Unit 3: Conveying Ownership

Question 1

What is a deed?

Answer 1

A physical, legal document that transfers ownership of a real estate from the grantor (seller) to the grantee (buyer)

Question 2

Who are the parties in a deed?

Answer 2

1) Owner/seller - GRANTOR

2) Receiver/Buyer - GRANTEE

Question 3

Who provides the written deed?

Answer 3

The owner/seller. The grantor.

Question 4

T/F Deeds guarantee or prove ownership.

Answer 4

False. Deeds DO NOT guarantee or prove ownership.

Question 5

T/F Deeds need to be recorded for title to transfer.

Answer 5

False. Deeds DO NOT have to be recorded for title to transfer; title passes upon acceptance of the grantee.

Question 6

What are the 7 essential elements of a deed?

Answer 6

WILD CECe

1) Competent grantor
2) Execution by grantor
3) Identifiable grantee
4) Delivery and acceptance (by grantee)
5) Legal description
6) Consideration
7) Words of conveyance

Question 7

What does it mean to be competent?

Answer 7

18, sane, and sober

Question 8

What does the legal description describe?

Answer 8

Only the land

Question 9

What passes when the grantee accepts the deed?

Answer 9

Title

Question 10

What are the 3 types of deeds?

Answer 10

1) General Deed
2) Special (limited) Warranty Deed
3) Quit Claim Deed

Question 11

What is alienation?

Answer 11

The act of conveying (transferring) real estate ownership (title).

Question 12

What is a private grant?

Answer 12

From individuals, using a deed.

Question 13

What is a public grant?

Answer 13

From the government to an individual, using a land patent.

Question 14

What is a dedication?

Answer 14

From individuals to the government.

Question 15

Which deed is the safest and offers the most protection to the grantee?

Answer 15

General Warranty Deed

Question 16

What are the 5 covenants and warranties of title in a general warranty deed?

Answer 16

SQAWF

1) Covenant of seisin
2) Covenant of quiet enjoyment
3) Covenant against encumbrances
4) Covenant of further assurance
5) Warranty forever

Question 17

What is the covenant of seisin?

Answer 17

Grantor owns and has right to convey.

Question 18

What is the covenant of quiet enjoyment?

Answer 18

Grantee will not be “disturbed” by others claiming an interest.

Question 19

What is the covenant against encumbrances?

Answer 19

No undisclosed encumbrances.

Question 20

What is the covenant of further assurance?

Answer 20

Future cooperation in signing additional documents.

Question 21

What is the warranty forever?

Answer 21

Guarantee of defense of title against claims such as liens or easements.

Question 22

Which deed does not protect against any previous claims?

Answer 22

Special (limited) warranty deed

Question 23

What does a special warranty deed guarantee?

Answer 23

That the property wasn’t encumbered while the grantor (seller) had ownership.

Question 24

T/F In a special warranty deed, the grantor is obligated to address any title defects from before they owned the property.

Answer 24

False. In a special warranty deed, the grantor is NOT obligated to address any title defects from before they owned the property.

Question 25

What deed is the best for the grantor?

Answer 25

Quit Claim Deed

Question 26

What deed carries no promises, no warranties or covenants?

Answer 26

Quit Claim Deed

Question 27

What deed would a grantor use when they want no future claims or liabilities?

Answer 27

Quit Claim Deed

Question 28

What can a quit claim deed be used for?

Answer 28

As a problem solver to amend defects in the title, clear clouds on title.

Question 29

What is the purpose of a deed?

Answer 29

The voluntary transfer of title between the owner/grantor and the receiver/grantee.

Question 30

What are the 2 ways that property can be transferred after a death?

Answer 30

1) Testate - by will | 2) Intestate - no will

Question 31

What is probate?

Answer 31

The process of distributing all of a deceased person's assets.

Question 32

What is the advantage of having a will when it comes to transferring property after a death?

Answer 32

All the heirs are known and there is no chance of escheat.

Question 33

What is devise?

Answer 33

The act of transferring a deceased person's interest in real property to another deed.

Question 34

What is bequest?

Answer 34

The act of transferring a deceased person's interest in personal property to another bill of sale.

Question 35

T/F The law presumes that owners of real property will inspect their property and protect their interest from anyone who is trespassing.

Answer 35

True

Question 36

T/F Owners who do not inspect their property may lose their rights of ownership.

Answer 36

True

Question 37

T/F Owners who are aware of possession and use by another and have given permission, can still lose their rights of ownership.

Answer 37

False. Owners who are aware of possession and use by another and have given permission, DO NOT lose their rights of ownership.

Question 38

What are the 3 ways that real property can be transferred?

Answer 38

1) Voluntary Alienation 2) Through a Will 3) Involuntary Alienation

Question 39

What is an example of involuntary alienation?

Answer 39

Adverse possession

Question 40

What is adverse possession?

Answer 40

Ownership recognized by the courts after open, continuous, exclusive, actual, and notorious (hostile) possession of another's land for a certain time set by states (10-15 years). Also called "squatter's rights". It is basically legalized stealing.

Question 41

What is the difference between adverse possession and easement by prescription?

Answer 41

Adverse possession deals with OWNERSHIP interest where easement by prescription deals with USE interest.

Question 42

What is the mnemonic device to remember who can use and possess land?

Answer 42

OCEAN ``` Open Continuous Exclusive Actual Notorious (hostile) ```