Pre-Licensing Re Chap. 5

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ABSTRACT OF TITLE

Back 1

THE CONDENSED HISTORY OF A TITLE TO A PARTICULAR PARCEL OF REAL ESTATE, CONSISTING OF A SUMMARY OF THE ORIGINAL GRANT AND ALL SUBSEQUENT CONVEYANCES AND ENCUMBRANCES AFFECTING THE PROPERTY AND A CERTIFICATION BY THE ABSTRACTOR THAT THE HISTORY IS COMPLETE AND ACCURATE.

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ACTION TO QUIET TITLE

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A COURT ACTION TO REMOVE A CLOUD ON THE TITLE

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ADVERSE POSSESSION

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THE OPEN, CONTINUOUS, EXCLUSIVE, ADVERSE, NOTORIOUS, POSSESSION OF ANOTHER'S LAND UNDER A CLAIM OF TITLE. POSSESSION FOR A STATUTORY PERIOD OF 20 YEARS IN NC MAY BE A MEANS OF ACQUIRING TITLE. (remember "OCEAN")

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ALIENATION

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THE ACT OF TRANSFERRING PROPERTY TO ANOTHER. ALIENATION MAY BE VOLUNTARY, SUCH AS BY GIFT OR SALE, OR INVOLUNTARY, AS THROUGH EMINENT DOMAIN OR ADVERSE POSSESSION.

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ALTA POLICY

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A TITLE INSURANCE POLICY THAT PROTECTS THE INTEREST IN A COLLATERAL PROPERTY OF A MORTGAGE LENDER THAT ORIGINATES A NEW REAL ESTATE LOAN.

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BARGAIN AND SALE DEED

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A DEED THAT CARRIES WITH IT NO WARRANTIES AGAINST LIENS OR OTHER ENCUMBRANCES BUT THAT DOES IMPLY THAT THE GRANTOR HAS THE RIGHT TO CONVEY TITLE. THE GRANTOR MAY ADD WARRANTIES TO THE DEED AT HIS DISCRETION.

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CHAIN OF TITLE

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THE SUCCESSION OF TITLE CONVEYANCES, FROM SOME ACCEPTED STARTING POINT, WHEREBY THE PRESENT HOLDER OF REAL PROPERTY DERIVES TITLE.

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CLOUD ON THE TITLE

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ANY DOCUMENT, CLAIM, UNREALIZED LIEN, OR ENCUMBRANCE THAT MAY IMPAIR THE TITLE TO REAL PROPERTY OR MAKE THE TITLE DOUBTFUL; USUALLY REVEALED BY A TITLE SEARCH AND REMOVED BY EITHER A QUITCLAIM DEED OR SUIT TO QUIET TITLE.

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CONDEMNATION

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A JUDICIAL OR AN ADMINISTRATIVE PROCEEDING TO EXERCISE THE POWER OF EMINENT DOMAIN, THROUGH WHICH A GOVERNMENT AGENCY TAKES PRIVATE PROPERTY FOR PUBLIC USE AND JUSTLY COMPENSATES THE OWNER.

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CONNER ACT

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NC LAW THAT REQUIRES MANY TYPES OF REAL ESTATE DOCUMENTS TO BE RECORDED FOR PROTECTION AGAINST CLAIMS FROM THIRD PARTIES. SUCH DOCS INCLUDE DEEDS, ,MORTGAGES, PURCHASE CONTRACTS, INSTALLMENT, LAND CONTRACTS, ASSIGNMENTS, OPTIONS, LEASES MORE THAN 3 YRS., EASEMENTS AND RESTRICTIVE COVENANTS.

A PURE RACE STATUTE

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CONSTRUCTIVE NOTICE

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NOTICE GIVE TO THE WORLD BY RECORDED DOCUMENTS. ALL PEOPLE ARE CHARGED WITH KNOWLEDGE OF SUCH DOCUMENTS AND THEIR CONTENTS, WHETHER OR NOT THEY HAVE ACTUALLY EXAMINED THEM. POSSESSION OF PROPERTY IS ALSO CONSIDERED CONSTRUCTIVE NOTICE THAT THE PERSON IN POSSESSION HAS AN INTEREST IN THE PROPERTY.

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COVENANT

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WRITTEN AGREEMENT BETWEEN TWO OR MORE PARTIES IN WHICH A PARTY OR PARTIES PLEDGE TO PERFORM OR NOT PERFORM SPECIFIED ACTS WITH REGARD TO PROPERTY; USUALLY FOUND IN SUCH REAL ESTATE DOCUMENTS AS DEEDS, MORTGAGES, LEASES AND CONTRACTS FOR DEED.

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DEED

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WRITTEN INSTRUMENT THAT, WHEN EXECUTED AND DELIVERED, CONVEYS TITLE TO OR INTEREST IN REAL ESTATE; EVIDENCE OF TITLE

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DELIVERY AND ACCEPTANCE

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THE ACTUAL DELIVERY OF A DEED BY A GRANTOR AND THE ACTUAL OR IMPLIED ACCEPTANCE OF THE DEED BY THE GRANTEE; RECORDATION OF THE DEED IS VIEWED AS ACCEPTANCE.

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EMINENT DOMAIN

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RIGHT OF A GOVERNMENT OR MUNICIPAL QUASI-PUBLIC BODY TO ACQUIRE PROPERTY FOR PUBLIC USE THROUGH A COURT ACTION CALLED CONDEMNATION, IN WHICH THE COURT DECIDES THAT THE USE IS A PUBLIC USE AND DETERMINES FAIR COMPENSATION TO BE PAID TO THE OWNER.

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ESCHEAT

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THE REVERSION OF PROPERTY TO THE STATUTE, AS PROVIDED BY STATE LAW, IN CASES WHERE A DECEDENT DIES INTESTATE WITHOUT HEIRS CAPABLE OF INHERITING OR WHEN THE PROPERTY IS ABANDONED.

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EXCISE TAX

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DEED TRANSFER TAX PAID BY THE SELLER AND REQUIRED TO BE NOTED ON A DEED BY STATE LAW; THE IS $1 PER $500 OF SALES PRICE.

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GENERAL WARRANTY DEED

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DEED IN WHICH THE GRANTOR FULLY WARRANTS GOOD CLEAR TITLE TO THE PREMISES THROUGH FOUR COVENANTS IN THE DEED. USED IN MOST REAL ESTATE DEED TRANSFER, A GENERAL WARRANTY DEED OFFERS THE GREATEST PROTECTION TO THE GRANTEE OF ANY DEED.

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GRANTEE

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A PERSON WHO RECEIVES A CONVEYANCE OF REAL PROPERTY FROM A GRANTOR.

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GRANTING CLAUSE

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WORDS IN A DEED OF CONVEYANCE THAT STATE THE GRANTOR'S INTENTION TO CONVEY THE PROPERTY AT THE PRESENT TIME. THIS CLAUSE IS GENERALLY WORDED AS CONVEY AND WARRANT, GRANT, BARGAIN AND SELL, OR THE LIKE.

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GRANTOR

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1) THE PROPERTY OWNER THAT IS TRANSFERRING TITLE TO OR AN INTEREST IN REAL PROPERTY TO A GRANTEE

2) A BORROWER IN A DEED OF TRUST LOAN TRANSACTION, ALSO CALLED TRUSTOR.

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INTESTATE

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THE CONDITION OF A PROPERTY OWNER WHO DIES WITHOUT LEAVING A VALID WILL. TITLE TO THE PROPERTY WILL PASS TO THE DECEDENT'S HEIRS AS PROVIDED IN THE STATE LAW OF DESCENT.

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MARKETABLE TITLE

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A GOOD OR CLEAR TITLE, REASONABLY FREE FROM THE RISK OF LITIGATION OVER POSSIBLE DEFECTS.

Front 24

MARKETABLE TITLE ACT

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THE ACT IS DESIGNED TO ELIMINATE OBSOLETE DEFECTS IN A CHAIN OF TITLE. IF A CHAIN OF TITLE CAN BE TRACED BACK FOR 30 YEARS WITHOUT A PROBLEM, IT BECOMES A MARKETABLE TITLE.

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NORTH CAROLINA INTESTATE SUCCESSION ACT

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THE STATE LAW OF DESCENT THAT DISTRIBUTION OF THE REAL AND PERSONAL PROPERTY OF THE DECEASED THAT DIED WITHOUT A WILL (INTESTATE.)

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QUITCLAIM DEED

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A CONVEYANCE BY WHICH THE GRANTOR TRANSFERS INTEREST IN THE REAL ESTATE, IF ANY, WITHOUT WARRANTIES OR OBLIGATIONS; FREQUENTLY USED TO REMOVE CLOUDS ON THE TITLE.

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RECORDING

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THE ACT OF ENTERING OR RECORDING DOCUMENTS INTO THE PUBLIC RECORD AT THE RECORDER'S OFFICE ESTABLISHED IN EACH COUNTY, UNTIL RECORDED, A DEED OR MORTGAGE ORDINARILY IS NOT EFFECTIVE AGAINST THIRD PARTIES, SUCH AS SUBSEQUENT PURCHASERS OR MORTGAGEES.

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SPECIAL WARRANTY DEED

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A DEED IN WHICH THE GRANTOR ONLY WARRANTS, OR GUARANTEES, THE TITLE AGAINST DEFECTS ARISING DURING THE PERIOD OF THE GRANTOR'S TENURE AND OWNERSHIP OF THE PROPERTY AND NOT AGAINST DEFECTS EXISTING BEFORE THAT TIME, GENERALLY USING THE LANGUAGE "BY, THROUGH, or UNDER THE GRANTOR BUT NOT OTHERWISE.

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TITLE

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1) THE RIGHT TO OR OWNERSHIP OF LAND

2) THE EVIDENCE OF OWNERSHIP OF LAND

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TITLE INSURANCE

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A POLICY INSURING THE OWNER AND/OR MORTGAGEE AGAINST LOSS BY REASON OF DEFECTS IN THE TITLE TO A PARCEL OF REAL ESTATE, OTHER THAN ENCUMBRANCES, DEFECTS AND MATTERS SPECIFICALLY EXCLUDED BY THE POLICY.

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TITLE SEARCH

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THE SEARCH OF PUBLIC RECORDS TO DETERMINE THE CURRENT STATE OF OWNERSHIP OF REAL ESTATE; EXAMINING CHAIN OF TITLE.

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WILL

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A WRITTEN DOCUMENT, PROPERLY WITNESSED, PROVIDING FOR THE TRANSFER OF TITLE TO PROPERTY OWNED BY THE DECEASED.