real estate chapter 7

Quitclaim Deed

A deed to relinquish any interest in property which the grantor may have, without any warranty of title or interest.

Devise

A gift or disposal of real property by last will and testament.

Who may file an involuntary lien?

A judgment creditor.

Bargain and Sale Deed

Any deed that recites a consideration and purports to convey the real estate; a bargain and sale deed with a covenant against the grantor's act is one in which the grantor warrants that grantor has done nothing to harm or cloud the title.

Testate

Having made a valid will before one dies.

What does an extended coverage title insurance policy cover?

Matters not found in a search of the written title records.

When is a UCC lien used?

To place a lien on movable, rather than real, property.

According to the 5th Amendment to the Constitution, when can property be taken by the government?

After due process.

Stan sold his real property to Bella by Warranty Deed. A day later, Stan sold his real property again to Len. Who owns the property?

Bella

What is an example of a voluntary lien?

Mortgage

How does a closing attorney state for certain who the owner of real estate is?

Perform a title search

What are the warranties in a deed?

Promises regarding ownership and title to the property made by the owner.

Jim needs money to renovate his home. He goes to the bank, and they're willing to give him a loan, but want the house as collateral. Jim agrees to this. What type of lien will the bank use?

Voluntary lien.

Statutory Lien

A charge or claim upon property that arises by virtue of specific statutes that address the relationship between the property owner and the party given the ability to place the lien.

Cloud on Title

A claim, encumbrance or condition which impairs the title to real property until disproved or eliminated as for example through a quitclaim deed or quiet title legal action.

Sheriff's Deed

A deed given by court order in connection with the sale of a property to satisfy a judgment.

Special Warranty Deed

A deed in which the grantor warrants or guarantees the title only against defects arising during the grantor's ownership of the property and not against defects existing before the time of the grantor's ownership.

What is a Deed Under Power?

A deed used by a mortgage lender after foreclosure to convey real estate.

Warranty Deed

A deed used to convey real property which contains warranties of title and quiet possession, and the grantor thus agrees to defend the premises against the lawful claims of third persons.

Acknowledgment

A formal declaration made before an authorized person, e.g., a notary public, by a person who has executed an instrument stating that the execution was his or her free act.

Chain of Title

A history of conveyances and encumbrances affecting the title from the time the original patent was granted, or as far back as records are available, used to determine how title came to be vested in current owner.

Legal Description

A land description recognized by law; a description by which property can be definitely located by reference to government surveys or approved recorded maps.

Involuntary Lien

A lien imposed against property without consent of an owner; example - taxes, special assessments, federal income tax liens, etc.

General Lien

A lien on all of the property of a debtor.

Equitable Lien

A lien on property imposed by a court in order to achieve fairness, particularly when someone has possession of property which he/she holds for another.

Specific Lien

A lien that attaches to one specific property only.

Grant Deed

A limited warranty deed using the word "grant" or like words that assures a grantee that the grantor has not already conveyed the land to another and that the estate is free from encumbrances placed by the grantor.

Adverse Possession

A method of acquiring title to real property through possession of the property for a statutory period under certain conditions by a person other than the owner of record.

Grantee

A person to whom a grant is made.

Grantor

A person who conveys title to real property by deed.

Intestate

A person who dies having made no will, or one which is defective in form, is said to have died intestate, in which case the estate descends to the heirs at law or next of kin.

Grantee

A person who receives title to real property by deed.

Grantor

A person who transfers his or her interest in property to another by grant.

Mechanic's Lien

A security interest in the title to property for the benefit of those who have supplied labor or materials that improve the property.

Abstract of Title

A summary or digest of all transfers, conveyances, legal proceedings, and any other facts relied on as evidence of title, showing continuity of ownership, together with any other elements of record which may impair title.

Grant

A technical legal term in a deed of conveyance bestowing an interest in real property to another. The words "convey" and "transfer" have the same effect.

Deed

A written instrument which when properly executed and delivered conveys title to real property from one person (grantor) to another (grantee).

Certificate of Title

A written opinion by an attorney that ownership of a particular parcel of land is as stated in the certificate.

Which of these can cause title to not be marketable?

All of the answer choices provided are correct. A break in the chain of title. Unresolved liens that are still enforceable. Claims by a neighboring landowner about boundaries.

A general lien covers what property?

All real estate owned by the debtor in that county.

Opinion of Title

An attorney's written evaluation of the condition of the title to a parcel of land after examination of the abstract of title.

Voluntary Lien

Any lien placed on property with consent of, or as a result of, the voluntary act of the owner.

Consideration

Anything given or promised by a party to induce another to enter into a contract, e.g., money, personal services, or even love and affection.

What do we call the collection of rights the owner of real property can exercise?

Bundle of rights

How is property conveyed from a deceased person to their heirs when there is a will?

By executor's deed, according to the will.

How does the world know that property is transferred through a deed?

By recording the deed in the county real estate records.

How is the chain of title constructed?

By reviewing each deed in the county real estate records in order to link buyer to seller.

What is the habendum clause?

Describes the interest conveyed by the deed, for example, fee simple or life estate.

Jim owns a house and land. He wants his daughter Sally to get the property when he dies. What should he do?

Draft a will that instructs the property to go to Sally.

Uniform Commercial Code

Establishes a unified and comprehensive method for regulation of security transactions in personal property, superseding the existing statutes on chattel mortgages, conditional sales, trust receipts, assignment of accounts receivable and others in this field.

Exemptions

Exemptions to the tax include deeds transferred to family members, governmental bodies or churches and other religious institutions.

Actual Notice

Express or implied knowledge of a fact.

Under what circumstances can the government exercise eminent domain?

For the public good, after paying the owner fair value.

Which of the following is a form of involuntary alienation?

Foreclosure

Title Insurance

Insurance to protect a real property owner or lender up to a specified amount against certain types of loses, e.g., defective or unmarketable title.

What does a standard title insurance policy cover?

Mistakes made during the real estate closing, like things missed in a title search.

Gary is selling his real estate to Jim. Gary wrote a deed with the title, date, and legal description of the property. But, he did not sign it. He gave the paper to Jim. Is this a valid real estate transaction?

No. A deed must be signed by the grantor.

Bill wrote a deed for real estate, conveying all of his title and interest to Susan. But Bill does not own that property. Is this a valid real estate transaction?

No. The grantor must have capacity and be the owner of the real estate.

Constructive Notice

Notice of the condition of title to real property given by the official records of a government entity which does not require actual knowledge of the information.

Devisor

One who disposes of real property by will.

Testator

One who makes a will.

Devisee

One who receives a gift of real property by will.

What happens to real estate when the owner dies?

Property passes to the owner's estate.

Habendum Clause

The "to have and to hold" clause which may be found in a deed.

Acceptance

The act of agreeing or consenting to the terms of an offer thereby establishing the "meeting of the minds" that is an essential element of a contract.

What is one universal requirement for all deeds to be recorded?

The deed must be signed by the grantor.

Probate

The official proving of a will. The legal process wherein the estate of a decedent is administered.

What is the chain of title?

The order of deeds to ownership of the property from seller to buyer.

What causes a bank foreclosure?

The owner not paying their mortgage.

Recording

The process of placing a document on file with a designated public official for public notice. This public official is usually a county officer known as the County Recorder who designates the fact that a document has been presented for recording by placing a recording stamp upon it indicating the time of day and the date when it was officially place on file. Documents filed with the Recorder are considered to be placed on open notice to the general public of that county.

Escheat

The reverting of property to the State when heirs capable of inheriting are lacking.

Eminent Domain

The right of the government to acquire property for necessary public or quasi-public use by condition; the owner must be fairly compensated.

Involuntary Alienation

The transfer of title to real property as a result of a lien foreclosure sale, adverse possession, the filing of a petition in bankruptcy, or condemnation under power of eminent domain or upon the death of the titleholder, to the State when there are no heirs.

What is the abstract of title?

The written report of the chain of title.

In reviewing the title history of a parcel of land, the closing attorney finds that there is a security deed to First National Bank from Smith, the owner at the time. But the closing attorney does not see any document canceling the mortgage. What is the problem?

There is no cancellation of the mortgage, meaning there is still a lien on the property.

Marketable Title

Title which a reasonable purchaser, informed as to the facts and their legal importance and acting with reasonable care, would be willing and ought to accept.

hat is the closing attorney looking for in the abstract of title?

To make sure that property is passed in order from buyer to seller without any breaks.

Voluntary Alienation

Transfer of title to an asset with the consent of the owner.