Fi 318 Chapter 4

Front 1

A special form of written contract used to convey a permanent interest in real property.

Back 1

Deed

Front 2

3 Reasons why Real Estate is Unique

Back 2

1. Complex Bundle of Rights
2. Land and rights to land are enduring, transactions long ago affect the bundle of rights today.
3. Since all land parcels adjoin other parcels, any error in the description of land represents a loss to some owner. Therefor methods of describing land must be accurate.

Front 3

Requirements of a Deed (9)

Back 3

1. Grantor (with signature) and grantee
2. Recital of consideration - doesn't have to be of actual amount
3. Words of Conveyance
4. Covenants
5. Habendum clause
6. Exceptions and reservations clause
7. Description of Land
8. Acknowledgement
9. Delivery

Front 4

Only ______ has to be of legal age and competant.

Back 4

Grantor

Front 5

Consideration ______ mutual, _____ need exact amount.

Back 5

isn't , don't

Front 6

Must show clear intent to convey and must make clear what type of deed is being conveyed.

Back 6

Words of conveyance

Front 7

Legally binding promises for which the grantor becomes liable.

Back 7

Covenant

Front 8

A promise that the grantor has good title and the right to convey it.

Back 8

Covenant of seizin

Front 9

Promise that the property is not encumbered with liens, easements, or other such limitations except as noted in the deed.

Back 9

Covenant of encumberances

Front 10

A promise that the property will not be claimed by someone with a better claim to the title.
Can't sell to somebody else first.

Back 10

Covenant of quiet enjoyment

Front 11

Defines or limits the type of interest being conveyed

Back 11

Habendum clause

Front 12

Can contain a wide variety of limits on the property interest conveyed. May contain "deed restrictions" or carve outs (mineral rights, timber rights, water rights, or a variety of easements)

Back 12

Exceptions and reservations clause

Front 13

Description of Land methods

Back 13

1. Metes and bounds - use landmarks to measure
2. Plot lot and block number - block and lot
3. Government Rectangular survey - precise way to identify open land away from the city.

Front 14

To be signed and notarized. To confirm that the deed is in fact the intention and action of the grantor.

Back 14

Acknowledgement

Front 15

Refers to an observable, verifiable intent that the deed is to be given to the grantee.

Back 15

Delivery

Front 16

"highest quality deed"
all three covenants
ex. purchasing a house

Back 16

General Warranty Deed

Front 17

Identical to General Warranty Deed but it limits the time of the covenant of encumbrances to the grantor's ownership
"quality deed"

Back 17

Special Warranty Deed

Front 18

Has none of the covenants of a warranty deed
Used in commercial transactions

Back 18

Deed of bargain and sale

Front 19

-None of the covenants
-Implies no claim to title
-Only conveys what interest the grantor actually has
-Can create a cloud on the title

Back 19

Quitclaim Deed

Front 20

-judicial -- court ordered
-trustee -- issued by court pursuant to trustee's order
-two weakest forms of deeds
-probability that other parties could come out of the wood work
-make sure you have good title

Back 20

Judicial or Trustee Deeds

Front 21

-Regular transaction
-Selling a house

Back 21

Voluntary Conveyance by a Deed

Front 22

-Death (probate)
-testate(with a will)
-intestate (without a will)
-Bankruptcy
-Divorce Settlement
-Condemnation (Eminent Domain)
-Foreclosure

Back 22

Involuntary Conveyance by a Deed

Front 23

Voluntary Conveyance without a Deed

Back 23

Implied Easement
Easement of Necessity
Easement by prior use
Easement by estoppel

Front 24

Already set in public records so must follow it

Back 24

Implied Easement

Front 25

Land locked parcel has no access to path so easement is automatically created

Back 25

Easement of Necessity

Front 26

Preexisting implied easement because of prior use

Back 26

Easement by prior use

Front 27

Landowner gives an adjacent landowner permission to depend on her land
- rely on sewer access or drainage
- can't be revoked once given by servient parcel

Back 27

Easement by Estoppel

Front 28

Involuntary Conveyance without a Deed

Back 28

Adverse possession that follows the five conditions

Front 29

You own Real Estate and someone else is using it and you involuntarily and unknowingly give up the rights to the land to them.
aka - easement by prescription

Back 29

Adverse Possession

Front 30

5 Conditions of Adverse Possession

Back 30

1. Hostile to the owner's interests - and under claim or right (i.e. without the owner's permission and acting like an owner)
2. Actual - the land must be employed in some natural or normal use.
3. Open and Notorious - there can be no effort to disguise or hide the use from the owner or neighbors
4. Continuous - possession must be uninterrupted by a period specified by state law. 5 -20 years.
5. Exclusive - the claimant cannot share possession with the owner, neighbors, or others.

Front 31

Water may deposit soil, which can become the property of the owner. Water leaves extra land on shore.

Back 31

Accretion

Front 32

Subsiding water may leave additional land as property of the owner. Beach grows.

Back 32

Reliction

Front 33

Once a person is capable of knowing about a claim or rule, he or she can be bound by it. A person cannot be bound by claims or rules he or she has no means of knowing.

Back 33

Doctrine of constructive notice

Front 34

All real estate transactions must be in writing to be enforceable

Back 34

Statute of Frauds

Front 35

Race to the record books. Must be in public records

Back 35

Recording Statutes

Front 36

An assertion of real property interests that is open, continuous and apparent to all who examine the property.

Back 36

Actual notice

Front 37

-No single form to refer to as the "title'
-must be a collection of evidence
-must point to some person (or entity) as the holder of the fee (titled) interest.

Back 37

Title

Front 38

-Searches the public records
-Constructs the chain of title

Back 38

Title Search

Front 39

Set of deeds and documents that points to who the owner was and is

Back 39

Chain of title

Front 40

Summary of all the documents relevant to the title

Back 40

Title Abstract

Front 41

1. Title abstract, together with an attorney's opinion of title
2. Title Insurance Commitment

Back 41

Evidence of TItle

Front 42

-Doesn't insure damages to the property
-Actual Notice
-Government Issues

Back 42

Title Insurance Exceptions