ch 12 transfer title

general warranty deed

provides the greatest protection of any deed.

granting clause

"I, Kent Long, convey and warrant . . ." creates a warranty deed.

Covenant of warranty forever

. The grantor promises to compensate the grantee for the loss sustained if the title fails at any time in the future.

In Illinois, how many years are required to acquire title by adverse possession? A) 7 B) 5 C) 20 D) 30

20

trustee's deed.

A deed executed by a trustee is a trustee's deed. It is used when a trustee conveys real estate held in the trust to the beneficiary. The trustee's deed must state that the trustee is executing the instrument in accordance with the powers and authority granted by the trust instrument.

consideration in a valid deed

A valid deed must contain a clause acknowledging that the grantor has received consideration. Generally, the amount of consideration is stated in dollars. When a deed conveys real estate as a gift to a relative, "love and affection" may be sufficient consideration. In most states, however, it is customary to recite at least a nominal consideration, such as "$10 and other good and valuable consideration."

Open, notorious, hostile and adverse use of anothers property for prescriptive period what is the PROCESS AND WHO IS THE PROPERTY TAKEN BY?

Adverse possession, adverse possessor

Adverse possession is a means of voluntary alienation. True False

false

Land needed for public use what is the PROCESS AND WHO IS THE PROPERTY TAKEN BY?

Eminent domain and taken by Public or govt agency

A deed contains a guarantee that the grantor will compensate the grantee for any loss resulting from the title's failure in the future. This is an example of A) warranty forever. B) further assurance. C) quiet enjoyment. D) seisin.

Explanation The answer is warranty forever. The grantor promises to compensate the grantee for the loss sustained if the title fails at any time in the future.

when a person dies with no heirs what is the PROCESS AND WHO IS THE PROPERTY TAKEN BY?

Process: Escheate Taken by state or county

What is the major difference between a general warranty deed and a quitclaim deed? A) A general warranty deed provides the least protection for the buyer; a quitclaim deed provides the most protection for the buyer. B) A general warranty deed provides the most protection for the buyer; a quitclaim deed provides the least protection for the buyer. C) A general warranty deed can be used only in foreclosure sales; a quitclaim deed is used only in residential sales. D) A general warranty deed creates an indefeasible title; a quitclaim deed creates a defeasible title.

The answer is a general warranty deed provides the most protection for the buyer; a quitclaim deed provides the least protection for the buyer. A general warranty deed provides the greatest protection of any deed. It is called a general warranty deed because the grantor is legally bound by certain covenants or warranties (promises). A quitclaim deed 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.

A husband who works for an international corporation has already moved out of the country. To authorize his wife to act on his behalf in his absence, he signed A) a quitclaim deed. B) a power of attorney. C) a release deed. D) an acknowledgment.

The answer is a power of attorney. Most states permit an attorney-in-fact to sign for a grantor. The attorney-in-fact must act under a power of attorney-the specific written authority to execute and sign one or more legal instruments for another person.

A woman signed a deed transferring ownership of her property to a man. To provide evidence that the woman's signature was genuine, she executed a declaration before a notary. This declaration is called an A) estoppel. B) affidavit. C) acknowledgment. D) affirmation.

The answer is acknowledgment. An acknowledgment (also called a notarization) is a formal declaration that the person who signs a written document does so voluntarily and that her signature is genuine. The declaration is made before a notary public or some other person as prescribed by state law.

A woman bought acreage in a distant county, never went to see the acreage, and did not use the land. A man moved his mobile home onto the land, had a well drilled for water, and lived there for 22 years. The man may become the owner of the land if he has complied with the state law regarding A) avulsion. B) adverse possession. C) requirements for a valid conveyance. D) voluntary alienation.

The answer is adverse possession. Adverse possession (also called squatter's rights) is another means of involuntary transfer. The law recognizes that the use of land is an important function of its ownership. As such, an individual who makes a claim to certain property, takes possession of it, and uses it may take title away from an owner who fails to use or inspect the property for a period of years. The period of uninterrupted possession required to claim title by adverse possession is 20 years.

Which of these types of deeds merely implies, but does not specifically warrant, that the grantor holds good title to the property? A) Bargain and sale B) Trustee's C) Quitclaim D) Special warranty

The answer is bargain and sale. In some states, a bargain and sale deed contains no express warranties against encumbrances. It does, however, imply that the grantor holds title and possession of the property.

In Illinois, the transfer tax is A) customarily paid by the buyer. B) assessed at the rate of $1 per $1,000 of sales price. C) computed on the sales price less the amount of any existing mortgage to which the property remains subject. D) not required if the actual total consideration is less than $

The answer is computed on the sales price less the amount of any existing mortgage to which the property remains subject. The Illinois Real Estate Transfer Tax Law (35 ILCS 200) imposes a tax on conveying title to real estate in the amount of $0.50 per $500, and in all Illinois counties, there is an additional transfer tax of $0.25 per $500. Total transfer tax to state and county combined is $0.75 per $500 or fraction thereof. The seller generally pays the state and county transfer tax.

Under Illinois law, which of the following is NOT required in order for a deed to be valid? A) Grantee's signature B) Grantor's signature C) Recital of consideration D) Grantee's present address

The answer is grantee's signature. The minimum requirements for a valid deed include a grantor, who has the legal capacity to execute (sign) the deed and a grantee named with reasonable certainty to be identified.

Every deed must be signed by the A) grantor and grantee. B) devisee. C) grantee. D) grantor.

The answer is grantor. To be valid, a deed must be signed by all grantors named in the deed. Some states also require witnesses to the grantor's signature.

For Illinois courts to recognize a will, it must A) be handwritten. B) have two witnesses. C) have no amendments. D) be modified by codicil.

The answer is have two witnesses. A will must be in writing and signed and declared by the maker (the testator) in the presence of two or more witnesses to be her last will and testament.

A quitclaim is BEST used to A) convey a marketable title. B) release a substantial real estate interest. C) warrant that a title is valid. D) remove a cloud on title.

The answer is remove a cloud on title. A quitclaim deed frequently is used to cure a defect, called a cloud on the title.

Step 1: A man decided to convey his property to a woman. Step 2: The man signed a deed transferring title to the woman. Step 3: The man gave the signed deed to the woman, who accepted it. Step 4: The woman took the deed to the county recorder's office and had it recorded. At which step did title to the property actually transfer or pass to the woman? A) Step 3 B) Step 1 C) Step 4 D) Step 2

The answer is step 3. A title is not considered transferred until the deed is actually delivered to and accepted by the grantee.

What do the terms condemnation and escheat have in common? A) They are examples of voluntary alienation. B) They are methods of transferring title by descent. C) They are examples of involuntary alienation. D) They are processes used in adverse possession claims.

The answer is they are examples of involuntary alienation. Title to property may be transferred without the owner's consent by involuntary alienation. Involuntary transfers are usually carried out by operation of law—such as by condemnation or a sale to satisfy delinquent tax or mortgage liens. When a person dies intestate and leaves no heirs, the title to the real estate passes to the county (in Illinois) by the state's power of escheatment.

A 15-year-old boy inherited many parcels of real estate from his late father and decided to sell one of the parcels. If the boy enters into a deed conveying his interest in the property to a purchaser, such a conveyance will be A) voidable. B) invalid. C) valid. D) void.

The answer is voidable. A grantor must be of lawful age, at least 18 years old. A deed executed by a minor is usually voidable.

Which of these documents transfers title to real estate at the death of the owner? A) Trustee's deed B) Warranty deed C) Special warranty deed D) Will

The answer is will. A will is an instrument made by an owner to convey title to real or personal property after the owner's death. A will is a testamentary instrument; that is, it takes effect only after death.

bequest

The gift of personal property by will is called a bequest (also called a legacy)

devise

The gift of real property by will i

Covenant of quiet enjoyment

The grantor guarantees that the grantee's title will be good against third parties who might bring court actions to establish superior title to the property

Covenant of further assurance.

The grantor promises to obtain and deliver any instrument needed to make the title good. For example, if the grantor's spouse has failed to sign away dower rights, the grantor must deliver a quitclaim deed (discussed later) to clear the title.

Covenant against encumbrances

The grantor warrants that the property is free from liens or encumbrances,

grantor

The owner who transfers the title is called the grantor.

grantee

The person who acquires the title is called the grantee. A deed is executed only by the grantor, or seller.

Through the principle of testate, successive periods of different adverse possession by different adverse possessors can be combined, enabling a person who is not in possession for the entire required time to establish a claim of title. True False

The statement is false. It is through the principle of tacking that successive periods of different adverse possession by different adverse possessors can be combined, enabling a person who is not in possession for the entire required time to establish a claim of title.

Among the basic warranties of a general warranty deed is the covenant of seisin. True False

The statement is true. With the covenant of seisin, the grantor warrants that he owns the property and has the right to convey title to it. "Seisin" simply means "possession."

Nonpayment what is the PROCESS AND WHO IS THE PROPERTY TAKEN BY?

foreclosure, and taken by creditor

beneficiary

a person who receives the personal property by will is called a beneficiary (also called a legatee).

bargain and sale deed

contains no express warranties against encumbrances. It does, however, imply that the grantor holds title and possession of the property. IN ILLINOIS

special warranty deed

contains two basic warranties: Warranty that the grantor received title Warranty that the property was not encumbered during the time the grantor held title, except as otherwise noted in the deed

Voluntary alienation

egal term for the voluntary transfer of title. The owner may voluntarily transfer title by either making a gift or selling the property. To transfer during one's lifetime, the owner must use some form of deed of conveyance.

A person who has died intestate has prepared a will indicating how his property should be handled. True False

false

A quitclaim deed provides the grantee with the most protection of any deed. True False

false

The basic requirements for a valid conveyance are governed by A) state law. B) local custom. C) national law. D) the law of descent

he answer is state law. The formal requirements for a deed are established by state law and vary from state to state.

which of these statements is TRUE regarding the execution of a valid will in Illinois? A) The will must be notarized. B) The testator must be at least 21 years old and of sound mind. C) The will must be witnessed by three people. D) The will must be in writing, signed, and witnessed by two people.

he answer is the will must be in writing, signed, and witnessed by two people. A will must be in writing and signed and declared by the maker (the testator) in the presence of two or more witnesses to be her last will and testament.

Covenant of seisin

he grantor warrants that she owns the property and has the right to convey title to it. (Seisin simply means "possession.") The grantee may recover damages up to the full purchase price if this covenant is broken.

The Illinois Real Estate Transfer Tax Law

imposes a tax on conveying title to real estate in the amount of $0.50 per $500, and in all Illinois counties, there is an additional transfer tax of $0.25 per $500. Total transfer tax to state and county combined is $0.75 per $500 or fraction thereof. The seller generally pays the state and county transfer tax.

will

instrument made by an owner to convey title to real or personal property after the owner's death.

acknowledgment (also called notarization)

is a formal declaration that the person who signs a written document does so voluntarily and that her signature is genuine. The declaration is made before a notary public or some other person as prescribed by state law

Probate

is a formal judicial process that proves or confirms the validity of a will, determines the precise assets of the deceased person, and identifies the persons to whom the assets are to pass. assets are distributed equally

deed in trust

is 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.

Title

means the right to ownership or actual ownership of the land; it represents the owner's bundle of rights.

transfer tax

must be paid before the recording of the deed (or before transferring the beneficial interest in a land trust). This is done by purchasing tax stamps from the county recorder or the city offices if there are local stamps required. These stamps are literally affixed to the deed.

testate

person who dies testate has prepared a will indicating how her property should be handled

quitclaim deed

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.

Adverse possession

squatter's rights,is another means of involuntary transfer.

Probate is a formal judicial process that proves or confirms the validity of a will. True False

t

Which deed requires the Illinois transfer tax? A) A deed conveying a property owned by a government body B) Deeds for property valued at less than $100 C) A deed conveying a property owned by a charitable institution D) Deeds between relatives

the answer is deeds between relatives. Deeds such as those conveying real estate from or between any governmental bodies and those held by charitable, religious, or educational institutions are exempted from the transfer tax. When the actual consideration for conveyance is less than $100, the transfer is considered a gift and is exempt from tax.

Under the covenant of quiet enjoyment, the grantor A) guarantees that the title will be good against the title claims of third parties. B) promises to obtain and deliver any instrument needed to make the title good. C) guarantees that if the title fails in the future, she will compensate the grantee. D) warrants that she is the owner and has the right to convey title to the property.

the answer is guarantees that the title will be good against the title claims of third parties. The grantor guarantees that the grantee's title will be good against third parties who might bring court actions to establish superior title to the property. If the grantee's title is found to be inferior, the grantor is liable for damages.

A title is not considered transferred until

the deed is actually delivered to and accepted by the grantee.

deed

the document by which the owner transfers the title to another is the deed

testator

the person who makes a will) is alive, any property included in the will can still be conveyed by the owner. The parties named in a will have no rights or interests as long as the party who made the will lives; they acquire interest or title only after the owner's death.

intestate

when a person dies intestate (without a will), real estate and personal property pass to the decedent's heirs according to the state's statute of descent and distribution.