Sec 14+ 15

What is the point of chain of title?

It protects the buyer by ensuring that all people who've claimed to own the property actually owned it.

Why should a grantee always receive an acknowledged deed?

It provides the grantee title protection against other purchasers of the same property from the grantor.

Which of these statements best describes the meaning of title?

It's the legal concept that one owns property.

Deed example

Jan wants her daughter to have her house, so she has a lawyer draft a sales agreement and she sells it to her for $1.

Eminent domain

Marcia has to sell her house to the state, which is removing houses to widen a highway.

Meg is considering a move to a foreign country and wants to deed her property to her son, Christian, who's 16. Which of these must occur to make this transfer legal?

Meg must sign the deed and have her signature acknowledged.

Which of the following are valid methods of legal description on an Ohio deed?

Metes-and-bounds descriptions Plat references, lot or block number

Natural processes

Olivia has a beautiful home on the beach, but each year, she loses a little more land to the sea.

So, what does a public grant actually grant to private individuals? Select all that apply.

Power Real property License

Where will Sam find what he needs to repair the broken link?

Public records or onsite inspection

A person making this promise is essentially saying, "No one's going to make a claim against this property." Which covenant is this?

Quiet enjoyment

As a licensee, you're helping a couple buy a new home when you come across issues that could mean there's a cloud on the title. What should you do?

Recommend the couple find another property to purchase, or ask the seller to settle the title through a quiet title action to clear any cloud before moving forward with the sale.

Which of the following statements about the Torrens system is true?

The approach is only used in a handful of states.

Title Theory

The borrower has equitable title, but the lender or trustee holds legal title to the property.

Regulatory taking

The city council imposed so many use restrictions on Myron's property, there's no way he could recoup his initial investment if he sells.

John and Michelle received a general warranty deed when they purchased their house from Ted. A couple of months after they moved in, their neighbor, Bryant, drove his four-wheeler across their property to access the lake front. John discovered that Ted and Bryant agreed to an easement over Ted's property several years earlier. Which general warranty deed covenant does this represent?

The covenant against encumbrances

Which of these statements accurately represents one of the required elements in a deed?

The deed includes an act of conveyance.

A mother conveyed land to her son using a deed that contained all of the essential elements, but she failed to record the deed. Which of the following is true?

The deed is valid.

Which of these would void a deed intended to convey property?

The grantor is not mentally competent.

Jerry's client Carla has successfully closed on the purchase of a home. The deed shows she's taken sole ownership of the property. Which of these actions is necessary before the escrow agent can have the deed recorded?

The grantor's signature must be acknowledged.

How much do you know about probate? Which of the following statements best describes probate?

The legal process used to determine the validity of a will and to ensure the will accurately reflects the deceased person's wishes

What is a chain of title?

The sequence of historical transfers of title to a property

When the Torrens system is used to perform a title search, who acts as title guarantor in case a claim is filed?

The state

What may happen to a transaction if a cloud on the title is discovered?

The transaction comes to a standstill until the cloud is cleared.

Mary Croft is proud to own her first home. Which of the following terms represents the legal concept of her property ownership?

Title

What is the purpose of the limitations and subject to clause section of a deed?

To identify any deed restrictions to which the property is subject

What is the purpose of consideration?

To provide evidence that something of value is being exchanged

Holographic wills

Unwitnessed wills considered valid because they're written entirely in the testator's own handwriting

Which form of alienation occurs with the owner's consent?

Voluntary

A person making this promise is essentially saying, "I will go to bat for you, and I will go to court for you, in the unlikely event that someone makes a claim against this property." Which covenant is this?

Warranty

Which covenant is a promise by grantors to grantees that they will warrant and defend the title against the lawful claims of others?

Warranty

Escheat

When property reverts back to the state because there are no wills and no heirs

Competent grantor

a person conveying real property who is mentally competent and has reached the age of majority

A codicil

a supplement that's used to alter a will instead of replacing the entire original will.

eminent domain

the power of the government to take private land for public use

Which of the following statements would you see in a habendum clause?

"To have and to hold"

Mansion house

A decedent's property interest that can be claimed by the surviving spouse in Ohio

Deed

A legal document used to transfer ownership from one party to another

Which of the following is an example of a cloud on a title?

A third party has staked a claim on a property

Certificate of transfer

Acts as a deed when real property is conveyed through probate

If a private individual tries to lay claim to someone else's property because he has been living on and using the property as his own for an extended period of time, the individual may acquire the property through _______.

Adverse possession

A person making this promise is essentially saying, "I didn't in any way encumber this property that's not already written in the deed or a matter of public record." Which covenant is this?

Against encumbrances

Through which covenant does a grantor offer assurances that there are no other claims or liens against the title, other than those in the public record or the deed itself?

Against encumbrances

Adverse Possession

Al lived in a shed behind Ed's house for 10 years. Ed lists the house for sale; Al claims the shed and the property on which it sits is his.

The act of transferring ownership of a property is known as _______.

Alienation

Through the divorce process, Gail was granted ownership of the couple's vacation timeshare. Gail is ready to sell the timeshare but discovers that her ex-husband Daniel's name is still on the deed, creating a cloud on the title. What should Gail do?

Ask Daniel to sign a quitclaim deed to release his ownership share.

Will example

Cindy devised her house to her brothers and sisters upon her death.

If Carol and Doug Shields died intestate, their estate would be conveyed to their heirs through which method of alienation?

Descent

The person named as the recipient of real property in a will is called the _______.

Devisee

Court-ordered partitioning

Eric and Amy were divorcing and couldn't agree how to divide their assets. The court stepped in and made the decision for them.

What are the five most common title issues?

Errors in public records Missing heirs Forgeries Survey or Boundary issues Unknown Liens

Alice died alone with no known relatives and no will. No one made a claim to her house, so the property is taken by the state and turned into a home for children. What method of involuntary alienation was used in this situation?

Escheat

The state's claim to property when a property owner dies, leaving no will, heirs or creditors, is the power of ______.

Escheat

A deed must be recorded to validly transfer property from a grantor to a grantee.

False

As executor for his Aunt Priscilla's estate, Scott is responsible for the disposition of her assets, including her property. Scott uses a ______ when he conveys his aunt's property to its new owner. This deed without warranties has only one covenant, which is that Scott is legally authorized to convey the property on Priscilla's behalf.

Fiduciary deed

After purchasing a property, what can Jeremiah do to clear a possible future claim on the property's title?

File a suit to quiet title.

Through which covenant does the grantor promise to the grantee to perform any acts necessary to correct any defect in the title being conveyed?

Further assurance

A person making this promise is essentially saying, "If you need any help in clearing the title, I'm here for you." Which covenant is this?

Further assurances

Emil had been looking forward to becoming a homeowner ever since he made a bird house in wood shop in seventh grade. After years of saving up for a down payment, there was no way was he going to get anything less than a ______, because it carried the strongest and broadest form of guarantee of title of all of the deed types.

General warranty deed

Which of the following deed types provides the strongest and broadest form of guarantee of title?

General warranty deed

What are the two most common ways to mitigate the effects of title issues?

Initiate an action to quiet a title Purchase title insurance

Conveyance of property by escheat is an example of _______ alienation.

Involuntary

The 10 states that use marketable title acts vary greatly on how long parties may claim interest in a property. In Ohio, what's the time limit on title claims?

40 years

Do you know the differences and similarities between deeds and wills? Which of the following statements is true?

A deed conveys a current interest in a property during the grantor's lifetime, while a will conveys interest in the property after the grantor has died.

What's an example of an unrecorded interest in a property?

A month-to-month lease

Which one of these is an example of unrecorded interest?

A neighbor's right to cross over someone else's property to get to his own

Who or what is a testator?

A person who drafts a valid will

Under which circumstance can the state use its power of escheat to claim real property?

A property owner dies without a will in place, and no heirs or creditors can be found.

What is the Torrens system?

A title search method that goes back as far as the previous title search

Matthew Sorkin owns his home. Which of the following is the term for the legal document showing that property ownership was transferred to him?

Deed

You've just helped Maribella and Antonio Vega purchase a new home. Which of the following should be recorded to ensure that someone else doesn't try to claim ownership of the same property?

Deed

Greg died of a heart attack on his 75th birthday, leaving no will. His wife is deceased, and the couple had no children. Greg's estate goes into probate, and the court determines which of Greg's heirs will inherit the family home. What method of alienation was used in this situation?

Law of descent

Nuncupative wills

Oral wills that are witnessed by two disinterested parties and are only valid if put into writing within 10 days of the testator's statement

When tenants in common can't agree on how to manage the property and want to terminate their co-ownership without selling the property, how can this be accomplished?

Partition

What can buyers do to protect themselves from title issues when purchasing property?

Purchase title insurance.

Myrna and Stanley divorced. As part of their settlement, Myrna gave the house to Stanley. Because no money changed hands, they used a ______, which carries no guarantee that Myrna has ownership of the property, but merely affirms that any percentage of ownership Myrna might have is to be transferred to Stanley, as named in the deed.

Quitclaim Deed

Dean just signed over any rights he had to the property to his twin sister, Jean. The deed clears any clouds that may exists on the title, but it does not offer any warranties to Jean. What type of deed is this?

Quitclaim deed

Cheng is selling his property to Jericho. What's the best method Jericho can use to ensure his interest in the property?

Record the deed in his name.

The state has seized a strip of Marge's land. It's relatively small but goes right through her sheep pastures. She just found out that the state will use it for a six-lane highway. She's pretty sure that the value of her land is going to plummet, and she can't figure out how to use it as pastureland anymore. What kind of involuntary alienation is she dealing with?

Regulatory taking

A person making this promise is essentially saying, "I own this property and it's mine to do with as I see fit, including conveying it to anyone I wish." Which covenant is this?

Right to convey

Which covenant is a promise that the grantor has the legal capacity to convey the title and has the title to convey?

Right to convey

Foreclosure

Sam fell behind on his mortgage payments, and eventually the bank stepped in and forced the property to be sold.

Doctrine of relation back

Says that a seller's death doesn't automatically terminate a contract or prevent the completion of the sale

A person making this promise is essentially saying, "I own this property. It's mine." Which covenant is this?

Seisin

Ari owned acreage in a rural area. He sold a small portion of it to a neighbor in an informal transaction but made no record of the sale or change of ownership. A developer offered Ari several million dollars for the entire acreage, and Ari eagerly accepted the offer. What covenant is Ari in danger of violating?

Seisin

Through which covenant type does a grantor promise that they actually hold the title specified in the deed?

Seisin

If a cloud on a title is discovered, which party is generally responsible for clearing the cloud?

Seller

Which of the following assumptions does the Torrens system make?

That any issues that arose in the previous title search have been resolved

Lien Theory

The borrower holds legal and equitable title, and the lender has a lien against the property.

Kelo vs. the United States was a Supreme Court case that centered on a city's use of the power of eminent domain. The resource briefly describes the focus of this case. What was significant about the court's ruling?

The court ruled that cities can exercise the power of eminent domain to promote private economic development, stating that the public will get an economic benefit.

Land Patent

The document used to convey a public grant of real property

inverse condemnation

The property owner was not offered just compensation when the taking occurred, and the taking was probably regulatory in nature.

What special concern do foreclosed properties often present?

There could be hidden title issues.

For bequeathed property, the court must determine that a will is legal, and hear out anyone contesting the will.

True

Condemnation

When the government takes someone's property using the power of eminent domain and the owner receives compensation for the property value

Taking

When the government takes title to private property under eminent domain, or regulations remove the economic value of a private property

Through which method of voluntary alienation does the devisor convey both real and personal property to the devisee?

Will

Identifiable grantee

a person receiving title. Grantees must be currently living and identified in such a way as to separate them from all other people

The legal concept of having ownership of real property is called ______.

title