Unit 6: Transfer Of Title

Front 1

Title

Back 1

(1) The right to ownership or the ownership of land. (2) The evidence of ownership of land.

Front 2

Voluntary alienation

Back 2

the legal term for the transfer of title during the property owner's lifetime

Front 3

Deed

Back 3

A written instrument that, when executed and delivered, conveys title to or an interest in real estate.

Front 4

ORs and EEs

Back 4

ORs gives

EEs receive

Front 5

“subject to" clauses

Back 5

exceptions and reservations

Front 6

Habendum clause

Back 6

defines the ownership right received by the grantee

(begins with the words “to have and to hold”)

Front 7

A deed executed by a minor is generally:

Back 7

Voidable

Front 8

For a valid deed the grantor must be:

Back 8

•of lawful age, usually at least 18 years old

•legally competent (of sound mind)

•grantor's name must be spelled correctly and consistently throughout the deed

Front 9

A valid deed must contain:

Back 9

•grantor •grantee •consideration •granting clause •habendum clause •legal description of real estate •exceptions and reservations •signature of grantor •acknowledgment •delivery and acceptance

Front 10

granting clause

Back 10

words of conveyance

Front 11

power of attorney

Back 11

written specific authority

Front 12

Acknowledgment

Back 12

A formal declaration made before a duly authorized officer, usually a notary public, by a person who has signed a document.

Front 13

The most common types of deeds are:

Back 13

•General warranty deed. •Special warranty deed. •Bargain and sale deed. •Quitclaim deed. •Deed of trust. •Reconveyance deed. •Trustee's deed. •Deed executed pursuant to a court order

Front 14

The basic warranties in (a general warranty deed) are as follows:

Back 14

•Covenant of seisin •Covenant against encumbrances •Covenant of further assurances •Covenant of quiet enjoyment •Covenant of warranty forever

Front 15

A valid deed must contain:

Back 15

•grantor •grantee •consideration •granting clause •habendum clause •legal description of real estate •exceptions and reservations •signature of grantor •acknowledgment •delivery and acceptance

Front 16

The basic warranties in (a general warranty deed) are as follows:

Back 16

•Covenant of seisin: grantor has the right to convey title •Covenant against encumbrances: grantor warrants that the property is free from liens or encumbrances, except for any specifically stated in the deed •Covenant of further assurances: grantor promises to obtain and deliver any instrument needed to make the title good •Covenant of quiet enjoyment: grantor guarantees that the grantee's title will be good against any third party who might bring a court action to establish superior title to the property •Covenant of warranty forever: grantor promises to compensate the grantee for the loss sustained if the title fails at any time in the future

Front 17

A special warranty deed

Back 17

limits the grantor's defense of the title transferred by warranting

•that the grantor received title; and

•that the property was not encumbered during the time the grantor held title, except as otherwise noted in the deed

Front 18

bargain and sale deed

Back 18

contains no express warranties against encumbrances, but it does imply that the grantor holds title and possession of the property

Front 19

quitclaim deed

Back 19

provides the grantee with the least protection of any deed. It carries no covenants or warranties and generally conveys only whatever interest the grantor may have when the deed is delivered

Front 20

cloud on the title

Back 20

Title defect

Front 21

Deeds of trust

Back 21

the means by which a trustor conveys real estate to a trustee for the benefit of a beneficiary. The real estate is held by the trustee to fulfill the purpose of the trust

Front 22

reconveyance deed

Back 22

used by a trustee to return title to the trustor

Front 23

Transfer tax (grantor’s tax)

Back 23

Tax stamps required to be affixed to a deed by state and/or local law

Front 24

Calculating Transfer Tax

Back 24

•Value / dollar amount per taxable unit = taxable units

•Taxable units x rate per unit = tax

Front 25

Calculating Transfer Tax

Back 25

•Value / dollar amount per taxable unit = taxable units

•Taxable units x rate per unit = tax

Front 26

Transfer declaration

(Transfer statement, affidavit of real property)

Back 26

•the full sales price of property. •it’s legal description •they type of improvement. •the address, date, and type of deed. •whether the transfer is between relatives or in accordance with a court order

Front 27

Certain deeds may be exempted from the tax, such as:

Back 27

•Gifts of real estate

•Deeds not made in connection with a sale (such as a change in the form of co-ownership)

•Conveyances to, from, or between government bodies

•Deeds by charitable, religious, or educational institutions

•Deeds securing debts or releasing property as security for a debt

•Partitions

•Tax deeds

•Deeds pursuant to mergers of corporations

•Deeds from subsidiary to parent corporations for cancellations of stock

Front 28

involuntary alienation

Back 28

Title to property may be transferred without the owner's consent

Front 29

involuntary alienation

Back 29

Title to property may be transferred without the owner's consent

Front 30

Involuntary transfers are usually carried out by operation of law—such as by :

Back 30

condemnation, foreclosure of a mortgage loan, or a sale to satisfy delinquent tax or mortgage liens

Front 31

involuntary alienation

Back 31

Title to property may be transferred without the owner's consent

Front 32

intestate

Back 32

without a valid will

Front 33

another means of involuntary transfer

Back 33

Adverse possession

Front 34

Usually the possession by the claimant must have the following characteristics

Back 34

ONCHA

•open—obvious to anyone who looks,

•notorious—known by others,

•continuous—uninterrupted,

•hostile—without the true owner's consent, and

•adverse—against the true owner's right of possession.

Front 35

Testate

Back 35

Having made and left a valid will

Front 36

Probate

Back 36

A legal process by which a court determines who will inherit a decedent’s property and what the estate’s assets are.

Front 37

Will

Back 37

A written document, properly witnessed, providing for the transfer of title to property owned by the deceased, called the testator.

Front 38

Will

Back 38

A written document, properly witnessed, providing for the transfer of title to property owned by the deceased, called the testator.

Front 39

Devise

Back 39

The gift of real property by will

Front 40

Devisee

Back 40

a person who receives real property by will

Front 41

Heir

Back 41

One who might inherit or succeed to an interest in land under the state law of descent when the owner dies without leaving a valid will.

Front 42

devise

Back 42

is a gift of real property by will to the devisee

Front 43

Heir

Back 43

One who might inherit or succeed to an interest in land under the state law of descent when the owner dies without leaving a valid will.

Front 44

bequest or legacy

Back 44

a gift of personal property.

Front 45

When a person dies testate, title to real property transfers to________.

Back 45

Devisee

Front 46

Title to real estate may be transferred during a person's lifetime by _______

Back 46

involuntary alienation

Front 47

Land lost through erosion is an example of __________

Back 47

involuntary alienation.

Front 48

Every deed must be signed by the ______

Back 48

Grantor

Front 49

Every deed must be signed by the ______

Back 49

Grantor

Front 50

Generally, where does a probate proceeding involving real property take place?

Back 50

In both the county where the decedent resided and the county in which the property is located