National Real Estate Exam: Conveyances or Deeds

Covenant of Seizen

The grantor is the owner and possessor of the property with the right to convey title

Covenant of Warranty

The grantor will defend the title.

Covenant against Encumbrances

The property has no liens or other encumbrances except as stated in the deed.

Unrecorded Deed

Valid, but may be void against bona fide persons who are without notice or record a deed first.

Testate

When a person dies with a will. An executor named in the will will distribute the real property in the estate to devisees and personal property to legatees.

Intestate

When a person dies without a will. The court appoints an administrator to distribute the estate. Title will transfer be descent to heirs entitled to it under laws of intestate succession. The transfer of title by descent.

Actual Notice

When a person has actual knowledge of a fact, such as when he sees a recorded deed or knows a person has an unrecorded deed.

Adverse Possession

When an occupant has been in actual, open, notorious, hostile, exclusive, and continuous possession of the property under a claim of right for the required statutory period of time.

Types of deeds

- General warranty deed - Special warranty deed - Quitclaim deed - Bargain and Sale Deed

To be valid a deed must:

- be in writing - have words of conveyance - adequately describe property - identify the grantor and grantee - be signed by grantor - have a competent grantor - be delivered grantee does not need to sign the deed or be competent.

5 ways title transfers to and from the governement

1. Patent 2. Dedication 3. Forfeiture 4. Eminent Domain 5. Escheat

Escheat

Right of the government to take property when a person dies intestate and without heirs.

Accretion

Addition to one's land by gradual deposit of soil through natural causes.

Deed Reservation

Allows grantor to keep rights (ex: such as mineral rights) in the property.

Patent

An instrument that conveys title to real property from the state or federal government (a sovereign power) to an individual.

Eminent Domain

Right of the government or a company authorized by the government to acquire title to property for public use by paying compensation to the owner, through the process of condemnation.

Dedication

Gift of property to the public

Forfeiture

Gives or forfeits possession of property to governent

Bargain and Sale Deed

Conveys title without any warranties or covenants

Habendum clause

Defines or limits the quantity or quality of the estate, be specifying the estate the grantee is to "have and to hold".

Delivery of a Deed

Delivery is the final act of the grantor signifying an intention that the deed should currently take effect. Upon valid delivery, title passes. Delivery does not mean manually transferring the deed. It means the intention of the grantor to make the deed currently effective to transfer title. Therefore, a deed is presumed delivered if given to the grantee, given to escrow or recorded.

Recording a Deed

Enables a person to provide constructive notice of his interest in a particular parcel of real estate and establish the legal priority of his interest. It also helps prevent forgery.

Deed Exception

Excludes part of the property from conveyance (ex: such as the west 15 feet)

Accession

Involves any addition to the land or property by any man-made or natural cause.

Quitclaim Deed

It causes the grantor to stop claiming an interest and does not warranty that he has the interest. Will convey whatever interest (including title) the grantor may have, if he has any. Generally used to convey partial interests and to clear clouds on title releasing a claim of one of the parties claiming interest.

Special Warranty Deed

Limits warranty against encumbrances to only those defects arising from actions by, through, or under the grantor. Limits its warranties to defects arising during the grantor's period of ownership from any action by, through or under the grantor.

Annexation

Man-made addition of fixtures to land.

General Warranty Deed

Proved greatest protection for grantee and creates greatest liability for grantor. It includes: - covenant of seizen - covenant against encumbrances - covenant of warranty

Deed

Provides clear evidence of change in title or transfer of interest in real property. Automatically conveys fee title unless it has a habendum clause.

Title

Refers to the intangible rights of ownership. A deed is NOT a title.

Avulsion

Sudden tearing away of land by action of water.

Prescription

The right to use another's land. Lawful. Similare to adverse possession.

Conveyance

Transfer of title from one owner to another involves alienation of title by current owner and acquisition of title by new owner.

Hostile

adverse possessor is claiming ownership of the land. The owner can defeat claim of title by asserting ownership rights.

Acknowledgement

includes declaring and signing before a notary that the transfer is a voluntary act.

Constructive notice

notice of facts that may be discovered by diligence or by inquiring into a public record.. When a person has a means of obtaining knowledge of rights in land. Provided when an owner takes possession or records a deed. Possession gives constructive notice of the rights of the parties in possession.

Alienation

transfer of conveyance of title of real property to another. Either voluntarily, through sale, gift, or will. Or involuntarily, when transfer of ownership occurs of operations of law (naturally or by court action)