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Flashcards in Estate titles, Transfer's, Deeds Deck (63)
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The legal document that transfers a title of real estate from one party to another


General warranty deed

Deed that provides the greatest protection for the buyer


Special warranty deed

A deed where the grantor warrants only that the property was not encumbered during the time they held title, except as noted in the deed, and that they have done nothing during ownership to cloud or damage the title


Bargain and Sale Deed:

A deed without any warranty against encumbrances; only implies that the grantor holds title and possession of the property


Quitclaim deed

Provides the grantee with the least protection of any deed, while imposing the least liability on the grantor


Deed in trust

A method of delivering a deed into a trust from a trustor to a trustee


The general requirements for an instrument to qualify as a deed in Texas are that it must contain the following:

The name of the grantor and grantee

Statement of consideration

Granting clause, a.k.a. words of conveyance

Habendum clause

Legal description of the property being conveyed

Exceptions or reservations

Acknowledgement of the grantor's signature

Delivery and acceptance


The granting clause needs to indicate what interest in the property is

being conveyed by the grantor.


When you need to define or limit the ownership interest of the grantee (such as a fee simple, defeasible fee, or life estate interest), use a

Habendum clause


acceleration clause, which makes the entire loan amount

due immediately upon default.


In a hypothecation clause, the borrower pledges

collateral to secure a debt or as a condition precedent to the debt.


Release clause

This clause allows one party to withdraw under certain circumstances.


There are four main types of deeds that are used in conveying real estate:

General warranty deed
Special warranty deed
Bargain and Sale deed
Quitclaim deed


Five Basic Implied Warranties

Covenant of Seisin: The grantor warrants that they are the property owner and have the right to convey title. If this is broken, the grantee can recover the full purchase price.

Covenant Against Encumbrances: The grantor warrants that the property is free from liens or encumbrances (except those named in the deed.) If this covenant is broken, the grantee can sue for the cost of removing the encumbrance.

Covenant of Quiet Enjoyment: The grantor guarantees that the title is good against any third party who might bring court actions to establish superior title to the property.

Covenant of Further Assurance: The grantor promises to obtain and deliver any instrument needed to make the title good.

5.Covenant of Warranty Forever: The grantor guarantees that they will compensate the grantee for losses if the title fails in the future.


A conveyance that carries only one covenant is a

Special warranty deed


A bargain and sale deed, sometimes called a deed without warranty, contains

no warranties against encumbrances.


Similar to deeds having exceptions and/or reservations (subject to clauses), there are some exceptions that title policies will not cover. Here are some examples:

Restrictive covenants and deed restrictions (common in platted subdivisions)

Special assessments (charges that government or homeowner associations have levied against real estate projects for special projects)


Here are some more examples of title policy exemptions:

Utility easements (an easement that permits a utility provider the right to use and access a specific area of another's property for gas, electric, water, and/or sewer lines)

Aquatic addenda (title insurance policies make an exception for waters, beaches, streams, and related matters)


This title notice advises the buyer to:

Have an attorney examine the abstract of title or

Obtain a title policy. If a title policy is obtained, buyer should have an attorney examine the title policy commitment.



The process of placing documents into the public record per state law


Title search

An examination of all public records in the county to determine who has rights in the property and whether any defects exist in the chain of title


The statute of frauds is a doctrine of law that requires

certain documents (known as instruments) that affect interests in real estate be in writing in order to be enforceable.


If the ownership chain is broken anywhere along the line, meaning there are missing links or gaps in the chain, there is

cloud on the title that must be fixed through the courts with an action to quiet title.


The person responsible for preparing this report(abstract of title) is called an



Marketable Title:

Title that is free from significant encumbrances or defects that might otherwise prevent a purchaser from enjoying or eventually selling the property


Torrens System:

Title process in which a property owner obtains a certificate that is recorded in the public records; not used in Texas



The transfer of title to real estate



The process of gaining ownership or control of real property or an interest in real property



The governmental act of seizing private land through exercise of power of eminent domain


Defeasible Fee Estate: Also known as fee simple defeasible or qualified fee, is a type of

freehold estate in which the person who has possession of the property is only able to hold the property until an event takes place or does not occur; two common defeasible fee estates are fee simple determinable and fee simple subject to condition subsequent