CHAPTER 19: DEEDS AND TRANSFER OF TITLE

After purchasing a property, what can Jeremiah do to clear a possible future claim on the property's title? A. File a suit to quiet title. B. File suit against the lender. C. File suit against the seller. D. Have a second title search performed.

A

Where can a party reviewing a title commitment find basic details about the transaction? A. Schedule A B. Schedule B-1 C. Schedule B-2 D. This is not contained in the title commitment

A

A condensed history of a title; a summary of all links in the chain, including other public record matters affecting the title, a legal description of the property, and a summary of every related document in chronological order =

ABSTRACT OF TITLE

Which document is used to give a buyer an overview of the title history and information about what is or isn't covered in an insurance policy? A. Abstract of title B. Guarantee of title C. Preliminary report D. Title insurance

C

The giving of something of value, which can include the agreement to not do something. ________________ is a required element of a binding contract.

Consideration

Christina purchased a house from Thomas. When did she officially gain ownership of the property? A. After the appraisal was completed B. Prior to closing after approving the Loan Estimate C. When actual notice of the deed was given to the mortgage company D. With the transfer of deed from the seller to the buyer

D

Proof of property ownership, usually a deed =

EVIDENCE OF TITLE

A method of identifying a property in written words that allows for an unambiguous interpretation of a property's boundaries and location =

LEGAL DESCRIPTION

A court action to remove a cloud on a title =

QUIET TITLE

Dying without a will

intestate

Dying with a will in place

testate

Li Meng purchased a property that had been owned by the same man for more than 40 years. The title search was clean. In the spring, she started seeing traffic on the path to her dock and discovered that the previous owner had always allowed the locals to use his path to get to the lake. What covenant may have been breached? A. Against encumbrances B. Quiet enjoyment C. Right to convey D. Seisin

A

Which covenant requires the grantor to execute any necessary legal documents (within his power) necessary to fix title defects discovered after closing? A. The covenant of further assurances B. The covenant of seisin C. The covenant of the right to convey D. The covenant of warranty

A

Which of the following is true about ownership or title to a property? A. Constructive notice to the public of real property ownership occurs when the deed is recorded. B. The last to record has priority. C. The seller is responsible for paying for owner's and lender's title insurance. D. Title isn't finalized until the deed has been recorded.

A

Express notice given directly to a person or actual knowledge that is known =

ACTUAL NOTICE

What's the purpose of a chain of title? A. To determine whether encroachments exist and to determine the boundaries of the property B. To establish history of past ownership C. To establish proof of insurance D. To insure the policy owner against financial loss if the title to the real estate has covered defects

B

In which of these situations would the property most likely be conveyed with a trustee's deed? A. Karla is the executor of her father's estate and is selling his farm. B. Marvin and Tricia are selling their house. C. Tim's property will be sold at auction in a foreclosure action. D. TLC Lending is selling an REO property.

C

Select the statement that correctly exemplifies the covenant term. A. The covenant against encumbrances is the grantor's guarantee that he or she owns the property being conveyed. B. The covenant for further assurances assures the grantee that there are no undisclosed encumbrances on the property. C. The covenant of quiet enjoyment promises that the grantee won't be disturbed by a title defect the grantor passes on. D. The covenant of warranty promises that the grantor has the capacity to convey title.

C

When property changes hands, the deed is recorded. There's a fee for recording. What is the benefit to the grantee of having the deed recorded? A. It impacts who owns the property. B. It protects against foreclosure. C. It puts the public on notice regarding ownership. D. It's required by law.

C

Which of the following best describes an attorney title opinion? A. A document that protects buyers and lenders against financial loss that might be incurred because of title defects discovered after closing. B. A promise to insure the property as long as certain conditions are met. C. A statement of opinion on the status of the property's title, based on the abstract of title. D. The document that establishes the path of property ownership from its first owner to the current owner.

C

Which of these would void a deed intended to convey property? A. The grantee is not mentally competent. B. The grantee's signature is not acknowledged. C. The grantor is not mentally competent. D. The transfer includes no monetary consideration.

C

A statement of opinion on the status of a title to real property =

CERTIFICATE OF TITLE

Establishes the title history or the path and proof of property ownership through a public records search for successive conveyances of title and encumbrances; each owner is considered to be a "link" in the chain =

CHAIN OF TITLE

Aka title defect; any encumbrance, such as a lien or inheritance claim, that impedes the conveyance of a property; may be removed with a quitclaim deed =

CLOUD ON TITLE

A public recordation of an event, meaning notice was published but not necessarily given directly to the affected parties while still technically being available in the public record =

CONSTRUCTIVE NOTICE

Reuben purchased a property from a seller who gave him a general warranty deed. What's true of Reuben's deed to this property? A. Reuben's deed is a court-ordered deed. B. Reuben's property was likely a foreclosure purchased through a lender. C. The deed likely doesn't include a covenant of warranty. D. The deed provides the greatest protection available from a grantor to a grantee.

D

What title guarantees will Jody have when she buys a property at a foreclosure auction? A. The covenant against encumbrances B. The covenant of further assurances C. The covenant of quiet enjoyment D. The covenant of seisin

D

______ determines who the heir or heirs will be if a person dies without a will. A. Court appointment B. Escheat C. Intestate bequest D. Intestate succession

D

A legal document conveying title to or interest in real estate; establishes legal ownership =

DEED

____________ is the act of giving the deed to the grantee; ______________ is the grantee's receipt of the deed.

Delivery, acceptance

A right in property to have legal title conveyed once terms of the purchase agreement are met.

EQUITABLE TITLE

A title insurance policy that covers the buyer in case defects in title come up after closing =

EXTENDED COVERAGE POLICY

A title against which there may be known defects (such as easements), but the title company has notified the parties of the defect and has agreed to insure against it (not list it as a policy exception) =

INSURABLE TITLE

A title that is reasonably free and clear of encumbrances so that the average buyer would not hesitate to consummate a sale =

MARKETABLE TITLE

A deed that does not offer any warranties but simply releases the current owner's claims to the property =

QUIET TITLE

A deed that does not offer any warranties but simply releases the current owner's claims to the property =

QUITCLAIM DEED

Public filing of a document =

RECORDATION

The list of items a title insurance policy does not cover =

SCHEDULE OF EXCEPTIONS

The substitution of one party for another whose debt the party pays, allowing the paying party the rights and remedies that would otherwise belong to the debtor. =

SUBROGATION

The legal concept of property ownership and the rights that go with it =

TITLE

A document outlining that a title insurance policy will be issued to the buyer provided certain conditions are met (usually a required payoff of liens or other title defects) =

TITLE COMMITMENT

An insurance contract insuring the policy owner against financial loss if the title to real estate is defective =

TITLE INSURANCE

The loss of real property ownership with the owner's consent (e.g., traditional sale) =

VOLUNTARY ALIENATION

A requirement for deed transfer; a public official must acknowledge, usually by a notary public, the grantor's signature

acknowledgment

The court-appointed person who distributes property to the heir of a person who died intestate. The female term is "administratrix" but "administrator" is becoming more commonly used for both genders.

administrator

A deed where there is at most one warranty: that the current owner has the right to convey the property. This type of deed makes no warranty against other encumbrances.

bargain and sale deed

A deed executed to a court order

court-ordered deed

An agreement or promise made between the parties

covenant

Deed warranty that, unless otherwise stated in the deed, the property being conveyed is not subject to any encumbrances, liens, easements, etc

covenant against encumbrances

Deed warranty that the grantor (seller) will give the grantee (buyer) any further documentation required to further prove the grantee's title

covenant of further assurance

Deed warranty that the grantee (buyer) will have unimpeded use and enjoyment of the property

covenant of quiet enjoyment

Deed warranty that the grantor can legally grant/convey both title and possession of the property

covenant of right to convey

Deed warranty that the seller is the actual owner of the property being conveyed and has the right to convey it

covenant of seisin

Deed warranty that the grantor will protect and defend the grantee (buyer) against anyone who attempts to claim a superior title to the property

covenant of warranty

Formally conveying a parcel of land to a municipality

dedication by deed

A deed conveying property without consideration

deed of gift

To leave something to someone in a will

devise

A person who inherits property from a will

devisee

One who devises (gives something, such as real property) in a will

devisor

One named in a will to carry out the deceased wishes in regard to distribution of property. The female term is "executrix" but "executor" is becoming more commonly used for both genders.

executor

Conveys real property from a decedent's estate to a buyer

executor's deed

Aka general warranty deed; a deed that grants the most protection to the buyer because it carries all the possible covenants of the grantor

full covenant and warranty deed

The _________ is the recipient of the deed (usually the new buyer); the __________ is the giver of the deed (usually the seller) =

grantee, grantor

A deed clause containing the words "to have and to hold," and which describes the interests and rights of the grantee =

habendum clause

An ______________ title is one against which there may be known defects (such as easements), but the title company has notified the parties of the defect and has agreed to insure against it and not list it as a policy exception. As the less-rigid title standard, insurable title is still acceptable to most buyers

insurable

Determines how the deceased person's property is to be distributed when the person died without a will

intestate succession

Ownership interest that is enforceable by law

legal title

A ______________ title has no defects or clouds to which a reasonable buyer would object. It's not necessarily a perfect title. Sellers can convey marketable title if the title search reveals no doubt about property ownership and there aren't any liens, debts, or encumbrances that won't be cleared at closing

marketable

Dictates the manner in which parties automatically acquire rights or liabilities due to established rules of law, and not through an agreement or act of their own

operation of law

The process by which the court determines how a deceased person's estate should be distributed

probate

"Quits any and all claims to said premises" is language used for a ____________ claim deed.

quit

A deed that does not offer any warranties but simply releases the current owner's claims to the property

quitclaim deed (non-warranty deed)

A deed that contains no covenants or warranties but does imply ownership (seisin); often used in bankruptcy proceedings and foreclosures

referee's/sheriff's deed

Aka limited warranty deed or bargain and sale deed; a deed in which the grantor only guarantees the title against defects arising during the time the grantor owned the property but not against defects that may have been in existence before taking ownership of the property

special warranty deed

A buyer can purchase a property "subject to" the seller's loan; the buyer is supposed to continue payment of that loan, but the seller is still ultimately liable for it =

subject to clause

"Forever warrants the title to said premises" is language used for a ________ deed.

warranty