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53 terms

chapter 7 real estate

chapter 7 real estate
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descent
Acquisition of an estate by inheritance in which an heir succeeds to the property by operation of law. When a person dies and leaves no valid will, the laws determine the order of distribution of property to heirs.
intestate
having made no legally valid will before death or not disposed of by a legal will
involuntary alienation
means the grantor (owner of the property) did not have a choice; that the law determined that the property would be transferred as in eminent domain or other government interferences. The deceased has no control over the transfer of title.
personal representative
The person appointed by a court, who represents and administers the estate of deceased persons (executors and administrators).
voluntary alienation
means the grantor (owner of the property) had a choice and made the decision to transfer his property to someone else. by valid will or with qualified heirs.
testator
a MAN who makes a valid will
testatrix
a WOMAN who makes a valid will
executrix
a WOMAN appointed by the will of a deceased person to carry out the provisions thereof and settle the estate
executor
a MAN appointed by the will of a deceased person to carry out the provisions thereof and settle the estate
probate
The process of proving in court that the will of someone who has died is valid, and of administering the estate of a dead person.
devise
(law) a gift of real property by will
devisee
One who receives a gift of real property by will.
bequest
(law) a gift of personal property by will
beneficiary
One who benefits from something; a person who is left money or other property in a will or the like
lien foreclosure
Transferred without an owner's consent to satisfy debts contracted by owner
adverse possession
a method of acquiring title to real property by possession for a statutory period (15 years in Michigan) under certain conditions, especially a non-permissive use of the land with a claim of right when that use is continuous, exclusive, hostile, open, and notorious
tacking
In adverse possession, this process allows consecutive periods of adverse possession by multiple adverse possessors to be added together to make up the required number of years.
quiet title action
A court action brought to establish clear title; to remove a cloud on the title. It is used to determine who has rightful ownership in real property.
eminent domain
the power of the government to take private property for public use
grantor
The person transferring title to or an interest in real property to a grantee
grantee
The person to whom property is transferred by deed.
granting clause
Words in a deed of conveyance that state the grantor's intention to convey the property at the present time. This clause is generally worded as "convey and warrant"; "grant"; "grant, bargain, and sell"; or the like.
premises clause
...The introductory information on a deed, In a deed, contains
a. Essential information
b. Names of grantor and grantee, legal description, the consideration,
c. Words of Grant - the grantor "gives, enfeoffs, grants, bargains and sells," as well as "leases and releases, surrenders, remises, yields up, alienates, confirms, assigns, covenants to stand seised of, quitclaims, and conveys" to the grantee.
d. Background facts and purposes
e. For Consideration
f. Legal description of the property conveyed
habendum clause
The portion of a deed beginning "to have and to hold," which usually follows the granting clause and explains or limits the estate granted.
testimonium
Portion of the deed that the grantor signs and the signature is witnessed or notarized
acknowledgment
A formal declaration made by the grantor conveying the property to the grantee - a necessary element for validity of a deed., Made before an authorized official, notary, or clerk, has signed a document, states that a signature is genuine and voluntary
delivery and acceptance
when the grantor delivers the deed and the grantee accepts the deed. this is necessary for conveyance of title.
general warranty deed
Deed that offers the most protection in which grantor fully warrants good clear title to the premises/property.
covenant of seisin
gives the assurance that the grantor has the exact estate in the quantity and quality which is being conveyed. "I own and I have the right to sell it." The grantor promises the grantee that he or she has fee simple title to the property. (right to convey)
covenant against encumbrances
The grantor warrants that the property is free from liens or encumbrances, except for any specifically stated in the deed. Encumbrances generally include mortgages, mechanics' liens, and easements. If the covenant is breached, the grantee may sue for the cost of removing the encumbrances.
covenant of quiet enjoyment
A promise that no one has superior or paramount title to that of the grantor; assures the grantee peaceful possession without fear of being ousted by a person with a superior claim to the property.
covenant for further assurances
grantor promises to perform whatever future acts are reasonably necessary to perfect grantee's title if it later turns out to be imperfect
covenant of warranty
Grantor's promise to defend the grantee's title against others who claim title of the land. Breach of this future convenant occurs only where there is an actual or constructive eviction under paramount title. Basically, it protects against future losses sustained by a grantee who is evicted by someone with better title.
special limited warranty deed
The limited warranty deed limits the potential liability of the seller and does not hold him liable for any encumbrances against the property prior to his ownership.
quitclaim deed
A non-warranty deed that provides the grantee with the least protection of any deed. It carries no covenant or warranties and conveys only such interest, if any, that the grantor my have when the deed is delivered.
cloud on a title
any claim that might impair clear title to a property thus making the title on the property in doubt, impairment of the owner's rights
bargain and sale deed
A deed that carries with it no warranties against liens or other encumbrances but that does imply that the grantor has the right to convey title. The grantor may add warranties to the deed at his or her discretion
sheriffs deed
Conveys title sold at sheriff's sale under foreclosure or judgement, Giving ownership rights to a new buyer of the property at a sheriffs sale but if the mortgagor can redeem the property by paying all costs, the deed is destroyed.
revenue stamps
Tax on the conveyance of title to real property . considered transfer tax and Michigan requires the seller to responsible for paying this tax.
merchantable title
Title that is without cloud or defect, Implied that seller will convey a fee simple absolute title to buyer and that title will be marketable (example it current owner has a exsisting mortgage but that mortgage will be paid in full at the closing and new owner has a free title).
title examination
A search of the public record to determne the quality of a title to real property
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
abstract of title
condensed history of the title; summary of all links in the chain of title plus any other matters of public record
certificate of title opinion
the attorney must examine chain of title to make sure it is unbroken and clear. Then this opinion is given.
title insurance
insures the policy owner against financial loss if title to real estate is not good
mortgagee's policy
A title insurance policy that insures a mortgagee against defects in a title pledged by a mortgagor to secure payment of a mortgage loan.
owner's policy
A policy insuring the owner of real estate against certain defects of title.
leasehold policy
A title insurance policy insuring a lessee against defects in the lessor's title. Primarily used in commercial transactions.
contract buyer's policy
Protects the contract buyer from defects in the contract seller's title prior to the contract.
recordation
protection for the owner's title against subsequent claimants
constructive notice
notice to the world
bona fide purchaser
a buyer of property who relies on the records and is unaware of an unrecorded prior document
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