Chapter 9

Notice (usually to a defendant in a civil proceeding) delivered in such a way as to give legally sufficient assurance that actual knowledge of the matter has been conveyed to the recipient is called

Actual Notice Actual notice is when a party has the awareness or direct notification of a specific fact or proceeding through reading, hearing, or seeing. So actual notice had occurred when an individual was directly told about something -- for example, when a tenant notifies the landlord that a furnace isn't working, the landlord has actual notice of the faulty furnace, even though the landlord hasn't personally come in contact with the furnace. "Personal service" of court documents is another common method of delivering actual notice when the person accepts the documents.

Which is not a lien? Select one: a. recorded abstract of judgment b. trust deed c. CC&Rs d. mortgage

CC&Rs What Is a Lien A lien is the right to retain the lawful possession of the property of another, unless the owner fulfills a legal duty to the person holding the lien against the property, such as the payment of lawful charges for work done on the property. A mortgage is a common lien. Other common liens are property tax liens, mechanics liens and vendor liens. The point of a lien is that, in some cases, it can force some properties to be sold, to pay the lien. The clerk of the court, where the property is located, will record the lien with appropriate documentation provided. The purpose of recording a lien is to give notice to others that the lien exists and to establish "lien order." Liens are encumbrances, recorded in public records. Types Voluntary Liens and Involuntary Liens Although the word "lien" denotes a negative connotation, not all liens are forced on the property owner. Property owners may choose to have a lien placed against property such as when a mortgage is taken out with the property being used as collateral. 1) Voluntary lien: A voluntary lien is a lien created with the consent of the debtor. A mortgage, as just stated, or a vendor's lien, are liens that have been voluntarily granted to a lender by a borrower. 2) Involuntary lien: An involuntary lien is a lien that is forced upon the property without permission from the property owner. Involuntary liens are created by law, meaning that the lien will only attach to a property with the consent of the courts. A tax lien is an example of an involuntary lien. Examples: Voluntary • Mortgage • Vendor's lien Involuntary • Judgment liens • Tax liens - property, income, and estate • Mechanics/ Construction liens

Notice considered legal fiction used in the law of both common law and civil law systems to signify that a person or entity is legally presumed to have knowledge of something, even if they have no actual knowledge of it is called

Constructive Notice Constructive notice is knowledge which, according to law, a person can acquire by making normal and reasonable inquiries. Recording something in public records is to give constructive notice. For example, the purchaser of a property is presumed to know the legal status of a property from documents recorded with the clerk of the court. These documents are available for public inspection. The notice of court action in a newspaper is considered to be constructive notice. In regards to real estate, all documents recorded with the clerk of the court are binding as legal notice having been sufficiently given. However, it is not required that a deed be recorded to be valid. Although it is not required to record a deed, recording documents about real estate puts the public on notice about ownerships, liens, etc. To record a deed, the deed must first be acknowledged by the grantor, and this acknowledgment must be notarized. To acknowledge the deed means the grantor asserts that the deed was signed voluntarily. The signer must personally appear before the notary public and declare that he or she has signed the document voluntarily. The notary will ensure that the signer understands the document, and has not been coerced into signing it.

All of the following are types of easements except for:

Easements a. Appurtenant An easement appurtenant benefits an adjoining piece of land and continues regardless of the ownership of the land. Because an easement appurtenant benefits a specific piece of land, there must be a dominant tenement and a servant tenement. The property which benefits from the easement is known as the dominant tenement; the property that is burdened by the easement is known as the servant tenement. b. In Gross An easement in gross is an easement that attaches a particular right to an individual, or entity, rather than to the property itself. The easement in gross is often considered irrevocable for the life of the individual, but it can be rendered void if the individual sells the property, upon which the easement request was based. The individual who benefits from the easement in gross is unable to transfer the associated rights to any other person. If the property is transferred to another owner, through sale, inheritance, or any other mechanism, the current easement in gross is considered void. The new property owner can attempt to reach a new easement in gross agreement, but there is no guarantee the right will be granted. An easement in gross benefits a particular individual or business entity. Generally, easements in gross cannot be sold, assigned, or inherited. A common example of an easement in gross is the utility easement. c. By Prescription An easement by prescription creates a right in someone else's land. There are certain requirements to create an easement by prescription in Florida. Florida laws automatically create an easement by prescription for Florida property owners, when one owner has openly used and possessed another's land for 20 years. However, if a person has a claim of title under a decree or judgment, and there is no recorded document or has a claim of title, and there is no recorded document or written instrument, and they have occupied the property for 7 years and paid all taxes and any special improvement liens which may have been levied against the property by the State of Florida, the county or municipality, the trespasser is therefore entitled to the legal title and ownership of the property. Adverse possession must be considered actual, open, notorious, visible and uninterrupted and without the consent of the owner. Under Florida Statutes, possession shall mean that the land has been cultivated, improved, enclosed or protected. Easements are also created by written instrument, by court order for necessity, and by condemnation for the public good. The correct answer is: easement by adverse prescription

Generally, the taking of private land by governmental bodies for public use is governed by due process of law and is accomplished through:

Eminent Domain In an eminent domain situation, the government can't just seize the land. It must pay the owner just compensation, generally considered the "fair market value" of the land. However, once the government has established that it needs the land for legitimate public use, there is no way to stop it. All a landowner can do is to dispute the price being offered; if he thinks it is unfair, he may sue for a higher award, and have the court make the final decision.

The safest kind of deed that can be received by a grantee is a

General Warranty Deed The general warranty deed offers the grantee the most protection. With this type of deed, the grantor makes a series of legally binding promises (called covenants) and warranties to the grantee (and their heirs) agreeing to protect the grantee against any prior claims and demands of all persons whomsoever in regards to the conveyed land. The usual covenants for title included in a general warranty deed are the covenant of seisin, meaning that the grantor warrants they own the property and has the legal right to convey it; the covenant against encumbrances, denoting that the grantor warrants that the property is free of liens encumbrances, except as specifically stated in the deed. The covenant of quiet enjoyment, indicating that the grantee will have quiet possession of the property, and will not be disturbed because the grantor had a defective title. The covenant of further assurance is where the grantor promises to deliver any document necessary to make the title good.F.S. 689.02 Form of warranty deed prescribed.—( 1) Warranty deeds of conveyance to land may be in the following form, viz.:" This indenture, made this___ day of ___ A.D. , between _____ , of the County of ____ in the State of ___ , party of the first part, and___ , of the County of___ , in the State of __ , party of the second part, witnesseth: That the said party of the first part, for and in consideration of the sum of ___ dollars, to her or him in hand paid by the said party of the second part, the receipt whereof is hereby acknowledged, has granted, bargained and sold to the said party of the second part, her or his heirs and assigns forever, the following described land, to wit: • And the said party of the first part does hereby fully warrant the title to said land, and will defend the same against the lawful claims of all persons whomsoever." Florida Statutes 689.02

The party to whom a deed conveys real estate is the

Grantee the person receiving the property from someone

A judgment lien is:

Involuntary lien An involuntary lien is a lien that is forced upon the property without permission from the property owner. Involuntary liens are created by law, meaning that the lien will only attach to a property with the consent of the courts. A tax lien is an example of an involuntary lien. Examples: Voluntary Mortgage Vendor's lien Involuntary Judgment liens Tax liens - property, income, and estate Mechanics/ Construction liens

Mr. Smith is a large land owner with 100,000 acres. In the middle of all that land lives Mr. Jones, who owns only five acres. In order to get to Mr. Jones' land there is an easement across Mr. Smith's land. The dominant tenement is:

Mr. Jones' property Easements Appurtenant An easement appurtenant benefits an adjoining piece of land and continues regardless of the ownership of the land. Because an easement appurtenant benefits a specific piece of land, there must be a dominant tenement and a servant tenement. The property which benefits from the easement is known as the dominant tenement; the property that is burdened by the easement is known as the servant tenement. By Necessity An easement by necessity is an easement appurtenant, granted by a court of law to a property owner, because of a circumstance of necessity, most commonly the need for access to a property. Since a property cannot be legally landlocked, or without legal access to a public thoroughfare, a court will grant an owner of landlocked property, an easement by necessity over an adjoining property, that has access to a thoroughfare. The landlocked party becomes the dominant tenement, and the property containing the easement is the servient tenement.

Property rights are limited by which of the following?

Police Power The police power is the natural prerogative of sovereign governments to enact laws, promulgate regulations, and take action to protect, preserve, and promote public health, safety, and welfare. The states can pass these powers to local government. These regulations must not infringe upon any of the rights of the people protected under the U.S. or States constitutions. Police powers translate to ownership limitations and restrictions, in that it allows zoning regulations, implementation of building codes, health codes, and city planning. The most common exercise of the police power over real property is a local or regional government's adoption and enforcement of zoning regulations, building codes, and environmental protection regulations. One way to think about this is to consider that local governments use police powers to restrict a private property right, to protect the common good. Eminent Domain In an eminent domain situation, the government can't just seize the land. It must pay the owner just compensation, generally considered the "fair market value" of the land. However, once the government has established that it needs the land for legitimate public use, there is no way to stop it. All a landowner can do is to dispute the price being offered; if he thinks it is unfair, he may sue for a higher award, and have the court make the final decision. Taxation Property owners collectively pay for benefits and protection from the schools, police, fire department, emergency services, roads, water lines, sewer lines, etc. Failure to pay the taxes and assessments imposed upon individual property owners can result in the ultimate ownership limitation, and restriction through the loss of ownership of the property - as the property can be foreclosed upon, for nonpayment of taxes.

From the standpoint of the grantor, which of the following types of deeds creates the least liability?

Quitclaim Deed Buyers obtain legal title to a piece of real estate by means of a deed from the seller. The two primary forms of deeds are the quit claim deed and the warranty deed. Although warranty deeds convey more extensive assurances about legal title to the property, there are times when a quit claim deed is the most appropriate, or only possible means of conveyance. A quit claim deed is a statement of release of whatever interest the seller may have in a piece of property. It states that the seller is uncertain what her legal interests in the parcel may be, but to the extent that such interests exist, she is releasing those interests to the buyer. In using a quit claim deed, a seller is not guaranteeing that she owns the property. Quit claim deeds are often the most appropriate form of real estate transfer between family members or when title to real estate changes because of divorce. A quit claim deed is also used to relinquish an unexercised option to purchase real estate. A quit claim deed may be the only legal means of transferring real estate that has a title defect. A lien by a defunct business or an easement granted to a party who cannot be found are two common situations where transfer by quit claim deed is the only practical means to convey the property. Some real estate owners may be able to bring action in civil court to cure title defects so they can offer a warranty deed. Depending on the nature of the title defect, this can be expensive and complicated. Many warranty deeds contain provisions conveyed by quit claim only. This means the subject matter of that particular provision cannot be assured. Title to land from the front curb line of a property to the center line of the street is often conveyed by quit claim, even within a warranty deed, because of uncertainty as to whether the government agency that owns the road owns the land under it. Portions of a property that is under water or below a flood line also are often transferred by quit claim only

Which is not a way of ending an easement?

The correct answer is: express written authorization by the servient tenement Appurtenant An easement appurtenant benefits an adjoining piece of land and continues regardless of the ownership of the land. Because an easement appurtenant benefits a specific piece of land, there must be a dominant tenement and a servant tenement. The property which benefits from the easement is known as the dominant tenement; the property that is burdened by the easement is known as the servant tenement.

Deed restrictions are enforced by

The correct answer is: injunction Restrictive Covenants The term restrictive covenants are used to mean a set of restrictions, that applies to an entire subdivision, which is a large piece of real estate that's been divided into smaller properties, to be built on and sold individually. Restrictive covenants cover all the properties in the subdivision. Every property owner has the right to seek enforcement of a deed restriction through the courts. For example, if an owner paints their house purple, when a restrictive covenant prohibits using that color, any of the neighbors can seek an injunction, to force the owner to paint his/her house another unrestricted color. However, if the neighbors ignore the new paint job for a certain length of time, they could lose the right to take the owner to court. The law of the state in which the property is located governs the time frame after which the neighbors can lose their right to seek enforcement of a deed restriction. The loss of this right is called laches. Restrictive covenants are deed restrictions that apply to a group of homes or lots, or property that's part of a specific development or subdivision. They are normally put in place by the original developer and are different for every area of housing.

Real property includes a "bundle of rights" that is attached to the real estate. These rights include

The correct answer is: possession, enjoyment, disposition, control, and exclusion Ownership in a Bundle of Rights In property law, the title refers to all rights that can be secured and enjoyed under the law. It is frequently referred to as absolute ownership- also known as fee simple ownership. However, the term title itself should not be confused with full and absolute ownership. Rights to property can be separated and transferred to others, either as a whole unit or in individual rights and pieces. Remember the Bundle of Rights. Basic property rights include what is known as "the bundle of rights." The bundle of rights includes: Possession- the owner, has right to possess or occupy the property Disposition- an owner generally has the right to sell the property, to give it away or to leave it in a will. Enjoyment- an owner has the right to quiet use and enjoyment of the property without disturbance by hostile claimants Exclusion- the owner, has the right to prevent others from entering or using their property Control- has the right to determine how the property will be used When transferring title, these are the rights that are designated as being transferred - either as a whole or in pieces.

Four primary ways of involuntary transfer include

Transfer by descent, escheat, eminent domain and adverse possession Transfer by Involuntary Alienation The opposite of Voluntary Alienation is Involuntary Alienation. This is when a person's property is transferred without the original owner's consent or control. Involuntary Alienation includes: Transfer by Descent Transfer by Escheat Transfer by Eminent Domain Transfer by Adverse Possession

Which of the following would be considered an encumbrance? Select one: a. CC&Rs b. deed restrictions c. judgments d. all of these.

all of these. Title Insurance The title is marketable when there is reasonable assurance, as to the extent of rights or reservations, to the use of a property. Title insurance companies, research and certify title to the property, and offer insurance to guarantee that a buyer will be protected against receiving an unmarketable title. As well as establishing a marketable title, title insurance policies show what the title is subject to, in the way of taxes, trust deeds or mortgages, and other liens and encumbrances, including CC&Rs or deed restrictions, easements, and other similar rights or reservations of record.

A deed must

contain an adequate description to identify the property sold Legal Description of Property Legal description denotes the written description of the property and other specific information that helps identify a piece of property. The intent of parties to a property transaction may be dishonored unless the legal description of the land in question accurately locates it. Each legal description must include the name of the county or parish and its subdivisions, if any, such as a judicial district within which the concerned property is located.

Deeds are recorded in the

county courthouse Transferred Voluntarily or Involuntarily by Operation of Law A real estate title indicates both the;ownership of the land and provides evidence of that ownership. The is the printed document showing ownership, and is the instrument by which title is conveyed. The deed must be recorded, usually at the county courthouse in which the real estate is located

Title to real property may pass by

deed Deed The deed is a written document that conveys transfer of title in real estate. The statute of frauds requires that the deed is in writing. The grantor, the original owner of the land, conveys his interest to the grantee, the recipient of the title.

Limitations in a deed to a property that dictate certain uses that may or may not be made of the property are known as:

deed restrictions Deed Restrictions Deed restrictions often called "restrictive covenants" (especially in the context of homeowners' associations), are restrictions contained in a deed that limits how a property can be used, and what can be built on it. Most often, developers include restrictions not covered by local zoning regulations. The property doesn't even have to be part of an HOA, to be limited by some rule a developer included in the deed decades ago. Deed restrictions turn up during title searches and a careful reading of the current deed. They "run with the land," which means that anyone who buys the property in future is supposed to abide by the restrictions, whether they were attached to the property 20 years ago when the neighborhood was developed, or 100 years ago when the land was a farm.

Property is identified in a deed by the:

description Legal Description of Proprty Legal description denotes the written description of the property and other specific information that helps identify a piece of property. The intent of parties to a property transaction may be dishonored unless the legal description of the land in question accurately locates it. Each legal description must include the name of the county or parish and its subdivisions, if any, such as a judicial district within which the concerned property is located.

The most comprehensive ownership of land at law is known as

fee simple Ownership in a Bundle of Rights In property law, the title refers to all rights that can be secured and enjoyed under the law. It is frequently referred to as absolute ownership- also known as fee simple ownership. However, the term title itself should not be confused with full and absolute ownership. Rights to property can be separated and transferred to others, either as a whole unit or in individual rights and pieces.

From the point of view of the grantee, the safest kind of deed that can be received is a

general warranty deed General Warranty Deed The general warranty deed offers the grantee the most protection. With this type of deed, the grantor makes a series of legally binding promises (called covenants) and warranties to the grantee (and their heirs) agreeing to protect the grantee against any prior claims and demands of all persons whomsoever in regards to the conveyed land. The usual covenants for title included in a general warranty deed are the covenant of seisin, meaning that the grantor warrants they own the property, and has the legal right to convey it; the covenant against encumbrances, denoting that the grantor warrants that the property is free of liens, or encumbrances, except as specifically stated in the deed. The covenant of quiet enjoyment indicates that the grantee will have quiet possession of the property, and will not be disturbed because the grantor had a defective title. The covenant of further assurance is where the grantor promises to deliver any document necessary to make the title good. F.S. 689.02 Form of warranty deed prescribed.—( 1) Warranty deeds of conveyance to land may be in the following form, viz.:" This indenture, made this___ day of ___ A.D. , between _____ , of the County of ____ in the State of ___ , party of the first part, and___ , of the County of___ , in the State of __ , party of the second part, witnesseth: That the said party of the first part, for and in consideration of the sum of ___ dollars, to her or him in hand paid by the said party of the second part, the receipt whereof is hereby acknowledged, has granted, bargained and sold to the said party of the second part, her or his heirs and assigns forever, the following described land, to wit: And the said party of the first part does hereby fully warrant the title to said land, and will defend the same against the lawful claims of all persons whomsoever." Florida Statutes 689.02 The covenant of further assurance is where the grantor promises to deliver any document necessary to make the title good.F.S. 689.02 Form of warranty deed prescribed.—( 1) Warranty deeds of conveyance to land may be in the following form, viz.:" This indenture, made this___ day of ___ A.D. , between _____ , of the County of ____ in the State of ___ , party of the first part, and___ , of the County of___ , in the State of __ , party of the second part, witnesseth: That the said party of the first part, for and in consideration of the sum of ___ dollars, to her or him in hand paid by the said party of the second part, the receipt whereof is hereby acknowledged, has granted, bargained and sold to the said party of the second part, her or his heirs and assigns forever, the following described land, to wit: • And the said party of the first part does hereby fully warrant the title to said land, and will defend the same against the lawful claims of all persons whomsoever." Florida Statutes 689.02

The main clauses of a deed of conveyance are

grantor and grantee, parties clause, recitals, testatum, and consideration Grantor and Grantee The Premises section starts with the date that the deed is being transferred, and then identifies the names of the grantor and the grantee. To further identify the grantor and grantee, known addresses of the parties are included. A Parties clause—sets out the names, addresses, and descriptions (vendor/purchaser, grantor/grantee, transferor/transferee) of parties A Recitals—narrates in chronological order the previous owner of the property being conveyed, starting with the earliest deed of title, down to the contract of sale the conveyance gives effect to. A Testatum—a command to witness, which acknowledges the payment and receipt of the consideration, and signals the beginning of the operative part; usually begins with "Now this Deed witnesseth."

The part of conveyance that defines or limits the quantity of the estate granted is

habendum Interest or Estate Being Conveyed (Habendum Clause) The operative section leads with words describing the exact "Interest" or type of estate being conveyed. This is called the Habendum clause. The habendum clause is associated with the words to "have and to hold" and if it is fee simple estate (as opposed to a life estate, for example) it includes the words "forever" designating the transfer of ownership as permanent.

The lender's policy is sometimes called a loan policy and is issued only to

mortgage lenders Lender's Policy The lender's policy is sometimes called a loan policy, and it is issued only to mortgage lenders. Generally speaking, it follows the assignment of the mortgage loan, meaning that the policy benefits the purchaser of the loan if the loan is sold.

The greatest distinguishing characteristic between adverse possession and easement by prescription is:

payment of property taxes for a specified period of time on the property being used Conditions for Alienation by Adverse Possession Conditions for Alienation by Adverse Possession Five requirements must be met before the title can be acquired by adverse possession. If the first four are met, an easement by prescription may be created: The possession must be by actual occupation and be open and notorious. It must be hostile to the true owner's title. It must be under claim of right or color of title. Possession must be continuous and uninterrupted for 7 years minimum. The possessor must have paid all real property taxes levied and assessed for five years continuously. Easements by prescription may be prevented by an owner recording a special notice of consent, which grants permission for others to use the property or by posting a sign stating "Right to pass by permission, and subject to the control of the owner.

Title insurance is principally a product developed and sold in the United States as a result of

regular and consistent issuance of defective titles Title Insurance The title is marketable when there is reasonable assurance, as to the extent of rights or reservations, to the use of a property. Title insurance companies, research and certify title to the property, and offer insurance to guarantee that a buyer will be protected against receiving an unmarketable title. As well as establishing a marketable title, title insurance policies show what the title is subject to, in the way of taxes, trust deeds or mortgages, and other liens and encumbrances, including CC&Rs or deed restrictions, easements, and other similar rights or reservations of record. A typical real estate sales contract requires the seller to convey marketable title to the buyer, which means that the title must be free from any reasonable doubts, as to who the owner is and free from any defect in the title itself. The objective of establishing a marketable title is to prove that no clouds are impeding clear title to the property. A cloud on the title is something that casts doubts on the grantor's ownership of the property. Although strictly speaking, it doesn't constitute a cloud on the title; the clear title has been expanded to mean no problems such as illegal structures, or unpermitted improvements to the property. The different ways the grantor may prove marketable title vary by state, and may even vary by area within a state. Searching the history of a property and providing an abstract of title may uncover most problems with title ownership. However, there could also be some issues that remain hidden called defects of title. To protect the parties against these problems, title insurance companies offer title insurance. With title insurance, if any claim is brought against the property as a result of a pre-existing problem with the title, the title insurance will likely cover the expense. Title insurance is not required by law; however, because of the risk involved with an unmarketable title, title insurance may be required as part of the closing, when a mortgage is involved. Once the title search has shown the title to be valid, the title company will likely be willing to issue a title insurance policy. The policy protects owners or lenders against claims made against them, and also covers legal fees that may arise from disputes over the ownership of the property. There are two main types of title insurance: owner's title insurance, which protects the property owner from title issues, and lender's title insurance, which protects lenders, up to the amount of principal outstanding on loan.

A mechanic's lien is a(n):

specific lien Classifications General, - May, affect all properties of a debtor Judgment liens IRS liens Federal estate tax liens Specific - Affect specific property only Property tax liens Special assessment liens Mortgages Vendor's lien Construction (mechanic's) lien

In real estate transactions in the United States, insurance companies issue title insurance based upon

the chain of title to the property when it is transferred Title Insurance The title is marketable when there is reasonable assurance, as to the extent of rights or reservations, to the use of a property. Title insurance companies, research and certify title to the property, and offer insurance to guarantee that a buyer will be protected against receiving an unmarketable title. As well as establishing a marketable title, title insurance policies show what the title is subject to, in the way of taxes, trust deeds or mortgages, and other liens and encumbrances, including CC&Rs or deed restrictions, easements, and other similar rights or reservations of record.

A common law doctrine which transfers the property of a person who dies without heirs to the crown or state is called

transfer by escheat Escheat As Seen in Florida Statues 732.107 Escheat: (1) When a person dies leaving an estate without being survived by any person entitled to a part of it, that part shall escheat to the state. (2) Property that escheats shall be sold as provided in the Florida Probate Rules and the proceeds paid to the Chief Financial Officer of the state and deposited in the State School Fund. (3) At any time within ten years after the payment to the Chief Financial Officer, a person claiming to be entitled to the proceeds may reopen the administration, to assert entitlement to the proceeds. If no claim is timely asserted, the state's rights to the proceeds shall become absolute. 1. Provides for the Property of a Person who Dies Intestate and who has no Known Heirs to Pass to The State Florida Statutes provides that the property of a person who dies intestate and who has no known heirs to pass to the state. The property is transferred to the state by escheat. This is a form of involuntary alienation. Without this legal provision, the property would remain in limbo and would languish eventually deteriorating from neglect.

A quitclaim deed will transfer

whatever interest the grantor has Quitclaim Deed Buyers obtain legal title to a piece of real estate by means of a deed from the seller. The two primary forms of deeds are the quit claim deed and the warranty deed. Although warranty deeds convey more extensive assurances about legal title to the property, there are times when a quit claim deed is the most appropriate, or only possible means of conveyance. A quit claim deed is a statement of release of whatever interest the seller may have in a piece of property. It states that the seller is uncertain what her legal interests in the parcel may be, but to the extent that such interests exist, she is releasing those interests to the buyer. In using a quit claim deed, a seller is not guaranteeing that she owns the property. Quit claim deeds are often the most appropriate form of real estate transfer between family members or when title to real estate changes because of divorce. A quit claim deed is also used to relinquish an unexercised option to purchase real estate. A quit claim deed may be the only legal means of transferring real estate that has a title defect. A lien by a defunct business or an easement granted to a party who cannot be found are two common situations where transfer by quit claim deed is the only practical means to convey the property. Some real estate owners may be able to bring action in civil court to cure title defects so they can offer a warranty deed. Depending on the nature of the title defect, this can be expensive and complicated. Many warranty deeds contain provisions conveyed by quit claim only. This means the subject matter of that particular provision cannot be assured. Title to land from the front curb line of a property to the center line of the street is often conveyed by quit claim, even within a warranty deed, because of uncertainty as to whether the government agency that owns the road owns the land under it. Portions of a property that is under water or below a flood line also are often transferred by quit claim only.

For a deed to be valid as required by the Statute of Frauds, it must be:

written. Deed The deed is a written document that conveys the transfer of title in real estate. The statute of frauds requires that the deed be in writing. The grantor, the original owner of the land conveys his interest to the grantee, the recipient of the title.