REAL301 Ch. 3

Title ins. Extended converage

(ALTA) lenders usually ask for ALTA insurance. it has the coverage of CLTA plus insurance against some off record title defects, like mechanics liens.

Title ins. standard coverage

(CLTA) protects against the appearance of a title defect that should have been discovered by a careful search of title records.

Requirements for a Valid Deed

-be in writing -identify parties -be signed by a competent grantor -have a living grantee -contain words of conveyance (granting clause) -include adequate description of the property pg.47

Quitclaim Deed

-contains no warranties of any sort, and it will not convey after-aquired title. -one common reason for using a quitclaim deed is to correct a technical flaw in an earlier deed.(in this case also called a reformation deed). -deed is also used when grantor is unsure of validity of title and wishes to avoid giving any warranties.

Types of deeds

-grant deed -quitclaim deed -trustee's deed -deeds executed under court order.

Adverse possession 5 requirements

1. actual, open, notorious 2. hostile to the actual owners interest in the land 3. use under claim of right or color of title 4. continous uniterrupted for a specific period of time 5. possessor must have paid the property taxes during required period of possession.

Will Legal Requirements

1. in writing 2. signed by the testator 3. attested by at least two competent witnesses.

2 requirements for eminant domain.

1. public use (it must benefit public) 2. Just compensation (fair mkt value of the property)

Deeds Executed by Court Order

A deed executed by court order is used to convey title after a court-ordered sale of property. -no warranties

After-aquired title

A grant deed also conveys to grantee all after-acquired title of the grantor. this means that if the grantors title was defective at the time of transfer, but the grantor later acquires a more perfect title, the additional interest passes automatically to the grantee under original deed.

Will terminology

Testator: makes will Devise: to transfer real property by will Executor: appointed by testator to carry out the instructions in the will. Administrator: court appointed if no executor is named Probate: Procedure to prove a will's validity

Patents

Title that land that is transferred from the government to a private party by a document known as a patent. the patent is the ultimate source of title for all land under private ownership

Voluntary Alienation

Voluntary porcess of transferring ownership of real property from one to another Patents, Deeds, and Wills

Trustee's Deed

When property is foreclosed under a deed of trust, the trustee conveys the property to the buyer at a foreclosure sale with a trustee's deed.

Accretion

adds to river front or lake front property by gradual deposit of soil

Reliction

adds to river front or lakefront property by lowering water level exposing more land

Condemnation

also called power of eminent domain. the government has the constitutional power to take private property for public use, as long as it pays the owner "just compensation".

Quiet title

court decision. when a quitclaim deed is not available, a quiet title action can have a "cloud" on title removed.

Title companies pay

diff in value between the land in its actual title condition and the land in the title condition as represented in the title report.

Escheats

if a person dies intestate and the probate court is unable to locate any heirs, the title to the property passes to the government.

Inverse condemnation

if a property owner feels that his property has been taken or damaged by a public entity, the owner may file a lawsuit to force the government to pay the fair mkt value of the property.

Acknowledgmen, Delivery, and Acceptance

in addition to a valid deed, proper conveyance involves -Acknowledgment- grantor swears before a notary public or other official witness that signature. -Delivery- deed becomes effective, so that title is transferred, when deed is delivered. must occure while grantor is alive. -Acceptance- conveyance completed when grantee accepts the delivery of deed.(may accept delivery through agent).

Dedication

involuntary alienation. when private owner donates real property to the public. eventhough it may be voluntary most often it is required in exchange for a benefit from a public entity.

Statutory dedication

involves compliance with relevant statutory procedures. (ex: subdivision statures require land for streets and utilities must be dedicated before the parcel can be subdivided.

Recital consideration

is often included in deed to indicate the transfer is a purchase instead of a grift.

Partition

is the lawsuit among multiple landowners to divide the land or sell the land and divide the sale proceeds.

Probate

legal procedure for proving the validity of a will and carrying out the testators directions.

Exclusions and reservations clause

many deeds contain, which is a list of any encumbrances that the grantee will be taking title subject to.

Wills

method of voluntary alienation. a will is a legal document in which a person specifies how his property is to be distributed when he dies.

Grant deed

most common and carries two types of warranty 1. grantor has not previously conveyed title to anyone else. 2. the grantor has not caused any encumbrances to attach to the property other than those already disclosed

Common law dedication

owner's acquiescence in the publics use of her property for a prolonged period of time.

Adverse possession

possession and use of the land can mature into title to the land. the theory is that we encourage the use of land. Cant get adverse possession against government property.

Intestate succession

process when someone dies intestate(w/o a will) the law provides distribution of his property. -heirs-take property by intestate succession

Bankruptcy

property may also be conveyed by order of bankruptcy court.

Warranty deed and special warranty deed

rarely used in california (title insurance has made it largely unnecessary for buyers to rely on deed warranties). it gives greatest protection to a real estate buyer.

Habendum clause

states the nature of the interest the grantor is conveying.

Avulsion

sudden change of water/land boundary, if it is not reclaimed by former owner, the land becomes the property where the land ended up

Deeds

the most common form of voluntary alienation is transfer by deed. -grantor- owner of real property -grantee- receiver of property

Accession

the physical involuntary alienation of real property. it can add to or reduce the land.

Conveyance

the process of transferring real property by deed is known as conveyance.

Court Decisions

title to property can be conveyed by court order in accordance with satutes and common law procedures.

Holographic will

unwitnessed will, where all of the material provisions as well as the signature are in the testators own handwriting. they may be valid even if it was not signed in the presence of a witness.

Judicial Foreclosure

used in very complicated foreclosures or in foreclosures of commercial property where the lender wants to obtain a deficiency judgment, not just obtain title to the real property collateral.

Title insurance

wagers a specified sum, that the title to that land will turn out to be just as the insurer has stated in a title report.