Real Estate2

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Real Estate2
2010-04-01 13:34:57
Modern Real Estate Practices

Chapter 12-22
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  1. title
    the right to or ownership of land
  2. voluntary alienation
    the legal term for the voluntary transfer of title
  3. deed
    the written instrument by which an owner of r.e. intentionally conveys the right, title or interest in the parcel of r.e. to someone else
  4. grantor
    the owner who transferes the title (must be 18yrs old or older)
  5. grantee
    the person who acquires the title
  6. granting clause
    a clause that states the grantors intention to convey the property
  7. vested interest
    a present right, interest, or title to property that gives the holder the right to convey it to another, even though the right might not be enjoyed until a future time
  8. hebendum clause
    a clause used when it is necessary to define or explain the ownership to be enjoyed by the grantee
  9. acknowledgment
    a formal declaration that the person who signs a written document does so voluntarily and that his/her signature in genuine
  10. 8 types of deeds
    • 1. general warranty deed
    • 2. special warranty deed
    • 3. argain and sale deed
    • 4. quitclaim deed
    • 5. deed of trust
    • 6. trustees deed
    • 7. reconveyance deed
    • 8. deed executed pursuant to a court order
  11. general warranty deed
    the grantor fully warrants good clear title tote premises
  12. 5 general warranty deeds
    • 1. covenant of seisin
    • 2. covenant against encumbrances
    • 3. covenant of quiet enjoyment
    • 4. covenant of further assurance
    • 5. covnant of warranty forever
  13. special warranty deed
    grantor warrants or guarantees the title only against defects arising during the period of his/her tenure and ownership of the property and not against defects exsisting before that time
  14. bargan and sale deed
    implication that grantor holds title and possession
  15. quitclaim deed
    used primarily to convey less than fee simple or to cure a title defect
  16. deed of trust
    conveyance from trust to trustee
  17. reconveyance deed
    conveyance from trustee back to trustor
  18. trustees deed
    conveyance from trustee to third party
  19. transfer tax
    tax stamps rquired to be affixed to a deed by state and/or local law
  20. involuntary alienation
    title of property may be transferred without owners concent
  21. adverse possession
    the actual, open, nortorious, hostile and continuous possession of anothers land under a claim title(may be for a statutory period)
  22. testate
    when a person who dies has prepared a will indicating how his/her property wil be disposed of
  23. intestate
    when a person dies (without a will) real estate and personal property pass to the decendents heirs according to the states statue of descent and distribution
  24. will
    an instrument made by an owner to convey title to real or personal property after the owners death
  25. testator
    the person who make a will
  26. probate
    formal judicial process that proves or confirms the validity of the will, determins the precise assets of the deceased person and identifies the persons to whom the assets are to pass
  27. devise
    the gift of real property (or person who receives property by will)
  28. heirs
    primary decendants of deceased (children, parents, brothers/sisters, aunts/uncles and in some cases 1st & 2nd cousins)
  29. recording
    the act of placing documents in the public record
  30. constructive notice
    legal presumption that information may be obtained by n individual through liligent inquiry
  31. actual notice
    not only is the information available but someone has been given the information and actually knows it
  32. inquiry notice
    notice that the law presumes a reasonable person would obtain by making further inquiries into a property
  33. priority
    the ordr of rights in time
  34. chain of title
    the record of a propertys ownership beginning with the earliest owner
  35. suit to quiet title
    ownership by a court action when ownership cannot be traced through an unbroken chain.
  36. title search
    an examination of all of the public records to determine whether any defects exist in the chain of title
  37. abstract title
    a summary report of what the title search found in the public record
  38. marketable title
    good and clear title, reasonably free from the risk of litigation over possible defects
  39. certificate of sale
    a statement of opinion of the titles status on the date the certificate is issued
  40. attorneys opinion of title
    evidence of title (an opinion of the status of the title based on review of the abstract)
  41. title of insurance
    a contract under which the policyholder is protected from losses arising from defects in the title

    • has to have:
    • name of insured party
    • legal description of r.e.
    • estate or interest covered
    • condition and stipulations under which the policy is issued
    • a schedule of exceptions
  42. Uniform Commercial Code (UCC)
    a commercial law statue that has been adopted in all 50 states that governs the document with person property used as a security loan
  43. security agreement
    an agreement that must contain a complete description of the items agains which the lien applies
  44. financial statment
    a short notice of security agreement which identifies any r.e. involved when personal property is made part of r.e.
  45. Torrens system
    a legal registration system used to verify ownership and encumbrances
  46. subrogation
    the substitution of one creditor for another, with the substituted person successing to the legal rights and claims of the original claimant