Nc Real Estate Chapter 5

Front 1

Title to land

Back 1

The right to or ownership of land; the evidence of ownership of land; summation of all the things property owners possess to prove and protect their ownership interest in property

Front 2

Alienation

Back 2

Transferring ownership away from you; the act of transferring property to another

Front 3

1) Voluntary - giving or willing title
2) Involuntary - losing title through legal process

Back 3

Types of Alienation (2)

Front 4

Deed

Back 4

Written instrument by which an owner of real estate intentionally conveys right, title, or interest in a parcel of real estate to another; evidence of title

Front 5

Grantor

Back 5

The property owner that is transferring title to or an interest in real property away from himself

Front 6

Grantee

Back 6

The person who receives a conveyance of real property

Front 7

1) In writing
2) Grantor must have legal capacity to execute deed
3) Grantor AND Grantee must be identified (and must be in legal existance)
4) Adequate words of conveyance
5) Accurate legal description of the property
6) Deed must be signed by grantor
7) Deed must be delivered and voluntarily accepted by grantee

Back 7

Requirements for deed conveyance (7 things)

Front 8

Granting Clause

Back 8

Words of conveyance called?

Front 9

(Deeds) Consideration (amt paid), Recorded, Dated, Notarized, Witnessed

Back 9

Things NOT needed for deed to be legal

Front 10

Conner Act

Back 10

Law which states first grantee to record the deed has legal rights to the property; because of this, NC is considered a "Pure Race" state

Front 11

1) General Warranty Deed
2) Special Warranty Deed
3) Quitclaim Deed

Back 11

3 Common forms of deeds

Front 12

General Warranty Deeds

Back 12

Provides most protection of any deed

Front 13

1) Covenant of Seisin and right to convey
2) Covenant against Encumbrances - Property is free of liens or encumbrances not on record
3) Covenant of Quiet Enjoyment - title is good against 3rd party action
4) Covenant of Further Assurance - if error is found in deed, grantor guarantees to correct mistake
5) Covenant of Warranty forever - If title fails at any time in the future, grantor will be liable

Back 13

Covenants of General Warranty Deed (5)

Front 14

Special warranty deed

Back 14

Deed that guarantees that the grantor is passing title as he has received it

Front 15

1) Grantor holds valid right to transfer property
2) Property is unencumbered by grantor

Back 15

Warranties of special warranty deed (2)

Front 16

Quitclaim deed

Back 16

No express or implied warranties or covenants given. Conveys less than fee simple OR cures a title defect

Front 17

Called: cloud in the title
Cured: Quitclaim deed

Back 17

Defect in title (also called and what cures it?)

Front 18

Correction deed

Back 18

Deed used when previous deed has an error

Front 19

Deed of gift

Back 19

Property is conveyed as a gift; no excise tax

Front 20

2 Years

Back 20

Time limit for recording gift of property

Front 21

Deed of release

Back 21

Releases property from mortgage when paid

Front 22

Deed in lieu of foreclosure

Back 22

Borrower has defaulted on loan and owner releases ownership prior to foreclosure; lender simply takes ownership instead of going through foreclosure (tax issues)

Front 23

Trustee's Deed

Back 23

Trustee transferring title to anyone other than trustor

Front 24

Excise tax

Back 24

Tax paid after selling real property; based on the sales price of the property; also called revenue stamps

Front 25

Round sales price up to next 500 increment and then $1 for every $500 the property is sold for (always a whole dollar amount)

Back 25

Excise tax / Revenue Stamps calculation

Front 26

Gov't transfer of property, transfer by will or intestate succession, deed of gift w/ no consideration, transfer by merger / consolidation, transfer by lease for term of years, transfer by instrument for securing debt (mortgage or deed of trust)

Back 26

No need to pay excise taxes (When?)

Front 27

Involuntary alienation

Back 27

Transfer of ownership without owner's wishes or consent; usually by operation of law

Front 28

Escheat

Back 28

When person dies intestate (without will) and with no heirs, title reverts to the state

Front 29

Eminent domain

Back 29

Private property is taken for public use and good

Front 30

Condemnation

Back 30

How eminent domain is exercised

Front 31

Quick take

Back 31

When lawful, private property can immediately be transferred to the public good

Front 32

Adverse possession

Back 32

Making a claim of ownership on someone else's property

Front 33

(O.C.E.A.N.)
Open
Continuous
Exclusive (rightful owner not still using)
Adverse to true owner's possession, and Notorious (without permission of the owner)

Back 33

Requirements for adverse possession

Front 34

NC Intestate Succession Act

Back 34

Statute of descent and distribution: when someone dies intestate, the decedent's real estate and personal property pass to decedent's heirs according to this statute.

Front 35

1) Title is free from encumbrances and liens
2) There are no serious defects
3) Title is free of doubtful questions to prove validity
4) There are no hazards of litigation
5) Convinces a reasonable person title can be passed

Back 35

5 criteria for marketable title

Front 36

Title search

Back 36

Examination of public record that might affect chain of title

Front 37

Chain of title

Back 37

Record of a property's ownership; ownership interests from person to person over a period of time

Front 38

Abstract of title

Back 38

Condensed history of title of property

Front 39

Suit to quiet title

Back 39

Lawsuit establishing ownership of title if there is a gap or cloud on the title

Front 40

Marketable title act

Back 40

If chain of title can be traced back 30 years, there is marketable title

Front 41

Title insurance

Back 41

Insurance against losses incurred due to defect in the title

Front 42

With color of title: 7 years
Without color of title: 20 years

Back 42

Time requirement for adverse possession (w/ & w/o color of title)

Front 43

Notary Signature

Back 43

Not needed for a deed to be valid, but needed for deed to be recorded

Front 44

Seller at closing

Back 44

Excise tax paid by ...

Front 45

Devise

Back 45

The gift of real property by will

Front 46

Devisee

Back 46

The person who receives real property by will

Front 47

Legacy or bequest

Back 47

A gift of personal property by will

Front 48

Beneficiary

Back 48

The person who receives personal property by will

Front 49

Approved Attorney State

Back 49

This means that title searches are usually performed by an attorney rather than by a title insurance company

Front 50

Constructive notice

Back 50

The legal presumption that information may be obtained by an individual through due diligence such as properly recorded documentation

Front 51

Actual notice

Back 51

Not only is the information available but also someone has been given the information and specifically knows it.

Front 52

Opinion of title

Back 52

This is given, by attorney only, after a title search has been done and a chain of title has been verified; not a guarantee

Front 53

Register of Deeds in the county where the land is located

Back 53

All instruments in writing affecting any estate, right, title, or interest in land must be recorded here