texas law of contracts unit 9

title

the ownership of the land and bundle of right; deed conveys property from a grantor to a grantee

voluntary alienation

voluntary transfer of title (gift or sale)

deed

written instrument that tells ownership

grantor

transfers the title

grantee

acquires the title

Requirements for a valid deed

• Grantor has legal competency to execute the deed

• Grantee named with reasonable certainty to be identified

• Statement of Consideration

• Granting clause (words of conveyance)

• Habendum clause-defines the ownership right received by the grantee

• Accurate legal description of land

• Any relavant exemptions or reservations

• Acknowledgment of signature of grantor

• Delivery of deed and acceptance by grantee to pass title

General warranty deed

greatest protection to buyer

Covenant of seisen

grantors promise they own the property and to give the title to the grantee

convenant against encumbrance

promise to grantee that the property doesn't have liens or encumbrances

covenant of quiet enjoyment

promise that the property is safe against 3rd parties

Convenant of further assurance

grantor promises to obtain and deliver any document needed to make the title good

Covenant of warranty forever

grantor promises to compensate the grantee for any loss if the title fails in the future

Special warranty deed

• the grantor received a title

• property was not encumbered during grantor' s time

bargain and sale deed

• no warranty against encumbrances

• assumes that the grantor holds title and possesion of property

quitclaim deed

• least protection to buyer

• no warranties

• used to convey less fee simple title or to cure a title defect

cloud on title

• a defect on the title

Deed of Trust (Trust Deed)

a trustor (borrower) conveys real estate to a trustee (uninterested 3rd party) for the benefit of the trustor

• real estate is held by the trustee to fulfill the purpose of the trust

reconveyance deed

• gives title back to the trustor after finishing the deed of trust

deed executed pursuant to a court order

Established by state statute and are used to convey title to property that is transferred by will or by court order.

Transfer Tax Stamps

• paid upon conveyance of real estate (when the deed is recorded)

• paid according to agreement in contract (buyer, seller, or both, depends)

Involuntary alienation

A transfer of title to real property without the owner's consent .

transfer by adverse possesion

one who isn't the owner can make a claim and take property away

things needed for adverse possesion

LA CHONA

• continous (over and over again)

• hostile (w/o owner's consent)

• open (everyone can see)

• notorious (everyone knows)

• adverse

Transfer of title by will

legal requirements:

• legal capacity

• signed (has some witnesses)

• according to laws of state

transfer of title by descent

• heirs

• varies from state to state

Probate Proceedings

process

• proves or confirms the validity of a will

• determines the precise assets of the deceased

• identifies who to gives to assets to

• distributes only the assets that do not distribute themselves

Transfer on Death Deed (TODD)

• transfer interest in real property back to beneficiary

• doesn't go through probate

• must be recorded where the property is located before death

public records

• records that are open to the public

recording

The act of placing documents in the public record.

Constructive Notice

The legal presumption that information has been obtained by an individual through due diligence.

actual notice

The actual knowledge that a person has about the existence of a particular fact.

priority

order of when documents were recorded

• affects rights in a parcel of real estate

chain of title

• record of a property's ownership

Cloud on Title

a title defect, or something wrong with a title like a lien

suit to quiet title

A court action intended to establish or settle the title to a particular property, especially when there is a cloud on the title.

Title Search

an examination of all public records to determine whether any defects exists in the chain of title

Abstract of Title

summary report of the title search; prepared by an abstractor

Marketable title

• seller is required to deliver to buyer at closing

• has no serious defects

• not expose hazard litigation or threaten quiet enjoyment

• convince buyer that they can sell or mortgage the property in the future

Title that is not marketable

• can still be transferred

• limits ownership

• buyer can't be forced to accept

• opportunity to cure defects

certificate of title

proof of ownership, doesn't reveal unrecorded liens or rights of parties in possesion

Title insurance

issued as an owner's policy or mortgagee's (lender) policy under which the insured is protected from losses arising from defects in title, insures against hidden defects and identifies exclusions that include readily apparent title defects, zoning, and others.