Podcast
Questions and Answers
Which of the following statements about a deed's validity is accurate?
Which of the following statements about a deed's validity is accurate?
- A deed must always be in writing to be valid.
- A property description is mandatory for a deed's validity.
- A deed cannot be valid if the grantee is legally incompetent.
- It can still be valid even if it has not been signed by the grantor. (correct)
Accession occurs when:
Accession occurs when:
- A piece of property is sold.
- Property is inherited by heirs.
- A property is abandoned by its owner.
- Improvements are made to the property. (correct)
Which type of deed provides the least amount of protection to the grantee?
Which type of deed provides the least amount of protection to the grantee?
- Special warranty deed
- Quitclaim deed (correct)
- Bargain and sale deed
- General warranty deed
What is the term that refers to the reversion of property to the state?
What is the term that refers to the reversion of property to the state?
What would the discrepancy in Joan Harris's marital name create?
What would the discrepancy in Joan Harris's marital name create?
Which situation does NOT fall under the risks covered by an ALTA policy?
Which situation does NOT fall under the risks covered by an ALTA policy?
When Marta receives personal property through a will, what is she called?
When Marta receives personal property through a will, what is she called?
Which organization holds the right of eminent domain?
Which organization holds the right of eminent domain?
Why is Ed's argument about the conveyance being set aside unlikely to succeed?
Why is Ed's argument about the conveyance being set aside unlikely to succeed?
Which process is not involved in the issuance of a standard title insurance policy?
Which process is not involved in the issuance of a standard title insurance policy?
When a title company is conducting a title search, what would be the primary record they examine?
When a title company is conducting a title search, what would be the primary record they examine?
What is the significance of recording a deed?
What is the significance of recording a deed?
Which statement about the power of attorney given by Chen to his son is true?
Which statement about the power of attorney given by Chen to his son is true?
The power of eminent domain can be exercised by which of the following entities?
The power of eminent domain can be exercised by which of the following entities?
Which situation would a standard policy of title insurance NOT protect against?
Which situation would a standard policy of title insurance NOT protect against?
What is true regarding an owner’s title insurance policy?
What is true regarding an owner’s title insurance policy?
What condition could still validate a deed?
What condition could still validate a deed?
Which deed is least likely to include implied covenants made by the grantor?
Which deed is least likely to include implied covenants made by the grantor?
What occurs when a buyer accedes to the terms of a contract?
What occurs when a buyer accedes to the terms of a contract?
Why is recording a deed significant?
Why is recording a deed significant?
Which statement is false regarding a power of attorney?
Which statement is false regarding a power of attorney?
What does the issuance of a standard title insurance policy NOT involve?
What does the issuance of a standard title insurance policy NOT involve?
What effect does the delivery of a deed have on the property's legal status?
What effect does the delivery of a deed have on the property's legal status?
Which of the following is NOT covered by an ALTA policy?
Which of the following is NOT covered by an ALTA policy?
What does a discrepancy in the name of the grantor typically indicate?
What does a discrepancy in the name of the grantor typically indicate?
When Marta receives property through a will, which term describes her status?
When Marta receives property through a will, which term describes her status?
Which of the following is a right of quasi-public organizations?
Which of the following is a right of quasi-public organizations?
What is the effect of a trust deed executed by an attorney in fact?
What is the effect of a trust deed executed by an attorney in fact?
Flashcards
Eminent Domain
Eminent Domain
The power of the government to take private property for public use, even if the owner doesn't want to sell.
Title Insurance
Title Insurance
A contract that protects the buyer from financial loss due to title problems. It doesn't cover all risks.
Accession
Accession
When a property owner gains additional land through natural processes, such as a river changing course.
General Warranty Deed
General Warranty Deed
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Special Warranty Deed
Special Warranty Deed
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Grant Deed
Grant Deed
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Quitclaim Deed
Quitclaim Deed
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Recording a Deed
Recording a Deed
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Title Search
Title Search
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ALTA Policy
ALTA Policy
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Escheat
Escheat
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Devisee
Devisee
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Legatee
Legatee
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Discrepancy in Grantor Name
Discrepancy in Grantor Name
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Study Notes
Chapter 3 Quiz - Key Concepts
- Eminent Domain: Used by cities, public utilities, and public universities.
- Title Insurance: Protects against defects in the title to real property. Standard policies protect against forgery of deeds, lack of capacity in prior transactions, easements, liens not on public record, and delivery of deeds where the grantor didn't intend to convey title.
- Accession: Enlarging property through natural processes (accretion).
- Deeds: A deed is a valid conveyance even without being in writing, as long as it is signed by the grantor. However, a deed must be signed by the grantor, in writing, and have a description of the property to be completely valid. Even if the grantee is not competent, a deed can be valid if it meets certain requirements.
- Title Insurance Differences: Owner's policies protect the owner, while lender's policies protect the lender. This distinguishes between the interests each party is trying to secure and protect.
- Deed Validity: A deed can be valid even if the grantee is not competent, as long as it's in writing, and the grantor is competent (of legal age and sound mind).
- Implied Covenants: General and Special warranty deeds have implied covenants which are not found in quitclaim deeds, which contain no covenants.
- Title Searches: Title searches require examining public records at the county clerk's/recorder's office and potentially the federal land office.
- Recording a Deed: Recording gives constructive notice and finalizes the transaction.
- ALTA Policies: Extend beyond standard policies, covering unrecorded easements, zoning regulations, and unrecorded mechanic's liens.
Transfer of Real Property
- Title Insurance Issue (Process): Standard title insurance processes include title examination/investigation, determination of insurance amount, protections against title defects, and boundary line determination.
- Power of Attorney: Issues with a power of attorney involving a property sale include that the power of attorney must define the property; the agent may not sell it to themselves, and the attorney-in-fact can act on behalf of the principal.
- Title Company Issue (ALTA Policy): ALTA policies protect against title defects, beyond the standard, particularly in possession rights, unrecorded easements, zoning effects, and unrecorded mechanic's liens. This additional coverage extends beyond public records.
- Escheat: Property reverts to the state when a person dies without heirs.
- Legal Terms: Key terms like executor, devisee, testator, and legatee are used in will contexts, relating to the transfer of property.
Answer Key - Additional Information
- Eminent Domain: The government's right to take private property for public use.
- Recording Deeds: Recording a deed establishes ownership and provides notice to the public.
- Title Insurance: Provides protection against title defects and risks associated with ownership or financing of real estate.
- Quitclaim Deed: A deed with no warranties, transferring any interest the grantor may have.
- Title Search Documents: Includes public records from federal, county, state, and/or other relevant government offices.
- Competent Parties: A person must have the legal capacity to execute a deed (sign and agree to it) in order for it to be valid (e.g., of legal age and sound mind).
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