states the grantor’s intention to convey the property
What is another name for a granting clause
words of conveyance
What is an example of words of conveyance for a granting an entire fee simple interest
“to ABC and to her heirs and assigns forever.”
When is a habendum clause used
When it is necessary to define the ownership given to the grantee
What is a habendum clause
a clause usu following a granting clause that state the grantees rights when the interest conveyed is anything less than fee simple absolute
What does a habendum clause start with
to have and to hold
What do many deeds with restrictions have
termination dates for the restrictions and a renewal clause
What might the spouse need to do before their spouse transfers title
they may need to sign the deed as well to waive any marital or homestead rights
Are seals required after the grantors name
in many states
What is an acknowledgement
a formal declaration that the grantor signed the deed voluntarily and the signature is genuine
Where is the acknowledgement made
infront of a registered notary public, authorized public officer or someone prescribed by the state
What does an acknowledgement usu state
the person signing the deed is known to the officer or has produced sufficient identification
What does the notary public do after verifying ID
sign and stamp the documen t
When is the deed considered passed to the grantee
only when it is delivered to them and they accept it
What are two basic rules for corporations conveying real estate
the conveyance must be done by someone authorized in the bylarws or is given authority by resolution
the deed can only be signed by a authorized officer
Why would a grantee want to see evidence of the deed before moving forward
because fdifferent deeds provide different amount of promises made by the grantor
What are the different types of deedS
General warranty deed Special warranty deed Bargain and sale deed Quitclaim deed Deed of trust Reconveyance deed Trustee’s deed Deed executed pursuant to a court order
What deed provides the most protection
General warranty deed
What are the basic warranties or covenants of a general warranty deed
Covenant of seisin Covenant against encumbrances Covenant of further assurance Covenant of quiet enjoyment Covenant of warranty forever
What is the convenant of seisin
The grantor promises that he or she owns the property and has the right to convey title to it
What is the covenant against encumbrance
The grantor warrants that the property is free from liens or encumbrances, except for any specifically stated in the deed
What is the covenant of further assurances
The grantor promises to obtain and deliver any instrument needed to make the title good
What is the covenant of quiet enjoyment
The grantor guarantees that the grantee’s title is safe from any third party who might makes a claim to it
What is a Covenant of warranty forever:
The grantor promises to compensate the grantee for the loss sustained if the title fails at any time in the future.
What is a special warranty deed
the grantor promises that the grantor has the title and that the property was not encumbered during the time the grantor held title, except as otherwise noted in the deed.`
What does a special warranty deed not protect you against
actions of previous owners
What is usu added to a special warranty deed to provide sufficient protection
title insurance
What does the granting clause of special warranty deeds usu include
“Grantor remises, releases, alienates, and conveys
What is a common type of sale where a special war deed is used
in a tax sale or with fiduciaries
What is a Bargain and sale deed
doesnt express warranties against encumbrances
does imply that the grantor holds title and possession
What is the phrase usu used with a Bargain and sale deed
grants and releases or grants, bargains, and sells
Should the buyer prolly have title insurance with bargain and sale deeds too?
yes
If a bargain and sale deed has an added covenant against encumbrances then what would it look like and what other deed would it be equivalent to
bargain and sale deed with covenant against the grantor’s acts
a special war deed
What is a quitclaim deed
carries no covenants or warranties
usu only conveys the interest of the grantor for the use of the grantee
What phrase is usu used in a quitclaim deed
remises, releases, and quitclaims
What can a quitclaim deed be used for
to fix a title defect like a cloud on title
What is a reconveyance deed
used to return title back to trustor
What is a trustee deed
a deed created by the trustee to convey the real estate to someone other than the trsutor
What does a trustee deed need to have
a statement that the trustee is authorized to do what they are doing
What are deeds executed pursuant to a court order
executors’ and administrators’ deeds, masters’ deeds, sheriffs’ deeds used to convey titles transfered by will or court order
Many states use what type of taxes for conveyances of deeds
state transfer tax
Who pays for the state transfer taxes
depends on the purchase agreement
In many states, what must be signed regarding transfer taxes
a transfer declaration form (or transfer statement or affidavit of real property value)
Who needs to sign the transfer declaration
either both the seller and buyer or their RE professional
What does the transfer declar state
the full sales price of the property; its legal description; the type of improvement; the address, date, and type of deed; and whether the transfer is between relatives or in accordance with a court order.
What deeds may be exampt from transfer tax
Gifts of real estate
Deeds not made in connection with a sale (such as a change in the form of co-ownership)
Conveyances to, from, or between government bodies
Deeds by charitable, religious, or educational institutions
Deeds securing debts or releasing property as security for a debt
Partitions
Tax deeds
Deeds pursuant to mergers of corporations
Deeds from subsidiary to parent corporations for cancellations of stock
What are some different types of involuntary alienation
person dies intestate so escheat happens
eminent domain
nonpaymen of a debt
Prescriptive easement
What does intestate mean
without a valid will
What is the process of taking property from uses like those that allow prescriptive easements to be written
adverse possession
What are the requirements of adverse possession
Open- obvious Notorious- known by others Continuous Hostile- without owners consent Adverse- against the true owner’s right of possession.
What does testate mean
someone who dies with a will made
When a person dies intestate their proeprty is transfered to their heirs through what statute
statute of descent and distribution
What is a testor
the person who made the will
What is a codicil
a modificaton to a will
Where does probate proceedings occur
in the counties where they own real estate
What type of trust is used to avoid the delay and expenses of probate and what does it do
a revocable living trust
makes the trustor also the trustee so when the trustor dies the title auto transfers to the beneficiary
What is an example of a covenant of further assurance
if the grantor’s spouse has failed to sign away dower rights, the grantor must deliver a quitclaim deed
