Real Estate Title Transfer

subrogation

The right of a title company to any remedy or damages available to theinsured, when the title company has made a payment to settle a claim covered by the policy is known as:

Subrogation

The right of the title company to any remedy or damages available to the insured, when the title company has made a payment to settle a claim covered by a policy.

Covenant against encumbrances

- assures the grantee that the property is free from liens and encumbrances, other than those specified in the deed.

Covenant of Further Assurance

- promises that the grantor will defend the grantee's title against all claims which may arise from the period prior to transfer.

Covenant of Quiet Enjoyment

- protects the grantee's rights to physical possession of the property without being disturbed by other parties making claims against his rights.

Types of constructive notice

1. Acknowledgment: 2. Verification: . 3. Affidavit: 4. Affirmation:

Clauses in a deed

1. Vesting Clause: 2. Granting Clause: 3. Habendum Clause: 4. Execution Clause: 5. Acknowledgment:

Special Warranty Deed

A Bargain and Sale Deed with Covenant is equivalent to:

Affirmation

A declaration made by a person prohibited from giving an oath by his religious beliefs.

Testate

A person who dies leaving a will is said to have died

legatee

A person who inherits property in a will is known as a:

administrator

A person who is appointed by the court to carry out the terms of a will is a/an:

Acknowledgment

A statement that the person executing a document has done so of his own free will, and that he is in fact the person whose signature appears on the document.

lis pendens

A term which means pending litigation is:

Subrogation

A title insurance company determines whether the title is insurable based on a review of the public records. Once the title company makes a payment to settle a claim, the company generally acquires the right to any remedy or damages available to the insured. This right is called

warranty deed

A warranty deed contains covenants, (or promises), of warranty. That is, it guarantees that the title it conveys is good

Executor

A will usually names a person to carry out the instructions of the will. This person is called the

Holographic will

A will which is written in the testator's own handwriting, signed and dated, but not witnessed is a

affidavit

A written confirmation of the truth of a set of circumstances.

Actual Notice

Actual means first hand information regarding a property which is known by a single interested party, or which should be known by this party. EXAMPLE: Mr. Summers buys 560 acres of farmland from Mr. Ferguson. When Mr. Summers attempts to fence in a portion of the land, Mr. McGee, his neighbor to the north, accuses him of trespassing, a charge which is confirmed when a survey is made. The fault is Summers'. To protect his interest in this property, he would have used actual notice, by employing a professional surveyor to determine the actual dimensions of the land he purchased.

Certificate of title

After the abstract is done, it is then sent to an attorney for legal examination of the title evidence. The attorney gives an opinion as to who the owner is and as to anyone else with a legitimate interest in the property. The attorney then gives a _____which is his opinion, written, signed, and attached to the abstract.

Constructive notice

All documents that create, transfer or encumber a property must be recorded in the public records, to protect the interest of the grantee and insure future marketability of title. Public recording involves the registration or enrollment of an instrument - deed, mortgage, etc. - with some local government official, usually the county clerk or county recorder. This is known as

Voluntary Transfer

Also known as voluntary alienation. Typically, real estate professionals are concerned with the voluntary transfer of real property titles. Voluntary transfer involves the intentional conveyance of title, by sale or gift, from one owner to another by means of a deed or a patent. Homeowners selling their homes to interested buyers are engaging in the most common type of voluntary transfer.

Verification

An oath confirming the truth of a document's contents

nuncupative will

An oral will is called a/an:

promise

Another word for "covenant" is:

Alluvion

Deposits of soil that occur from the natural processes of nature and result in the increase in the size of a property are called:

granting clause

Expresses the grantor's intention to convey, grant, give, sell or release his real property interest to the grantee, using specific WORDS OF CONVEYANCE.

acknowledgment

Follows the signatures of grantor and witnesses. An acknowledgment is a formal declaration before an authorized person, usually a public notary, made by the person signing the deed, that he is the grantor and that he has signed the deed of his own free will.

Vesting Clause

Identifies the grantor and grantee, may include their addresses.

1. Public Grant 2.Private grant 3.Public dedication

In general, there are three main types of voluntary transfer:

Administrator

In states recognizing community property as a form of husband and wife co-ownership, the entire estate is transferred to the surviving spouse. In most other states, the deceased's estate is usually divided among the surviving spouse and children. Distribution of the estate is usually supervised by a court appointed

disposition

One of the basic rights to freehold ownership is the right of

habedum clause

Specifies the kind of estate being transferred, that is, fee simple, life, etc., and also lists any covenants, warrants, or promises. Habendum comes from the Latin, habendum et tenendum, meaning "to have and to hold". Deed restrictions and encumbrances are usually listed immediately following this clause.

Naked owners

The children are called naked owners

condemnation

The government's right of eminent domain is expressed through court action known as

curtsey

The husband's interest in his wife's estate is called:

Erosion

The loss of property by wearing away of soil by wind, water, etc.

grantee

The person receiving title is known as the:

Usufruct

The surviving spouse is given the right of ____, the right of enjoying the use of the property and the income produced by the property.

5-30 yr

The time period for acquiring property through adverse possession can range from ____ to ____ years.

Public dedication

The voluntary conveyance of title as a gift from a private owner to the government is known as

Special warranty deed

This deed contains only one covenant. In this covenant, the grantor guarantees the condition of title only for the time he actually owned the property. He claims no responsibility for title claims arising from past periods of ownership, or for encumbrances other than those he himself has incurred and specifically listed in the deed.

Judicial action

This involves transfer by foreclosure, attachment and tax sale. This occurs when an owner defaults on a debt and his creditors file suit. If a judgment is entered against the owner, his property will be sold, and the proceeds of sale used to pay off the debt. The property may also be sold at a tax sale for failure to pay property taxes.

Adverse Possession

This is the acquisition of title to property by possession of the property for a statutory number of years. In order to claim title, the occupancy and possession of the property must be continuous, open, hostile, exclusive and notorious. The adverse possessor must occupy the property he claims continuously, for a period of from five to thirty years, as determined by state law.

Transfer by will

Title to real property may be transferred by will. A will is a written instrument by which a person arranges for the conveyance of his property to take effect after his death.

Inestate

When a person dies without leaving a valid will, he dies In this case, state law determines how his property will be divided. An administrator is named by the court to administer an intestate succession.

public dedication

When the government gives land to a private party it is called a public grant. When a private party gives land to the government it is known as a

abstract of title

is a condensed version of the information available in the public records about a particular property. It is a complete chronological, historical summary of all documents that affect the title to a property.

Covenant of Warranty Forever

-underwrites each of the other four covenants and guarantees absolutely the grantees ownership rights and title. The grantor agrees to compensate the grantee for losses suffered from the breach of any of the deed's covenants.

Execution Clause

Includes the signature of the grantor, the date of signing, the signatures of witnesses, and a seal, if required. In transferring co-owned property, all co-owners must sign. In transferring dower or curtesy rights, the grantor's spouse must sign.

Partition Sale

Joint tenancy and tenancy in common can be dissolved by partition suit. Only one of the co-owners need initiate such a suit. The tenancy can be dissolved by partition sale whether all owners agree to it or not. The outcome of the suit is usually a court ordered sale of the property. The proceeds of the sale are divided proportionately among the co-tenants.

INVOLUNTARY TRANSFER

Or involuntary alienation. Title to real property may be transferred involuntarily, or without the owner's consent. Most involuntary transfers of title are effected through the action of the law, through government bodies or the courts. The most common ways in which title to real property can be transferred against or without the property owner's consent are listed below.

Attachment

Real property interests may be gained, lost or transferred by artificial means. Improvements on real property, for example, fixtures, may become permanent property additions. Even improvements made in error, a garage built on the wrong lot, for example, can, in some cases, become part of the property to which they are attached, if they were made without the owner's consent.

T/F:Ownership of real property is vested in the title, that legal concept which designates the rights and interest a person has in a property, and the length of time for which he may hold these rights.

TRUE

1. COVENANT OF SEIZEN 2. COVENANT AGAINST ENCUMBRANCES 3. COVENANT OF FURTHER ASSURANCE 4 .COVENANT OF QUIET ENJOYMENT 5. COVENANT OF WARRANTY FOREVER

The following five covenants are included in a general warranty deed:

Relection

The gradual exposure of land behind a receding waterline. When the water level of a lake, river, or stream drops, the land exposed becomes a part of the adjoining property.

Acceration

The gradual, physical increase in the size of a property as the result of some natural process, usually the action of water. Such deposits are called alluvion.

condemnation

The process of state, local, or federal government in taking private property for public use is

eminent domain

The right to acquire private property, by government, for public use. Lands thus acquired must be used for specific public purposes and the owners affected must be justly compensated for their loss of title.

Naked Owners

This means that upon the death of a parent, the children are given abusus of the property, that is, the right to sell or mortgage the property and the right to the proceeds from the sale.

Abstract of title

This method is based on an attorney's examination of the history of the title. This history is contained in the

Signature of the grantee

To be valid, a deed must have all the following EXCEPT

1. Must be in writing 2. Grantor must be identified by name and marital status and must be competent, legally of age, and capable of conveying the ownership rights being transferred. 3. Grantee must be identified by name and marital status and must be capable of holding title to the property conveyed. The grantee need not be mentally competent nor legally of age to acquire title. 4. A statement of some consideration was given, as money, love or affection must be included although the amount need not be specified. (In Louisiana the amount musst be specified in order to avoid a suit of lesion beyond moiety, because of forced heriship laws.) 5. Property being conveyed must be accurately described. 6. Specific WORDS OF CONVEYANCE stating the grantor's intention to convey title, and the type of property interest being conveyed, that is, fee simple, life estate, etc. must be included. 7. Any restrictions must be stated 8. title must be acquired in the present, not in the future. 9. Grantor must sign. 10. There must be delivery and acceptance of the deed

To be valid, a deed must meet the following requirements:

T/F: A second meaning of actual notice involves the notice a person gives through his physical occupation of a property, or by his public announcement of his interest in a property.

True

T/F: If a title is clouded by defects such as unsatisfied liens, a lis pendens (pending litigation), unreleased judgments, unpaid taxes or other such encumbrances or defects which prevent the owner from enjoying his full rights of ownership, such defects will be passed along to the next person who acquired the property unless the title is cleared.

True

T/F: In Louisiana, the term for adverse possession is acquisitive prescription. If a claimant occupies a parcel of property in good faith, it may become his in ten years; if in bad faith, it takes thirty years

True

T/F: The freehold owner may sell, will, give away or lease his property rights as he chooses. How he actually does these things, that is, how the freeholder transfers his interests, either wholly or in part, temporarily or forever, is the subject of this chapter.

True

T/F: Title insurance protects only against the past, not the future. Title policies are taken out with a one time, lump sum payment, and are not transferable.

True

T/F:A deed alone does not prove ownership and gives no indication of the soundness of the title conveyed.

True

T/F:If there are no children, there is no forced portion. If there is only one child, 1/4 of the estate is the forced portion. If there are two or more children, 1/2 of the estate is the forced portion.

True

1.One way is by paying unpaid taxes. 2.Another way is by filing a Suit to Quiet Title. 3.A third method is use of the Quitclaim Deed, whereby a third party releases any claim to the title.

WAYS OF CLEARING TITLE DEFECTS A title defect, or cloud on a title may be removed in several ways.

State laws

When a person dies without a will, what determines how his property will be divided?

Escheat

When an owner dies without leaving a will and without heirs, his property title reverts to the state. Since property can not be allowed to remain ownerless, the state must assume ownership where there is not legal claim to title. HINT: (Every State Cheats)

general warranty deed

Which of the following types of deeds is the best one for the grantee?

Statutory will

a formally prepared will, usually by an attorney, which is witnessed and signed. In Louisiana this is known as a notarial will.

Specialty deeds

a variety of deeds used for special purposes.

nuncupative will

a will made orally by a testator who is near death. Only personal property may be transferred by this type of will. It must be witnessed, and the witness must commit the testator's words to writing. The testator must be legally competent for nuncupative and holographic wills to be binding.

accession

acquiring property through natural or artificial causes, or acts of God is a type of involuntary transfer which is called

Uncanceled mortgage and prior judgement

are other defects which can present problems in a title.

Covenant of siezin

assures that the grantor fully possesses or is "seized with" the title he is conveying.

Title Insurance

began as protection for attorneys for any errors they might make in abstracts. It is now available to anyone who wishes to buy it. It is used to protect the owner and lender against possible claims by third parties. It offers financial protection if the title proves unsound.

Gift deed

conveys property given as a gift

executors deed

conveys property of a testate deceased.

Guardians deed

conveys property of minors or incompetents.

trustees deed

conveys property out of trust.

Sheriff's Deed

conveys property sold by court order to satisfy a debt.

partition deed

conveys severed interests of co-owned property resulting from a court ordered partition

Donation Mortis Causa

gift in a will is called a

Certificate of titile

gives a professional evaluation of the current condition of the title, but offers no guarantee of the title's soundness.

Bargain and sale deed

guarantees more than the quitclaim, but not as much as a warranty deed. It conveys title without explicit guarantees, but does imply that title is good. There is an assurance that the grantor does in fact, possess the rights which he is conveying.

Tacking

if two or more adverse claimants occupy the same property in succession, the years of their occupancy may be combined for the benefit of the most recent claimant. This adding together of years to meet the statutory requirements of possession is known as

Extended coverage

includes the protections of a standard policy plus additional protections against defects such as rights of parties in possession, examination of a survey and certain unrecorded liens.

transfer by accession

involves the acquisition of real property interests through natural or artificial causes, or acts of God.Although this is a type of involuntary transfer, it is treated separately because no deeds or other legal instruments are involved. Principal forms of transfer by accession are accretion, reliction, and attachment

Bargain and Sales Deed with Covenants

is a special type of bargain and sale deed which includes a covenant assuring the grantee that the grantor has done nothing to encumber the property during the time he has owned it. This covenant, in effect, turns the deed into a special warranty deed.

deed

is a written instrument by which title to real property is formally transferred from one party to another. It must be property executed to be valid.

Mortgagor's or Borrower's Policy

is good for the full amount of coverage as stated on the policy and for as long as the owner or his heirs have an interest in the property

Legatee

is one who inherits property in a will. There are several types of wills

Quitclaim deed

makes no promises at all. The grantor simply relinquishes any claim to title which he may or may not have had. The quitclaim deed conveys whatever title the grantor possesses, whether it is a clear, unimpaired title, a defective title claim or no title interest at all.

Suit to quiet title

may be filed which is a legal action in which the court is asked to resolve any possible clouds on the title.

Mystic will

must be in writing, signed by the testator, sealed, and notarized with three witnesses. Effective July 1, 1999, Louisiana recognizes only two forms of wills, holographic and notarial (same as statutory.

Standard coverage policy

normally insures the title as it is known from the public records, and against such hidden defects as forged documents, conveyances by incompetent grantors, incorrect marital statements, and improperly delivered deeds.

general warranty deed

offers a more comprehensive guarantee of title than any other type of deed. The grantor certifies that the title he is conveying is free of defects which may have arisen either before or during the time he owned the property.This is the best type of deed because it contains all covenants warranting back through all previous owners.

Legatee

person who inherits property in a will is known as a:

Mortgagee's or Lender's Policy

protects the lender who takes the property as collateral for a loan. It protects only the amount owed on the loan, and the insured amount is reduced as the loan is paid off.

Hidden defects in public records

such as any omission or error in public records, such as misfiling, etc.

chain of title

the basis of the abstract is the property's ______, a continuous linking of owners stretching back, ideally, to the time when the land's first owner received it by patent or grant from the government.

Disposable Portion

the portion of the estate that is not forced is called the

Public Grant

transfers legal title to land from the government to a private party. Historically, public grants were a common form of title transfer, although it is seldom used today. The Homestead Act of 1862 granted ownership rights to anyone occupying and improving a given area of land for a specified time. These grants to individuals were conferred by means of a PATENT, a formal document conveying a part of the public domain to a private citizen.

Private Grant

transfers title to real property from one private person to another. Most voluntary t also transfers title to real property from one private person to another. Most voluntary transfers are private grants. In a private grant, title is generally conveyed by deed. The party conveying title is known as the GRANTOR (* vendor in Louisiana) the party receiving title is known as the GRANTEE (* vendee in Louisiana)..

T/F: * In Louisiana there is no deed actually given, but the conveyance is recorded at the Court House

true

T/F: A deed must also be conveyed to and accepted by the party to whom title is being transferred.

true

T/F: Eminent domain is the Right to take property; Condemnation is the Process by which government takes property.

true

T/F: In Louisiana, this general warranty deed is called a SALE WITH WARRANTY.

true

T/F: Payment of property taxes by the adverse claimant may also be a necessary condition

true

T/F: Quitclaim deeds are used frequently for removing clouds on title. A CLOUD ON TITLE is a lingering, often vague or uncertain claim or encumbrance that impairs an owner's title.

true

T/F: Recordation of the deed is not required but is necessary to give notice to third parties.

true

T/F:* In Louisiana, we have what is called forced heirship. This refers to the law that parents, when making a will, must leave a certain portion of their estate to their children who are under the age of 24. This is called the forced portion. The amount of the estate that is forced depends upon the number of children.

true

T/F:Despite its covenants, a general warranty deed can not absolutely guarantee good title. It can not remedy actual flaws of title, unrecorded title claims, undisclosed encumbrances, or fraud, but compensation can be won for breach of covenant.

true

T/F:In Louisiana, the SALE WITHOUT WARRANTY is comparable to the Quitclaim Deed.

true

T/F:There are twelve ways in which a child may be disinherited in Louisiana, including conviction of murder or attempted murder of one or both parents, marrying prior to the age of majority without parental consent, and not attempting to raise ransom money if a parent is kidnapped.

true

T/F:in order to establish that a document which is to be recorded has been willingly signed by its true executor, proof of validity is required. Four types of proof are commonly used

true

Enroachments

unauthorized intrusion of a building or other improvement onto the land of another person. The owner of the land that is being encroached upon has the right to force the owner of the encroachment to remove it. Failure to do so may injure his title. A survey identifies an

Technical problems

unrecorded easements and information based on incorrect and inaccurate surveys.

Reconvayence Deed

used by a trustee to return title to a trustor.

deed of trust

used for conveying title to a trustee as security for a loan.

deed in trust

used for placing property in a land trust.

cession deed

used to convey a private owner's road, street or alley rights to a public governmental body.

Administrator's Deed

used to convey property of an intestate deceased.

ownership interest

when an owner sells his real property, he transfers his

Abstract of title

which is a brief summary of all recorded instruments which have affected the title, including records of taxes, special assessments, judgments, mortgages and trust deeds