Chapter 5 - Transfer of Title to Real Property

NC Special-Purpose Deeds

Correction Deed, Deed Of Gift, Deed Of Release, Trustee's Deed, Timber Or Mineral Deed & Deeds Executed Pursuant To Court Order

NC Conner Act

Deeds must be recorded to provide constructive notice.

Title Insurance Policy

Designed to protect the insured against events that occurred before the policy was issued.

Redecoration of a Warranty Deed

Designed to protect the interest of the grantee.

Nonessential Elements of a Deed

Does not need to be dated; does not need to show amount of consideration; Does not need to be acknowledged; Does not have to be recorded (however, it's recommended); Does not have to be sealed.

General Warranty Deed

Five Covenants

Legally Competent

For a deed to be valid, the grantor must be __________.

A title insurance policy with standard coverage generally covers __________.

Forged documents, Incorrect martial statements & incompetent grantors.

The Recording Of A Deed

Gives constructive notice of the ownership of real property.

Will

Grantee is to a deed as devisee is to a __________.

Covenant of Quiet Enjoyment

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.

Deed Of Gift

Has to be dated or else the gift would be voided & has to be recorded by two years.

The seller has a reasonable time to correct the defect.

If a defect is found in the title to real property, the usual effect on a sales contract is that __________.

Bargain & Deed

Implies that the grantor holds title and possession of the property, & there are no express warranties against encumbrances

Seller

In a real estate transaction, excise taxes are the responsibility of the __________.

Condemnation

In a widely-publicized dispute, an owner refused to sell his land to the local school district. He believed that the price offered him was not sufficient consideration. If the school district were to pursue the matter in court, what legal proceeding would it institute to force the owner to sell his land to them?

The acquisition must be used for a public purpose.

In order for the government to acquire land under the right of eminent domian, __________.

Special Warranty Deed

Includes the warranties that the grantor received title & that the property was not encumbered during the time the grantor held title, expect otherwise noted.

Dead Of Release

Is used to release a parcel of property from a mortgage or deed of trust lien when the real estate loan has been paid in full.

Covenant of Seisin

Legal owner of the property & has the right to convey the title.

Torrens System

Legal registration system verifying ownership & encumbrances.

May be found by the courts to be a taking without the payment of just compensation to the property owner.

Legislation designed to convert residential zoning

A Title Insurance Policy

Most assurance of a marketable title to a grantee.

Habendum Clause

Must define ownership interest taken by the grantee; it specifies limits on ownership, such as with a time-share.

Grantor legal requirements

Must have a legal existence, be of lawful age & be legallly competent in order to convey title to real estate.

Quitclaim Deed

No express or implied covenants or warranties & used primarily to convey less than fee simple or to cure title defect.

Bargain and Sale Deed

No express warranties; Implication that grantor holds title and possession

Escheat

No wills, no heirs, no compensation & goes to the state.

Requirements for Adverse Possession

Open, Continuous, Exclusive, Adverse & Notorous

Title

Ownership, or the right to ownership, of land & evidence of that ownership.

Adverse Possession

Possession of the property occurs without the owner's consent, continuous occupancy of the property occurs over a minimum time period & the person taking possession possibly becomes the owner of the property.

ALTA (American Land Title Association) Policy

Protects the owner against title defects not found in public records.

General Warranty Deed

Provides the greatest protection to the grantee.

Quitclaim Deed

Provides the least protection of any deed, carries no covenants or warranties & conveys only whatever interest the grantor may have when the deed is delivered.

The removal of a cloud on the title by court action.

Quieting a title refers to __________.

The NC Marketable Act

States that a title search conducted on a property's history of the previous 30 years will normally extinguish any defects that pre-date that period.

Chain Of Titles

Succession of conveyances from some starting point whereby the present owner derives the title.

Found in a Title Search

The Legal Description of the Property, Liens & Judgements, & Easements

Title Insurance Policy

The best assurance of good title that a real estate purchaser can obtain is __________.

Quitclaim Deed

The best type of deed to use when removing a cloud on a title.

Covenant of Warranty Forever

The grantor guarantees that if at any time in the future the title fails, he or she will compensate the grantee for the loss sustained.

Covenant of Further Assistance

The grantor promises to obtain and deliver instrument needed to make the title good. For example, if there is an error in the deed, the grantor agrees to resign a new deed to correct the mistake.

Quitclaim

The grantor under a __________ deed only conveys any interest the grantor may have in the property.

Covenant Against Encumbrances

The grantor warrants that the property is free from any liens or encumbrances except for those of record.

Special Warranty Deed

The grantor's warranties are limited to the time the grantor owned the property.

Every valid NC real estate deed must contain all of the following:

The identity of the grantor and a grantee, the signature of the grantee & the signature of the grantor.

Transfer Title Rights

The primary purpose of a deed is to __________.

Abstract Of Title

The recorded history of all matters that affect the title to a specific parcel of real property (to prove an owner's rights).

Any & all of the seller's interests in the property belong to the buyer.

The seller conveyed a quitclaim deed to the buyer. Upon receipt of the deed, the buy may be certain that __________.

Delivered & Accepted

The title to real estate passes when a valid deed is __________.

Public Records

They give notice of encumbrances, they establish priority of liens & they provide constructive notice about interests in the property.

Quitclaim Deed

This deed contains no expressed or implied warranties.

Devise

Title to real estate inherited from a person who died testate is referred to as __________.

Special Warranty Deed

Warranty that grantor received the title & warranty that property was unencumbered by the grantor.

Gift Deed

What document is signed by the owner of the real estate?

Bargain & Sale

What type of deed merely implies but does not specifically warrant that the grantor holds good title to the property?

Escheat

When a person dies intestate (without will) & leave no heirs, the title to that person's real estate passes to the state.

Exceptions may be noted in the deed of conveyance.

When the grantor does NOT wish to convey certain property rights...__________.

The property was not privately owned.

A trespasser built a log cabin in a remote area of a national park & occupied the structure for more than 25 years. That person will never be able to claim the property under adverse possession statues, because __________.

Misrepresentation of the true owners of the property, mistakes in recording legal documents & documents executed under fraudulent powers of attorney.

A typical title insurance policy usually protects the purchaser against __________.

Probate (Court Action)

A valid will devises the decedent's real estate after the payment of all debts, claims, inheritance taxes & expenses through __________.

Under the NC Conner Act

According to the __________, a deed of trust, a purchase contract & a set of restrictive covenants must be recorded to be valid against third parties.

Title real estate may be transferred during a person's lifetime by __________.

Alienation

Title Opinion

An attorney's statement that indicates the quality of title as of a certain time is __________.

Words of Conveyance

An essential element of a valid NC deed.

Having a piece of land auctioned for delinquent taxes.

An example of involuntary alienation.

Adverse Possession

An investor bought acreage in a distant county, never visiting, but regularly paying real estate taxes on the land. A woman moved her mobile home onto the investor's property, drilled a well for water & lived there for many years. The woman may have become the owner of the acreage if she has met the requirements regarding __________.

Eminent Domain

An involuntary alienation of property.

Cloud On The Title

An outstanding claim which, if valid, would impair an owner's title is a __________.

Delivery & Acceptance.

Before a transfer of title by conveyance can take effect, there must be __________.

Of public benefit for which the property owner will be fairly compensated.

Before the gov't can exercise its right of eminent domain, the use of property must be __________.

Quitclaim Deed

Best type of deed used to transfer title by a grantor to a grantee when the grantor is providing no warranties on the title.

How is a cloud on the title resolved?

By the action to quiet table.

In NC, the statutory period for adverse possession (without color of title) is an uninterrupted period of how many years when trying to acquire privately owned property?

20 years.

In NC, the statutory period of possession required to acquire title of privately owned property by adverise possession with color of title is how many years?

7 Years.

Personal Property

A bill of sale is used to transfer the ownership of __________.

NC Intestate Succession Act

A court appoints a person to distribute the deceased's property according to the provisions of NC.

Recorded.

A deed doesn't have to be notarized in order to be valid, but must be in order for it to be __________.

Obtaining quitclaim deeds from all interested parties.

A defect or cloud on the title may be cured by __________.

Eminent Domain

A development company owner property that the city expressed interest in acquiring for the extension of the runways at the municipal airport. If the company refuses to negotiate with the city, the city may successfully acquire the property by __________.

A Title Insurance Policy

A document that protects a grantee against hidden risks such as forgeries & loss due to defects in the title, subject to the specific exceptions, is called __________.

North Carolina deeds.

A general warranty deed is the best way for the buyer to receive the title __________.

Grantee's interest is not fully protected against third parties.

A grantee took delivery of the deed to his newly purchased NC property, but neglected to record the deed. Under these circumstances, the __________.

Special Warranty Deed

A grantor does not wish to be responsible for any defect(s) in the title that may arise from previous ownership but will guarantee the title for the time the grantor held the ownership. What type of deed would the grantor convey?