Real Estate Law Chapter 11

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Questions and Answers

What is a deed?

A type of lease.

A legal written instrument by which an owner conveys an ownership interest in real property. (correct)

A verbal agreement between parties.

An informal document.

List one element in a deed.

Written Instrument

What is a 'strawman' in legal terms?

A substitute or dummy party to a contract.

A deed must explicitly state the intention to transfer an interest in real property, known as ______________.

Words of Conveyance Signup and view all the answers

The Habendum clause indicates the type of title being conveyed.

True Signup and view all the answers

What must a deed have to be valid?

Tangible consideration Signup and view all the answers

What is created by a discrepancy in the grantor's name on the deed?

Cloud on Title Signup and view all the answers

What type of clause is 'to have and to hold forever'?

Habendum clause Signup and view all the answers

What is a deed reservation?

A right that the grantor has but is not going to convey. Signup and view all the answers

What is a deed exception?

A right that the grantor does not have and is not able to convey. Signup and view all the answers

What are mineral rights classified as?

Appurtenance Signup and view all the answers

What are restrictions for subdivisions called?

Restrictive covenants or deed restrictions. Signup and view all the answers

What legal description is required on deeds in Indiana?

Full legal description used in previous deeds. Signup and view all the answers

What is the purpose of an acknowledgment?

To prevent forged or fraudulent documents from taking effect. Signup and view all the answers

Which type of deed offers the maximum number of warranties and covenants?

General Warranty Deed Signup and view all the answers

What happens when a title is conveyed by a different type of deed than the one used previously?

Future liability only goes back to the start of the next succession of warranty deeds. Signup and view all the answers

Match the following definitions with the corresponding terms:

Covenant of Seisin = Guarantees the grantor owns the property and has a right to convey it. Covenant Against Encumbrances = Guarantees that there are no monetary claims against the property. Covenant of Quiet Enjoyment = Guarantees the grantee will not be disturbed in possession of the property. Covenant of Warranty Forever = Guarantees the grantee will have title free from claims of third parties. Signup and view all the answers

Study Notes

Deeds Overview

A deed is a legal document that conveys ownership interest in real property from a grantor to a grantee.

Elements of a Deed

Required elements include:
- Written instrument
- Date of execution
- Named parties (Grantor and Grantee)
- Consideration (or recital thereof)
- Words of conveyance
- Legal description of the property
- Exceptions and restrictions
- Warranties and covenants
- Grantor's signature
- Delivery and acceptance
- Acknowledgment
- Recording

Key Terms

Strawman: A placeholder in a contract representing an undisclosed true party.
Words of Conveyance: Indicate the intent to transfer an interest in real property.
Habendum Clause: Specifies the type of title being conveyed (e.g., fee simple absolute, life estate).

Types of Deeds

General Warranty Deed: Offers maximum warranties against title defects arising both during and before grantor's ownership.
Special Warranty Deed: Limits warranties to actions taken by the current grantor only.
Quitclaim Deed: Provides no warranties; the grantor does not guarantee ownership or rights to the property.

Covenants

Covenant of Seisin: Guarantees the grantor owns the property and can convey it.
Covenant Against Encumbrances: Asserts there are no monetary claims against the property unless specified.
Covenant of Further Assurance: Requires the grantor to rectify issues with the title.
Covenant of Quiet Enjoyment: Protects the grantee from eviction and disturbances.
Covenant of Warranty Forever: Ensures the grantee’s title and possession are free of third-party claims.

Legal Concepts

Cloud on Title: Arises from discrepancies in the grantor’s name on the deed.
Constructive Notice: Knowledge a person is expected to have because it could be discovered through public records.
Actual Notice: Direct knowledge of a fact, such as a sale of property.

Exceptions and Reservations

Deed Reservation: Rights the grantor retains but does not convey (e.g., mineral rights).
Deed Exception: Rights not held by the grantor and therefore not conveyed (e.g., previously owned mineral rights).

Restrictions

Restrictive Covenants: Limitations established for subdivisions benefiting all landowners and "run with the land."

Indiana Specifics

Requires a full legal property description in all deeds, consistent with prior documents.
All documents meant to convey, transfer, or change title require endorsement from the Auditor's Office before recording.

Important Legal Protections

Acknowledgment: A process to prevent forgery and fraudulent documents from taking effect.
Recording: While not mandatory, advisable for public record keeping of deeds.

Quiz Points

Key quiz points provide scenarios for understanding types of warranties, the significance of clauses, and recognition of deed characteristics.

Final Concepts

Types of deeds determine the number of warranties and covenants involved.
Future liability can be affected by the type of deed used in property transactions.

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Description

Test your knowledge of key terms and definitions from Chapter 11 of Real Estate Law. This quiz focuses on essential elements in deeds, including their definitions and functions. Strengthen your understanding of real property ownership and legal instruments by exploring these flashcards.