Unit 9

Question 1

Title

Answer 1

A way of referring to ownership not an actual printed document
It can be transferred in 3 ways:
1. Voluntary Alienation: sale, gift, or will
2. Involuntary Alienation: Operation of law
3. Will or descent after the owner dies

Question 2

Deed

Answer 2

Written instrument by which an owner of real estate intentionally conveys the owners right, title, or interest in a parcel of real estate to another. 
Requirements:
- granting clause
- Habendum
- Legal description
- Signature of grantor
- Delivery and acceptance

Question 3

Grantor

Answer 3

Conveys the title by deed. Must be 18 years old. A deed by a minor is voidable. Must be mentally capable. If impaired the deed is voidable. Legally incompetent then the deed is void.

Question 4

Grantee

Answer 4

Receives title by deed. Must be named.

Question 5

Consideration

Answer 5

A valid deed must contain a clause acknowledging that the grantor has received consideration. Usually money but does not have to be.

Question 6

Granting Clause

Answer 6

Words of conveyance. “I John Smith, convey and warrant…”

Question 7

Habendem Clause

Answer 7

Defines ownership taken by the grantee. “to have and to hold”

Question 8

Acknowledgement

Answer 8

A formal declaration under oath that the person who signs the written document does so voluntarily and that the signature is genuine. Prevent forgery.

Question 9

Corporate Deed (3 basic rules)

Answer 9

• A corporation can convey real estate only by authority granted in its bylaws or on proper resolution passed by its board of directors.
• Deeds to real estate can be signed only by an authorized officer
• The corporate seal must be affixed to the conveyance

Question 10

Common deed forms

Answer 10

• General warranty deed
• Special warranty deed
• Bargain and sale deed
• Quitclaim deed

Question 11

General Warranty Deed

Answer 11

Provides the greatest protection to the buyer because the grantor is legally bound by certain covenants or warranties. Grantors defend title against both themselves and all those who previously held title.
Five Covenants:
- Seisin: Possession
- Against encumbrances: free from any liens or encumbrances
- Quiet enjoyment: good against third parties
- further assurance
- warranty forever

Question 12

Special Warranty

Answer 12

The norm.
Warranties that the grantor received title and that the property was not encumbered during the time the grantor held title except as noted in the deed.Grantors defend the title against themselves.

Question 13

Bargain and sale deed

Answer 13

Contains no express warranties against encumbrances. It does imply that the grantor holds title and possession of the property. Used in foreclosures and tax sales. Should get title insurance for protection.

Question 14

Quitclaim deed

Answer 14

Provides the least protection of any deed. It carries not covenants or warranties. The buyer can be certain the seller has renounced all claims to the property. Only conveys whatever interest the grantor may have when the deed is delivered. Usually used to cure a defect called a cloud on the title ex) misspelled name. Also used when transferring between family members.

Question 15

Deed in trust

Answer 15

mean by which a truster conveys real estate to a trustee for the benefit of a beneficiary.

Question 16

Transfer Tax

Answer 16

Most state laws require the conveyance of real estate be taxed. Payable when the deed is recorded. May be paid by the seller or buyer or split. (value/ unit) x rate per unit= tax

Question 17

Exempt from transfer tax

Answer 17

• between parent and child or siblings
• deeds not made in connection with a sale
• governmental bodies
• charity, religious, or educational institutions
• partitions
• tax deeds
• deeds pursuant to mergers of corporations
• deeds from subsidiary to parent corporations
• deeds securing debts

Question 18

Intestate

Answer 18

When a person dies with no will and no heirs the title to the estate passes to the state by the states power of escheat.

Question 19

Adverse Possession

Answer 19

Involuntary title transfer. When someone is open, notorious, continuous, hostile- without consent, and adversely using another property for a prescriptive period (in PA 21 years). Leads to ownership.

Question 20

Testator

Answer 20

person who makes the will.

Question 21

Devise

Answer 21

Gift of real property

Question 22

Bequest

Answer 22

Gift of personal property

Question 23

Legacy

Answer 23

Gift of money

Question 24

Probate

Answer 24

legal procedure that confirms the validity of a will and accounts for the decedents assets. It also confirms the person to whom the assets are to pass. Can take several months. Formal judicial process. Takes place where the dependent resided and the country in which the property is located.

Question 25

Codicil

Answer 25

Document made for modification, amendment, or an addition to a will.