Transfer of Real Property

Question 1

What is alienation?

Answer 1

Alienation is the process of transferring real property from one party to another. It may be voluntary or involuntary.

Question 2

Warranty Deed

Answer 2

Or general warranty deed: grantor promises to defend against all claims.
- Covenant of the right to convey (can transfer)
- Covenant of seisin (good faith belief in ownership)
- Covenant against encumbrances
- Covenant of quiet enjoyment
- Covenant of warranty

Question 3

Special warranty deed

Answer 3

Grantor only warrants title defects that may have arisen during her period of ownership.

Question 4

Quitclaim Deed

Answer 4

Conveys interest in the property, if any, that the grantor has at the time the deed is executed. No warranties and least liability for the grantor.

Question 5

What is the primary use of a quitclaim deed?

Answer 5

Clearing clouds on title. Clouds are possible or actual encumbrances (liens, easements, etc)

Question 6

What are the requirements for a valid deed?

Answer 6

• In writing
• Identify the parties
• Signed by competent grantor (attorney in fact, or authorized officer of corporation)
• Living grantee
• Words of conveyance
• Description of the property

Question 7

When does the deed transfer title?

Answer 7

When it is delivered to the grantee. Must be delivered during the grantor’s lifetime (or deposited in escrow during the grantor’s lifetime).

Question 8

Does the deed need to be notarized?

Answer 8

Yes, to be recorded. Signing in front of a notary is “acknowledgement” that he signed voluntarily (the notary or public official witnesses the signing). The acknowledgement is required to record the deed.

Question 9

What completes delivery?

Answer 9

Acceptance by the grantee. This may be done by the escrow agent.

Question 10

Does the grantee sign the deed?

Answer 10

No.

Question 11

What’s a habendum clause?

Answer 11

It’s the “to have and to hold” clause, which describes the owner’s exact interest in the property (such as fee simple or life estate). It is not an essential term.

Question 12

What are the requirements for a valid will?

Answer 12

In writing
Signed
Witnessed by two competent individuals

Question 13

Testator

Answer 13

The person who makes a will

Question 14

Bequeath

Answer 14

TO transfer personal property by will

Question 15

Legatee

Answer 15

The person who receives bequeathed property

Question 16

Devise

Answer 16

To transfer real property by will

Question 17

Devisee

Answer 17

A person who receives devised property (real property transferred by will)

Question 18

Executor

Answer 18

A person appointed by the testator to carry out the instructions in a will

Question 19

Intestate

Answer 19

A person who dies without leaving a will dies intestate

Question 20

Administrator

Answer 20

A person appointed by the court to carry out instructions in the will when no executor is named, or to manage and distribute the estate when the person dies intestate

Question 21

Probate

Answer 21

Procedure to prove a will’s validity

Question 22

Holographic will

Answer 22

An entirely handwritten will written in the testators handwriting. May be valid even if not witnessed (depending on the state).

Question 23

Nuncupative Will

Answer 23

An oral will spoken by a terminally ill person before two witnesses.

Question 24

Dedication

Answer 24

When private property is given to the public. May be voluntary or involuntary.

Question 25

What happens to a person's property if they die intestate?

Answer 25

It is distributed to his lawful heirs according to state laws (statutes) of descent and distribution. If no heirs can be located, the property will escheat to the state.

Question 26

What is Escheat?

Answer 26

Escheat: Property reverts to the state after a person dies and no heirs can be located, or when property has been abandoned by its owner.

Question 27

What is condemnation?

Answer 27

Government exercise of police power and taking property by eminent domain. It can be done by government or semi-public entities such as utility companies.

Question 28

What is quiet title?

Answer 28

A quiet title action is a lawsuit to determine who has title to a piece of property or to remove a cloud that can't be cleared amicably with a quitclaim deed.

Question 29

What is a suit for partition?

Answer 29

A court procedure for dividing a property among co-owners. Judicial partition.

Question 30

What are the requirements of adverse posession?

Answer 30

- Actual (occupation appropriate to the type of property) - Open and notorious - Hostile - Exclusive - Continuous and uninterrupted

Question 31

What is perfecting title?

Answer 31

Taking the necessary steps to remove title defects and defeat claims against one's title. Adverse possessor needs to take additional steps to have marketable title.

Question 32

What is accretion?

Answer 32

Riparian or littoral land enlarged by waterborn soil, the owner acquires title to the added soil. River depositing soil known as alluvium or alluvion.

Question 33

What is reliction?

Answer 33

Body of water gradually retreats, new soil belongs to landowner.

Question 34

What is avulsion?

Answer 34

A sudden change in land due to flooding, which usually does not change the boundaries or ownership of the land.

Question 35

What is the difference between actual and constructive notice?

Answer 35

Actual is when you actually know something. Constructive is when you could or should have learned about it through reasonable due diligence or inspection of the public record (recording a deed)

Question 36

Is possession of the property by someone other than the seller actual or constructive notice of an interest?

Answer 36

Possession by someone other than the seller gives constructive notice to the buyer that someone may have an interest in the property.

Question 37

What does title insurance do?

Answer 37

Protects against losses from unrecorded title defects.

Question 38

Chain vs. Abstract of title

Answer 38

Chain of the title is the full history, Abstract of title is the condensed version.

Question 39

What are exceptions on a title report?

Answer 39

Defects or encumbrances discovered in the title search that are specifically excluded from coverage under the policy.

Question 40

What does the lender's policy cover?

Answer 40

The security interest of the lender. Their coverage is reduced over time.

Question 41

What are the three types of title insurance?

Answer 41

Standard - doesn't cover things that would be discovered by physical inspection Extended - covers things that should be discovered on inspection (lenders is almost always extended) Homeowners - Extended +++ No title insurance protects against government action.