Chapter 5 Flashcards Preview

Real Estate Licensing Vocabulary > Chapter 5 > Flashcards

Flashcards in Chapter 5 Deck (32):
1

Abstract of Title

The condensed history of a title to a particular parcel of real estate, consisting of a summary of the original grant and all subsequent conveyances and encumbrances affecting the property and a certification by the abstractor that the history is complete and accurate

2

Action to Quiet Title

Court action intended to establish or settle the title to a particular property, especially when a cloud on the title exists

3

Adverse Possession

The open, continuous, exclusive, adverse, notorious, (OCEAN) possession of another’s land under a claim of title. Possession for a statutory period of 20 years in North Carolina may be a means of acquiring title

4

Alienation

The act of transferring property to another. Alienation may be voluntary, such as by gift or sale, or involuntary, as through eminent domain or adverse possession

5

ALTA Policy

A title insurance policy that protects the interest in a collateral property of a mortgage lender that originates a new real estate loan

6

Bargain & Sale Deed

A deed that carries with it no war- ranties against liens or other encumbrances but that does imply that the grantor has the right to convey title. The grantor may add warranties to the deed at his discretion

7

Chain of Title

The succession of title conveyances, from some accepted starting point, whereby the present holder of real property derives title

8

Cloud on the Title

Any document, claim, unreleased lien, or encumbrance that may impair the title to real property or make the title doubtful; usually revealed by a title search and removed by either a quitclaim deed or suit to quiet title

9

Condemnation

A judicial or an administrative proceeding to exercise the power of eminent domain, through which a government agency takes private property for public use and justly compensates the owner.

10

Conner Act

A North Carolina law that requires many types of real estate documents to be recorded for protection against claims from third parties. These documents include deeds, mortgages, purchase contracts, installment land contracts, assignments, options, leases exceeding three years, easements, and restrictive covenants; a pure race statute

11

Constructive Notice

The notice given to the world by recorded documents. All people are charged with knowledge of such documents and their contents, whether or not they have actually examined them. Possession of property is also considered constructive notice that the person in possession has an interest in the property

12

Covenant

A written agreement between two or more parties in which a party or parties pledge to perform or not perform specified acts with regard to property; usually found in such real estate documents as deeds, mortgages, leases, and contracts for deed

13

Deed

A written instrument that, when executed and delivered, conveys title to or interest in real estate; evidence of title

14

Delivery and Acceptance

The actual delivery of a deed by a grantor and the actual or implied acceptance of the deed by the grantee; recordation of the deed is viewed as acceptance

15

Eminent Domain

The right of a government or munici- pal quasi-public body to acquire property for public use through a court action called condemnation, in which the court decides that the use is a public use and determines fair compensation to be paid to the owner

16

Escheat

The reversion of property to the state, as provided by state law, in cases where a decedent dies intestate without heirs capable of inheriting or when the property is abandoned

17

Excise Tax

Deed transfer tax paid by the seller and required to be noted on a deed by state law; the rate is $1 per $500 of sales price

18

General Warranty Deed

A deed in which the grantor fully warrants good clear title to the premises through four covenants in the deed. Used in most real estate deed transfers, a general warranty deed offers the greatest protection to the grantee of any deed

19

Grantee

A person who receives a conveyance of real property from a grantor

20

Granting Clause

Words in a deed of conveyance that state the grantor’s intention to convey the property at the present time. This clause is generally worded as convey and warrant, grant, grant, bargain and sell, or the like

21

Grantor

(1) The property owner that is transferring title to or an interest in real property to a grantee

(2) A borrower in a deed of trust loan transaction; also called trustor

22

Intestate

The condition of a property owner who dies without leaving a valid will. Title to the property will pass to the decedent’s heirs as provided in the state law of descent

23

Marketable Title

A good or clear title, reasonably free from the risk of litigation over possible defects

24

Marketable Title Act

The act is designed to eliminate obsolete defects in a chain of title. If a chain of title can be traced back for 30 years without a problem, it becomes a marketable title

25

North Carolina Intestate Succession Act

The state law of descent that dictates distribution of the real and personal property of the deceased that died without a will (intestate)

26

Quitclaim Deed

A conveyance by which the grantor transfers interest in the real estate, if any, without warranties or obligations; frequently used to remove clouds on the title

27

Recording

The act of entering or recording documents into the public record at the recorder’s office established in each county. Until recorded, a deed or mortgage ordinarily is not effective against third parties, such as subsequent purchasers or mortgagees

28

Special Warranty Deed

A deed in which the grantor only warrants, or guarantees, the title against defects arising during the period of the grantor’s tenure and ownership of the property and not against defects existing before that time, generally using the language by, through or under the grantor but not otherwise

29

Title

(1) The right to or ownership of land

(2) The evidence of ownership of land

30

Title Insurance

A policy insuring the owner and/or mortgagee against loss by reason of defects in the title to a par- cel of real estate, other than encumbrances, defects, and matters specifically excluded by the policy

31

Title Search

The search of public records to determine the current state of ownership of real estate; examining chain of title

32

Will

A written document, properly witnessed, providing for the transfer of title to property owned by the deceased