Title Insurance and Deeds

Which type of deed may come with or without covenants of warranty? Bargain and sale Referee's Quitclaim Full covenant and warranty

Bargain and sale

Which document is used to establish the path and proof of ownership? Title Chain of title Survey Deed

Chain of title

Deed in trust

Conveys real estate to a trustee for the beneficiary named in the deed

Which covenant term promises that the grantor will provide any additional assurances that the grantee reasonably requires, and perform any acts necessary to correct any defect in the title being conveyed? Against encumbrance Quiet enjoyment Further assurances Warranty

Further assurances

Which term refers to the person conveying title? Notary Public Witness Grantor Grantee

Grantor

Warranty

Grantor defends the title to the grantee against lawful claims of all others

Right to convey

Grantor has legal capacity to convey the title and has the title to convey

Seisin

Grantor holds the title specified in the deed

Title insurance policy

Insures the policy owner against financial loss if the title to the real estate has defects

Bargain and sale deed

May come with or without covenants of warranty

The terms of a person's will are subject to ______. Nothing Operation of law Intestate succession Legal duress

Operation of law Operation of law trumps any terms specified in a will.

What is true about POAs? (Power of Attorney)

POAs must be recorded in the county where the property is located before the deed can be executed. When operating under a POA on behalf of a person regarding a piece of real estate, the POA holder can sign as the grantor for that person. The person who grants the power of attorney to another is known as the principal. POAs terminate on the death of the principal.

Quitclaim deed

Releases any rights of the grantor to the property to the grantee but does not offer any warranties to the grantee. Commonly used to clear clouds on a title.

a 'bring down'

Second search of public records to ensure marketable title after closing and before documents are recorded.

Which type of deed gives ownership of a foreclosed property to the highest bidder? Bargain and sale deed Sheriff's/referee's deed Full covenant and warranty deed Executor's deed

Sheriff's/referee's deed

T or F: Someone with a will: testate; Someone who doesn't have a will: intestate

T

Which option is true if a deed is not recorded after closing? The title never changes hands to the buyer. The legal ownership of the property can be challenged. The entire closing is void. The buyer must pay a fine to the seller.

The legal ownership of the property can be challenged.

title search

all title insurance companies, researches the title through a search of public records in order to provide a title commitment or abstract

Which of the following could be a valid deed? An oral agreement between two trusted individuals A written document containing all of the required elements and adhering to all document formatting requirements An oral agreement between two trusted individuals and witnesses A napkin with both parties' signatures and an oral agreement to sell the land

A written document containing all of the required elements and adhering to all document formatting requirements

Which of the following provides a summary of the title history? Chain of encroachments Abstract of title Title insurance policy Survey

Abstract of title

extended coverage policy

Alternative to obtaining a seller's affidavit of title. Protects the buyer from title defects that are not seen on the public record at the time of title search.

What's a quiet title action? A type of title insurance that reimburses the policyholder if the neighborhood is noisier than normal A way to anonymously purchase property without filing the title or transfer on record A lien placed against a potential land owner for property purchased by another An action to locate a person who may have some claim on the title and obtain a document from that person to prove or disprove that claim

An action to locate a person who may have some claim on the title and obtain a document from that person to prove or disprove that claim

Executor's deed

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

When a property owner wishes to convey her property to a new owner, she will generally use a ______. Deed Title abstract Mortgage Lease

Deed

Which type of deed conveys real estate to a trustee for the beneficiary named in the deed? Executor's deed Deed in trust Referee's deed Quitclaim deed

Deed in trust

Joe Bob is the grantor of a deed, and is in the final stages of transferring a deed to the new owner, Frank. What must Joe Bob do in order to satisfy delivery and acceptance of the deed to Frank? Deliver the deed to Frank, his agent or attorney, or the title company issuing the title Submit delivery and acceptance paperwork to the Board of Submission and Acceptance Send the deed via certified mail so that the shipment is officially tracked Get Frank's signature on the official acceptance letter notarized and recorded at the county clerk's office.

Deliver the deed to Frank, his agent or attorney, or the title company issuing the title

Chain of title

Establishes path and proof of ownership

Referee's deed

Gives ownership of foreclosed property to highest bidder

Quiet enjoyment

Grantee has possession and shall not be disturbed in the use or enjoyment of the property

Further assurances

Grantor will correct any defects in the title being conveyed and will provide any additional, reasonable assurances to the grantee

Recorded documents are used by attorneys and title insurance companies to ______. Appraise the property Help in the abstract of title certification Approve the buyer's creditworthiness Perform home inspection services

Help in the abstract of title certification

Wilma died without a will. How will her heirs be determined? A committee appointed by the court Intestate bequest The process of escheat Intestate succession

Intestate succession

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

Intestate succession

Deed

Is used to establish proof of ownership

Obviously, you can't lawfully convey something unless the parties agree on what's being conveyed. How is that determined? Consideration Legal description Conveyance Acknowledgment

Legal description The legal description makes what is being conveyed clear.

In addition to being properly executed (signed) what other requirements are there for recording a document in Virginia? Must have at least 2 witnesses present at the time of filing. Must be acknowledged before a notary public. Must be sealed and mailed in a registered envelope to the county clerk's office. Must meet SEQRA standards.

Must be acknowledged before a notary public.

Survey

Proves that no encroachments exist with the property

Abstract of title

Provides a summary of the title history

Full covenant and warranty deed

Provides the strongest and broadest form of guarantee of title

What can be done to protect your buyer clients from title issues when purchasing property? File a lis pendens claim at the court before buying the property. Ensure the seller's name is on the deed. File a security agreement at the county clerk's office. Purchase title insurance.

Purchase title insurance.

As a licensee, you're helping a couple buy a new home when you come across issues that could meant there's a cloud on the title. What should you do? Encourage the couple to move forward with the purchase and not worry about the clouded title. Keep moving forward with the sale but recommend the couple purchase title insurance to insure against any potential title problems. Recommend the couple find another property to purchase, or ask the seller to settle the title through a quiet title action to clear any cloud before moving forward with the sale. File an affidavit with the court about the knowledge of the clouded title and tell the couple to move forward with the sale.

Recommend the couple find another property to purchase, or ask the seller to settle the title through a quiet title action to clear any cloud before moving forward with the sale.

T or F: • A warranty deed contains the covenants of seisin, right to convey, against encumbrances, quiet enjoyment, further assurances, and warranty.

T

Granting Clause

The legal phrase in a deed which contains "hereby conveys" and a description of the act of conveyance.

Names of the grantor/grantee

The persons conveying and receiving the title respectively.

If a property owner dies intestate and no heirs or creditors can be found, what becomes of the property? The property is combined with an adjoining property. The state claims the property through escheat. A lottery is held for ownership. The property reverts to a former owner as recorded on the deed.

The state claims the property through escheat.

Against encumbrances

There are no encumbrances against the title, except those in public record

What special concern do foreclosed properties often present? There could be hidden title issues. Tax increase due to buying the property at a discount. The properties are prone to flooding. The homeowners may or may not have property insurance.

There could be hidden title issues.

Delivery and Acceptance

These actions are required to affect a transfer of title by deed. Delivery may be made directly to the grantee, or to an agent of the grantee such as an attorney, real estate broker, or the title company issuing the title. Once delivery is made, acceptance is presumed.

Acknowledgement

This is an oath by a subscribing witness, such as a notary public, that the grantor's signing of the deed is a voluntary act. This action enables the deed to be recorded.

Signature of the grantor

This signature is required to execute the deed and convey the interest of the property to the grantee.

schedule of exceptions

Typical events not covered (and therefore listed in the schedule of exceptions) include: Claims not shown in public records Claim of a person living on the property if there is no public record of tenancy (e.g., a recorded lease) A mechanic's lien filed by a contractor who worked on the property and was not paid (if the lien was not filed in the recorder's office on or before the title insurance policy's effective date). Taxes and special assessments (such as charges for sewer service) if the related liens were not placed on public record Disclosed and undisclosed easements and rights of way

Which covenant term states that the grantor will warrant and defend the title to the grantee against the lawful claims of others? Against encumbrance Quiet enjoyment Further assurances Warranty

Warranty A warranty states that the grantor will warrant and defend the title to the grantee against the lawful claims of others.

When does title officially change hands? Prior to closing after approving the Loan Estimate With the transfer of deed from the seller to the buyer After the appraisal is completed When actual notice of the deed is given to the mortgage company

With the transfer of deed from the seller to the buyer

What is the purpose of probate?

determines the validity of the will, or appoints an administrator or administratrix if no will exist, and the court supervises the distribution of the estate

correction deed

is used to correct any errors found in the chain of title, such as a misspelling of an owner's name.

How is estate divided if a person doesn't have a will? Who gets it first?

it's: spouse, children, parents, and siblings, followed by more distant relatives. If no heirs can be found, the property of the deceased may be claimed by the state through escheat.

abstract of title

which is a summary or overview of the title history

affidavit of title

which is a sworn statement assuring the title insurance company and the buyer that no other title defects occurred since the date of the title search

attorney's opinion

will also list the liens, encumbrances, easements, conditions and restrictions that appear in the public record for that property and that impact the title.

A title examination

• is a search of public records (at least the past 60 years) of a property to show ownership during that time (chain of title).

limited title search

• is one that searches and indexes public records less than 60 years.

title report

• provides the buyer with information about the property's title record, legal description, and other matters affecting the title that may need to be acted upon to obtain a marketable title.

Common title issues include

• recording errors, unknown liens, and boundary issues, missing heirs, forgeries