Unit 6

Question 1

What is the legal term for the transfer of title during the property owner’s lifetime

Answer 1

voluntary alienation

Question 2

What requires that a deed be in writing

Answer 2

statute of frauds

Question 3

What is the name of the person transfering their title

Answer 3

grantor

Question 4

What is the name of the person receiving a title

Answer 4

grantee

Question 5

the deed being executed means what

Answer 5

its signed

Question 6

What are the requirements for a valid deed

Answer 6

Grantor who has the legal competency to execute the deed
Grantor who has the legal competency to execute the deed
Grantee named with reasonable certainty to be identified
Statement of consideration (usually required for recording of the deed)
Granting clause (words of conveyance)
Habendum clause, which defines the ownership right received by the grantee
Accurate legal description of the property conveyed
Any relevant exceptions or reservations to conveyance of full title
Acknowledgment (notarization) of the signature of the grantor
Delivery of the deed and acceptance by the grantee to pass title

Question 7

If a grantors name has changed during is ownership what name should be listed on the deed before alienation

Answer 7

both names

Question 8

What is a consideration clause

Answer 8

a clause stating that something has been given in return for the deed

Question 9

What might the consideration clause say if the deed is given as a gift

Answer 9

they might list love and affection as the consideration

Question 10

What is a granting clause

Answer 10

states the grantor’s intention to convey the property

Question 11

What is another name for a granting clause

Answer 11

words of conveyance

Question 12

What is an example of words of conveyance for a granting an entire fee simple interest

Answer 12

“to ABC and to her heirs and assigns forever.”

Question 13

When is a habendum clause used

Answer 13

When it is necessary to define the ownership given to the grantee

Question 14

What is a habendum clause

Answer 14

a clause usu following a granting clause that state the grantees rights when the interest conveyed is anything less than fee simple absolute

Question 15

What does a habendum clause start with

Answer 15

to have and to hold

Question 16

What do many deeds with restrictions have

Answer 16

termination dates for the restrictions and a renewal clause

Question 17

What might the spouse need to do before their spouse transfers title

Answer 17

they may need to sign the deed as well to waive any marital or homestead rights

Question 18

Are seals required after the grantors name

Answer 18

in many states

Question 19

What is an acknowledgement

Answer 19

a formal declaration that the grantor signed the deed voluntarily and the signature is genuine

Question 20

Where is the acknowledgement made

Answer 20

infront of a registered notary public, authorized public officer or someone prescribed by the state

Question 21

What does an acknowledgement usu state

Answer 21

the person signing the deed is known to the officer or has produced sufficient identification

Question 22

What does the notary public do after verifying ID

Answer 22

sign and stamp the documen t

Question 23

When is the deed considered passed to the grantee

Answer 23

only when it is delivered to them and they accept it

Question 24

What are two basic rules for corporations conveying real estate

Answer 24

the conveyance must be done by someone authorized in the bylarws or is given authority by resolution
the deed can only be signed by a authorized officer

Question 25

Why would a grantee want to see evidence of the deed before moving forward

Answer 25

because fdifferent deeds provide different amount of promises made by the grantor

Question 26

What are the different types of deedS

Answer 26

``` General warranty deed Special warranty deed Bargain and sale deed Quitclaim deed Deed of trust Reconveyance deed Trustee’s deed Deed executed pursuant to a court order ```

Question 27

What deed provides the most protection

Answer 27

General warranty deed

Question 28

What are the basic warranties or covenants of a general warranty deed

Answer 28

``` Covenant of seisin Covenant against encumbrances Covenant of further assurance Covenant of quiet enjoyment Covenant of warranty forever ```

Question 29

What is the convenant of seisin

Answer 29

The grantor promises that he or she owns the property and has the right to convey title to it

Question 30

What is the covenant against encumbrance

Answer 30

The grantor warrants that the property is free from liens or encumbrances, except for any specifically stated in the deed

Question 31

What is the covenant of further assurances

Answer 31

The grantor promises to obtain and deliver any instrument needed to make the title good

Question 32

What is the covenant of quiet enjoyment

Answer 32

The grantor guarantees that the grantee’s title is safe from any third party who might makes a claim to it

Question 33

What is a Covenant of warranty forever:

Answer 33

The grantor promises to compensate the grantee for the loss sustained if the title fails at any time in the future.

Question 34

What is a special warranty deed

Answer 34

the grantor promises that the grantor has the title and that the property was not encumbered during the time the grantor held title, except as otherwise noted in the deed.`

Question 35

What does a special warranty deed not protect you against

Answer 35

actions of previous owners

Question 36

What is usu added to a special warranty deed to provide sufficient protection

Answer 36

title insurance

Question 37

What does the granting clause of special warranty deeds usu include

Answer 37

“Grantor remises, releases, alienates, and conveys

Question 38

What is a common type of sale where a special war deed is used

Answer 38

in a tax sale or with fiduciaries

Question 39

What is a Bargain and sale deed

Answer 39

doesnt express warranties against encumbrances | does imply that the grantor holds title and possession

Question 40

What is the phrase usu used with a Bargain and sale deed

Answer 40

grants and releases or grants, bargains, and sells

Question 41

Should the buyer prolly have title insurance with bargain and sale deeds too?

Answer 41

yes

Question 42

If a bargain and sale deed has an added covenant against encumbrances then what would it look like and what other deed would it be equivalent to

Answer 42

bargain and sale deed with covenant against the grantor’s acts a special war deed

Question 43

What is a quitclaim deed

Answer 43

carries no covenants or warranties | usu only conveys the interest of the grantor for the use of the grantee

Question 44

What phrase is usu used in a quitclaim deed

Answer 44

remises, releases, and quitclaims

Question 45

What can a quitclaim deed be used for

Answer 45

to fix a title defect like a cloud on title

Question 46

What is a reconveyance deed

Answer 46

used to return title back to trustor

Question 47

What is a trustee deed

Answer 47

a deed created by the trustee to convey the real estate to someone other than the trsutor

Question 48

What does a trustee deed need to have

Answer 48

a statement that the trustee is authorized to do what they are doing

Question 49

What are deeds executed pursuant to a court order

Answer 49

executors’ and administrators’ deeds, masters’ deeds, sheriffs’ deeds used to convey titles transfered by will or court order

Question 50

Many states use what type of taxes for conveyances of deeds

Answer 50

state transfer tax

Question 51

Who pays for the state transfer taxes

Answer 51

depends on the purchase agreement

Question 52

In many states, what must be signed regarding transfer taxes

Answer 52

a transfer declaration form (or transfer statement or affidavit of real property value)

Question 53

Who needs to sign the transfer declaration

Answer 53

either both the seller and buyer or their RE professional

Question 54

What does the transfer declar state

Answer 54

``` the full sales price of the property; its legal description; the type of improvement; the address, date, and type of deed; and whether the transfer is between relatives or in accordance with a court order. ```

Question 55

What deeds may be exampt from transfer tax

Answer 55

Gifts of real estate Deeds not made in connection with a sale (such as a change in the form of co-ownership) Conveyances to, from, or between government bodies Deeds by charitable, religious, or educational institutions Deeds securing debts or releasing property as security for a debt Partitions Tax deeds Deeds pursuant to mergers of corporations Deeds from subsidiary to parent corporations for cancellations of stock

Question 56

What are some different types of involuntary alienation

Answer 56

person dies intestate so escheat happens eminent domain nonpaymen of a debt Prescriptive easement

Question 57

What does intestate mean

Answer 57

without a valid will

Question 58

What is the process of taking property from uses like those that allow prescriptive easements to be written

Answer 58

adverse possession

Question 59

What are the requirements of adverse possession

Answer 59

``` Open- obvious Notorious- known by others Continuous Hostile- without owners consent Adverse- against the true owner’s right of possession. ```

Question 60

What does testate mean

Answer 60

someone who dies with a will made

Question 61

When a person dies intestate their proeprty is transfered to their heirs through what statute

Answer 61

statute of descent and distribution

Question 62

What is a testor

Answer 62

the person who made the will

Question 63

What is a codicil

Answer 63

a modificaton to a will

Question 64

Where does probate proceedings occur

Answer 64

in the counties where they own real estate

Question 65

What type of trust is used to avoid the delay and expenses of probate and what does it do

Answer 65

a revocable living trust | makes the trustor also the trustee so when the trustor dies the title auto transfers to the beneficiary

Question 66

What is an example of a covenant of further assurance

Answer 66

if the grantor’s spouse has failed to sign away dower rights, the grantor must deliver a quitclaim deed