LESSON 3: TRANSFER OF REAL PROPERTY

Extended coverage

An extended coverage policy offers protection against the same types of problems that standard coverage does. In addition, it protects against problems that could be discovered in a property inspection.

Lis pendens

A lis pendens is recorded to provide constructive notice that a lawsuit has been filed that may affect title to specified property.

Mortgagee's policy

A mortgagee's policy provides title insurance coverage to protect the lender's security interest.

Patent

A patent transfers real property from government ownership to private ownership.

Actual notice

A person has actual notice of a fact if she is actually aware of it, whether by direct observation or some other source of information

Quitclaim deed

A quitclaim deed offers no warranties, conveys no after-acquired title, and creates no liability for the grantor. It is typically used to clear away clouds on title

Will

An owner uses a will to transfer property after her death. In Washington, a will can only transfer real property if it is in writing and signed by the testator in the presence of at least two witnesses.

Actual possession

Actual possession is possession and use of the property in a manner appropriate for that type of property.

Open and notorious possession

Actual possession is possession and use of the property in a manner appropriate for that type of property.

Continuous & uninterrupted possession

Adverse possession must be continuous throughout the required time period.

Exclusive possession

An adverse possessor must have exclusive possession of the property, rather than sharing possession with the true owner.

Owner's policy

An owner's policy provides title insurance coverage for the buyer, the new owner of the property.

Avulsion

Avulsion occurs when flowing water or wave action violently tears away land and deposits it elsewhere, or when a sudden change in a watercourse exposes land. Unlike accretion and reliction, avulsion does not necessarily result in involuntary alienation of the land that has been moved or exposed.

Adverse possession

Under Washington law, an adverse possessor generally acquires title after ten years of possession that has been actual, open and notorious, hostile, exclusive, and continuous.

Title search

Using ownership records maintained by the county clerk, the validity of a seller's title can be established by tracing the chain of title back through the previous owners.

Voluntary dedication

Voluntary dedication is a gift of private property to the public.

Homeowner's coverage

A homeowner's coverage policy provides added protection in transactions involving residential property with up to four units. It covers most of the same items as an extended coverage policy and also some additional ones, such as violations of restrictive covenants.

Exclusions and reservations clause

A deed may include a list of the encumbrances that will burden the grantee's title. This is called an exclusions and reservations clause.

Delivery and acceptance

A deed must be delivered to and accepted by the grantee or the grantee's agent to complete the transfer of title.

Essential elements

A deed must be in writing. It must identify the parties, be signed by a competent grantor, and specify a living grantee. It must include words of conveyance and an adequate property description. The deed must also be acknowledged, delivered, and accepted.

Special warranty deed

A special warranty deed limits its warranties to the period the grantor owned the property.

Standard coverage

A standard coverage policy offers protection against problems of record that were not discovered in the title search. It also protects against hidden problems such as forged signatures, fraud, incompetency, and improper delivery.

Devise

A transfer of real property by will is called a devise. A testator devises real property to devisees.

Title report

Based on its title search, the title company issues a title report, listing the defects and encumbrances of record. These will be excluded from coverage when the policy is issued.

Recorded documents

Deeds, mortgages, deeds of trust, land contracts, and documents creating or removing encumbrances should always be recorded. Purchase and sale agreements are not recorded

Recording procedures

Documents affecting title to real property are recorded in the county where the property is located. Recording procedures are established by state law.

Condemnation

Eminent domain is the government's power to take private property for a public use. Condemnation is the legal procedure used to force an unwilling property owner to sell. The government must pay just compensation to the owner.

Escheat

If a person dies intestate and the probate court can't locate any heirs, then the intestate person's property passes to the state under the law of escheat. The state may also take ownership of abandoned property through escheat.

Competent grantor

In Washington, a grantor is legally competent if she is at least 18 years old and of sound mind.

Foreclosure

In a foreclosure, a creditor with a lien against property asks the court to have the property sold. The lien will be paid off out of the foreclosure sale proceeds.

Suit for partition

In a partition suit, the court divides property owned by two or more people among the co-owners. If the property itself can't be divided, then it will be sold and the sale proceeds will be divided up.

Quiet title action

In a quiet title action, the court resolves claims against a property to clear away clouds and make the owner's title marketable.

Title insurance policy

In a title insurance policy, the title company agrees to reimburse the policyholder for losses resulting from title problems covered by the policy.

Recital of consideration

Many deeds include a recital of consideration as an indication that the conveyance was not a gift to the grantee.

Government action

Neither standard nor extended coverage title insurance covers problems resulting from government action, such as zoning changes.

Hostile possession

Possession is hostile to the owner's interest if the adverse possessor is acting as if he owns the property. Someone who is in possession of property with the permission of the true owner cannot gain title by adverse possession.

Probate

Probate is the legal procedure for establishing the validity of a will and distributing property according to the terms of the will.

Tacking

Successive periods of possession by a series of adverse possessors can be added up to fulfill the ten-year requirement. This is known as tacking.

General warranty deed

The covenants in a general warranty deed cover title defects arising before and during the grantor's period of ownership. A general warranty deed offers the grantee the most protection, and gives the grantor the most liability.

Living grantee

The grantee does not need to be competent. The grantee only needs to be alive (or, for a business entity, in existence) at the time of conveyance.

Acknowledgment

The grantor's signature must be acknowledged before a notary public or other formal witness.

Habendum clause

The habendum clause in a deed defines or limits the type of estate that is being transferred to the grantee. If there is no habendum clause, the deed is presumed to convey a fee simple absolute.

Property description

The property description in a deed is generally considered adequate if it would enable a surveyor to locate the property.

Words of conveyance

The words of conveyance state that the grantor is transferring the property to the grantee. The words of conveyance are also called the granting clause.

In writing

To satisfy the statute of frauds, a deed must be in writing and signed by the grantor. The grantee does not sign the deed.

After-acquired title

Warranty deeds convey after-acquired title. If the grantor did not own the property when the deed was executed, but acquires title later, then title passes to the grantee.

Reliction

When a body of water recedes slowly, exposing land that's been underwater, it's called reliction. The adjoining landowner acquires title to the newly exposed land.

Constructive notice

When a person has constructive notice of a fact, he is legally held to know it, even if he does not have actual notice. Recording a deed provides constructive notice of the interest conveyed. Possession of property provides constructive notice of the possessor's interest.

Statutory dedication

When applying for subdivision approval, a developer is often required to dedicate land within the subdivision to the public for streets and utility easements.

Intestate succession

When someone dies without a valid will, her property passes to her heirs according to rules set forth in a state statute.

Accretion

When waterborne silt is gradually deposited on the shore, it's called accretion. The landowner acquires title to the newly deposited soil.