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56 Cards in this Set

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Title to real estate means right to or ownership of the land.
Word title: refered to as the documented evidence of the right of ownership ex. a deed.---> Sum of all things the owners have to prove and protect by ownership.
Term Title:
Two Functions:
1. It represents the bundle of legal rights the owner possesses in the real estate.
2. it denotes the facts that if proven, enable aperson to retain or recover ownership / possesion
The act of transfering property to another
Transfer of Property: Ways to transfer the property title/deed:
1. voluntary alienation
2. involintary
3. transfer of deceased person's property
Voluntary alienation:
Transfer of the title by gift or by selling. Vol.-- is done with the wishes and conscent of the owner. To transfer title the owner must use some sort of deed.
Words with OR:
Words with EE:
or= gives this is the owner whome must sign deed to make valid
ee= Recieves the title does not sign deed
Written document that proves ownership of the property. The owner intentionally conveys right, title or his/her intrest in real estate to another
Requirements for valid conveyance:
****A valid deed in NC must contain certain essential elements*****
*** deed must be in writing
***Grantor must have legal capacity to execute deed
***both grantee and grantor must be identified(deed must have their names)
***Must have an adequate legal description
***must be signed by only the grantors
***Must be delivered and voluntarily accepted
Elements not required for valid conveyance:
***do'nt have to be witnessed
***doesn't have to be dated
***price payed is not required on the deed.
***doesn't have to be sealed
***" " have to be notorized or acknowledged
*** " " have to be recoreded
Exception to elements not required for validation:
In real life buyer will not recieve the keys or loan till deed is recorded, but before deed is recorded it MUST be acknowledged first
Four Types OF Deeds:
1. General warrenty deed
2. special warrenty deed
3. Quitclaim Deed
4. Special-purpose Deeds
General Warrenty deeds:
Included four covenants
Gives grantor greater liability, and give the grantee the greatest protection:
1. cov. of seisin
2. cov. against encumbrances
3. Cov. of quiet enjoyment
4. cov. of warrenty forever
General Warrenty deeds:
#1. Covenant of seisin
Grantor warrents: delivery of seisin is the actual transfer of title. Gives the right to transfer title to prop. to grantor
General Warrenty deeds:
#2 covenant against encumbrances:
#3Cov. of quiet enjoyment:
Grantor warrents that prop. is free from any liens or encumbrances
3- GUARENTEES THAT THEgrantees title will be good against third partyrucuss
General Warrenty deeds:#4. Cov. of warrenty forever:
grantor guarentees to compansate the grantee if title ever fails in the future
grantee should still get title insurence b/c of time of later claim grantor could be dead or financially instable
Type of deed # 2:
Special warrenty deed
Or limited warrenty deed. Protects grantee for the period of time the grantor owned the real estate prop
Title Insurence:
Purchase on closing date. It is a one time fee and it lasts for as long as grantee owns prop.
Type deed # 3 :
Quit-claim deed: non-warrenty
This deed has no covenants or warrenties (no expressed or implied)
--> provides NO guarentee
If grantor's title is good when deed is delivered than title can be just as effective as a warrenty deed.
Cloud on title:
quit claim is often used when cleariing a cloud on the title or to cure a defect in the chain of of buyers and owners
Type # 4 Of deed:
Special-Purpose deeds:
*** SIX types
1. Correction deed
2. Deed of Gift
3. Deed of Release
4. Deed of lieu of foreclosure
5. Trustee's Deed
6. Deeds executed pursuant to court order
1. correction deed:
Is used when there has been if error in previous deed. ex. if description of prop. was incorrect
2. Deed of Gift:
The grantor transfers property as a gift or for free. This transfer must be recorded within 2 years or becomes void.
3. Deed of Release:
When mortgage is release from prop. or paid in full.
4. Deed in lieu of forclosure:
Used when mortgagor has defaulted on loan and wants to avoid foreclosure action.
5. Trustee's Deed:
individual transfer of land... given in a will
6. Deeds executed pursuant to court order:
title of property that is transfered by court order or will
Excise Tax:
All sellers of real prop. in NC must pay. It is based on the purchased price of prop.
Revenue stamps:
Must be affixed to each deed, is the proof that excise tax has been paid.
The amount of tax is $1 TO EVERY $500
involintary Alienation:
The title is transfer w/o the owners wishes and consent. Usually carried out by operations of law
there are FOUR processes of invol. alienation
1. escheat
2. eminent domain
3. lien foreclosure
4. adverse possession
Invol # 1:
Gov't cheats you out of property but your fault b/c you died with out a will or valid will also called intestate..... and leaves no heirs. The title now passes to the state
Invol # 2:
Eminent Domain:
When prop. owner's land is heeded for public use. Taken through suit of condemnation but first must follow three conditions.
1. that the use will benefit the public
2. Justly compensate you for it: fair market value
3. Due process law- protection of the prop. owner's rights
Invol # 3:
Lien Foreclosures:
non-payment of debt, didn't pay taxes or mortgage and didn't maintain the property. didn't follow rules. THe prop. is now sold and the money goes to pay off the debts owed
Invol # 4:
Adverse Possession:
For a person to make a claim of owner ship under adv. poss. they must have some reason to believe land is theirs.
In order for adverse possession to be true, all of the following guidlines must also be true:
next note card
open and notorious:
well know to others
Uninterupted for the required period of time:
With color of title: 7 yrs. which are docs of proof of ownership
or w/o color of the title 20 yrs
without the permission of the owner
Not shared with the owner
adverse to true owners possession:
the adverse possessor must believe land occupied is his or hers
Transfer of deed type # 3:
Transfer of deceased person's property:
transfer for desceased
Intestate succession:
by descent. Whole country law: known as law of descent and distribution. When a person dies intestate (w/o a will) the desceases real and personal prop. is passed to the heirs
Administrator/ Administratrix
male female
The court appointed person who has to ditribute the prop. according tp the provisions of the statue.
is a legal document made by a mentally stable owner to convey real and personal prop. on the owner's death.
Devise and------------------>
--> gift of prop.
--> reciever of prop.
-->reciever of personal prop.
What is a marketable title?
A good and clear title, reasonable free from risk of litigation over possible defects
To be Marketable a title must meet 5 total criterias: from any liens/encumbran
2.diclose no serious defects from any doubtful questions of law or facts to prove if title's valid
4. Protection of any litigation or threats to purchasers quiet enjoyments
5. A title that will convice the purchaser that he/she could in turn sell or mortgage this prop. at fair market value.
Title Search:
An examination of all public records that might affect the title. May be performed by lawyer or trained paralegal but only attorney's can give you an opinion.
Chain of title:
examiner tries to establish.
Shows the record of ownership of the property over a period of time, depending on length of title search.
Grantee and Grantor indexes:
in which way ownership is traced by. these index's are kept in the register of the deed's office. All docs. related to parcel of prop. are indexed under names of grantor/ee's not prop
Constructive notice:
the public notice given to the world. Which has to be done by all people who have in intrest in real estate. That is they have to file or recored all docs. affecting their intrests in real estate.
Actual Notice:
Physically taken possession of the property.
Necessity for recording:
Before the potencial purchaser buys land they want to know if seller will transfer a good title.
Through recording docs. that affect prop. ownership are readily available
The conner act:
It is a type recording statue called pure race statue: where whoever records first prevails. so if first purchased fails to record title docs. the purchaser who follows in time and records the title,
pure race statue example:
say a sells prop to b. b fails to record deed. two weeks later a sells prop. to c and c rushes down and records deed. Now b is shit outta luck and owns nothing
Marketable title act:
NC's act provides that if a chain of title can be traced back for 30 yrs w/o problem, it becomes a marketable title