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53 Cards in this Set

  • Front
  • Back

Title to land

The right to or ownership of land; the evidence of ownership of land; summation of all the things property owners possess to prove and protect their ownership interest in property


Transferring ownership away from you; the act of transferring property to another

1) Voluntary - giving or willing title
2) Involuntary - losing title through legal process
Types of Alienation (2)

Written instrument by which an owner of real estate intentionally conveys right, title, or interest in a parcel of real estate to another; evidence of title


The property owner that is transferring title to or an interest in real property away from himself


The person who receives a conveyance of real property

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

Requirements for deed conveyance (7 things)

Granting Clause

Words of conveyance called?

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

Things NOT needed for deed to be legal

Conner Act
Law which states first grantee to record the deed has legal rights to the property; because of this, NC is considered a "Pure Race" state

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

3 Common forms of deeds

General Warranty Deeds
Provides most protection of any deed
1) Covenant of Seisin and right to convey
2) Covenant against Encumbrances - Property is free of liens or encumbrances not on record
3) Covenant of Quiet Enjoyment - title is good against 3rd party action
4) Covenant of Further Assurance - if error is found in deed, grantor guarantees to correct mistake
5) Covenant of Warranty forever - If title fails at any time in the future, grantor will be liable
Covenants of General Warranty Deed (5)
Special warranty deed
Deed that guarantees that the grantor is passing title as he has received it

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

Warranties of special warranty deed (2)

Quitclaim deed

No express or implied warranties or covenants given. Conveys less than fee simple OR cures a title defect

Called: cloud in the title
Cured: Quitclaim deed

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

Correction deed
Deed used when previous deed has an error
Deed of gift
Property is conveyed as a gift; no excise tax
2 Years
Time limit for recording gift of property
Deed of release
Releases property from mortgage when paid
Deed in lieu of foreclosure

Borrower has defaulted on loan and owner releases ownership prior to foreclosure; lender simply takes ownership instead of going through foreclosure (tax issues)

Trustee's Deed
Trustee transferring title to anyone other than trustor
Excise tax
Tax paid after selling real property; based on the sales price of the property; also called revenue stamps

Round sales price up to next 500 increment and then $1 for every $500 the property is sold for (always a whole dollar amount)

Excise tax / Revenue Stamps calculation

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

No need to pay excise taxes (When?)

Involuntary alienation

Transfer of ownership without owner's wishes or consent; usually by operation of law


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

Eminent domain
Private property is taken for public use and good
How eminent domain is exercised
Quick take
When lawful, private property can immediately be transferred to the public good
Adverse possession

Making a claim of ownership on someone else's property

Exclusive (rightful owner not still using)
Adverse to true owner's possession, and Notorious (without permission of the owner)
Requirements for adverse possession
NC Intestate Succession Act

Statute of descent and distribution: when someone dies intestate, the decedent's real estate and personal property pass to decedent's heirs according to this statute.

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

5 criteria for marketable title

Title search

Examination of public record that might affect chain of title

Chain of title

Record of a property's ownership; ownership interests from person to person over a period of time

Abstract of title
Condensed history of title of property
Suit to quiet title

Lawsuit establishing ownership of title if there is a gap or cloud on the title

Marketable title act
If chain of title can be traced back 30 years, there is marketable title
Title insurance
Insurance against losses incurred due to defect in the title

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

Time requirement for adverse possession (w/ & w/o color of title)

Notary Signature

Not needed for a deed to be valid, but needed for deed to be recorded

Seller at closing

Excise tax paid by ...


The gift of real property by will


The person who receives real property by will

Legacy or bequest

A gift of personal property by will


The person who receives personal property by will

Approved Attorney State

This means that title searches are usually performed by an attorney rather than by a title insurance company

Constructive notice

The legal presumption that information may be obtained by an individual through due diligence such as properly recorded documentation

Actual notice

Not only is the information available but also someone has been given the information and specifically knows it.

Opinion of title

This is given, by attorney only, after a title search has been done and a chain of title has been verified; not a guarantee

Register of Deeds in the county where the land is located

All instruments in writing affecting any estate, right, title, or interest in land must be recorded here