Unit 6 - Transfer of Title Flashcards
Acknowledgment:
A legal process where a notary public or authorized official verifies the signature of the grantor(s) on a deed.
Adverse Possession:
The acquisition of ownership rights to a property by someone who is not the lawful owner, through exclusive and continuous possession of the property for a specified period of time, usually accompanied by certain conditions such as being open, notorious, hostile, and adverse to the interest of the true owner.
Bargain and Sale Deed:
A type of deed that implies the grantor holds title and possession of the property but provides no express warranties against encumbrances.
Deed:
A legal document that transfers ownership of real estate from the current owner (grantor) to a new owner (grantee).
Deed of Trust:
A legal document where a trustor conveys real estate to a trustee for the benefit of a beneficiary.
Devise:
A gift of real property by will to the devisee.
General Warranty Deed:
A type of deed that provides the greatest protection to the grantee, including covenants of seisin, against encumbrances, further assurances, quiet enjoyment, and warranty forever.
Requirements for a valid 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)
- Habendumclause, 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
Grantee
To be valid, a deed must name a grantee. The grantee must be specifically named so that the person to whom the property is being conveyed can be readily identified from the deed itself.
Habendum clause
When it is necessary to define or explain the ownership to be enjoyed by the grantee, ahabendum clausemay follow the granting clause. The habendum clause begins with the wordsto have and to hold. Its provisions must agree with those stated in the granting clause.
Types of Deeds
General warranty deed | Deed of trust |
| Special warranty deed | Reconveyance deed |
| Bargain and sale deed | Trustee’s deed |
| Quitclaim deed | Deed executed pursuant to a court order |
Covenant of seisin:
The grantor warrants that he or she owns the property and has the right to convey title to it. The grantee may recover damages up to the full purchase price if this covenant is broken.
Covenant against encumbrances:
The grantor warrants that the property is free from liens or encumbrances, except for any specifically stated in the deed. Encumbrances generally include mortgages, mechanics’ liens, and easements. If this covenant is breached, the grantee may sue for the cost of removing the encumbrances.
- Covenant of further assurances:
The grantor promises to obtain and deliver any instrument needed to make the title good. For example, if the grantor’s spouse has failed to sign away dower rights, the grantor must deliver a quitclaim deed (discussed below) to clear the title.
Covenant of quiet enjoyment:
The grantor guarantees that the grantee’s title will be good against any third party who might bring a court action to establish superior title to the property. If the grantee’s title is found to be inferior, the grantor is liable for damages; that is, the grantor will pay the grantee if the title is not good.
