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49 Cards in this Set
- Front
- Back
Title to land
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Right to own land and documentation of ownership
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Alienation
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Transferring title from one person to another
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Types of Alienation (2)
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1) Voluntary - giving or willing title
2) Involuntary - losing title through legal process |
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Deed
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Written document proving ownership of property
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Grantor
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Owner pre-alienation
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Grantee
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Person receiving property
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Who has to sign?
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Grantor ONLY
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Requirements for conveyance (7 things)
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1) In writing
2) Grantor must have legal capacity to execute deed 3) Grantor AND Grantee must be identified 4) Adequate words of conveyance 5) Accurate legal description of the property 6) Deed must be signed by grantor 7) Deed must be delivered and voluntarily accepted by grantee |
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Are oral property transfers legal? (If not, why not?)
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NO, NC Statute of Frauds says deeds and deed transfers MUST BE IN WRITING
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Words of conveyance called?
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Granting Clause
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(Deeds) Consideration, Recorded, Dated, Notarized, Witnessed
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Things deeds do NOT need to be legal
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Conner Act
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First grantee to record the deed has legal rights to the property
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3 Common forms of deeds
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1) General Warranty Deed
2) Special Warranty Deed 3) Quitclaim Deed |
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General Warranty Deeds
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Provides most protection of any deed
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Covenants of General Warranty Deed (4)
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1) Sesin - right to transfer title
2) Encumbrances - Property is free of liens or encumbrances not on record 3) Quiet Enjoyment - title is good against 3rd party action 4) Warranty forever - If title fails at any time in the future, grantor will be liable |
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Special warranty deed
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Deed that has only 2 warranties
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Warranties of special warranty deed (2)
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1) Grantor holds valid right to transfer property
2) Property is unencumbered |
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Remise, release, alienate, convey
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Granting clauses commonly found in special warranty deeds
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Quitclaim deed
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No warranties or covenants given. Deed used to simply say they do not hold title to the deed.
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Defect in title (also called and what cures it?)
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Called: cloud in the title
Cured: Quitclaim deed |
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Correction deed
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Used when previous deed has an error
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Deed of gift
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Property is conveyed as a gift; no excise tax
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Time limit for recording gift of property
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2 Years
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Deed of release
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Releases property from mortgage when paid
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Deed in lieu of foreclosure
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Borrower has defaulted on loan; lender agrees to simply take the deed instead of going through foreclosure (tax issues)
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Trustee's Deed
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Trustee transferring title to anyone other than trustor
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Timber / Mineral deed
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Used for rights to use land for specific purposes
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Excise tax
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Tax paid after selling real property; based on the sales price of the property; also called revenue stamps
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Excise tax / Revenue Stamps value (cost)
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$1 for every $500 the property is sold for (always a whole dollar amount)
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No need to pay excise taxes (When?)
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Gov't transfer of property, transfer by will / testate, deed of gift w/ no consideration, transfer by merger / consolidation, transfer be lease for term of years, transfer by instrument for securing debt (mortgage or deed of trust)
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Involuntary alienation
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Involuntary transfer of land rights
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Escheat
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When person dies intestate (without will) and with no heirs, title reverts to the state
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Eminent domain
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Private property is taken for public use and good
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Condemnation
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How eminent domain is exercised
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3 conditions for taking by eminent domain
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1) Use benefits the public
2) Equitable amount of compensation will be paid to the owner 3) Rights of property owner are protected |
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Quick take
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When lawful, private property can immediately be transferred to the public good
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Adverse possession
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Taking land from another - may lose title if not used for a given number of years
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Requirements for adverse possession (O.C.E.A.N.)
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Property ownership must be: Open, Continuous, Exclusive, Adverse to true owner's possession, and Notorious (without permission of the owner)
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NC Intestate Succession Act
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If A dies intestate (without will), B is appointed to administer their estate to their heirs
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Marketable title
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Clear (not cloudy) title
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5 criteria for marketable title
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1) Title is free from encumbrances and liens
2) There are no serious defects 3) Title is free of doubtful questions to prove validity 4) There are no hazards of litigation 5) Convinces a reasonable person title can be passed |
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Title search
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Examination of public record that affects chain of title
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Chain of title
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Ownership interests from person to person
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Abstract of title
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Condensed history of title of property
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Suit to quiet title
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Lawsuit establishing ownership of title if there is a gap in ownership
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Marketable title act
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If chain of title can be traced back 30 years, there is marketable title
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Title insurance
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Insurance against losses incurred due to defect in the title
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Regulate title insurance vs. ALTA insurance (difference?)
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ALTA covers problems that may be discovered only by inspection of property
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Time required after which there is no adverse possession (w/ & w/o color of title)
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With color of title: 7 years
Without color of title: 20 years |