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63 terms

CLA Real Estate, Part 4

Sale of land; title searches, title insurance, land financing
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listing agreement
A contract between an owner of real property and a real estate agent under which the agent is retained to secure a purchaser for the property at a specified price, for a commission.
merchantable title
Title that is without cloud or defect
clouds of title
defects to title
deed
a legal document signed and sealed and delivered to effect a transfer of property and to show the legal right to possess it: must be in writing; must identify the grantor and grantee; must state type of ownership (fee simple jt. ten; etc.); words of conveyance; sufficient legal description. No consideration need be stated; title transfers on date it is delivered to grantee, even if it is never recorded
grantor
a person who makes a grant in legal form
grantee
the person to whom property is transferred by deed.
metes and bounds
Legal description that begins at a well marked point and follows the boundaries around the tract, back to the place of beginning; distances and directionsk&4
survey
plot a map of (land)
retangular survey system
Takes into consideration base lines and meridians, townships and sections. Townships are located in Ranges, One township is 36 section. Each section contains 640 acres, which is 1 sq mi. Each acre contains 43,560 sq. ft.
principal meridian
North-south lines separating townships
principal base lines
The east-west lines of the grid used in the rectangular survey system.
township
A square normally 6 miles on a side
section
one mile square; contains 640 acres
half section
one-half of 640 acres = 320 acres
quarter section
one-quarter of 640 acres = 160 acres
1/2 of 1/4 section
80 acres
subdivision plat
A map of a town, section or subdivision indicating the location and boundaries of individual properties; includes easements, covenants, setback descriptions, sidelot requirements, or lot measurements
signature
(deed) signed by each grantor; need not be signed by grantee(s)
deed poll
deed signed by only the grantor
indenture
deed signed by both grantor and grantee
seal
wax impression; L.S. locus sigilli (the place of the seal)
delivery and acceptance
when the grantor delivers the deed and the grantee accepts the deed. this is necessary for conveyance of title.
attestation
act of witnessing the signing (execution) of a document
acknowledgment
formal witnessing by public official (notary public); that grantor's declaration that his/her execution was free and voluntary act
warranty deed
a deed in which the seller promises clear title to the property
covenants of title
covenants of seisin; right to convey; covenant against encumbances; covenant of quiet enjoyment; covenant of warranty; etc.
covenant of seisen
grantor warrants that they own the interest in the land that they are purporting to convey and has right and power to transfer it
encumbrance
Anything - such as a mortgage, tax or judgment lien, an easement, a restriction on the use of the land, or an outstanding dower right -that may diminish the value or use and enjoyment of a property
liens against property
monetary obligations against a property; e.g., mortgages, taxes, special assessments; judgments
interests in land
attachments to the land, e.g leaseholds, life estates, and licenses
restrictions
Limits the use of the property such as deed restrictions, easements, or restrictive covenants.
covenant of quiet enjoyment
Covenant that promises that grantee will enjoy quiet and peaceful possession of the property.
warranty and further assurances
Grantor will defend grantees title against lawful claims existing at the time of transfer
special warranty deed
aka limited warranty deed: contains all same warranties as a warranty deed but covers only defects that were created or came into existence while the grantor was the owner of the property
quitclaim deed
deed without warranty, which passes only that title which the grantor has
merger
doctrine which buyer's acceptance of the deed extinguishes his/her rights under the purchase contract as the right relates to title.
recordation
Process of recording a deed or other document showing an interest in land with the Office of the County Recorder
constructive notice
The recording of a document or an instrument in the public records designed to give adequate notice to all; has no bearing on the legal effectiveness of instrument
devise
real property given via will
title search
an examination of chronological documents recording title to the property to ensure the owner has a clear title
chain of title
Succession of conveyances from some accepted starting point, whereby the present hold of title derives the title, there should be no "breaks" in the succession
marketable title acts
done to settle title disputes, require title searcher to go back 40 years. If 40 years reveal cloud free title, it is marketable. Extinguishes older claims.
unbroken chain of title
free from forgery, minority or other incapacity of grantor, failure of delivery; misrepresentiton of marital status, free from claim by omitted person or heir.
abstract of title
A chronological summary of all official records and recorded documents affecting the title to a parcel of real property.
title insurance
Policy insuring the owner or mortgagee against loss by reason of defects in the title of a parcel of real estate
Torrens system
A system for registration of land under which a court issues a certificate of title that states the status of the title
pure race statute
Statute under which the buyer who wins the "race" to the courthouse and records the deed first is the buyer who prevails.
pure notice statute
When a subsequent buyer takes title without acqual knowledge of a prior, unrecorded conveyance, and records her deed, she shall prevail.
race-notice statue
Under a race-notice statute, a later purchaser not only must be bona fide but also must record the deed before other purchasers.
mortgage
a conditional conveyance of property as security for the repayment of a loan; real estate given as collaeral
mortgagee
the person who accepts a mortgage
mortgagor
the person who gives a mortgage in return for money to be repaid
amortization
gradual extinction of a monetary obligation by periodic payments that usually includes interest
deed of trust
An instrument used to create a mortgage lien by which the borrower ‎conveys title to a trustee, who holds it as security for the benefit of the ‎note holder (the lender); also called a trust deed
title theory
on full payment of the mortgage debt the borrower becomes the landowner
lien theory
the borrower retains legal title to the property and grants a lien to the lender as security for repayment of the loan
deficiency
occurs when mortgaged property is worth less than underlying debt
release of mortgage
a document signed by the lending institution when a mortgage has been satisfied in full.
deed of reconveyance
Document recorded by Trustee under the Deed of Trust, when the secured obligation has been paid in full.
subordination agreement
A written agreement between holders of liens on a property that changes the priority of mortgage, judgment, and other liens under certain circumstances.
assume underlying debt
new buyer "assumes" the mortgage of seller
novation
Substituting a new obligation for an old one or substituting new parties to an existing obligation
due-on-sale clause
a clause in a promissory note that requires the borrower to repay all amounts due immediately upon transferring the property to a new owner