Real Estate Ch 3 C & D

Essential Elements of a Deed:

- Must be in-writing (according to the Statute of Frauds). - Include a grantor (the person conveying title to the property). - Include a grantee (the person receiving title). - Contain a granting clause, which includes words of conveyance. - Provide evidence of consideration (something of value). - Include a legal description of the property. - Include an habendum clause (this clause begins with the words "to have and to hold"). - Include limitations and subject-to clause (any deed restrictions or easements must be noted). - The signature of the grantor (the grantee is not required to sign the deed). - Acknowledgement/recording (the deed must be notarized and recorded). - Delivery and acceptance (a valid deed must be delivered to the grantee).

Survey

-A survey is a drawing prepared by a licensed surveyor, which shows the exact dimensions of a property and any improvements located on the property (including a garage, deck, fend, driveway). -A survey is drawn using the metes and bounds method.

Chain of title

-Chain of title refers to the sequence of historical transfers of title to a property. It runs from the present owner all the way back to the original owner of the property.

Deed Restrictions

-Deed restrictions are a form of encumbrance on real property. -A deed restriction is an imposed restriction in a deed for the purpose of limiting the use of real property, such as: 1) A restriction against the sale of liquor on a property. 2) A restriction as to the size, type, value or placement of improvements that may be erected on the property. -Deed restrictions are in the form of restrictive covenants and/or conditions (CC&R's).

Legal description

-The deed must contain an adequate formal legal description. -The legal description describes where the property is located and the size of the lot. -There are 3 acceptable types of property descriptions: 1) Metes and bounds 2) Description by reference, lot and block 3) Monuments

Conveyance

-The transfer of the title of land from one to another. The means or medium by which title of real estate is transferred. -A deed is a document used to convey title legally to real property. -A deed is also called an instrument of conveyance.

Conveyance after death: Intestate succession

-When a person dies and leaves no valid will, the laws of intestacy determine the order in which the property is distributed to the heirs. -The heirs take title by descent, or the way they are related to the decedent (deceased person).The typical order of descent is spouse, children, parents, and siblings, followed by relatives who are more distant. -According to law, the person appointed by a court to distribute the intestate decedent's property is an administrator or administratrix.

The Full Covenant and Warranty deed includes the following covenants:

1) Covenant of seisin - assures the grantee that the grantor holds the title specified in the deed. 2) Covenant of right to convey - assures the grantee that the grantor has the legal capacity to convey the title and has the title to convey. 3) Covenant against encumbrances - assures the grantee that no encumbrances against the title except those set forth in the deed itself exist. 4) Covenant of quiet enjoyment - assures the grantee that they will have quiet enjoyment and possession of the property. 5) Covenant for further assurances 6) Covenant of warranty

Deeds

A deed is also called an instrument of conveyance. - The Grantor is the Seller (conveys the deed). - The Grantee is the Buyer (receives the deed). - The grantor of a deed must be at least 18 years old and mentally competent.

Abstract of title

An abstract of title is a condensed history of title. It is a summary of all links in the chain of title.

Full Covenant and Warranty Deed

The Full Covenant and Warranty deed contains the broadest form of guarantee of title of any type of deed and provides the greatest protection to the grantee.

Using the old deed

The seller's attorney uses the old deed to prepare a new deed for the closing.

Title

Title is evidence of the right to own property.