Real Estate Part 1 Unit 10

What is the difference between a bargain and sale deed and a general warranty deed?

A bargain and sale deed covenants valid title but may not warrant against encumbrances or promise to defend against claims. A general warranty deed is a bargain and sale deed that includes assurances of valid title, no encumbrances, and willingness to defend against all claims.

What is a will?

A legal instrument for the voluntary transfer of real estate after death.

What is a documentary stamp tax?

A transfer tax based on the price of the property being conveyed

What type of will may or may not be found valid? Holographic (hand-written) Nuncupative (given on a deathbed) All of the above None of the above

All of the above

What document shows legal alienation of a property?

Deed

What is "color of title?"

Defective title, or title received by defective means

List the eight requirements of a deed's validity.

Delivered and accepted Competent grantor and legitimate grantee Be in writing Contain legal description Contain granting clause Include consideration Signed by grantor Acknowledged

A municipality wants to build a water treatment facility, and requires some privately owned land to do so. What procedure enables the municipality to buy the property, even against the owner's wishes?

Eminent domain

Which of the following is true of a nuncupative will?

Generally, it is not valid for the transfer of real property.

Who can acquire property through eminent domain?

Government entities

James S. created his own will by writing it out on legal pad. What kind of will is this?

Holographic

What is an adverse possessor?

It is someone who enters, occupies, and uses another's property without the knowledge or consent of the owner, or with the knowledge of an owner who fails to take any action over a statutory period of time.

Which of the following is the distinguishing characteristic of a special warranty deed?

It makes warranties only for the time the property was owned by the grantor.

What does an estoppel do?

It prevents a person from claiming a right or interest that is inconsistent with the person's previous statements or acts. It can prevent an owner from reclaiming a property that was transferred under false pretenses.

If an owner of real property dies without leaving a will and with no legal heirs, what will generally happen to the property?

It will revert to the state or county by escheat.

Name and briefly explain the two legal principles that affect transferring property by will.

Law of Situs - real property is distributed according to the laws of the state in which the property is located. Law of Domicile - personal property is distributed according to the laws of the state in which the deceased held legal residence, regardless where the property is located.

Name the forms of involuntary alienation of title.

Laws of descent, abandonment, foreclosure, eminent domain, escheat, adverse possession, estoppel, dedication.

Name and briefly explain five of the nine types of special-purpose deeds.

Personal representative's deed -- used by an executor to convey a decedent's estate Sheriff's deed -- used to convey foreclosed property sold at public auction Deed of trust -- used to convey property to a third party trustee as collateral for a loan Deed in trust -- used to convey property to the trustee of a land trust Tax deed -- used to convey property sold at a tax sale

Title to a certain real property is being held in a trust as collateral for a loan. What kind of deed will the trustee use to convey the title to the borrower when the loan terms are satisfied?

Reconveyance deed

What is the function of a deed?

The deed is a transaction document, not an ownership document. It conveys title, when properly delivered and accepted (and registered, in Torrens counties), then ceases to have any transfer function except as evidence that a conveyance occurred, and as evidence of the warrants the conveyor made.

What is the reason an owner would sue for "taking"?

The owner's property was taken by the government under eminent domain, but the owner feels the government did not fulfill its obligation to adequately compensate, did not use the property for public good, or did not give the owner his day in court. Therefore, the owner believes the property was taken illegally

Under the laws of descent, who gets a property when its owner dies and no legal heirs can be found?

The state or county

Which of the following circumstances is likely to render a will invalid?

The will is unsigned.

List and briefly explain the two types of title transfer.

Voluntary alienation - an unforced transfer of title by sale or gift from the owner to another party. Involuntary alienation - a transfer of title to real property without the owner's consent.

Describe the four types of will.

Witnessed—written, two witnesses Holographic-handwritten or typed, signed by testator Approved-on a pre-printed form approved by the state Nuncupative-written by a witness from testator's oral statement; generally not valid for real estate transfer

What happens to Joe's real estate in your state if Joe dies leaving a) a wife, children, and a will; b) a wife and children, but no will; c) no legal heirs, and no will?

a) after all claims have been satisfied (including those of legal life estates), the estate goes to the heirs according to the will. b) after all claims have been satisfied (including life estates), the estate goes to the heirs according to the state's laws of descent and distribution. c) after all claims have been satisfied (here, there can be no life estate), the estate goes to the state by escheat.

Validity

adult; competent; indicates "last will and testament"; signed; witnessed; voluntary

Statutory deeds

bargain and sale: "I own but won't defend" general warranty: "I own and will defend" special warranty: "I own and warrant myself only" quitclaim: "I may or may not own, and won't defend"

Involuntary title transfer

descent and escheat: no will abandonment foreclosure: lose title by forfeiture eminent domain: lose title to public for the greater good adverse possession: by claim of right or color of title; continuous, notorious, hostile possession; may have to pay taxes estoppel: barred by prior acts or claims escheat dedication

The property transferred by a will is called the

devise.

The type of deed that offers the grantee the fullest protection against claims to the title is the

general warranty deed.

Title can be voluntarily transferred by

grant, deed, and will.

The only clause that is actually required in a deed is the

granting clause.

Validity

grantor, grantee, in writing, legal description, granting clause, consideration, grantor's signature, acknowledgement, delivery and acceptance

Probate

if testate, estate passes to heirs; if intestate, to successors by descent; if intestate with no heirs, estate escheats to state or county

Deeds of conveyance

instruments of voluntary conveyance by grantor to grantee

Adverse possession is a form of

involuntary title transfer.

A property may escheat to the state or county if

it is abandoned for a period prescribed by law.

Wills

last will and testament: voluntary transfer to heirs after death maker: devisor or testator; heir: devisee; estate: devise Law of Situs; Law of Domicile

Delivery and acceptance

legal title transfers upon competent grantor's intentional delivery and grantee's acceptance in Torrens, title transfers upon registration

One of the conditions an adverse possessor must meet in order to obtain legal title to a property is

openly possessing and claiming the property without the owner's consent.

Deed clauses and covenants

premises clause: granting clause habendum clause: type of estate reddendum clause: restrictions tenendum clause: other property included

Ways for involuntary alienation to occur do not include

private grant.

The court proceeding that generally settles a decedent's estate is called

probate.

Warrants

seizen; quiet enjoyment; further assurance; forever; encumbrances; grantor's acts

Transfer tax

state tax on conveyances based on price

When an owner dies _________ (with a valid will), property may transfer to others.

testate

A property owner creates a deed, leaving the name of the grantee blank, and puts it in a drawer for several years. One day, a visitor finds the deed, fills in his name as grantee, and attempts to record it. The owner will probably have no trouble disputing the validity of the deed because

there was no intent to deliver it, and no consideration was given.

List the five exemptions from transfer tax.

transfer within the immediate family consideration less than a certain amount transfer between government entities or non-profit organizations trust deed transfer and reconveyance tax deed

Special purpose deeds

used for different purposes, to convey certain interests, or by certain parties

Transferring title

voluntary by grant, deed, or will involuntary by descent, escheat, eminent domain, foreclosure, adverse possession, estoppel, dedication

Types of will

witnessed; holographic; approved; nuncupative