Transfer of Title

Question 1

Title refers to:

Answer 1

1. The right to or ownership of land
2. The evidence of that ownership

Question 2

Torrens System

Answer 2

Unlike a car title, title to real estate is not a printed document, except in states using the Torrens system, where a certificate serves as evidence of ownership.

Question 3

Methods of Transferring Title

Answer 3

1. Voluntarily: by sale or gift
2. Involuntarily: by operation of law
3. During life or upon death, through will or intestate succession

Question 4

Voluntary Alienation

Answer 4

Legal term for transferring title during a property owner’s lifetime

Question 5

Deed

Answer 5

document used to convey ownership rights

Question 6

Deeds Components:

Answer 6

1. Must be in writing per the Statute of Frauds
2. Executed (signed) by the grantor (property owner)
3. Delivered to and accepted by the grantee

Question 7

Requirements for a Valid Deed

Answer 7

1. Competent grantor: of legal age (usually 18+) and sound mind
2. Identifiable grantee
3. Statement of consideration
4. Granting clause (words of conveyance)
5. Habendum clause (defines the interest granted)
6. Legal description of the property
7. Exceptions/reservations (if any)
8. Signature of the grantor (notarized)
9. Delivery and acceptance by the grantee

Question 8

Grantor must be:

Answer 8

Legally competent and of lawful age

Name spelled consistently (e.g., “Mary Smith, formerly Mary Jones”)

Question 9

Grantee must be:

Answer 9

Clearly named and identifiable (e.g., “to my nephew, Joseph Mara”)

For multiple grantees, rights (e.g., joint tenancy) must be specified

Question 10

Consideration

Answer 10

Typically stated in dollars

For gifts, “love and affection” may suffice

Often expressed as “$10 and other good and valuable consideration”

Question 11

Habendum Clause:

Answer 11

Follows “to have and to hold”

Clarifies type and limitations of ownership (e.g., time-share or life estate)

Question 12

Acknowledgement

Answer 12

Formal declaration before a notary public or public officer

Required for recording in most states, even if not for validity

Question 13

Delivery and Acceptance

Answer 13

Title passes upon delivery and acceptance

Date of delivery = effective date of title transfer

Question 14

Corporate Deed Elements

Answer 14

1. Must follow authority granted in bylaws or board resolution
2. For major property sales, may require shareholder approval
3. Must be signed by an authorized officer
4. Consult an attorney, especially for not-for-profit corporations

Question 15

General Warranty Deed

Answer 15

Greatest protection to buyer

Includes five covenants:

1. Covenant of seisin – grantor owns and can convey
2. Covenant against encumbrances – no undisclosed liens or easements
3. Covenant of further assurances – grantor will fix title defects
4. Covenant of quiet enjoyment – grantee won’t be disturbed
5. Covenant of warranty forever – grantor defends title against all claims

Question 16

Special Warranty Deed

Answer 16

Warrants only against grantor’s actions, not previous owners

Used by fiduciaries (e.g., trustees) or grantors with limited knowledge

Question 17

Covenant of seisin

Answer 17

grantor owns and can convey

Question 18

Covenant against encumbrances

Answer 18

no undisclosed liens or easements

Question 19

Covenant of further assurances

Answer 19

grantor will fix title defects

Question 20

Covenant of quiet enjoyment

Answer 20

grantee won’t be disturbed

Question 21

Covenant of warranty forever

Answer 21

grantor defends title against all claims

Question 22

Bargain and Sale Deed

Answer 22

No express warranties, but implies grantor owns the property

Common in foreclosures or tax sales

May be upgraded with covenant against the grantor’s acts

Question 23

Quit Claim Deed

Answer 23

No warranties; transfers only what grantor owns (if anything)

Used to:
- Clear clouds on title
- Resolve spelling errors or ownership uncertainties
- Settle family or divorce transfers

Question 24

Deed of Trust

Answer 24

Conveys property to trustee for benefit of a beneficiary

Used to secure a loan in trust deed states

Question 25

Reconveyence Deed

Answer 25

Used by trustee to return title to trustor once debt is repaid Equivalent to a satisfaction of mortgage in lien-theory states

Question 26

Trustee's Deed

Answer 26

Used by trustee to convey title to someone other than the trustor

Question 27

Court Ordered Deeds

Answer 27

Includes deeds by executors, administrators, sheriffs, masters Must conform to state laws Often state full consideration (e.g., sales price

Question 28

Transfer Tax Stamps

Answer 28

State and/or local tax on real estate transfers (grantor’s tax) Paid when deed is recorded Paid via tax stamps or direct payment Customarily paid by seller, buyer, or both

Question 29

Transfer Tax Stamp Calculation

Answer 29

$1.10 per $1,000 OR $0.55 per $500

Question 30

Transfer Declaration Forms must include:

Answer 30

1. Full sales price 2. Legal description 3. Type of improvement 4. Address, date, and type of deed 5. Whether transfer is between relatives or under court order

Question 31

Exempt from Transfer Tax

Answer 31

Gifts Non-sale changes in ownership (e.g., changing tenancy type) Transfers to/from government entities Transfers involving charities, schools, religious organizations Transfers related to debt security or release Partitions Tax deeds Mergers or dissolutions involving corporations

Question 32

Involuntary Alienation

Answer 32

Title to property may be transferred without the owner’s consent by involuntary alienation.

Question 33

Natural Modes of Involuntary Alienation

Answer 33

Accretion (acquisition of land through natural deposits), Erosion (loss of land from natural forces), Other acts of nature such as earthquakes, hurricanes, sinkholes, and mudslides.

Question 34

Involuntary Transfer by Operation of Law

Answer 34

1. Usually carried out by operation of law, such as: - Condemnation (government seizure for public use), - Foreclosure of a mortgage loan, or - Sale to satisfy delinquent tax or mortgage liens. 2. When a person dies intestate (without a valid will):

Question 35

When a person dies intestate:

Answer 35

Title passes to the heirs as identified by the state's law of intestate succession. If no heirs can be identified or found, the property escheats to the state.

Question 36

Adverse Possession

Answer 36

Another form of involuntary transfer where an individual may claim title after taking and using land without the owner’s permission. The possessor must take exclusive possession and use the property in a way that excludes the true owner and any other claimants. Possession must meet ONCHA requirements:

Question 37

OCHNA

Answer 37

Open — obvious to anyone who looks, Notorious — known by others, Continuous — uninterrupted, Hostile — without the true owner's consent, Adverse — against the true owner's right of possession.

Question 38

Tacking

Answer 38

successive periods of adverse possession by different owners may be combined to meet the required statutory period. The new possessor must take possession under a: 1. Claim of right, or 2. Color of title (e.g., a deed from the previous adverse possessor).

Question 39

Perfecting Title

Answer 39

To obtain legal title, the adverse possessor must: File an action in court to receive undisputed title.

Question 40

Testate

Answer 40

A person who dies testate has prepared a will indicating how their real and personal property will be disposed of at the time of death.

Question 41

Title Passes to:

Answer 41

1. The co-owner by virtue of joint tenancy with right of survivorship or tenancy by the entirety; 2. The party/parties named in a valid will; or 3. The statutory heirs under state law.

Question 42

Probate

Answer 42

When title passes by will or descent, the estate must go through probate—a judicial process to recognize the successor to the property title.

Question 43

Devise

Answer 43

a gift of real property.

Question 44

Devisee

Answer 44

a person who receives real property by will.

Question 45

Bequest / Legacy

Answer 45

gift of personal property

Question 46

Upon the testator’s death, the will must be:

Answer 46

Filed with the court, and Probated (formal judicial verification process).

Question 47

A will cannot supersede state laws of:

Answer 47

Dower, curtesy, and homestead, which protect surviving spouse’s rights. Some states also provide minimum statutory inheritance of personal property for the surviving spouse.

Question 48

A will must comply with the laws of:

Answer 48

The state in which the testator resides; and Any state where real estate is located.

Question 49

Testator must:

Answer 49

Be of legal age (varies by state), Be of sound mind, and Understand: - The nature and extent of their property; - That the property will go to the persons named. Act voluntarily, free of undue influence

Question 50

nuncupative wills

Answer 50

oral

Question 51

Holographic wills

Answer 51

written

Question 52

codicil

Answer 52

a separate document that must also comply with state law.

Question 53

Probate takes place:

Answer 53

in the county of the decedent’s last residence. If the decedent owned real estate in another county, probate must occur there as well.

Question 54

Before Property Distribution;

Answer 54

All claims and debts must be satisfied, Federal estate taxes and state inheritance taxes must be paid.

Question 55

Avoiding Probate:

Answer 55

Establishing a revocable living trust, Transferring title to real and personal property to the trust during their lifetime.

Question 56

Revocable Living Trust

Answer 56

Upon death, title automatically passes to the beneficiary named in the trust without probate.