12-Transfer of Title

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12-Transfer of Title
2013-11-10 14:09:14
Real Estate Exam 12

Modern Real Estate Practice
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  1. Define Title
    is ownership, or the right to ownership, of land and evidence of the ownership
  2. Voluntary alienation
    is the voluntary transfer of title to real estate by gift or sale, using some form of deed.
  3. Grantor
    is person who transfer title must be of legal age and legally competent to execute a deed.
  4. What makes a deed voidable?
    • 1. Must be legal age
    • 2. Mental impairment at time of signing deed makes the deed voidable.
    • **If grantor declared incompetent by a judge, the deed is void.
    • 3.  All names the grantor has used should be provided.
  5. Grantee
    must be identifiable with sufficient certainty.
  6. Consideration
    is payment of some form must be stated.
  7. Granting clause/Words of conveyance
    • * convey and warrant
    • * remise, release, alienate, and convey
    • * grant, bargain and sell
    • * remise, release, and quitclaim
  8. Habendum clause
    • must define ownership interest taken by the grantee;
    • It specifies limits on ownership, i.e. time-share
  9. Legal description
    This is essential for a property to be conveyed.
  10. Signature of grantor
    Must be acknowledged by a notary public or other official authorized by the state in which the property is located.
  11. Delivery and acceptance
    of the deed by the grantee are necessary
  12. Types of Deeds
    • General warranty deed
    •    covenant of seisin
    •    covenant against encumbrances
    •    covenant of quiet enjoyment
    •    covenant of further assurance
    •    covenant of warranty forever
    • Special Warranty deed
    • Bargain and sale deed
    • Quitclaim deed
  13. General Warranty Deed
    provides the greatest protection to the grantee
  14. Covenant of seisin
    Warrants the grantor has the right to convey title
  15. Covenant against encumbrances
    warrants the property is free from liens or encumbrances, unless expressly stated
  16. Covenant of quiet enjoyment
    makes the grantor liable for damages if the grantee's title is found to be inferior
  17. Covenant of further assurance
    the grantor's promise to obtain any other document necessary to convey good title
  18. Covenant of warranty forever
    grantor's promise to compensate the grantee if title fails at any future time.
  19. Special Warranty Deed
    includes the warranties that the grantor received title and that the property was not encumbered during the time the grantor held title, except as otherwise noted.
  20. Bargain and sale deed
    implies that the grantor hold title and possession of the property, and there are no express warranties against encumbrances.
  21. Transfer tax stamps
    These may be required to be affixed to deeds and conveyances before being recorded, with the tax rate depending on state, county and city requirements.
  22. Involuntary alienation
    transfer of title to property is usually by operations of law
  23. Types of involuntary alienation
    • Escheat
    • Eminent domain
    • Foreclosure
    • Adverse possession
  24. Escheat
    property taken by state when deceased has no heirs
  25. Eminent domain
    property taken by public or government agency
  26. Foreclosure
    property taken by creditor for nonpayment of debt secured by real property
  27. Adverse possession
    property seizure occurring when someone who is not the lawful owner takes possession of property for the length of time specified by state law usually in a way that is Open, Notorious, Continuous, Hostile Adverse
  28. Necessary for Adverse possession
    • Open
    • Notorious
    • Continuous
    • Hostile
    • Adverse
  29. Transfer of title by will
    Occurs when the decreased dies testate (leaving a will) prepared as required by law
  30. To transfer real property by will includes:
    • Take effect only after death
    • Can be changed by codicil or revoked while testator is still alive
    • Devise is gift of real property by to devisee
    • Bequest gift of personal property
    • Legacy is gift of money
    • To pass title will must be recorded with the court and probated
    • Wills cannot supersed state laws of dower or cutesy inheritance rights
  31. Statute of descent and distribution
    occurs when a person dies intestate
  32. Probate
    proceedings must have an administrator appointed, and laws of the state where the real property is located govern property distribution.