Real Estate Ch 5

Front 1

alienation

Back 1

the act of transfering property to another

Front 2

deed

Back 2

a written instrument by which an owner of real estate intetionally conveys right, title or interest in the parcel of real estate to another. evidence of a title.

Front 3

deed

Back 3

giver = grantor (owner) Receiver = grantee

Front 4

offer

Back 4

giver= offeror receiver=offeree

Front 5

counteroffer

Back 5

giver= owner receiver=offeree

Front 6

lease

Back 6

giver= lessor receiver=lessee

Front 7

mortgage

Back 7

giver= grantor receiver=mortgagee

Front 8

option

Back 8

giver=optioner receiver=optionee

Front 9

installment contract

Back 9

giver= vendor receiver=vendee

Front 10

will

Back 10

giver=devisor receiever=devisee

Front 11

contract

Back 11

giver= vendor receiver= vendee

Front 12

requirements for a valid conveyance

Back 12

The deed must be in writing. The grantor must have the legal capacity to execute a deed. Grantee named with reasonable certainty must be identified. There must be adequate words of conveyance. There must be an accuarate legal description of the property conveyed. The deed must be signed by the grantors. The deed must be delivered tp and voluntarily accepted by the grantee.

Front 13

eminent domain

Back 13

is the right of the goverment to acquire privately owned real estate for public use

Front 14

escheat

Back 14

when a person dies instestate (without a will) and leaves no heirs, the title to that persons real estate passes to the state by the tates power of escheat.

Front 15

requirements for adverse possesion

Back 15

open,continuous, exclusive, adverse, notorious. The period of possesion is 20 years

Hint 15

OCEAN

Front 16

non essential elements of a deed include the following

Back 16

does not need to be dated. Does not need to show exact amount of consideration. Does not need to be acknowledged. Does not have to be recorded, but highly reccommended. Does not have to be sealed

Front 17

before a transfer of title by conveyance can take effect there must be

Back 17

delivery and acceptance

Front 18

quitclaim deed

Back 18

is frequently used to cure a defect, called cloud on title. no express warranties or convenants. Used primarily to convey less than fee simple or to cure a defect.

Front 19

VIP- Do deeds have to be recorded?

Back 19

Deeds DO NOT have to be recorded to be valid, but under the Connor Act the grantees must record the valid deed to protect their interest to third parties under the law

Front 20

Trustee's deed

Back 20

a deed of conveyance excuted by a trustee is a trustee's deed and is used when a trusteenamed in a will, trust agreement, or trust deed conveys the real estateto anyone other than the trustor

Front 21

marketable title act

Back 21

if a chain title can be tracedback for 30 yearsand no other claim has been recorded during that time then the title becomes marketable title.

Front 22

chain of title

Back 22

is the record of a property's ownership. Beginning with the eearliest owner, a title may pass to many individuals. Each owner is linked to the next so that thechain is formed

Front 23

title insurance

Back 23

policy is a contract by which a title insurance company agrees, subject to the terms of its policy, to indemify (compensate/ reimburse) the insured against any losses sustained as a result of defects in a tile that existed at the time the policy was issued.other than those expectations listed in the policy

Front 24

Special warranty deed/ limited

Back 24

two warranties : warranty that grantor recieved title

warranty that property was uncumbered by grantor during the time he/she held the title

Front 25

bargain and sale deed

Back 25

no express warranties implication that grantor holds title and possession

Front 26

in nc

Back 26

NC general assembly reacted to the kelo decisionby clarifying state laws governing the power of eminent domain

Front 27

chain of title

Back 27

is a record of a propertys ownership. if ownership cannot be traced through an unbroken chain, a gap in or cloud on the chain of title is said to exist

Front 28

VIP

Back 28

with the owners title insurance policy, if the insured owner were to loose title bc of a covered claim, the title company would pay the owner the value of the property up to the face of the amt of the policy. the title company also assumes any costs incurred in the defense of the title

Front 29

NC excise tax

Back 29

all sellers or real property in NC must pay excise tax that is based on the sales price of the property EX: round up sales price to nearest 500 suppose the purchase price is 89,250 round up the price to 89,500 divide by 500 which equals 179 and multiply by 1 and we have determined the seller needs to pay 179 in excise tax

Front 30

involuntary alienation

Back 30

without the owners wishes or consent

Front 31

Connor Act

Back 31

is a state law that provides that many types of real estate documents are not valid as to third parties unless they are recorded. the documents covered include deeds, mortgages, installments land contracts, assignments,options, leases of more than 3 years easements and restrictive convenants

Front 32

VIP

Back 32

to serve as a public notice all instruments in writing affecting any estate,right,title, or interest in land must be recorded with the county recorder or in NC the register of deeds in the county where the land is located. lien satisfaction such as a mortgage pay off should also be recorded to clear the encumbrances on the title

Front 33

constructive notice/ legal notice

Back 33

both title insurance and title examinations depend on the fact that all conveyances of real property, as well as most other interests in real property must be recorded to be enforceable. All owners or parties interested in real estate need to record or file all documents affecting their interest in the real estate to give public notice to the world of those interests