Real Estate Ch. 12

Trustee's deed

Deed executed by a trustee

Acknowledgment

Formal declaration the the person who signs a written document does so voluntarily and that their signature is genuine

Legacy/Bequest

Gift of personal property by will

Devise

Gift of real property by will

Probate

Legal process by which a court determines who will inherit a decedents property and what the estate's assets are

Deed in trust

Means by which a trustor conveys real estate to a trustee for the benefit of a beneficiary

Transfer tax

Tax stamps required to be affixed to a deed by state and/or local law

Adverse possession

The actual, open, notorious, hostile, and continuous possession of another land under a claim of title. Possession for a statutory period may be a means of acquiring title.

Reconveyance deed

Used by a trustee to return title to the trustor, the original owner

Testate

When the person who dies has prepared a will indicating how their property should be handled

General warranty deed

-Grantor assures that no liens or encumbrances other than those on public record exist against the property -Provides the greatest protection of any deed -States the words "convey and warrant"

Special warranty deed

-Grantor is not responsible for defects in the title that arise from precious owners but just for the time period that the grantor had ownership -States the words "remise, release, alienate and convey"

Bargain and sales deed

-No warranties against liens or other encumbrances but that does not imply that the grantor has the right to convey title -States the words "grants, bargains, and sells"

Involuntary alienation

Act of transferring property through eminent domain or adverse possession

Voluntary alienation

-Transferring of property to another such as by gift or sale -Accomplished by the delivery of a valid deed by the grantor to the grantee during the life of both of them

Quitclaim deed

-Transfers any interest that the grantor may have in the property to the grantee, does not imply that the grantor has any valid interest in the property since it contains no expressed or implied warranties. -States the words "convey and quitclaim" -Most commonly used to clear defects or remove clouds to the title

Intestate

-When the person who dies leaves no will -Real estate and personal property pass to the descendants heirs according to the states statute of descent and distribution

5 covenants of a general warranty deed

1. covenant of seisin (grantor guarantees that they own the property and has the right to convey title to it) 2. covenant against encumbrances (grantor warrants that the property is free from liens or encumbrances, except for specifically stated in the deed) 3. covenant of quiet enjoyment (grantor guarantees that the grantee's title will be good against 3rd parties who might bring court actions to establish superior title to the property) 4. covenant of further assurance (grantor promises to obtain the deliver any instrument needed to make the title good) 5. covenant of warranty forever (grantor promises to compensate the grantee for the loss sustained if the title fails at any time in the future