Ch. 8 - real

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Terms in this set (39)
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Alienation
is another term for "transfer or convey."
The basic deeds in real estate are:
General Warranty Deed
Special Warranty Deed
Bargain and Sale Deed
Quit Claim
The following are the requirements necessary for a deed to be considered VALID:
Premise:
Grantor
Grantee
Accurate Legal Description

Habendum:
Consideration
Granting Clause - (Words of conveyance)
Habendum Clause - (Defines ownership taken by the grantee) In a deed, the words that clarify the purpose of the deed, with the phrase: "TO HAVE AND TO HOLD" is called the Habendum Clause.
Designation of any limitations
Exceptions and Reservations

Testimonium:
Signature of grantor (Acknowledgment)
Delivery by the grantor and acceptance by the grantee
The date is not a requirement of a valid deed, but when a deed is recorded it is dated by the recorder of deeds.
A. General Warranty Deed, "I own it and I can convey it to you." A general warranty deed contains each of the five "covenants" or promises of the seller that are listed below:
1. Covenant of Seisin - "I guarantee that I own it and have the right to sell it."
2. Covenant of Quiet Enjoyment -"No one will interfere with your possession or right to use the property."
3. Covenant Against Encumbrances - "I promise there are no hidden liens or encroachments other than those stated in the deed."
4. Covenant of Further Assurance -"If there is a defect, I promise to take care of any problems."
5. Covenant of a Warranty Forever - "These promises go back as far as there were public records."
Special Warranty Deed
"I promise you that it's been clear since I've had it. I'm not making any promises before that." Seller is only making these promises during the time period in which he/she owned the property. "I will defend and correct any flaws in the title that occurred during the time that I owned it, but not before."
Bargain and Sale Deed
"I own it . . . but that's about it! I'm not going to make any promises."
Quitclaim Deed (Good luck! You're going to need it!)
"If I own it . . . and I'm not saying I do . . . then I give you my interest." Offers least amount of protection for the buyer. Grantor makes absolutely no promises. A quit claim deed is often used to clear up a misspelling before it becomes a cloud on the title.
Court-Ordered Deeds
A deed can convey (transfer) title. The difference in the deeds is in the promises a seller makes should there be a problem.
But what if there is a problem such as a misspelling or wrong legal description? Then there is a CLOUD on the title that must be cleared up with a QUIET THE TITLE LAWSUIT.
Parol Evidence Rule:
States that oral agreements, promises, and inducements made by the parties prior to entering into a written contract may not be used in court to dispute or contradict some written provision expressed in the contract.
Statute of Frauds: A state law that requires certain contracts to be in writing and signed by the party to be charged (or held) to the agreement in order to be legally enforceable in a court of law.Principal of Laches:Legal doctrine used to bar a claim asserted after the passing of a statutory period of time.Does a deed have to be recorded to be valid?No, a deed does not need to be recorded to be valid, but recording does protect the ownership interests of the Grantee (Buyer). It is not necessary for a date to be on a deed for it to be recorded. When a deed is recorded, the Recorder of Deeds will date it. Also, a deed would be presumed to have been delivered when it has been recorded.IF AN EASEMENT IS NOT RECORDED, IS IT VALID?Yes, the easement is valid between the parties, but, again it is best to record easements to prevent misunderstandings at a later date.Constructive Notice:Constructive notice (recording) is information that can be obtained from the public records at the courthouse.Actual Notice:Actual notice is that which is legally known, but not recorded. For example, posting or advertising in the newspaper, or that which can be seen by observing, such as an unrecorded easement.Caveat Emptor -Let the "buyer beware." Means that the buyer or his representative should check the records for any problems and physically examine the property to make sure everything is okay.Notarized Deeds:Although it doesn't have to be recorded to be valid, if you want to record it, it must be notarized. The person must go before a notary public and ACKNOWLEDGE that the signing of the deed was a voluntary act. The signature of the notary is called the Attestation.Grant Deed:This is the most commonly used instrument for transferring title to real estate. A grant deed contains two implied warranties: first, that the grantor has not already conveyed the title to anyone else; and second, that the estate is free of any encumbrances made by the grantor or anyone else claiming under the grantor, other than what has been disclosed to the grantor. (Implied warranties are NOT written into the deed, but ARE present.)Sheriff's Deed:Granted to the purchaser at a court-ordered sale. (If the sale is conducted by the Commissioner, the deed issued is called a Commissioner's deed.)The Gift Deed:Granted as a gift of love and affection. (No other consideration beyond "love and affection" is necessary, but such a deed is VOID if it is given to defraud creditors.)Tax Deed:Given if property is sold as a payment of past-due unpaid property taxes.Land Patent:Used by the government to grant public land to an individual.Trustee's Deed:Given to the purchaser of property at a trust deed foreclosure sale.Warranty Deed.Under a warranty deed, the grantor is held legally responsible to the grantee for the condition of the title. However, this type of deed is SELDOM used in California, because sellers in California are very reluctant to assume this much responsibility and liability.A Trust Deed, also known as a Deed of Trust, is NOT a deed.Rather, it is a three-part security device that pledges real property as security for the payment of a loan. A trust deed is a conveyance that gives legal - or "bare naked" - title to a trustee with the power to sell.A Reconveyance Deed, or Deed of Reconveyance, is another "deed" that is involved with the financing of real estate.This deed is executed by the trustee to the borrower, or trustor, and is not really a deed.In order to be accepted by the county recorder, a deed MUST contain all of the following:An acknowledgement (be notarized); The name and address to which future tax statements may be sent; The basis for the computation of the transfer tax; The names of all parties to the transaction; A complete legal description for identification of the property; and The payment of the recording fee.There are three basic methods of deed delivery:1. Manual delivery, which is the direct transfer from the grantor to the grantee; 2. Delivery through recording, which is the act of putting the title of record in the grantee's name at the county recorder's office; this is only permitted IF the grantee has agreed to the recording; or 3. Conditional delivery, which mandates that a specific event happen before the title can be passed, and then the title must be passed through a third party.Chandra and Fabian have heard that it is unnecessary to record a deed. Is this accurate?Yes, it is not necessary for a deed to be recorded. However, recording is advisable to protect the ownership interests of the grantee, establish priority, provide a record, and convey the transfer of title.Chandra is selling her condo to Fabian. Chandra's deed explains the property has been clear since her ownership. However, she cannot guarantee that is the case prior to buying the condo. Which deed covers this situation?Special WarrantyWhich of the following is not considered a basic real estate deed??Sheriff's deedWhich of the following deeds are not really deeds at all?Trust DeedWhich of the following statements in reference to a deed is untrue?A deed must be recorded in order to be valid.Jeffrey is selling his loft to Caroline. He is using a General Warranty Deed in the transfer of property. Which of the following covenants is not a requirement?Covenant of Exceptions and ReservationsShamus McManus purchased property from Sir Ian Wainwright under early English common law. Which of the following were acceptable methods of property transfer?1. The transfer of a rock, some dirt, or a branch of a tree (feoffment). 2. Livery of Seisin, the actual delivery of possession of the property. 3. A statement made in front of witnesses in sight of the land, and the new owner's entry onto that land.The signature of a notary public is known as:AttestationMelinda is selling her home to Trevion. The deed, conveying the property, will be a general warranty deed. Who is the Grantor? Who is the Grantee in the transaction?Melinda is the Grantor. Trevion is the Grantee.Maya, who lives in California, just purchased her first home at a Trustee's foreclosure sale. She was given a deed at the sale. What type of deed was she given?Trustee's Deed