Legal Aspects of Real Estate - Final Exam Complete
Solution, Verified 100%
Lien
A claim against another's property securing either payment of a debt or fulfillment of
some other monetary exchange
Mechanic's Lien
The right of one who renders services or supplies materials in connection with the
improvement of real property to seek a judicial sale of the realty to satisfy unpaid claims
Judgment Lien
Lien that automatically attaches to real property of a defendant when a plaintiff wins a
judgment in the jurisdiction in which the property is located; attaches generally to all
property; comes from a lawsuit against you (civil lawsuits); tenants by the entirety would
save the force-of-sale of your principal residence as long as this lien is only against one
of you
Lis Pendens
A recorded document that gives constructive notice that an action has been filed that
might affect the title or possession of a specified parcel of real estate
Attachment
the act of seizing a defendant's property by legal process, to be held by the court to
ensure satisfaction of any judgment that might be awarded (hard to evade creditors due
to instances of ownership)
Tax lien
a lien imposed against real property for payment of taxes (does not apply to income
taxes)
General Warranty Deed or Full Warranty Deed
conveys the sellers title and contains covenants of title, or warranties.
Five Customary Covenants
Covenant of Seisin; Covenant Against Encumbrances; Covenant of quiet enjoyment;
covenant of warranty; covenant of further assurances
Covenant of Seisin
Covenant Against Encumbrances
assurance that, at the time of conveyance, the property is free of encumbrances
Covenant of Quiet Enjoyment
warrants that the buyer will not be evicted by someone with superior title; no one can
claim they own it
Covenant of Warranty
warrants that the warrantor will defend title on behalf of the purchaser against all lawful
claimants; will defend the purchasor
Covenant of Further Assurances
Special Warranty Deed or Limited Warranty Deed
Restricts the extent of seller's warranties - for so long as we own the property, were
assuring that no one else has superior title; limiting the amount of time that the warranty
is viable; start when grantor first acquired property; only cover against past events (both
general and special)
, Bargain and Sale Deed
a deed that conveys the title with no warranties; granting and saying we own it
Quitclaim deed
an instrument that transfers the grantor's interest only; it doesn't purport to convey title;--
common application is in divorce settlement (person may sign over his/her house, but
house could have mortgages attached to it)
Fiduciary
person placed by law in a position of trust regarding another's property
Fiduciary deed
form of quitclaim deed?; a deed that conveys title and contains no warranties except
that the grantor has the authority to transfer title
Competent Grantor
Minors; mentally incapacitated (evidence of grantor's incompetency must be clear and
convincing to cancel a deed for lack of mental capacity; if already adjudicated mentally
incapable, then the deed is already void); corporations (special rules apply);
partnerships (uniform partnership act or similar statute);
Aspects of a Deed
Identifiable Grantee; Adequate legal description; proper execution; delivery and
acceptance; deed restrictions; affirmative covenant; covenants conditions and record;
termination
Identifiable Grantee
A deed does not convey title unless it names an existing, identifiable grantee
Adequate legal description
Most courts interpret works of description liberally in order to uphold a conveyance
Proper Execution
to be valid, a deed must be signed by the grantor; attestation, acknowledgment, general
power of attorney are required steps
Attestation
the act of witnessing the execution of an instrument and subscribing as a witness
Acknowledgment
the act by which a grantor declares, before a duly authorized official that a deed is
genuine and executed voluntarily
General Power of Attorney
written instrument authorizing a person, the attorney-in-fact, to act as agent on behalf of
a principal (needs witness and notary); if someone other than the owner signs the
original deed, deed and POA must both be recorded—not favorable due to messy chain
of title
Delivery and Acceptance
A deed does not transfer title until delivered by the grantor and accepted by the grantee;
the grantor must intend to pass title and surrender control of the instrument
Escrow
process where money and/or documents are delivered to, and held by, a third party until
the terms and conditions of an escrow agreement are satisfied; deed signed does not
mean deal is complete - sometimes held in escrow until money is granted
Grantor
Grantee
Solution, Verified 100%
Lien
A claim against another's property securing either payment of a debt or fulfillment of
some other monetary exchange
Mechanic's Lien
The right of one who renders services or supplies materials in connection with the
improvement of real property to seek a judicial sale of the realty to satisfy unpaid claims
Judgment Lien
Lien that automatically attaches to real property of a defendant when a plaintiff wins a
judgment in the jurisdiction in which the property is located; attaches generally to all
property; comes from a lawsuit against you (civil lawsuits); tenants by the entirety would
save the force-of-sale of your principal residence as long as this lien is only against one
of you
Lis Pendens
A recorded document that gives constructive notice that an action has been filed that
might affect the title or possession of a specified parcel of real estate
Attachment
the act of seizing a defendant's property by legal process, to be held by the court to
ensure satisfaction of any judgment that might be awarded (hard to evade creditors due
to instances of ownership)
Tax lien
a lien imposed against real property for payment of taxes (does not apply to income
taxes)
General Warranty Deed or Full Warranty Deed
conveys the sellers title and contains covenants of title, or warranties.
Five Customary Covenants
Covenant of Seisin; Covenant Against Encumbrances; Covenant of quiet enjoyment;
covenant of warranty; covenant of further assurances
Covenant of Seisin
Covenant Against Encumbrances
assurance that, at the time of conveyance, the property is free of encumbrances
Covenant of Quiet Enjoyment
warrants that the buyer will not be evicted by someone with superior title; no one can
claim they own it
Covenant of Warranty
warrants that the warrantor will defend title on behalf of the purchaser against all lawful
claimants; will defend the purchasor
Covenant of Further Assurances
Special Warranty Deed or Limited Warranty Deed
Restricts the extent of seller's warranties - for so long as we own the property, were
assuring that no one else has superior title; limiting the amount of time that the warranty
is viable; start when grantor first acquired property; only cover against past events (both
general and special)
, Bargain and Sale Deed
a deed that conveys the title with no warranties; granting and saying we own it
Quitclaim deed
an instrument that transfers the grantor's interest only; it doesn't purport to convey title;--
common application is in divorce settlement (person may sign over his/her house, but
house could have mortgages attached to it)
Fiduciary
person placed by law in a position of trust regarding another's property
Fiduciary deed
form of quitclaim deed?; a deed that conveys title and contains no warranties except
that the grantor has the authority to transfer title
Competent Grantor
Minors; mentally incapacitated (evidence of grantor's incompetency must be clear and
convincing to cancel a deed for lack of mental capacity; if already adjudicated mentally
incapable, then the deed is already void); corporations (special rules apply);
partnerships (uniform partnership act or similar statute);
Aspects of a Deed
Identifiable Grantee; Adequate legal description; proper execution; delivery and
acceptance; deed restrictions; affirmative covenant; covenants conditions and record;
termination
Identifiable Grantee
A deed does not convey title unless it names an existing, identifiable grantee
Adequate legal description
Most courts interpret works of description liberally in order to uphold a conveyance
Proper Execution
to be valid, a deed must be signed by the grantor; attestation, acknowledgment, general
power of attorney are required steps
Attestation
the act of witnessing the execution of an instrument and subscribing as a witness
Acknowledgment
the act by which a grantor declares, before a duly authorized official that a deed is
genuine and executed voluntarily
General Power of Attorney
written instrument authorizing a person, the attorney-in-fact, to act as agent on behalf of
a principal (needs witness and notary); if someone other than the owner signs the
original deed, deed and POA must both be recorded—not favorable due to messy chain
of title
Delivery and Acceptance
A deed does not transfer title until delivered by the grantor and accepted by the grantee;
the grantor must intend to pass title and surrender control of the instrument
Escrow
process where money and/or documents are delivered to, and held by, a third party until
the terms and conditions of an escrow agreement are satisfied; deed signed does not
mean deal is complete - sometimes held in escrow until money is granted
Grantor
Grantee
