Nc Real Estate Chapter 5 - Transfer Of Title To Real Property

Front 1

Title to land

Back 1

Right to own land and documentation of ownership

Front 2

Alienation

Back 2

Transferring title from one person to another

Front 3

Types of Alienation (2)

Back 3

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

Front 4

Deed

Back 4

Written document proving ownership of property

Front 5

Grantor

Back 5

Owner pre-alienation

Front 6

Grantee

Back 6

Person receiving property

Front 7

Who has to sign?

Back 7

Grantor ONLY

Front 8

Requirements for conveyance (7 things)

Back 8

1) In writing
2) Grantor must have legal capacity to execute deed
3) Grantor AND Grantee must be identified
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

Front 9

Are oral property transfers legal? (If not, why not?)

Back 9

NO, NC Statute of Frauds says deeds and deed transfers MUST BE IN WRITING

Front 10

Words of conveyance called?

Back 10

Granting Clause

Front 11

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

Back 11

Things deeds do NOT need to be legal

Front 12

Conner Act

Back 12

First grantee to record the deed has legal rights to the property

Front 13

3 Common forms of deeds

Back 13

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

Front 14

General Warranty Deeds

Back 14

Provides most protection of any deed

Front 15

Covenants of General Warranty Deed (4)

Back 15

1) Sesin - right to transfer title
2) Encumbrances - Property is free of liens or encumbrances not on record
3) Quiet Enjoyment - title is good against 3rd party action
4) Warranty forever - If title fails at any time in the future, grantor will be liable

Front 16

Special warranty deed

Back 16

Deed that has only 2 warranties

Front 17

Warranties of special warranty deed (2)

Back 17

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

Front 18

Remise, release, alienate, convey

Back 18

Granting clauses commonly found in special warranty deeds

Front 19

Quitclaim deed

Back 19

No warranties or covenants given. Deed used to simply say they do not hold title to the deed.

Front 20

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

Back 20

Called: cloud in the title
Cured: Quitclaim deed

Front 21

Correction deed

Back 21

Used when previous deed has an error

Front 22

Deed of gift

Back 22

Property is conveyed as a gift; no excise tax

Front 23

Time limit for recording gift of property

Back 23

2 Years

Front 24

Deed of release

Back 24

Releases property from mortgage when paid

Front 25

Deed in lieu of foreclosure

Back 25

Borrower has defaulted on loan; lender agrees to simply take the deed instead of going through foreclosure (tax issues)

Front 26

Trustee's Deed

Back 26

Trustee transferring title to anyone other than trustor

Front 27

Timber / Mineral deed

Back 27

Used for rights to use land for specific purposes

Front 28

Excise tax

Back 28

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

Front 29

Excise tax / Revenue Stamps value (cost)

Back 29

$1 for every $500 the property is sold for (always a whole dollar amount)

Front 30

No need to pay excise taxes (When?)

Back 30

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

Front 31

Involuntary alienation

Back 31

Involuntary transfer of land rights

Front 32

Escheat

Back 32

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

Front 33

Eminent domain

Back 33

Private property is taken for public use and good

Front 34

Condemnation

Back 34

How eminent domain is exercised

Front 35

3 conditions for taking by eminent domain

Back 35

1) Use benefits the public
2) Equitable amount of compensation will be paid to the owner
3) Rights of property owner are protected

Front 36

Quick take

Back 36

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

Front 37

Adverse possession

Back 37

Taking land from another - may lose title if not used for a given number of years

Front 38

Requirements for adverse possession (O.C.E.A.N.)

Back 38

Property ownership must be: Open, Continuous, Exclusive, Adverse to true owner's possession, and Notorious (without permission of the owner)

Front 39

NC Intestate Succession Act

Back 39

If A dies intestate (without will), B is appointed to administer their estate to their heirs

Front 40

Marketable title

Back 40

Clear (not cloudy) title

Front 41

5 criteria for marketable title

Back 41

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

Front 42

Title search

Back 42

Examination of public record that affects chain of title

Front 43

Chain of title

Back 43

Ownership interests from person to person

Front 44

Abstract of title

Back 44

Condensed history of title of property

Front 45

Suit to quiet title

Back 45

Lawsuit establishing ownership of title if there is a gap in ownership

Front 46

Marketable title act

Back 46

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

Front 47

Title insurance

Back 47

Insurance against losses incurred due to defect in the title

Front 48

Regulate title insurance vs. ALTA insurance (difference?)

Back 48

ALTA covers problems that may be discovered only by inspection of property

Front 49

Time required after which there is no adverse possession (w/ & w/o color of title)

Back 49

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