Unit 7 - Transfer of title

Habendum clause

" to have and to hold" Ex. If a grantor conveys a time-use interest or an interest less than fee simple absolute, the habendum clause would specify the owners rights as well as how those rights are limited (a specific time frame or certain prohibited activities, for instance).

Execution of Corporate Deeds

- A corporation can convey real estate only by the authority defined in its bylaws or on the basis of a resolution passed by its board of directors.

General Warranty Deed

- Covenant of seisin - Covenant against encumbrances - Covenant of further assurance - Covenant of quiet enjoyment - Covenant of warranty forever

Types of Deeds

- General warranty Deed - Special warranty Deed - Bargain and sale Deed - Quitclaim Deed - Deed of trust - Reconveyance Deed - Trustee's Deed - Deed executed pursuant to a court order

Certain deeds exempted from the tax

- Gifts of real estate - Deeds not made in connection with a sale ( such as a change in the form of co-ownership) - Conveyances to, from, or between government bodies - Deeds by charitable, religious, or educational institutions. - Deeds securing debts or releasing property as security for a debt - Partitions - Tax deeds -Deeds pursuant to mergers of corporations - Deeds from subsidiary to parent corporations for cancellations of stock

Requirements for a Valid Deed

- Grantor who has the legal competency to execute the deed - Grantee named with reasonable certainty to be identified - Statement of consideration (usually required for recording of the deed) - Granting clause (words of conveyance) - Habendum clause, which defines the ownership right received by the grantee - Accurate legal description of the property conveyed - Any relevant exceptions or reservations - Acknowledgement(notarization) of the signature of the grantor - Delivery of the deed and acceptance by the grantee to pass title

Adverse possession must be ONCHA:

- Open = obvious to anyone who looks - Notorious = known by others - Continuous = uninterrupted - Hostile = without the true owner's consent - Adverse = Against the true owner's right of possession.

Ownership of real estate passes

- The co-owner by virtue of a joint tenancy right of survivorship or a tenancy by the entirety. - The party or parties named in a named in a valid will - The statutory heirs determined by the state's law of descent and distribution.

Transfer declaration form

- The full sales price of the property - its legal description - The type of improvement - The address, date, and type of deed; - Whether the transfer is between relatives or in accordance with a court order.

Lien Theory

A deed of trust is treated as creating a lien on property, rather than transferring title, a document called a satisfaction of mortgage fulfills the same purpose.

Deed

A document by which an owner of real estate conveys the right, title, or interest owned in the parcel of real estate to someone else.

Will

A property owner to convey title to real and personal property after the owners death.

Delivery and Acceptance

A title is not considered transferred until the deed to the property is actually delivered to and accepted by the grantee. The grantor may deliver the deed to the grantee personally or through a third party.

Adverse possession

An individual who makes a claim to certain property, takes exclusive possession of it by excluding the true owner and any other title claimants, and uses it, may take title away from an owner who fails to use or inspect the property for a period of years.

Living trust

Avoid the delay and expense of probate,

Bargain and sale deed

Contains no express warranties against encumbrances, but it does imply that the grantor holds title and possession of the property. The granting clause usually states a person's or entity's name and the phrase grants and release or grants, bargains, and sells.

Special warranty

Contains two basic warranties: - That the grantor recieved title - That the property was not encumbered during the time the grantor held title, except as otherwise noted in the deed. Only used by fiduciaries such as trustees, executors, and corporations.

Acknowledgement

Formal declaration under oath that the person who signs a written document does so voluntarily and that the signature is genuine.

Testate

Has created a will.

Deed of Trust

Is the means by which a trust conveys real estate to a trustee for the benefit of a beneficiary.

Trustee's deed

It is used when a trustee conveys real estate held in the trust to anyone other than the trustor.

Quitclaim Deed

Provides the grantee with the least protection of any deed. It carries no covenants or warranties and generally conveys only whatever interest the grantor may have when the deed is delivered. If the grantor has no interest, the grantee will acquire nothing and will have no right of warranty claim against the grantor.

Title

Right to or ownership of the land; it represents the owners bundle of legal rights. It also serves as evidence of that ownership.

Devise

The gift of real property by will.

Voluntary alienation

The legal term for the transfer of title during the property owner's lifetime.

Grantor

The owner who transfers the property is referred.

Testator

The person who makes a will, is alive, any property included in the will can still be conveyed by the owner.

Grantee

The person who receives the property.

Probate

The successor to the property title will be recognized.

Transfer Tax

The tax being payable when the deed is recorded.

Involuntary alienation

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

Legal Description of Real Estate

To conform to the intent of the grantor, a deed must contain an accurate legal description of the real estate conveyed. Land is considered adequately described if a professional surveyor can locate the property and accurately mark its boundaries using the description.

Power of Attorney

To sign legal documents for a grantor. The person having power of attorney has written authority to execute and sign one or more legal instruments for another person. A general power of attorney provides authority to carry out all of the business dealings of the person giving it.

Reconveyance Deed

Used by a trustee to return title to the trustor.

Intestate

Without a valid will.