Titles Flashcards
(15 cards)
Adverse Possession
Adverse Possession
Adverse possession requirements include: possession must be continuous, hostile, actual, open and notorious, exclusive, and it must go on for the statutory period (20 years). Tacking is permitted. This allows one adverse possessor to “team up” with another adverse possession and add up their time together to get the propery from the owner. There must be privity.
Transfer by Deed
Requirements for Deed
At the outset, the deed must be in writing, signed by the person selling the land, and must describe the land. For a deed to be transferred, there must be intent (the deed must be intended to be conveyed now, not in the future), delivery, and acceptance.
GOAT OUTLINE HAS ALL METHODS OF DELIVERING AND ACCEPTING THE DEED - MEMORIZE THEM.
Transfer by Deed
Types of Deeds
A quitclaim deed provides no protections for the grantee. No warranties. A general warranty deed has all six warranties (present and future). A special warranty deed only guarantees two things: the grantor promises that they have the right to convey and the property is free from encumbrances. You may gift a deed if you donative intent, delivery, and acceptance. A deed will be void if it is forged, void, or involves fraud. A deed is voidable if it is made by a minor or an incapacitated person, made throught mistake, undue influence, or fraud in the inducement.
Transfer by Deed
Drafting, Review, and Negotiation for Closing Documents
Persons such as brokers, real estate agents, or attorneys may negotiate contracts so long as they are in an agency relationship and have legal capacity to do so.
Transfer by Deed
Persons Authorized to Execute Documents
Transfer by Operation of Law and By Will
In General
If property is specifically devised, but the testator does not own if when he dies, the gift adeems (fails). There are exceptions: such as if insurance proceeds were paid after death, the beneficiary will take those. If the beneficiary dies before the testator, the gift will lapse (unless the jurisdiction has an antilapse statute that saves the gift).
Transfer by Operation of Law and By Will
Ademption
Ademption is when a specific bequest of real property (or personal property) simply isn’t in the estate when you die – you sold it. You lost it.
If I give you BlackAcre in my will, then before I die I sell BlackAcre, then BlackAcre is adeemed by extinction.
Transfer by Operation of Law and By Will
Exoneration
At common law, if a testator makes a specific devise of real estate that is subject to a lien, the devisee is able to have the lien exonerated and paid off by teh testator’s residuary estate.
Title Assurance Systems - Recording Acts
Types
Under common law (race statutes), whoever records the deed first, wins. Under Notice Statutes, a subseuqent BFP for value wins if they have no notice that the first purchaser owns the land because the first purchaser did not record it. The BFP does not have to record before the first purchaser, they simply win. Under Race-Notice Statutes, a subseuqent BFP for value wins if they have no notice that the first purchaser owns the land because the first purchaser did not record it AND the BFP now has to record before the first purchaser.
Title Assurance Systems - Recording Acts
Bona Fide Purchasers
A bona fide purchaser is omeone who purchases a property in good faith for valuable consideration without notice of any claim to or interest in the property by any other party. BFPs must pay value (money). “Mortgagee for value” is the same as BFP and treated the exact same.
Title Assurance Systems - Recording Acts
Shelter Rule
This allows traditional grantees who are not protected by teh recording act to prevail by sheltering under the rights of those who conveyed the land to them.
So when an heir, donee, or devisee gets the land from a BFP, they become the BFP themselves and even if they have notice, they are protected by the BFP status.
Title Assurance Systems - Recording Acts
Hidden Risks (Undelivered or Forged Deed)
Forged deeds and defective documents do not give notice, so BFP’s who receive these are not protected by recording acts.
Title Assurance Systems
Title Insurance
Title assurance is the purchaser’s protection against unknown defects of record in the chain of title. It is not required unless contractually agreed upon.
Speical Problems
Estoppel by Deed
If a grantor transfers property to a grantee (when he does not have title to the property) by warrany deed and then later acquires title, the title will automatically go to the grantee unless the grantor later gave the land to a BFP.
