Chapter 4 Title Closing and Costs

Question 0

Abstract of Title

Answer 0

condensed history of the title (summary of all links in the title chain)

Question 1

Abstract Continuation

Answer 1

is an update of and abstract title

Question 2

Actual Notice

Answer 2

notice that is expressly and directly given to a person and received by that person.

Question 4

Constructive Notice

Answer 4

the entire world is bound by knowledge of the existence of the conveyance of title when evidence of the conveyance is recorded.

Question 5

Title Closing

Answer 5

the parties and other interested people meet to review and sign the closing documents, pay and receive money, and receive title to real estate.

Question 6

Title

Answer 6

is evidence of the right to own property.

Question 7

Survey

Answer 7

is a type of blueprint showing measurements, boundaries, and area of a property

Question 8

Deed

Answer 8

is the legal document that conveys title to real property.

The deed must recite that the conveyance is SUBJECT TO an easement on the property.

Question 9

Marketable Title

Answer 9

reasonably free and clear of encumbrances (defects).

Question 10

Title Search

Answer 10

finds evidence of marketable title.

Question 11

Chain of Title

Answer 11

tracing the successive conveyances of title.

starting from the current deed and going back an appropriate time ; 40 to 60 yrs

Question 12

Title Insurance

Answer 12

an insurance contract insuring the policy owner against financial loss if title to real estate is not good.

(title insurance is not for property damage, but is insurance against clear title of the property)

Question 13

Involuntary alienation

Answer 13

an individual must give up title to real property against his or her will.

Question 14

Voluntary alienation

Answer 14

the grantors delivery of a valid deed to the grantee while both are alive

Question 15

Conveyance

Answer 15

It is the document used to convey title legally to real property.

Ex. A deed

Question 16

Grantor

Answer 16

the person conveying the title

Question 17

Grantee

Answer 17

the person receiving the title

Question 18

Consideration

Answer 18

Anything of value, as recognized by law, that is offered as an inducement to contract.

Question 19

Habendum Clause

Answer 19

describes the estate granted and must agree with the granting clause.
This clause begins with the words “TO HAVE AND TO HOLD”

Question 20

Involuntary alienation

Answer 20

an individual must give up title to real property against his or her will

Question 21

Voluntary Alienation

Answer 21

the grantors delivery of a valid deed to the grantee while both are alive

Question 22

Conveyance

Answer 22

the document used to convey title legally to real property.

A deed is also called an instrument of conveyance

Question 23

Grantor

Answer 23

the person conveying the title

Question 24

Grantee

Answer 24

the person receiving the title

Question 25

Consideration

Answer 25

anything of value, as recognized by law, that is offered as an inducement to contract.

Question 26

Description

Answer 26

The deed must contain an adequate description of the property

Question 27

Habendum Clause

Answer 27

describes the estate granted and must agree with the granting clause. The clause begins with the words "TO HAVE AND TO HOLD"

Question 28

Acknowledgement/Oath

Answer 28

a formal statement made before an authorized official (notary public) by a person who executed a deed, a contract, or another document that it was a free act

Question 29

Delivery and acceptance

Answer 29

the grantor must deliver a valid deed to the grantee, and the grantee must accept the deed.

Question 30

Metes and bounds

Answer 30

metes are the distances from point to point and bounds are the directions from on point to another.

Question 31

Reference to a plat

Answer 31

refers to a plat (map) and lot number as part of a recorded subdivision

Question 32

Block & Lot

Answer 32

Property may be described by reference to section, BLOCK & LOT on the tax map, or a prior recorded instrument

Question 33

Full covenant and warranty deed

Answer 33

contains the strongest and broadest form of guarantee of title of any type of deed Covenant of seisin: It assures the grantee that the grantor holds the title specified in the deed that he is conveying to the grantee Covenant of right to covey: usually follows the covenant of seisin in the full covenant and warranty deed, typically reads "AND HAS THE RIGHT TO CONVEY THE SAME IN FEE SIMPLE". by this covenant the grantor provides an assurance to the grantee that the grantor had legal capacity to convey the title and has the title to convey Covenant against encumbrances: The grantor assures the grantee that no encumbrances against the title except those set forth in the deed itself exist Covenant of quiet enjoyment: This covenant usually reads "the grantee, his heirs and assigns, shall quietly and peaceably have, hold, use posses, and enjoy the premises. This covenant is an assurance by the grantor to the grantee that the grantee shall have quiet possession and enjoyment of the property being conveyed. Covenant for further assurances: This covenant commonly states, "that he (grantor) will execute such further assurances as may be reasonable or necessary to perfect the title in the grantee. " Under this covenant, the grantor must perform any acts necessary to correct any defeat in the title being conveyed and any errors or deficiencies in the deed itself. Covenant of warranty: This is the best form of warranty for protecting the grantee and contains no limitations as to possible claimants protected against.

Question 34

Bargain and sale deeds

Answer 34

an implied representation on the part of the grantor that he has good title and possession of the property

Question 35

Quitclaim deed

Answer 35

a deed of release that contains no warranty of title; used to remove a cloud on a title. Cloud of title occurs when someone had a possible claim against a title.

Question 36

Judicial deed

Answer 36

results from a court order tot he official executing the deed.

Question 37

Referees deed

Answer 37

used in bankruptcy proceeding and foreclosures.

Question 38

Codicil

Answer 38

is supplement or an appendix to a will that adds or changes some bequest in the will

Question 39

Dedication

Answer 39

a developer in the plat of subdivision may set aside a portion of the land for common area, parks, and sidewalks

Question 40

Dedication by deed

Answer 40

when a developer formally conveys in writing a parcel of land to a municipality.

Question 41

Public grant

Answer 41

a grant of a power, license, or real property from the state of government to a private individual(s)

Question 42

Land patent

Answer 42

the instrument conveying the public land

Question 43

Adverse possession

Answer 43

a person other than the owner can claim title to real property

Question 44

Real Estate Settlement Procedures Act

Answer 44

The act applies only to residential federally finances or refinanced properties, not to commercial properties, cash deals, owner financed loans. Condo's and Coops are included as long as they aren't for business purposes. The act regulates activities of lending institutions in making mortgage loans for housing.

Question 45

Closing statement

Answer 45

is prepared before the closing, but records what happens at closing. the statement sets forth the distribution of monies involved in the transaction.

Question 46

Accession

Answer 46

Real property owners right to all that their land produces or all that is added to the land, either intentionally or by mistake