Unit 6 - Transfer of Title Flashcards
What does Title mean
The right to or ownership of the land
What 2 functions does the term Title have
It represents the owner’s bundle of rights and serves as evidence of that ownership
What is Voluntary Alienation
Legal term for the transfer of title during the property owner’s lifetime. Transferring by gift or selling voluntarily
What is a Deed
A document by which an owner of real estate conveys the right, title, or interest owned in the parcel of real estate to someone else. Deed must name a grantee, specifically by name
What is a Grantor
The seller. Owner who transfers the property
What is a Grantee
The person who receives the property
What are 3 requirements to be a Grantor
Must be of lawful age (18)
Must be legally competent (sound mind)
Name must be spelled correctly and consistently throughout the deed.
*Voidable if all three aren’t met
What is Consideration
Something in return for deeding the described property to a grantee. Something of value, usually money
What is a Granting Clause
Words, or conveyance, that states the grantor’s intention to convey the property.
What is a Habendum Clause
Used to define or explain the ownership to be enjoyed by the grantee. Usually begins with “to have and to hold”
What is an Acknowledgment
A formal declaration under oath that the person who signs a written document does so voluntarily and the signature is genuine.
What are the 9 requirements for a valid deed
Grantor, Grantee, Granting Clause (words of conveyance), Habendum clause (defines the ownership rights received by the grantee), Accurate legal description, any relevant exceptions or reservations to conveyance of full title, Acknowledgment (notarization) of the grantor’s signature, delivery of the deed and acceptance by the grantee to pass title
What 2 basic rules for execution of corporation deeds
-Authority defined in its bylaws or on resolution passed by board of directors and shareholders
-Deed conveying real estated can be signed only by an authorized officer.
What are 8 most common Deed
General Warranty, Special Warranty, Bargain and Sale, Quitclaim, Deed of Trust, Reconveyance Deed, Trustee’s Deed, Deed executed pursuant to a court order
What is a General Warranty Deed
Provides greatest protection to the buyer because the grantor is legally bound by certain covenants (promises)
What are 5 covenants of General Warranty Deed
-Seisin: owns property and has right to convey it
-Against Encumberances: free from liens, easements, etc.
-Further Assurances: promises to obtain and deliver an instrument
needed to make the title good
-Quiet Enjoyment: guarantees title will be good against any third party
who might bring a court action.
-Warranty Forever: promises to compensate the grantee for the loss
sustained if the title fails at anytime in the future.
What 2 warranties are in a Special Warranty Deed
-Grantor received the title (I own it)
-Property was unencumbered during time grantor owned it
“Grantor remises, releases, alienates, and conveys”
What is a Bargain and Sale Deed
No warranties against encumberances, and implies the grantor hold title and possesion (Sheriff Sale) “grants and releases or grants, bargains, and sells”
What is a Quitclaim Deed
Used primarily to convey less than fee simple or to cure a title defect. Carries least protection of any deeds and has no convenants or warranties. “remises, releases, and quitclaims”
What Deed is used to cure a title defect or “cloud”
Quitclaim
What is a Deed of Trust
Trustor conveys real estate to a Trustee for the benefit of the Beneficiary. Conveyance from Trustor to Trustee
What is a Reconveyance Deed
Conveyance from Trustee back to Trustor
What is a Trustee’s Deed
Conveyance from Trustee to a third party (anyone other that the Trustor)
What is a Deed Executed Pursuant to a Court Order
Established by state statute and are used to convey title to property that is transferred by will or court order.
What is a Transfer Tax Stamp
Taxes paid to state when a real estated transfer occurs. Paid by seller or buyer or split between both.
How do you calculate Transfer Taxes
Value divided by dollar amount per taxable unit + taxable units
taxable units x rate per unit = tax (Transfer tax of $1.50 for each $500; $300,000 house) (300,000 div. 500 = 600; 600 x 1.5 = 900)
What is Involuntary Alienation
Transferring property without the owner’s consent. (Escheat, Eminent Domain, Foreclosure, Adverse Possession)
What does Testate and Intestate mean
Testate: with a valid will. Divided as indicated in will.
Intestate: without a valid will. Divided to heirs accourind to the state’s
statute of descent and distribution.
What is Adverse Possession
Indiviual who makes a claim to a certain property, takes exclusive possession of it by excluding the true owner and any other title claimants, and (most importantly) uses it. (Usually a vacant lot)
What are the 5 characteriscs of Adverse Possession - ONCHA
Open-obvious to anyone who looks
Notorious-known by others
Continuous-Uninterupted (9 years in Indiana)
Hostile-without the true owner’s consent
Adverse-against the true owners right of possession.
What is Probate
Judicial process used with a title passes by will or descent.
What is a Devise, Bequest, and Legacy
Devise: real property, Bequest: personal property, Legacy: cash
What does a Nuncupative Will mean
Oral Will
What does a Holographic Will mean
Hand-written Will
What is a Codicil document used for
Any modification or addition to a previously executed will
Who is a Testator
The person who is alive and makes a will
Where are Probate proceedings held
County where the decedent last resided and in county where decedent owned any real estate
What is the difference between an Executor and an Administrator of a will
Executor is named in the will by the testator. Administrator is appointed by the court if there is no will or no executor is named
