Chapter 9 - Titles, Deeds, and Ownership Restrictions Flashcards Preview

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Flashcards in Chapter 9 - Titles, Deeds, and Ownership Restrictions Deck (98):

What is a private grant?

A voluntary transfer of title from one private party to another private party


What is a public grant?

A transfer of title from any level of government to a private party


What is alienation?

The act of transferring ownership, title, or an interest in real property from one person to another


What are the two types of alienation?

Voluntary and involuntary


What are the two types of voluntary alienation?

Deed and will


What is a deed?

A written instrument used to convey an interest in real property; conveys legal title


What are the types of involuntary alienation?

Escheat to the state
Adverse possession
Eminent domain


What is descent in terms of alienation?

When a person dies without leaving a will (intestate), all the property he owned at the time of death passes (descends) to the legal descendants


What is escheat to the state in terms of alienation?

Provides for a government, normally state, to take the property of an owner who dies intestate and without any known heirs entitled to receive the property


What is adverse possession in terms of alienation?

Arises when the true owner of record fails to maintain possession and the property is seized by another


What is eminent domain in terms of alienation?

Gives government the right to take land from an owner through a legal process referred to as condemnation, as long as the taking is for a public purpose


What are the two types of notice?

Actual notice
Constructive notice


What is actual notice?

Direct knowledge (see or hear) acquired in the course of a transaction


What is constructive notice?

Accomplished by recording the information in the public records


What is acknowledgment?

The formal declaration before a notary public by the grantor that his signing is a free act


What is the chain of title?

The complete successive record of a property's ownership


What is a title search?

An examination of all of the public records to determine whether any defects exist in the chain of title


What is an abstract of title?

A summary report of what the title search found in the public record


What is opinion of title?

Executed by an attorney after he has studied the abstract of title; will list any defects or clouds on the title, such as liens, easements, or other encumbrances, and it will include the attorney's opinion of whether the seller has a marketable title


What is title insurance?

A contract that protects the policyholder from losses arising from defects in the title; a unique type of insurance because it protects a policyholder against loss from an occurrence that has happened in the past, such as a forged deed somewhere in the chain of title


What are the two types of title insurance?

Owner's policy
Lender's policy


What is owner's policy?

Issued for the total purchase price of the property; helps to protect the new owner (or the owner's heirs) against unexpected risks such as forged deed signatures and damages for any defect in the title


What is lender's policy?

Issued for the unpaid mortgage amount; protects the lender against title defects


What are the formal covenants or clauses in a deed?

The premises
The habendum clause
The covenant of seisin
The covenant against encumbrances


What are the premises in reference to the clauses in a deed?

Names the parties to the deed and the date of the deed


What is the granting clause?

Part of the premises; contains necessary words used to convey the property (grants, bargains, and sells, or similar words)


What is the habendum clause?

Limits the estate or tenancy being conveyed; starts with the words "to have and to hold"; then, usually, the word "forever" follows if the estate is fee simple or the words "for the life of the grantee" if it is a life estate


What is the covenant of seisin?

A promise that the grantor owns the property and has the right to convey the title


What is the covenant against encumbrances?

States that the property is free from liens or other encumbrances except as noted in the deed; gives the grantee notice of all encumbrances associated with the property


What are the four types of statutory deeds?

Quitclaim deed
Bargain and sale deed
Special warranty deed
General warranty deed


What is a quitclaim deed?

A deed by which the grantor quitclaims unto the grantee all of his or her rights, title, and interest to the property


What is the bargain and sale deed?

Normally consists of the granting clause, habendum clause, and covenant of seisin; however, the grantor does not covenant or warrant to defend the title against any future claims or attacks on the title


What is the special warranty deed?

A deed in which the grantor does not warrant the title (assume any responsibility for the title) in any way or manner except against acts by the grantor or the grantor's representative (the grantor guarantees that nothing has been done to encumber or cloud the title during his ownership)


What is general warranty deed?

Contains all the covenants and warranties available to give the grantee every possible future guarantee to title protection


If a sale contract does not specify the type of deed to be given by the seller, Florida law requires that:

The property be conveyed by a general warranty deed


What are the three subcategories of public or governmental limitations on ownership of real property?

Police power
Eminent domain
Right of taxation


What is police power?

Represents the broadest power of the government to limit or regulate the rights of property owners


What is eminent domain?

Referred to as a taking for just compensation; the power to take private property for public use


What is right of property taxation?

Limited to the various states by the U.S. Constitution; citizens pay for the benefits and protection provided by the various levels of government


What are the private restrictions on ownership?

Deed restrictions


What are deed restrictions?

A part of the deed and affect a partciular property


What are restrictive covenants?

Recorded along with the subdivision plat and usually affect an entire subdivision


What are easements?

A right to use an owner's land for a specific use


What is easement by prescription?

Created by longtime usage; created and must be recognized after 20 years of open, continuous, uninterrupted use


What are liens?

A right given to a creditor or a unit of government to have a debt satisfied out of some specific property belonging to a debtor; can entitle the holder (lienor) to have property sold, regardless of the desires of the owner (lienee); an encumbrance on the title to real property


What are voluntary liens?

Ones the owner places against the property to secure payment of a long-term debt, such as a mortgage lien


What are involuntary liens?

Created by law to protect interests of persons who have valid monetary claims against the owner of real property


What are general liens?

Not restricted to one property but may affect all properties of a debtor; attaches all of the lienee's (debtor's) real property located in the county where the lien is recorded


What are the types of general liens?

Judgment lien
Income tax (IRS) lien
Estate tax lien


What are judgment liens?

An involuntary lien attaching to real property when a judgment is obtained against the owner; a general lien on all property of the debtor (unless specifically exempted by law) in the county where the judgment was recorded into the public records


What is an income tax (IRS) lien?

Occurs when there is a failure to pay federal income taxes


What is an estate tax lien?

Imposed against a decedent's taxable assets automatically upon death; do not require recording or filing


What is a specific lien?

Do not affect all of the debtor's property but apply only to certain specified property


What is a mortgage lien?

When a lender makes a loan using real estate as security, the property owner signs a mortgage document that creates a lien against the property; voluntary liens


What are vendor's liens?

If a buyer of property (vendee) is unable to make the full down payment required, a seller (vendor) frequently will allow a purchase-money mortgage to make up the amount of money the buyer is unable to produce


What is a construction lien?

Based on the principle of law called unjust enrichment; property owners may not use the labor or material of another party to add value to their property without reimbursement to that party; a statutory right of material supplies or laborers to place a lien on property that has been improved by their supplies and/or labor


What type of easement gives an electric company the authority to install and maintain electric power lines?

In gross


Title to real property legally transfers from grantor to grantee when the:

Deed is voluntarily delivered and accepted


Courts at various levels have ruled that:

Contructive notice and actual notice have equal legal priority


A 92-year-old man is being forced from his home because of a governmental taking. The home has been in his family for four generations. What recourse, if any, does he have?

He may request a condemnation proceeding to protest the amount of compensation being offered by the governmental body


For a deed to be valid, a competent:

Grantor and two witnesses must sign the instrument


The type or form of deed most commonly used to clear clouds on the title of real property is the:

Quitclaim deed


If the sale contract does not specify the type of deed to be delivered, the seller is required to provide a:

General warranty deed


The process of taking property under the power of eminent domain is called:



The type of deed in which the grantor does not warrant the title in any manner except against his acts or the acts of his representatives is called a :

Special warranty act


The covenant against encumbrances in a deed is designed to guarantee that the:

Grantor has not encumbered the property in any manner except as noted on the deed


The purpose of recording a deed is to:

Give constructive notice of ownership


A valid instrument of conveyance of real property must be:

Signed by a competent grantor


The seisin clause in a deed specifies:

That the grantor actually owns the property and has the right to sell it


The deed that contains the covenant in which the grantor guarantees that he will forever be responsible for warranting title and will defend the title and possession is a:

General warranty deed


The provision in a deed that names the parties and contains the granting clause is the:



An owner placed a condition in the deed that stipulated that a commercial building could not be erected on the property until at least the year 2010. This is an example of:

A deed restriction


An example of an encumbrance on title to real property is:

An easement
A deed restriction
A lien


When a lis pendens is filed property with the county clerk, it becomes a type of:

Constructive notice


The complete successive history of a parcel, from the time it was conveyed from a government to a private owner to today, is referred to as:

A chain of title


Mr. and Mrs. Lee signed a contract to purchase a home in a residential subdivision. When the Lees had the lot surveyed before clsoing, they discovered that the contractor had built the neighbor's garage three inches inside the west boundary of their lot. The garage in its present locaiton is an example of an:



When a pathway to a property has been used continuously and without interruption for more than 20 years, it creates an:

Easement by prescription


Soon after Michael's death, a deed was discovered in his desk. The deed is for Michael's home and it deeded the property to a charitable organization. Michael is survived by his son Andrew, who discovered the deed. Michael died intestate. Based on this information, the house belongs to the:

Legal heir because the deed was never delivered and accpted


The owner's title insurance policy is:

Issued for an amount no greater than the purchase price of the property and is not transferable


What statement concerning easements is false?

An easement is unauthorized use of an owner's property (this is encroachment)


What statements concerning easements are true?

An easement is a right to use an owner's property for a specific use
An easement is a nonpossessory interest
An easement is a type of encumbrance


Who can acquire property through eminent domain?

Government entities


The mortgagee's title policy protects:

The lender


A person died intestate. His property would pass according to:

Descent and distribution


An instrument that records the history of the property is called the:

Abstract of title


The type of deed that transfers the greatest protection for the buyer is:

General warranty deed


Which would not have to be in a deed?



What must be in place for a deed to be valid?

Grantor must be of sound mind and of legal age
Consideration (a promise for another promise)
Words of conveyance
Complete and accurate legal description
Grantor must sign the deed
Two witnesses
Delivery and acceptance


In a deed, the words which clarify the purpose of the deed with the phrase "to have and to hold" is called a:

Habendum clause


Title to real property passes to the grantee at the time the completed deed is:

Delivered and accepted


An improvement which crosses over the adjacent property without the permission of the owner is:

An encroachment


What would terminate an easement?

Merger of the two properties


There was a judgment lien against a person for his debts. He owned a car, boat, farm house, and some land. On which would the judgment lien be placed?

The car, boat, farm house, and the land


Which is a voluntary lien against a person's property?

Mortgage lien


________________ is the lead agency in state government for environmental management and stewardship.

The Florida Department of Environmental Protection


________ means the owner or lessor of a dwelling unit.



If a property owner dies without a will, the State of Florida has the authority to determine the owner. This is called:



A mechanic's lien is a ______ lien.