Mo dern
Modern Real Estate Real Estate
Practice Practice
in North in NC
Carolina - Chapter
Chapter 5 1/2018
5 study guide with exam questions and answers
Study this set o nline at: https://www.cram.co m/flashcards/mo dern-real-estate-
practice-in-nc-chapter-5-1-2018-9492025
T he ri ght to ownershi p of the l and. T he word ti tl e i s al so used to ref er to the
documentary evi dence of the ri ght of ownershi p. T he word ti tl e ref ers to a
T i tl e summati on of al l thi ngs property owners possess to prove and protect thei r
ownershi p i nterest i n property.
E xampl e - deed
1. Represents the bundl e of l egal ri ghts the owner possesses i n the real estate.
2 f uncti ons of T i tl e 2. D enotes the f act that i f proven, enabl e a person to recover or retai n ownershi p or
possessi on of a parcel of real estate.
T ransf er of ti tl e, or act of transf erri ng property to another. A parcel of real estate
may be transf erred vol untari l y by sal e or gi f t, or i t may be taken i nvol untary by
Al i enati on
operati on of l aw. I n addi ti on, i t may be transf erred by wi l l or descent af ter a
person has di ed.
Most transacti ons uti l i zi ng real estate brokers i nvol ve vol untary al i enati on
(transf er) of ti tl e. T he transf er may be made by ei ther gi f t or sal e wi th the wi shes
Vol untary Al i enati on
and consent of the property owner. T o transf er ti tl e by vol untary al i enati on duri ng
an owner’s l i f eti me, that owner must use some f orm of deed.
1
, Mo dern
Modern Real Estate Real Estate
Practice Practice
in North in NC
Carolina - Chapter
Chapter 5 1/2018
5 study guide with exam questions and answers
Study this set o nline at: https://www.cram.co m/flashcards/mo dern-real-estate-
practice-in-nc-chapter-5-1-2018-9492025
A wri tten i nstrument by whi ch an owner of real estate i ntenti onal l y conveys ri ght,
D eed
ti tl e, or i nterest i n the parcel of real estate to another. I t i s evi dence of ti tl e.
Grantor Owner of the deed. A deed i s executed (si gned) onl y by the grantor(s).
Grantee Person that recei ves the ti tl e. T he grantee does not si gn the deed.
I n ref erence to parti es to a real estate i nstrument, such as a deed, the parti es are
Legal terms f or parti es i n real estate transacti ons. ref erred to i n l egal terms such as grantor and grantee. T he “OR” i s the gi ver of the
paper, and the “E E ” i s the recei ver of the paper.
2
, Mo dern
Modern Real Estate Real Estate
Practice Practice
in North in NC
Carolina - Chapter
Chapter 5 1/2018
5 study guide with exam questions and answers
Study this set o nline at: https://www.cram.co m/flashcards/mo dern-real-estate-
practice-in-nc-chapter-5-1-2018-9492025
E xampl es of Gi ver and Recei ver Ref er to page 84
A val i d deed must contai n certai n essenti al el ements, i ncl udi ng the f ol l owi ng:
- Must be i n wri ti ng
- T he grantor must have the l egal capaci ty to execute a deed
Requi rements f or a Val i d Conveyance - T he grantee named must wi th reasonabl e certai nty must be i denti f yi ng
North Carol i na - T here must be adequate words of conveyance
- T here must be an accurate l egal descri pti on of the property conveyed
- T he deed must be si gned by the grantors
- T he deed must be del i vered and vol untari l y accepted by the grantee
Must have a l egal exi stence, be of l awf ul age, and be l egal l y competent i n order
to convey ti tl e to real estate.
A grantor general l y i s hel d to have suf f i ci ent mental capaci ty to execute a deed i f
Requi rements to be a grantor
that grantor i s capabl e of understandi ng the acti on. A deed executed by a person
who i s mental l y i mpai red (f or exampl e - i ntoxi cati on) i s onl y voi dabl e - i t i s not
voi d. A deed executed by a person who has been j udged l egal l y i ncompetent i s
consi dered to be voi d.
A _______ conveys property to a ________ A grantor conveys property to a grantee
3
, Mo dern
Modern Real Estate Real Estate
Practice Practice
in North in NC
Carolina - Chapter
Chapter 5 1/2018
5 study guide with exam questions and answers
Study this set o nline at: https://www.cram.co m/flashcards/mo dern-real-estate-
practice-in-nc-chapter-5-1-2018-9492025
A ________ recei ves property f rom a ________ A grantee recei ves property f rom a grantor
A _______ i s the i nstrument that conveys property f rom a grantor to a grantee deed
T o be val i d, a deed must name both the grantor and the grantee i n a such a way
that they are readi l y i denti f i abl e. F urthermore, the grantee must be a real person,
ei ther a natural person or an arti f i ci al , such as a corporati on. A deed nami ng the
I denti f i cati on of a grantor and grantee grantee as a f i cti ti ous person, a company that does not exi st, or a soci ety or cl ub
that i s not property i ncorporated i s consi dered voi d. T he grantee cannot be dead,
but may be a mi nor. T he mi nor may recei ve real property vi a deed but may not
l egal l y convey the property (si gn a deed) unti l af ter turni ng 18.
Consi derati on (somethi ng of val ue) of some f orm must be stated. T o be l egal l y
bi ndi ng, the deed must express adequate consi derati on. Consi derati on i s the
pri ce pai d f or the promi ses stated i n the deed. Whi l e economi c val ue (e.g. money)
i s the most common f orm of consi derati on, consi derati on does not have to be
Consi derati on
money. D eeds can state that the property i s bei ng exchanged f or "l ove and
af f ecti on." D eeds i n many, i f not most, cases do not reci te the actual sal es pri ce.
I nstead, they si mpl y reci te "f or $10 pai d and good and val uabl e consi derati on,
the recei pt and suf f i ci ency of whi ch are hereby acknowl edged.
4
Modern Real Estate Real Estate
Practice Practice
in North in NC
Carolina - Chapter
Chapter 5 1/2018
5 study guide with exam questions and answers
Study this set o nline at: https://www.cram.co m/flashcards/mo dern-real-estate-
practice-in-nc-chapter-5-1-2018-9492025
T he ri ght to ownershi p of the l and. T he word ti tl e i s al so used to ref er to the
documentary evi dence of the ri ght of ownershi p. T he word ti tl e ref ers to a
T i tl e summati on of al l thi ngs property owners possess to prove and protect thei r
ownershi p i nterest i n property.
E xampl e - deed
1. Represents the bundl e of l egal ri ghts the owner possesses i n the real estate.
2 f uncti ons of T i tl e 2. D enotes the f act that i f proven, enabl e a person to recover or retai n ownershi p or
possessi on of a parcel of real estate.
T ransf er of ti tl e, or act of transf erri ng property to another. A parcel of real estate
may be transf erred vol untari l y by sal e or gi f t, or i t may be taken i nvol untary by
Al i enati on
operati on of l aw. I n addi ti on, i t may be transf erred by wi l l or descent af ter a
person has di ed.
Most transacti ons uti l i zi ng real estate brokers i nvol ve vol untary al i enati on
(transf er) of ti tl e. T he transf er may be made by ei ther gi f t or sal e wi th the wi shes
Vol untary Al i enati on
and consent of the property owner. T o transf er ti tl e by vol untary al i enati on duri ng
an owner’s l i f eti me, that owner must use some f orm of deed.
1
, Mo dern
Modern Real Estate Real Estate
Practice Practice
in North in NC
Carolina - Chapter
Chapter 5 1/2018
5 study guide with exam questions and answers
Study this set o nline at: https://www.cram.co m/flashcards/mo dern-real-estate-
practice-in-nc-chapter-5-1-2018-9492025
A wri tten i nstrument by whi ch an owner of real estate i ntenti onal l y conveys ri ght,
D eed
ti tl e, or i nterest i n the parcel of real estate to another. I t i s evi dence of ti tl e.
Grantor Owner of the deed. A deed i s executed (si gned) onl y by the grantor(s).
Grantee Person that recei ves the ti tl e. T he grantee does not si gn the deed.
I n ref erence to parti es to a real estate i nstrument, such as a deed, the parti es are
Legal terms f or parti es i n real estate transacti ons. ref erred to i n l egal terms such as grantor and grantee. T he “OR” i s the gi ver of the
paper, and the “E E ” i s the recei ver of the paper.
2
, Mo dern
Modern Real Estate Real Estate
Practice Practice
in North in NC
Carolina - Chapter
Chapter 5 1/2018
5 study guide with exam questions and answers
Study this set o nline at: https://www.cram.co m/flashcards/mo dern-real-estate-
practice-in-nc-chapter-5-1-2018-9492025
E xampl es of Gi ver and Recei ver Ref er to page 84
A val i d deed must contai n certai n essenti al el ements, i ncl udi ng the f ol l owi ng:
- Must be i n wri ti ng
- T he grantor must have the l egal capaci ty to execute a deed
Requi rements f or a Val i d Conveyance - T he grantee named must wi th reasonabl e certai nty must be i denti f yi ng
North Carol i na - T here must be adequate words of conveyance
- T here must be an accurate l egal descri pti on of the property conveyed
- T he deed must be si gned by the grantors
- T he deed must be del i vered and vol untari l y accepted by the grantee
Must have a l egal exi stence, be of l awf ul age, and be l egal l y competent i n order
to convey ti tl e to real estate.
A grantor general l y i s hel d to have suf f i ci ent mental capaci ty to execute a deed i f
Requi rements to be a grantor
that grantor i s capabl e of understandi ng the acti on. A deed executed by a person
who i s mental l y i mpai red (f or exampl e - i ntoxi cati on) i s onl y voi dabl e - i t i s not
voi d. A deed executed by a person who has been j udged l egal l y i ncompetent i s
consi dered to be voi d.
A _______ conveys property to a ________ A grantor conveys property to a grantee
3
, Mo dern
Modern Real Estate Real Estate
Practice Practice
in North in NC
Carolina - Chapter
Chapter 5 1/2018
5 study guide with exam questions and answers
Study this set o nline at: https://www.cram.co m/flashcards/mo dern-real-estate-
practice-in-nc-chapter-5-1-2018-9492025
A ________ recei ves property f rom a ________ A grantee recei ves property f rom a grantor
A _______ i s the i nstrument that conveys property f rom a grantor to a grantee deed
T o be val i d, a deed must name both the grantor and the grantee i n a such a way
that they are readi l y i denti f i abl e. F urthermore, the grantee must be a real person,
ei ther a natural person or an arti f i ci al , such as a corporati on. A deed nami ng the
I denti f i cati on of a grantor and grantee grantee as a f i cti ti ous person, a company that does not exi st, or a soci ety or cl ub
that i s not property i ncorporated i s consi dered voi d. T he grantee cannot be dead,
but may be a mi nor. T he mi nor may recei ve real property vi a deed but may not
l egal l y convey the property (si gn a deed) unti l af ter turni ng 18.
Consi derati on (somethi ng of val ue) of some f orm must be stated. T o be l egal l y
bi ndi ng, the deed must express adequate consi derati on. Consi derati on i s the
pri ce pai d f or the promi ses stated i n the deed. Whi l e economi c val ue (e.g. money)
i s the most common f orm of consi derati on, consi derati on does not have to be
Consi derati on
money. D eeds can state that the property i s bei ng exchanged f or "l ove and
af f ecti on." D eeds i n many, i f not most, cases do not reci te the actual sal es pri ce.
I nstead, they si mpl y reci te "f or $10 pai d and good and val uabl e consi derati on,
the recei pt and suf f i ci ency of whi ch are hereby acknowl edged.
4
