Section 3: Acquiring Title to Real Property Flashcards
1
Q
A Brief History of Deeds:
* When it comes time to buy and sell Real Property, historically, there has been a need to show proper evidence of who owns the property and does that person have the legal right to sell it, give it away, encumber it, trade it or otherwise ______ it.
* In the Feudal times, the seller of property would in the presence of witnesses, transfer a piece of the ground itself, an amount of soil, a twig, key, or other symbol, in the literal sense of a hand-to-hand passing and acknowledgement.
A
Alienate
2
Q
A Brief History of Deeds:
* _____ = The act of transferring real property from one person to another.
* Fast forward to the mid 1500’s and the Statute of Uses become accepted and allowed sellers to transfer title with a “written” instrument, instead of the old customs.
A
Alienation
3
Q
A Brief History of Deeds:
* Finally in 1677 under English Law (England), the “______” became common law and mandated that all real property that is conveyed MUST BE IN WRITING and the term Deed became widely used.
* This is still used today, a conveyance of real property must be in WRITING to satisfy this statute.
A
Statute of Frauds
4
Q
______ = A written legal document that is signed and delivered and is used to convey
the ownership of real property and legal rights to another.
o MUST be Signed by the Grantor (Giv-OR) of the real property
o Must be Delivered to the new Grantee (Receiv-EE) of the real property
o The grantee does NOT need to sign this document, ONLY the grantor
A
Deed
5
Q
- What is a Deed?
- The deed is the “Written Evidence” of the transfer (Think of it as a receipt for a purchase).
- As a carryover from the past, Deeds must still have several items to be considered valid, remember that the deed must be ‘__________’.
- Since we use escrow and title companies most often in Arizona, delivery of a deed is commonly sent by certified mail or by personal delivery to the grantee by the escrow agent at time of signing.
A
Signed, Sealed & Delivered
6
Q
- _____ = The legal process of transferring “real property from one owner to another – not title.
- A Deed is the written document or instrument that is used to “convey” real property, the real estate or land
IMPORTANT: Notice we said NOT TITLE!! This is a HUGE CONCEPT you will learn soon
A
Conveyance
7
Q
- What is a Deed?
______ = A form of voluntary alienation where by the owner of property deeds ‘dedicates’ the lands that are needed for roads, sewers, waterlines, and other utilities to the government as part of a land development.
A
Dedication
8
Q
Types of Deeds:
* Deeds can vary and differ according to the “covenants” or types of warranties made by the grantor of the deed:
o The ______, is the most common type of deed used in Arizona as it offers the most protections, warranties or covenants (Voluntary). (It is a transfer or ownership done voluntarily usually)
A
Warranty Deed Or General Warrant Deed
9
Q
Types of Deeds:
* Deeds can vary and differ according to the “covenants” or types of warranties made by the grantor of the deed:
o The _____ is commonly used by LLC’s, corporations, trusts, and
builders to grantees because it limits responsibility for claims to only that time which they owned it. It has the same covenants as the general warranty deed but it’s limited to only when the grantor owned or was in possession of the property (Flippers, Trusts, Wholesalers, ect).
A
Special Warranty Deed
10
Q
Types of Deeds:
* Deeds can vary and differ according to the “covenants” or types of warranties made by the grantor of the deed:
o The ______ is the weakest protection for grantees as it only warrants that the grantor has the RIGHT TO CONVEY the property and property is encumbrance free except those that are already identified in the deed. Most deeds obtained from sheriff sale, tax sale, foreclosures etc. will issue a bargain and sale deed.
A
Bargain and Sale Deed
11
Q
Types of Deeds:
* Deeds can vary and differ according to the “covenants” or types of warranties made by the grantor of the deed:
o The ______ actually quits or gives up a person’s interest in real property which means that there are zero warranties or covenants. This is used extensively when a property has a ‘cloud’ on title and a grantor will sign a quitclaim to remove that cloud (Divorce where one party ‘quits or gives up’ their interest in the property).
A
Quitclaim Deed
12
Q
Types of Deeds:
* Deeds can vary and differ according to the “covenants” or types of warranties made by the grantor of the deed:
o The _____ = is the type of deed given to a party who is the successful bidder at foreclosure auctions in states that use Trust Deeds and not Mortgages.
A
Trustee’s Deed
13
Q
Types of Deeds:
* Deeds can vary and differ according to the “covenants” or types of warranties made by the grantor of the deed:
o The ______ will be used when a married couple wants to keep property separate from the spouse but needs the spouse to acknowledge they don’t have ‘interest’ in the title so that party will sign a disclaimer deed.
A
Disclaimer Deed
14
Q
Types of Deeds:
* Deeds can vary and differ according to the “covenants” or types of warranties made by the grantor of the deed:
o The _____ will be used to convey special circumstances; gift deed, court ordered deed, court appointed (seized property) deeds are examples.
A
Special Purpose Deed
15
Q
Why A General Warranty Deed Is Best:
o The “General Warranty Deed” offers the most covenants to the grantee and includes:
The ______ = This covenant promises that the grantor owns the property and has the right to convey it.
A
Covenant of Seisin
16
Q
Why A General Warranty Deed Is Best:
o The “General Warranty Deed” offers the most covenants to the grantee and includes:
The ______ = This promises the grantor will defend the grantee against all claims made by third parties.
A
Covenant of Quiet Enjoyment
17
Q
Why A General Warranty Deed Is Best:
o The “General Warranty Deed” offers the most covenants to the grantee and includes:
The ________ = This promises the property is free from encumbrances other than those identified in the deed.
A
Covenant Against Encumbrances
18
Q
Why A General Warranty Deed Is Best:
o The “General Warranty Deed” offers the most covenants to the grantee and includes:
The _____ = This promises the grantor will compensate the grantee for a loss if the title fails at any time.
A
Covenant of Warranty of Title
19
Q
Why A General Warranty Deed Is Best:
o The “General Warranty Deed” offers the most covenants to the grantee and includes:
The ______ = This promises the grantor will obtain and deliver any instrument needed to make title good.
A
Covenant of Further Assurance
20
Q
What makes a Deed Legitimate:
* If you remember that the deed must be ‘signed, sealed and delivered’ it will help you understand the basic understanding of what necessitates a legal deed. The full list of requirements that ensure a clean and valid deed are:
- Must be ______ by the grantor
- Must be ______ to the grantee
- The _____ must be included in the deed
- Must be ______ as prescribed by the county where the transfer takes place
- Must clearly state on the document that it is a ______
- Must identify the fact that this ______ will be used to convey ownership rights
- A deed must have some form of ______ attached to it, which could be a dollar amount, or something else that has value, like “for my love and affection” (Arizona nominal value of this is $10 - Ten Dollars)
A
- Signed
- Delivered
- Legal Description
- Witnesses
- Deed
- Instrument
- Valid Consideration
21
Q
What makes a Deed Legitimate?
* If you remember that the deed must be ‘signed, sealed and delivered’ it will help you understand the basic understanding of what necessitates a legal deed. The full list of requirements that ensure a clean and valid deed are:
1. 2. 3. 4. 5. 6. 7.
A
- Must be signed by the grantor
- Must be Delivered to the grantee
- The legal description must be included in the deed
- Must be witnesses as prescribed by the county where the transfer takes place
- Must clearly state on the document that it is a Deed
- Must identify the fact that this instrument will be used to convey ownership rights
- A deed must have some form of valid consideration attached to it, which could be a dollar amount, or something else that has value, like “for my love and affection” (Arizona nominal value of consideration is $10 - Ten Dollars)
22
Q
Why Could a Deed NOT be Valid in Arizona:
* Challenges to deeds are often settled with the help of title insurance companies enforcing guarantees found in deeds.
o A forged or falsified deed is void and NOT valid.
o If a deed were issued to a false person or entity.
o A deed could be voided if the person’s ______ isn’t consistent on the deed.
A
Name
23
Q
Why Could a Deed NOT be Valid in Arizona:
* Challenges to deeds are often settled with the help of title insurance companies enforcing guarantees found in deeds.
o A deed must not be left ______ – it must have a GRANTEE or is VOID (think car title transfer in AZ, it must be signed by the “receiv-ee” of the car, same as the house).
o The grantor must be of “sound mind and body” which means that they can’t be under the influence of drugs, alcohol, duress or other mental strains (could be void).
A
Blank
24
Q
Why Could a Deed NOT be Valid in Arizona:
* Challenges to deeds are often settled with the help of title insurance companies enforcing guarantees found in deeds.
o Anytime a minor enters into a contract, that contract is void (however, if a deed were to be given to a minor, this is valid -parents will leaves property to children).
o Mental Capacity is challengeable and is often seen in headlines, by Arizona law, Only the _____can deem a person fit or insane.
A
Courts
25
* ______ = the right of ownership of property and evidence of such rights.
* Shows proof that whoever has the “title” is in fact the owner. THIS IS THE CONCEPT, Deed is the Paper.
IMPORTANT: RIGHTS TO PROPERTY IS A CONCEPT
Title
26
* There are (4) Four ways in which someone can transfer “TITLE” to another:
o _____ = WITH full consent of the legal owner
* Could be an open sale, a donation or gift or even a barter or trade
Voluntarily
27
* There are (4) Four ways in which someone can transfer “TITLE” to another:
o ______ = WITHOUT the full consent of the owner
* Foreclosures, court action, tax upset sale, government, adverse possession
Involuntarily
28
* There are (4) Four ways in which someone can transfer “TITLE” to another:
o ______ = The legal transfer of title because of death and instructions found in will
* A property could be inherited, this isn’t by choice, but by will of the deceased
Will
29
* There are (4) Four ways in which someone can transfer “TITLE” to another:
o ______ = Transfer of property left when someone dies intestate or without a will
* Property will pass onto the heirs by the Statutes of _____ in Arizona.
Descent
30
* Contrary to popular beliefs, the deed does not have to be ______, but it is common that all deeds are to give constructive notice to the public.
* By doing this, the public has the ability to view (recorder office) who has ‘title’ and thus claims to ownership of real property – by looking for deeds that were recorded.
Recorded
31
Recordation:
* Because over 90% of the deeds are in fact recorded, the general public has the ability to search the recorders office for recorded deeds.
* By doing a title search and creating and “______” you are going back into the recorded history of a certain real property and looking for the chain of title.
Abstract of title
32
Recordation:
o ______ = is notice that is given to the general public at large.
o The general public can search recorded records and as such, they are informed.
Constructive Notice
33
Recordation:
_______ = Constructive Notice
Recording
34
Recordation:
o _______ = is delivered in such a way as to give legally sufficient assurance that actual knowledge of the matter has been conveyed to the recipient
o This type of notice would be reserved for a notice that has been given to a singular person, think of a process server, you have been “served” is giving this Notice of something.
Actual Notice
35
Recordation:
* ______ = the written history of the title
* In hopes of determining the marketability of title, title and escrow companies will perform the title search and will look for missing links, evidence of errors, ownership etc.
Abstract Of Title
36
Recordation:
* If there is an ________, it can easily challenge legal ownership of the current property owner since the public has no knowledge of it = how to prove it?
* These deeds have weaker claims because they may have errors or missing components as well as the fact that they may not been legally delivered to the grantee.
Unrecorded deed
37
Recordation:
*IMPORTANT*
Title = ______ & Deed = Document
Concept
38
Original Title:
* In most cases title to land is originally held by the state.
o The states could obtain title from discovery, war/conquest, purchase or other treaties.
o The United States purchased over 45,000 square miles of land in New Mexico and Arizona in _____ for $10,000 from Mexico.
1853
39
Original Title:
The first time land is transferred from a state to an individual the transfer uses a patent.
o _______ = the instrument used to transfer land form a government body to individuals.
o _______ = title that belongs to either a corporation, individual or other entity that was derived from the government’s original title.
Patent
Derivative Title
40
Original Title:
The first time land is transferred from a state to an individual the transfer uses a patent.
o ______ = the instrument used to transfer land form a government body to individuals.
Patent
41
Original Title:
The first time land is transferred from a state to an individual the transfer uses a patent.
o ______ = title that belongs to either a corporation, individual or other entity that was derived from the government’s original title.
Derivative Title
42
Title Issues:
* Normally, it’s possible to put together a “chain” of owners or a history of the property since nearly all liens, deeds and other important documents are recorded.
* By discovering possible issues in advance of the conveyance, both grantors and grantees have a more complete understanding of the marketability and or risks of their title.
* Remember! _____ = Giv-or of the deed and the ______ = Receiv-ee of the deed.
Grantor
Grantee
43
Title Issues:
By producing an in depth abstract of title, escrow companies can produce evidence that the title is free from defects – clean – or possibly show clouds on title or worse, unknown defects:
o Unknown liens or other encumbrances
o Evidences of fraud or forgery
o Missing ownership history
This is known as a ______.
Marketable Title
44
Title Issues:
This is a title that is complete and has no errors found.
Clear Title
45
* ______ = a type of involuntary alienation or giving up of a property whereby an unauthorized person who does not hold legal title to a property can in fact obtain legal title and rights.
Adverse Possession
46
A trespasser or squatter can claim ______ if they can prove that they had continuous, hostile, actual, visible, exclusive and full possession of the property.
* Evidence is given to everyone including the actual owner that someone else is using their property and if no forcible removal ensues, after a set time, squatters can claim ownership.
* After a predefined time, squatters can file in a court for full legal rights and ownership.
Adverse possession
47
Adverse Possession:
_____ = is a term used when one squatter uses someone else previous adverse possession time to include their time for the adverse possession.
* To claim legal title, the possessor must be able to show a claim of right or “color of
title”.
Tack On
48
Adverse Possession:
_____ = is a term used when one squatter uses someone else previous adverse possession time to include their time for the adverse possession.
Tack On
49
Adverse Possession:
______ = Title that may have the appearance of good and valid title to property, as if someone had paid taxes for 3 year and continuously occupied someone else’s property.
Color of Title
50
Adverse Possession:
In Arizona, to claim ______, 3 years of continuous use must be held and the claimant MUST have paid the taxes on the property with a record of payment.
* If someone did NOT pay the taxes, the duration of continuous use in AZ is 10 Years.
Adverse Possession
51
Inquiry Notice:
IMPORTANT: * Anytime someone is interested in purchasing or acquiring real property, they are _______ responsible by law for making actual inquiry.
o The law presumes most right minded people would inquire about making purchases with regards to real property.
* Example:
o A land prospector buys land sight unseen from a real estate auction website.
The buyer never visited the property and one day is served notice of claim by adverse possession by a squatter who has been living on the property for the past 15 years, in this case the buyer failed to use reasonable diligence and inquire.
Ultimately
52
Timeshare Ownership in Arizona:
* Timeshares offer a unique set of ownership rules whereby a singular property, or a unit in a development is divided up into ______ ownership units and sold individually.
* Most often, units are divided into 52 units and sold by the week – some timeshares in Scottsdale are divided into 8 week units or 12 week units.
* IMPORTANT: To sell timeshares in Arizona, you must have a real estate license as this is an individually deeded interest in real property.
* Remember this: Any property that has a deed used to convey ownership, a real estate licensee would be required to assist in the conveyance if a commission were to be paid by either party!
Fractional
53
Definition of Fractional Ownership in Arizona:
* Arizona Revised Statutes title 33 states that a timeshare estate must clearly outline the rights of the owners and the associated rights of use in the complex.
* “______”, an owner has a deed, title, and right to occupy for an agreed time each year, usually the same week or period.
Interval or Timeshare Ownership
54
Definition of Fractional Ownership in Arizona:
* “_______” is based on a ‘license to use’ or some other form of agreement
while the owner / developer retains the deed and full ownership of the units.
Vacation Ownership
55
Definition of Fractional Ownership in Arizona:
***REMEMBER***
Vacation Ownership = a license to use, not own & ______ Ownership is an estate, deeded property.
Timeshare
56
Fractional Ownership and Timeshare Deeds:
* Any time deeded property is transferred, the deed must also contain what amount of ownership interest in the property must be written out clearly.
* In Arizona, our deeds may contain a _______ clause.
Habendum
57
Fractional Ownership and Timeshare Deeds:
______ Clause = To Have and to Hold (translated from Latin)
IMPORTANT: This Clause clearly states the interest or amount of the estate being conveyed by the deed if it is less than fee simple (whole).
* This clause would specify the owner's rights and the limitations on those rights also and is commonly found in condos, patio homes, PUD’s, and yes, timeshare ownership.
Habendum Clause
58
Arizona HOA’s (Homeowners Associations):
In many communities around Arizona, there are HOA’s or Homeowner Associations set up where every house or property unit is required to adhere to, follow and maintain the CC&R’s = ______.
Covenants, Conditions and Restrictions
59
Arizona HOA’s (Homeowners Associations):
* ______ = A basic savings account for HOA’s reserved for larger projects in the future. Many times, the new owners will have to pay a ‘Capital Contribution Fee’ that goes to pad this reserve for the HOA.
* When a new community is built, builders/developers will draft a set of rules or CCR’s that all future owners will have to abide by.
Home Owner's Association Reserve Requirement
60
Arizona HOA’s (Homeowners Associations):
HOA’s can be either self-managed or managed by an outside 3rd party but almost all HOA’s have a board and elect officers as members of that board from inside the community.
IMPORTANT: Board members MUST reside in the community.
o Responsible for ______ management.
o Budgeting of the association.
o Holding of scheduled meetings.
o Issuing and hearings on fines, violations and penalties.
Vendor
61
Arizona HOA’s (Homeowners Associations):
Even though HOA’s are in charge of all operations in a community, these HOAs are required to operate within their bylaws and state laws which will supersede bylaws.
o It is now illegal for a community or an HOA to prohibit the use/placement of real estate for sale or for lease SIGNS.
o ______: An association shall not prohibit the installation or use of a solar energy device.
Solar Exemption
62
Arizona HOA’s (Homeowners Associations):
Many times, owners of property in HOA maintained communities feel the rules and violations can be burdensome and controversial.
o As of 2016, the ______ now oversees the HOA dispute process and all cases are now part of ADRE.
o There is a lengthy process to dispute an HOA and can be found here:
http://www. azre.gov/HOA/HOA.aspx
Arizona Department of Real Estate (ADRE)
63
Arizona HOA’s (Homeowners Associations):
Because CCR’s established violations, penalties and assessments, they are an “encumbrance”
o ______ = Burden or other impediment on title.
* Failure to adhere to CCR’s in the HOA, can lead to the HOA placing a lien against the real property for failure to pay either penalties or assessments.
IMPORTANT: * In Arizona, HOA’s can legally foreclose on properties for failure to pay assessments (not fines).
Encumbrance
64
Arizona Homestead Laws:
IMPORTANT: * In the State of Arizona, we have _______ Protection Laws.
o These are State Statutes (laws) that are recorded in the ARS Title 33.
o The qualified home must be the primary residence of an owner that under this exemption, it is protected from seizure or forced sale to repay debts.
Homestead
65
Arizona Homestead Laws:
IMPORTANT: * The Homestead laws are designed to Protect a real property owners equity from a forced sale due to a judgment up to $250,000 of their ______.
* This is an automatic assumption in the State of Arizona as long as:
1. Head of household is 18 years or older.
2. Uses that property as their ‘primary residence’ (not rental or second home).
3. Must remain a resident of the State of Arizona (forfeited if moves out of AZ).
IMPORTANT: * Upon the death of the Head of Household, the homestead protection will pass to his heirs.
Equity
66
Homestead Exemptions and Removal:
* Homestead Exemptions are exempted for several reasons:
o A judgement or lien in excess of $250,000 that may be satisfied from the sale, the 1st $250,000 is protected and over that may be used to satisfy debt.
* Any mechanics lien placed against the property.
* A consensual _____ placed against the property overrides the homestead act.
o A mortgage or trust deed would negate the Homestead.
* If the owner moves out of the property or legally abandons the property, his equitable interest (up to $250,000) is no longer protected under the Homestead Act.
* If the property is sold or otherwise transferred, the homestead is voided.
* If an owner moves out of the property, the homestead is voided.
* If the property is abandoned for a period of two years, the homestead is voided.
Lien
67
Arizona Intestate and Succession Laws:
Arizona states that if a person dies intestate, or without a will, special courts known as probate courts will appoint a special representative who will act as the administrator of the estate.
* Using the distribution method of _____, the state will distribute property between any remaining heirs.
o Property that is held in joint tenancy can never pass by succession, because it is not inheritable.
Distribution Method of Per Stirpes
68
Arizona Intestate and Succession Laws:
The Arizona succession table defines the familial hierarchy
* According to Arizona, the following is a list of familial hierarchy:
1. Spouse
2. Children
3. Parents
4. Siblings
5. Nephews/Nieces
6. Aunts, Uncles, Cousins, Grandparents
7. State of Arizona
* If dying ______ with no apparent heirs, remember make yourself a simple will so that the state does not get your property.
Intestate
69
Types Of Wills Used To Transfer Property:
* _______ = Signed by the maker plus two witnesses.
o Always dating a will after an update or amendment will insure the most recent will is used during probate.
Conventional Will
70
Types Of Wills Used To Transfer Property:
o _______ = An amendment to a will.
Codicil
71
Types Of Wills Used To Transfer Property:
* _______ = Handwritten will signed and dated only by its creator.
o These wills do not require a witness.
Holographic Will
72
Types Of Wills Used To Transfer Property:
* _______ = Oral will, usually spoken while on one’s death bed.
Nuncupative Will
73
Recording the Deed
It is common that all deeds are recorded to give constructive notice to the public
Because over 90% of the deeds are in fact recorded, the general public has the ability to search the recorder’s office for recorded deeds
- Recording = __________
Constructive Notice
74
Recording the Deed:
______: “Notice that is given to the general public at large.”
EX. The general public can search recorded records and as such, they are informed.
Constructive Notice
75
Recording the Deed:
______: “Delivered in such a way as to give legally sufficient assurance that actual knowledge of the matter has been conveyed to the recipient.”
EX. This notice would be reserved for a notice that has been given to a singular person, think of a process server.
Actual Notice
76
Bonus! Does the deed have to be recorded?
Remember, by recording a deed, you are giving 'constructive notice' to all by displaying it to the public. It is easy for members of the law, lenders, or even the public to view your deed when it is recorded. It's obviously a good idea to record this deed for this reason as it shows proof to all that the property is yours. . . however. . . you do NOT _____ have to record your deed. Being in possession of the deed, as long as it has you as the grantee, signed by the grantor and was notarized, that will suffice as proof or evidence that you are in fact the legal owner. But, you really SHOULD record the deed, in the county, where the property is located.
Legally
77
Bonus! Does the deed have to be recorded?
Remember, by recording a deed, you are giving '______' to all by displaying it to the public. It is easy for members of the law, lenders, or even the public to view your deed when it is recorded.
Constructive notice
78
Bonus! Does the deed have to be recorded?
It's obviously a good idea to record this deed for this reason as it shows proof to all that the property is yours. . . however. . . you do NOT legally have to record your deed. Being in possession of the ______, as long as it has you as the grantee, signed by the grantor and was notarized, that will suffice as proof or evidence that you are in fact the legal owner. BUT, you really SHOULD record the deed, in the county, where the property is located.
Deed
79
This 'Document' is used to 'convey' or pass onto someone else your ownership in real property and all rights associated with it to someone else.
Remember this D = D:
A DEED is a Document.
80
Alienation is best described as:
To walk away from a house financially
Leaving a co-signer liable for the full lease payments
The act of transferring real property from one person to another
The act of transferring real property from one person to another.
81
The most common deed used in the conveyance of real property is the ________________ deed as it has the most covenants.
General Warranty Deed
82
A spouse who is legally entitled to the property in a community property state, would sign a __________ _______ to give up his/her ownership and rights to a property owned by the other spouse.
Disclaimer Deed
83
Which of the following are covenants?
Covenant of Transfer
Covenant of Title
Covenant against encumbrances
Covenant of Peace
Covenant of warranty of title
Covenant against liens
Covenant of quiet enjoyment
Covenant of warranty of title
Covenant of quiet enjoyment
Covenant against encumbrances
84
What is a deed?
The actual written instrument that is used to convey ownership of real property.
85
When real property is transferred from one owner to another, it is called?
Conveyance
86
There are 6 types of deeds discussed in class. Name two besides the General Warranty deed?
The 6 types of deeds are: warranty deed or general warranty deed, special warranty deed, bargain and sale deed, quit claim deed, trustees deed, disclaimer deed and a special purpose deed.
87
The most common type of deed in Arizona, the General Warranty deed, grants five covenants to the grantee. Name and define two of them?
The covenant of seisen promises the owner has the right to convey, the covenant of quiet enjoyment promises that the Grantor will defend the grantee if there are ever any claims.
88
The most common type of deed that is used in Arizona is:
Trustees Deed
Special Deed
Warranty Deed
Quit Claim Deed
Warranty Deed
89
This is the weakest of all deeds as it offers the least protections to the buyer:
Special Warranty Deed
Quiet Action Deed
General Warranty Deed
Bargain and Sale Deed
Bargain and Sale Deed
90
The term used to describe the legal process of transferring real property is:
Transference
Acknowledgement
Covenant of Seisin
Conveyance
Conveyance
91
By recording the deed, owners are giving what:
Factual Notice
Government Notice
Actual Notice
Constructive Notice
Constructive Notice
92
In order for it to be recognized, the deed to real property must be:
Signed and notarized by both the grantor and the grantee
Signed by the grantee
Signed by the grantor
Signed by both the grantor and the grantee
Signed by the grantor
93
_______: “The rights of ownership of property and evidence of such rights.”
RIGHTS TO PROPERTY IS A CONCEPT
Title
94
What is Title?
Title, is best described as the rights someone has in a property. Title can be split up into pieces and divided or given to others while the '______' still has the deed.
Think of a lease a tenant has the 'rights' to use the property, but doesn't have the ownership as they don't have the deed.
Owner
95
What is Title?
By showing that you have title, you can show that you have _____ to the property.
These rights, can be split off, shared, given away, leased, or owned.
Rights
96
All of the following except which one are ways to convey title?
Action
Will
Involuntary
Voluntary
Action
97
Recordation:
* ________ have weaker claims because they may have errors or missing components as well as the fact that they may not been legally delivered to the grantee.
Unrecorded deeds
98
Another term used to describe the recorded history of a title is ________________.
Abstract of title
99
TITLE =
DEED =
Concept
Document
100
RIGHTS
Title OR Deed?
Title
101
Paper
Title OR Deed?
Deed
102
Signed By Grantor
Title OR Deed?
Deed
103
Usually Recorded
Title OR Deed?
Deed
104
Shows Proof Of Ownership
Title OR Deed?
Deed
105
Concept
Title OR Deed?
Title
106
Legal Rights
Title OR Deed?
Title
107
Recieved By Grantee
Title OR Deed?
Deed
108
Can be Given Away OR Taken Back.
Title OR Deed?
Title
109
Title
Title OR Deed?
Title
110
Ownership
Title OR Deed?
Deed
111
Match the title to the subject:
Title Written Document
Deed Concept of Rights
Warranty Deed Title for a duration of time
Lease Ownership Forever
Match the title to the subject
Deed - Written Document
Title - Concept of Rights
Lease - Title for a duration of time
Warranty Deed - Ownership forever
112
True or False: An owner of real property can give away their rights to others?
True
False
True
113
True or False: Tenants have the rights to enjoy property they are renting.
True
False
True.
114
True or False: Rights go on forever.
True
False
False.
115
Which of the following most accurately describes the Title in real estate:
Evidence that the seller has the capacity to negotiate the sale
The direct proof of ownership
A document used to show liens on a property
What rights one has with the property
What rights one has with the property
116
A deed would be invalid if it were found to be:
Missing a legal description
Signed by both the grantor and the grantee
Recorded after the sale took place
Had a consideration in the form of other than money
Missing a legal description
117
In order for it to be recognized, the deed to real property must be:
Signed by the grantee
Signed by the grantor
Signed by both the grantor and the grantee
Signed and notarized by both the grantor and the grantee
Signed by the grantor
118
In the State of Arizona, who can determine the mental capacity of a grantor when it comes time to transfer, sell or deed real property?
Heirs to the Grantor
Special Counsel
Courts
Grantor Attorney
Courts
119
By recording the deed, owners are giving what:
Constructive Notice
Actual Notice
Restrictive Notice
Factual Notice
Constructive Notice
120
The term used to describe the legal process of transferring real property is:
Transference
Covenant of Seisin
Acknowledgement
Conveyance
Conveyance
121
During a bitter legal battle over property line disputes, a neighbor serves papers on the owner of the property in dispute. This is known as:
Being provided Actual Notice
Construed to Act
Conveyance of Suit
Being Induced to Act
Being provided Actual Notice
122
Original Title - Where did it start?
Understanding Point:
The title is the concept of ownership, ______, control and so on which you will learn more about later on. But for now, we want you to know that when people are talking about title, title issues etc, they are talking about the evidence of who owns what in relation to the property. It could be referencing ownership or a lease of oil or gas as an example, while the owner retains the land and the deed. Better yet, a tenant in a rental has rights to be in the property as they have some title, but not all of it!
Possession
123
Original Title - Where did it start?
Sometimes, a title _____ report will show clouds on title or worse, unknown defects:
- Unknown liens or other encumbrances
- Evidences of fraud or forgery
- Missing ownership history
- Claims to rights in the property not known by the current owners, etc
History
124
Original Title - Where did it start?
Sometimes, a title history report will show ______ on title or worse, unknown defects.
Clouds on title
125
In most cases, the original deed or title is passed down from which of the following parties?
Founders of the Homestead
State
Original Owners
Government Agency
State
Government Agency
126
In Arizona, to claim Adverse Possession, ___ years of continuous use must be held and the claimant MUST have paid the taxes on the property with a record of payment
If someone did NOT pay the taxes, the duration of continuous use in AZ is ____ Years. This means that if you sit on or use someone's property for ____ years, are not stopped, and it's known to all, you are trying to claim 'title' with the hopes of getting a deed, or full ownership and it's rights!
3 Years
10 Years
127
Definition of Fractional Ownership in Arizona:
________ Ownership = a license to use BUT NOT own.
________ Ownership = is an estate, deeded property.
Vacation Ownership
Timeshare Ownership
128
Fractional Ownership and Timeshare Deeds:
______ Clause = To Have and to Hold (translated from Latin)
Here again, we insert what is or what is NOT included in the property - this is an example of how title can be described.
Example: A deeded property was sold to a buyer, but there was a clause stating that the buyer could not occupy or possess the property for 10 years as it was occupied by the son of the grantor.
In this example, the son, has the "rights" to use and possess the property for his own, as he has title to it, while the buyer has the deed, they must honor this title clause!
Habendum Clause
129
Match the concept to the answer:
1. Title
2. Deed
3. Rights
4. Ownership
A. A written instrument used to convey real property.
B. A concept of title that can be used by multiple parties in one property.
C. The ability to show you are allowed to be there.
D. All rights including the deed and title are yours and you have proof.
1A
2B
3C
4D
130
Under the rules of adverse possession what must a possessor be able to show?
That he/she was in hostile, visible, notorious and ongoing possession of the property – other words, out in the open.
131
What must you possess to sell timeshares in Arizona?
You must have an active Arizona Real Estate License
132
Regarding timeshares, what’s the difference between Vacation Ownership and Timeshare Ownership?
A timeshare ownership has a DEED while a vacation ownership, is a license to use for a defined time, like a lease.
133
What is the purpose of the Habendum Clause in a deed?
This is to have and to hold, which states what period of time or interval a user has for timeshare ownership.
134
A possessor of property that is not legally theirs can add onto the time that some else was illegally using the property by doing what:
Adverse Property
Tacking On
Trailing behind
Adverse Protection
Tacking On
135
You can shorten the time of continuous use for adverse possession in Arizona from 10 years to 3 years by doing what:
Openly displaying continuous and actual use
Paying the tax
Using the property full time
Filling a motion to quiet title
Paying the tax
136
Clear title means:
All of these
There are no known defects in the title history
Full ownership history has been documented
The sellers have cleared the clouds on title
All of these
137
Vacation Ownership differs from a Timeshare how?
Vacation Ownership is a license to use
Vacation Ownership is illegal in the State of Arizona
Vacation Ownership can not be banked or traded
Vacation Ownership is a license to use
138
An escrow company finds a cloud on title during their title search which they then bring to the attention of all parties involved. Which of the following is not a possible cloud on title?
IRS tax lien
Unsettled mechanics liens
Gaps in ownership
Unrecorded easements
Unrecorded easement would never be found since it wasn't recorded!!
139
All of the following are required to satisfy adverse possession except:
Hostile
Exclusive
Continuous
Inheritable
Inheritable
140
HOA's are either loved or hated. As an agent, it is not our place to ______ our clients, but only to inform them of the advantages or disadvantages!
Sway
141
To serve on the board of the HOA in Arizona, one must:
Be an attorney or have legal knowledge
Reside in the community
Own real property
Reside in the community
142
Check all that apply:
HOA's can foreclose on a homeowner for failure to pay dues
HOA's can not allow signs to be placed in the front yards
Arizona HOA's can lien your property
Solar panels are exempt from HOA restrictions
HOA's can foreclose for failing to pay fines/penalties
HOA's can foreclose on a homeowner for failure to pay dues.
Arizona HOA's can lien your property
Solar panels are exempt from HOA restrictions
143
Check all that apply:
HOA's can foreclose on a homeowner for failure to pay dues
HOA's can not allow signs to be placed in the front yards
Arizona HOA's can lien your property
Solar panels are exempt from HOA restrictions
HOA's can foreclose for failing to pay fines/penalties
HOA's can foreclose on a homeowner for failure to pay dues
Arizona HOA's can lien your property
144
Arizona Succession Table Distribution method of Per Stirpes:
According to Arizona, the following is a list of familial hierarchy:
1. Spouse
2. Children
3. Parents
4. Siblings
5. Nephews/Nieces
6. Aunts, Uncles, Cousins, Grandparents
7. State of Arizona
If dying intestsate with no apparent heirs, REMEMBER make yourself a simple will so that the _____ does NOT get your property.
State
145
By dying without a will, eventually, if no other heirs or relatives can be found, _____________ will end up with your property.
The State of Arizona
146
What are some types of wills used in transferring property? :
Conventional Will
Codicil Will
Holographic Will
Nuncupative Will
Conventional Will
Holographic Will
Nuncupative Will
147
What document/rules do HOAs require homes to adhere too?
The CC&R’s or Covenants, Conditions and Restrictions (What you can do, can’t do and what the HOA is to do)
148
What repercussion(s) does an HOA in Arizona have for owners that do not pay penalties or assessments?
The HOA can legally foreclose on homes that have not paid their assessments, but can NOT foreclose for failures to pay fines or penalties
149
What is a household/owner requirement for Arizona Homestead Law to be assumed?
Must be over the age of 18, Primary Residence, Reside in Arizona and must be a residential structure that you reside in.
150
What would cause an owner to no longer be protected under Arizona Homestead Law?
If the owner moved, vacated or otherwise abandoned their primary residence in Arizona they would loose their rights to Homestead protections.
151
By dying intestate, what happens to the real property in Arizona?
It goes to the owners remaining partner automatically
Whatever is in the recorded will
The estate would revert to the State automatically
The Statutes of Decent will be followed
The Statutes of Decent will be followed
152
What recourse does an HOA board have against homeowners who do not pay their assessments?
Placing an adverse possession notice on title
Placing a lien on the property
Placing a notice of intent to remand notice on title
Placing a judgement against a persons personal property
Placing a lien on the property
153
Arizona has legal life estates in the homestead protection laws. What are the limits for Arizona Homestead as of January 1, 2022?
The first $250,000 of equity is protected in a primary residence
The first $250,000 of equity is protected for an individual
The first $500,000 of equity is protected for a couple
The first $150,000 of equity is protected for a couple who share a primary residence
The first $250,000 of equity is protected in a primary residence
