UNIT 7 - TRANSFER OF TITLE

The reversion of real estate to the state because of the lack of heirs or other people legally entitled to own the property is called

Escheat

TRUE OR FALSE : ) the estate terminates upon death

FALSE

Which type of deed provides the BEST protection to the buyer

General warranty deed

Which parties must sign a deed to make it valid

Grantors

Where is it necessary to define or explain in the deed the ownership to be enjoyed by the grantee?

Habendum clause

When conveying interests in real estate using a quitclaim deed, the extent of promises given by the grantor to the grantee are

NONE

A bank wants to convey title to a foreclosed property but does not want to give any title warranties or have any future claims or liabilities. Which type of deed should the bank use

Quitclaim deed

What type of deed provides the grantee with the LEAST protection

Quitclaim deed

In a recent property sale, the deed of conveyance contained only the following guarantee: "This property was not encumbered during the time the current owner owned it, except as noted in this deed." What type of deed makes such a covenant?

Special warranty

VALID DEED DOES NOT INCLUDE

TAX

Which of the following is FALSE about probate

The laws of probate are set at the national level

A person who dies testate can transfer title to his real estate upon his death through which type of document?

Will

The process of probate is

a formal judicial process.

To be valid, a deed must name

a grantee.

A grantee who wants to obtain merchantable title via a valid deed should make sure the deed has all of the following EXCEPT

a recording stamp after closing. Deeds do not need to be recorded to be valid.

In order for a deed to be recorded, MOST states require that it be

acknowledged. Having the deed notarized or acknowledged shows that the grantor freely signed the document.

A homeowner signed a deed transferring ownership of his house to a friend. To provide evidence that his signature was genuine, he executed a declaration before a notary. This declaration is known as an

acknowledgment.

An example of involuntary alienation is

adverse possession

Title acquired through adverse possession must be open, notorious, continuous, hostile, and

adverse to the true owner's possession

An important purpose of a living trust is to

avoid having property in the trust go through probate

A holdover from English common law, the statute of frauds that is found in all states requires that a deed

be in writing.

In MOST states, a written will must be signed by its testator

before two or more witnesses, who must also sign the document.

A deed would be valid without

competent grantee

The grantor of property transferred by deed promises to compensate the grantee for any future loss sustained by a defect in the title to the property by the

covenant of warranty forever

An example of voluntary alienation is

deed

Which of the following would convey an owner's interest in real property?

deed

The document that creates a lien and acts as security for the promissory note is a

deed of trust. A deed of trust, or mortgage, creates a lien and security for a promissory note. Conveyance or grant deeds, such as a general warranty or quitclaim, transfer title to property.

Conveyance of title occurs the moment a deed is

delivered and accepted

Title is conveyed by deed only when the deed has been

delivered to and accepted by the grantee.

Real estate that is inherited from a person who died testate is called a

devise

The gift of real property by will is known as a

devise.

When a person dies testate, title to real property transfers to the

devisee. A person who dies testate has died with a valid will. The gift of real property by will is known as a devise, and a person who receives real property by will is known as a devisee.

In legal terminology, the property owner is the

devisor, grantor, lessor, and mortgagor.

Under the covenant of quiet enjoyment, grantors

ensure that the title will be good against the title claims of third parties. Quiet enjoymenit means freedom from claims of third parties—persons other than grantor and grantee.

A grantor conveys property by delivering a deed. The deed contains five covenants. This is MOST likely a

general warranty deed

The words of conveyance are found in which clause

granting clause

A deed's words of conveyance appear in the

granting clause.

A buyer wants the maximum assurance that there are no imperfections or clouds on title. A cloud on title would MOST likely be discovered

in a title report

Any limitations or reservations that a grantor intends to make part of a conveyance of real estate should be

included in the deed.

A person who has died without a will has died

intestate

Title to property may be transferred without the owner's consent by

involuntary alienation.

When a person dies intestate (with no will), the title to the real estate may pass to the state in an example of

involuntary alienation.

A sale to satisfy delinquent tax or mortgage liens is an example of

involuntary alienation. A sale to satisfy delinquent tax or mortgage liens is an example of involuntary alienation.

The possession of property by an adverse possession claimant must be

notorious. open. hostile.

When a person dies, ownership of real estate

passes immediately. either to the heirs by decent or to the persons named in the will. Before full title and possession of the property may be taken, the estate must go through a judicial procedure called probate.

Probate is a formal judicial process that does :

prove or confirm the validity of a will. determine the precise assets of a deceased person. identifies the people to whom the assets are to pass.

The document used to convey ownership to real property is a(n)

quitclaim deed.

All of the following are essential elements of a deed EXCEPT

signature of the grantee.

A person who has died with a will has died

testate.

The disadvantage to a buyer receiving a quitclaim deed is that

the grantor makes no warranties regarding the title of the real property. The quitclaim deed contains no warranties of title. It is often used to cure title problems

All of the following are true of deeds EXCEPT

they guarantee ownership

In a special warranty deed, the grantor promises

to defend the title against any encumbrances during the grantor's period of ownership.

A feature of holding title as joint tenants is that

upon death the title transfers without going through probate.

An important feature of adverse possession is that the individual who intends to make a claim to property owned by someone else must

use the property

A deed contains a guarantee that the grantor will compensate the grantee. This is an example of which type of covenant?

warranty forever. The grantor promises to compensate the grantee for the loss sustained if the title fails at any time in the future.

The clause in all deeds that passes on the rights and obligations is known

words of conveyance

What is the purpose of probate?

Account for all assets that exist Satisfy the decedent's debts Distribute all assets correctly