Unit 3 — Transfer of Title

Vocabulary flashcards covering the key terms and concepts related to the transfer of real estate title, including deed types, legal clauses, and methods of alienation.

Deed

An instrument used to transfer ownership/title to real estate.

Voluntary alienation

The voluntary transfer of property ownership, usually by deed or will.

Statute of Frauds

The law requiring that deeds must be in writing to be enforceable.

Grantor

The seller or individual transferring the property; must be competent (18, sane, and sober).

Grantee

The buyer or individual receiving the property; must be identifiable but does not need to be competent.

Consideration

Money or something of value exchanged in the transfer of property.

Granting clause

The part of a deed that shows the intent to transfer ownership.

Habendum clause

The part of a deed that defines the type of ownership being granted.

Delivery and Acceptance

The specific moment when the title to a property actually transfers.

General warranty deed

The most common type of deed providing the greatest protection to the buyer through five covenants.

Covenant of seisin

A promise in a general warranty deed that the grantor owns the property and has the right to transfer it.

Covenant against encumbrances

A promise that there are no undisclosed encumbrances on the property.

Covenant of quiet enjoyment

A promise that the buyer will not face ownership claims from others.

Covenant of further assurance

An agreement where the grantor promises to help defend the title if needed.

Special warranty deed

Also known as a limited warranty deed, this only covers problems that occurred during the grantor’s ownership period.

Bargain and sale deed

A deed that promises only that the grantor owns the property and can transfer it, without further warranties.

Quitclaim deed

A deed that makes no promises or warranties; often used for divorces, lawsuits, or clearing title issues.

Deed of trust

A security instrument similar to a mortgage where a trustee holds title for the lender.

Reconveyance deed

A deed used to transfer title back to the borrower after a deed of trust loan is paid in full.

Trustee’s deed

A deed used when property held in a trust is transferred.

Executor’s deed

A deed used to transfer property ownership from an estate.

Sheriff’s deed

A deed issued after a foreclosure or court-ordered sale.

Land patent

The instrument used by the government to transfer land to private owners.

Dedication

The transfer of private property to the government, commonly seen in subdivision plat maps.

Title

Ownership rights in a property.

Alienation

The general term for the transfer of property ownership.

Involuntary alienation

The transfer of property without the owner’s consent.

Devise

The transfer of real property through a will.

Bequest

The transfer of personal property through a will.

Testate

Status of a person who dies with a valid will.

Intestate

Status of a person who dies without a valid will.

Probate

The court process for distributing a deceased person’s assets.

Intestate succession

State laws that determine how property transfers when someone dies without a will.

Escheat

The transfer of property to the state when someone dies without a will and without heirs.

Eminent domain

The right of the government to take private property for public use.

Foreclosure

The taking of property due to the owner's failure to pay a debt.

Adverse possession

Gaining ownership by possessing property openly, continuously, exclusively, actually, notoriously, and hostilely for a legal time period.

Easement by prescription

A court-granted right to use another's property after a long-term period of use.

Recording

The act of placing documents into public records, typically at the county level.

Constructive notice

Knowledge that is considered available to the public through public records.

Actual notice

Direct knowledge obtained from a physical inspection of the property.

Marketable title

A title that is free from reasonable doubt and clear for transfer.

Title insurance

Insurance that protects against title defects, usually paid as a one-time premium at closing.

Standard title insurance

Covers recorded defects and hidden title problems.

Extended title insurance

Covers standard defects plus inspection-related issues such as encroachments.

Lender’s title policy

A title insurance policy specifically protecting the lender's interests.

Owner’s title policy

A title insurance policy specifically protecting the buyer or owner.

Affiliated business arrangement

A situation where a brokerage has an ownership interest in related service companies.

Chain of title

The chronological history of property ownership.

Title search

The review of public records to identify any defects or encumbrances.

Abstract of title

A summary of all recorded documents that affect the title of a property.

Cloud on title

Any claim or issue that affects a clear and clean ownership.

Quiet title action

A lawsuit utilized to resolve disputes regarding property title.