Unit 7 - part 1

Question 1

term title and title to real estate

Answer 1

The term title has two functions. Title to real estate means the right to or ownership of the land; it represents the owner’s bundle of legal rights. Title also serves as evidenceof that ownership.

Title to real estate is a way of referring to ownership but is not an actual printed document. There is one exception to that general rule. In states that recognize a Torrens certificate, it is the certificate itself that provides evidence of ownership.

Question 2

Real estate transfers

Answer 2

Real estate may be transferred voluntarily by sale or gift.

It may be transferred involuntarily by operation of law.

Question 3

Voluntary alienation

Answer 3

Voluntary alienation is the legal term for the transfer of title during the property owner’s lifetime. An owner may transfer title by making a gift or by selling the property.

Question 4

Requirementsfor a Valid Deed

Answer 4

1. Grantor
2. Grantee
3. Statement of consideration
4. Granting clause ( words of conveyance)
5. Habendum clause
6. Legal description of the property
7. Exceptions or reservations
8. Signature of Grantor
9. Acknowledgment
10. Delivery of the deed and acceptance

Question 5

Consideration

Answer 5

• given in exchange for something else
• distinguishes a contract from gift
• grantor must receive something of value for transfer
• $10 and other good and valuable consideration.
• services can be given instead of cash

Question 6

Granting clause

Answer 6

• shows intent to transfer title
• clearly state grantor is conveying real property
• identify type of estate (ownership) granted
  (fee simple, life estate, easement…)

Question 7

Habendem Clause

Answer 7

• define or explain the ownership to be enjoyed by the grantee,
• the habendum clause begins with the words to have and to hold.

For example, if a grantor conveys a time-share interest or an interest less than fee simple absolute, the habendum clause would specify the owner’s rights as well as how those rights are limited (a specific time frame or certain prohibited activities, for instance).

Question 8

Exceptions and Reservations

Answer 8

• encumbrances, reservations, or limitations that affect the title being conveyed
• This might include such things as restrictions and easements that run with the land.
• A grantor may also place certain restrictions on a grantee’s use of the property.
• Developers often restrict the number of houses that may be built on each lot in a subdivision.

Question 9

Delivery and Acceptance

Answer 9

A title is not considered transferred until the deed to the property is actually delivered to and accepted by the grantee. The grantor may deliver the deed to the grantee personally or through a third party.

Title is said to passonly when a deed is delivered and accepted. The effective date of the transfer of title from the grantor to the grantee is the date of delivery of the deed itself.

Question 10

intestate and testate

Answer 10

(of a person) not having made a will: to die intestate.

having made and left a valid will.