Unit 6 Flashcards
Title
the right to or ownership of the land
What does title represent?
the owner’s bundle of legal rights
What serves as evidence of ownership of real estate?
Title
How to transfer title voluntarily?
1) sell
2) gift
How is title transferred involuntarily
operation of law
Is a title printed?
no
Voluntary Alienation
voluntarily transferring title to someone by signing a deed during the owner’s lifetime
Devise
willing of real estate
deed
transfer of real estate ownership
Legacy
money given in will
lease
contract between landlord and tenant
offer
offer by person in writing (person giving offer is offeror)
Option
person proposing option is optionee
Sublease
renting lease to someone else
Trust
one party places property in trust with someone else for the benefit of a third party
Statute of frauds
requires deeds be in writing (all states)
Grantor
person giving deed
Grant
giving deed to someone else
Grantee
person receiving deed
Mortgage
signing that if you default on your loan, they can foreclose on your house; borrow is the mortgagor
Deed
instrument that conveys property from grantor to grantee; conveys right, title or interest owned in a parcel of real estate to someone else
Promisory note
promising that you will pay something back
when does title pass from grantor to grantee
when the deed is delivered and accepted by grantee; often happens at closing
Requirements for a valid deed
- Grantor must be of lawful age (18 years old), of sound mind, and name spelled correctly and consistently throughout deed
- Deed must convey a grantee
- Statement of consideration
- Habendum clause
- Accurate legal description of property
- Any relevant exceptions and reservations
- Signator of grantor
- Acknowledgement
- Delivery and acceptance to and by grantee
Granting Clause
states intent of grantor to convey title to grantee, naming grantee(s) and intention of taking title (what their tenancy will be)
Delivery and acceptance
precise time when title will pass from grantor to grantee (not when deed is signed) when deed is delivered to grantee and accepted by grantee
Habendum Clause
states what interest is being conveyed to the grantee (ex: fee simple); always starts with “to have and to hold”
Exceptions and reservations
may specifically note encumbrances, reservations, or limitations that affect the title being conveyed
Signature of grantor
must sign deed; sometimes also require witnesses to or notarization of the grantor’s signature; sometimes will allow someone with power of attorney to sign for grantor
Power of Attorney
written specific authority
Attorney in fact
person who received someone else’s power of attorney
Acknowledgement
have grantor’s signature notarized; done as matter of business (not required)
Types of deeds
- general warranty deed (all 5 covenants)
- 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 does the statute of fraud require for deeds?
they be in writing
what does the habendum clause always start with?
“the have and to hold”
How are corporate deeds executed?
normally one authorized officer who signs on behalf of all the shareholders, conveyance of property is defined by state law
What are covenants?
promises
General warranty deed
provides the greatest protection to the buyer because the grantor is legally bound by certain covenants or warranties
covenant of seisin
gantor promises grantee that they are who they say they are
Covenant against encumbrances
what i’m conveying today is clear unencumbered titled except for reservations
Covenant of further assurances
everything doing today is everything we must do
Covenant of quiet enjoyment
promises grantee that what is being conveyed is 100% ownership of property
Covenant of warranty forever
grantor promises the grantee that they didn’t do any damage to encumber the title of this property but if it is discovered after transfer then it will be made right
Who pays for the covenant of warranty forever?
title insurance policy
Special warranty deeds
limits the grantor’s defense of the title transferred by warranting that the grantor received 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 the granting clause contain in a special warranty deed?
“grantor remises, releases, alienates and conveys”
What is the special warranty deed mostly used for?
delinquent tax sales or commercial real estate
Bargain and sale deed
has no covenants but implies if the grantor says they have the title they really do have the title
What phrase is in the bargain and sale deed
“Grants and releases” or “grants, bargains, and sells”
Quitclaim deed
provides grantee with least protection of any deed; no covenants, warranties, or implications of title to convey
Cloud on the title
title defect
what is a quitclaim deed mostly used for?
used to cure a title defect or divorce situations
Deed of trust
a trustor conveys real estate to a trustee for the benefit of a beneficiary
Reconveyance deed
used in trust situation; used by a trustee to return title to the trustor
Trustee’s deed
used in trust situation; conveyance from trustee to third party
Deed executed pursuant to a court order
deeds executed pursuant to a court order, must state entire purchase and sale price
What are some other names for a deed executed pursuant to a court order?
executor’s deed, master’s deed, administrators’ deed, sheriff’s deed
what are Deeds executed pursuant to a court order used for?
foreclosures normally
transfer tax stamps
state tax paid on conveyances of real estate; negotiable on who pays it but normally buyer pays it
what is transfer tax stamps in TN?
$0.37 for every $100 on sale price
What is the only way to have voluntary alienation?
if seller is alive and signs the title over
involuntary alienation
title transfers involuntarily
adverse possession
means of involuntary transfer, must be open, notorious, continuous, hostile, adverse
what must adverse possession be?
- open
- notorious
- continuous
- hostile
- adverse
testate
died with will
intestate
died without will
Will
made by a property owner to convey title to real and personal property after the owner’s death
Testator
person who makes a will
devise
gift of real property by will
devisee
person who receives real property by will
If someone wills property to someone but the state recognizes dower and curtsey, who gets the property?
dower and curtsey precedes laws of will so would be living spouse.
what are the 2 requirements for having a will?
- of sound mind
2. of legal age
Deathbed will
oral will
nuncupative
oral
holographic
written
does TN recognize oral wills?
no
executor
if die testate, name someone who will handle your state upon your death
Administrator/Personal Representative
State appointed person to handle your estate if die intestate
where do probate proceedings take place?
in the county in which the descendent last resided
Probate
a formal judicial process to properly allocate and distribute the assets of the deceased
