1. The earliest method of transferring title to real property was by the of by the owner to another.

Transcription

1 CHAPTER 7 SHORT-ANSWER QUESTIONS 1. The earliest method of transferring title to real property was by the of by the owner to another. 2. There are at present four basic ways land can be transferred from one person to another. List them: a. ; b. ; c. ; d.. 3. The Statute of and determines who gets one's property if the party dies intestate, i.e. without a. The basic idea is to distribute the property to the class of relatives who are closest in blood to the decedent. Remember that before the land ever reverts to the state (i.e., escheats.) There must be no descendants. The individual must truly be the last of the line. 4. The next way that property may be transferred from one party to another is by will. If you leave a will, you die. 5. Everyone of sound mind and body has a right to dispose of his or her property by means of a will. This right is not without certain. For instance, a spouse may not completely the other spouse. In Colorado, the disinherited spouse may elect against the and take of the property that passes thereunder. The other half will go according to the terms of the will. 6. Involuntary alienation is the transfer of property without the of the owner. Examples of involuntary alienation are sales for,, and possession. In the latter case, the holding by the adverse possessor (in Colorado) must be for a period of years and must be open, notorious, and. 7. The usual and normal way to transfer real property is by alienation. Most commonly, this is accomplished by the delivery of a to a purchaser. May a person also make a gift of real property and use a deed to transfer the property?. 8. There are four basic types of deeds. List them: a. ; b. ; c. ; d.. 9. In the general warranty deed, there are covenants. The grantor warrants that not only hasn't he personally done anything to breach these five covenants, but that no one who owned the property before him did anything to breach these five covenants. Copyright All Rights Reserved 1 Real Estate Law & Practie (48 credit hrs)

2 10. List the five covenants: a. ; b. ; c. ; d. ; e Briefly define each of the covenants: a. ; b. ; c. ; d. ; e In Colorado, the number of covenants that run with the land is. The expression "running with the land" means that these covenants continue with land as it is transferred to subsequent grantees and that these covenants will protect subsequent grantees as well as the immediate grantee. 13. The difference between a general warranty deed and the special warranty deed is that in the general warranty deed, the grantor warrants that no one, including both himself and all previous grantors, has done anything to breach the covenant(s). In the warranty deed, the grantor warrants only that he personally has done nothing to breach the five warranties. He warrants about the previous grantors. 14. A Bargain and Sale deed is technically any type of deed that recites. The grantor usually warrants against his own acts, but not those of others. This covenant usually does not the. Examples of Bargain & Sale deeds are,, and. 15. A Quitclaim deed conveys all of the grantor's interest, and contains warranties. This type of deed is often used to clear up defects in the title such as improper signatures. 16. There are usual elements of a deed. Only are essential to the validity of a deed. List these elements. a. ; b. ; c. ; d. ; e. ; f. ; g A deed is even if there is no consideration, but by Colorado law there must be a of consideration. (Usually, this means that the drafters must make something up. One common example is: Ten dollars ($10.00) and other good and sufficient consideration.) Copyright All Rights Reserved 2 Real Estate Law & Practie (48 credit hrs)

3 Also, the amount of the documentary fee must be stamped on the face of the deed when it is. The amount of the documentary fee is one cent for each dollars of consideration. It is a offense to misstate the amount of the consideration. 18. Words of are necessary in a deed. No particular words are essential. 19. Any description of the property that is sufficient to the property will make the deed valid. To avoid clouding the title, one should always use the description. 20. The deed is if not signed by the grantor. Neither a, nor are required. 21. Delivery of the deed to the is necessary for the deed to be effective. The delivery must be made while the is still alive. 22. A deed is valid even though it is not and may be recorded although not acknowledged. If the deed has been properly and recorded, it is presumed to have been properly and delivered. 23. A deed is valid although not recorded. It is important to record the deed because recording has two effects. They are: a. ; b Evidence of title concerns itself with two issues. First, does the seller of a piece of property have title, and if so, what type of title does the seller have? Does the seller have a, or some other, such as a defeasible. Secondly, what is the state of that title? Is it a merchantable title, or is it clouded in some fashion? 25. There are three basic methods of evidencing title. List them: a. b. c. 26. Title insurance is simply a policy that insures title to rather than a life. The policy insures against in the title that are not excluded from coverage by the policy. It is known as of a policy of. 27. Examples of defects that are excluded from coverage under the policy and thus are not protected against, are: a. Rights of parties in not shown of record. This includes ; b. Any state of facts that an accurate would show; c. liens not of record; Copyright All Rights Reserved 3 Real Estate Law & Practie (48 credit hrs)

4 d. Taxes and not of record. There may also be non-standard exclusions, such as mortgages, and of record. 28. Title policies ensure against loss only up to the and amount of the policy. 29. There are types of title policies. The first is an policy, which protects the owner against insured losses. Its cost depends upon the amount of the coverage, which is based on the price of the property. The second policy is a policy, which protects a. The cost is usually a flat fee when issued in conjunction with an policy. 30. Prior to the actual issuance of the title policy, the insurance company will issue a. Both the commitment and the policy should be examined by an attorney. 31. The law requires that good funds be available at a closing, which are funds that are available for immediate withdrawal at closing. List the three ways to furnish good funds. a. ; b. ; c What is the local practice concerning title insurance costs and closing costs? a. ; b. ; c. ; d. ; e The effectiveness of any method of evidencing title depends upon the fact that instruments should be recorded. In Colorado, documents affecting title to real estate are recorded with the and of the county where the property is situated. 34. Recording a document with the Clerk and Recorder makes a document valid against all parties, even though they may not have notice of the document. The recording gives rise to a conclusive presumption that a party has knowledge of the existence of that document. This is known as constructive notice. 35. These documents that are recorded furnish a of the ownership of the land. In earlier times, the abstractor would compile a history of these summarized documents. For the most part, today abstractors do not summarize the documents, rather they furnish a of the actual document. 36. Even though an individual has an abstract in his or her possession, this alone will not furnish that party sufficient knowledge of the state of the title. In addition, the party will need an from an attorney to inform the buyer of the property of the of the seller's title and any or encumbrances that affect that title. Copyright All Rights Reserved 4 Real Estate Law & Practie (48 credit hrs)

5 37. The abstractor has no effect on the title by himself, nor is the abstractor a of the title to the real estate. The abstractor can be held if the abstractor fails to include a recorded document or incorrectly a document. 38. An attorney is only liable for any caused by the attorney's in reading or examining the abstract. 39. There are some things an abstract may not reveal and therefore may not the individual. For example, there may be a forged in the chain of title or someone will have gained title by possession. Nevertheless, with the use of an abstract, a buyer can be reasonably certain that he or she will obtain a good title. 40. The Torrens system of land registration is similar to the registration of, and at the present time to the registration of. 41. In Colorado, to get a Torrens Title on a piece of real property, one essentially runs a title suit. After the hearing, the Court issues a decree which is then filed with the of titles. In Colorado, this is the and of the County where the property is located. 42. The registrar then records a certificate and issues a to the owner of the property. After days, there is a conclusive presumption that the state of the title is as the Court decreed. 43. When transferring title, the owner signs a deed of conveyance and delivers this deed and the duplicate certificate of title to the registrar. It is then marked along with the original certificate of title. The of then enters a new certificate of title on the records and delivers a to the new owner. 44. Of the three evidences of title, the Torrens certificate is the most, however, there are parts of Colorado where it is prevalent. Copyright All Rights Reserved 5 Real Estate Law & Practie (48 credit hrs)

6 CHAPTER 7 QUIZ 1. Which of these is a general method of transferring real property to another? a. Fee tail b. Fee simple c. Voluntary alienation 2. A person acquires title to property by descent when: a. a person dies testate b. a person dies without a will c. Both a. and b. d. Neither a. nor b. 3. A person is said to have died testate when: a. he or she dies without a will b. when he or she dies with a will c. when the party dies a pauper 4. In which of the following deeds does the grantor protect the purchaser of the property from only the actions the grantor has committed? a. Special Warranty Deed b. General Warranty Deed c. Quitclaim Deed d. Bargain and Sale Deed 5. In which of the following deeds are all five of the covenants contained? a. General Warranty Deed b. Special Warranty Deed c. Both a. and b. d. Neither a. nor b. 6. Which of the following covenants promises or guarantees the grantor will sign or procure any documents necessary to make title good in the grantee? a. Covenant of seizin b. Covenant of warranty forever c. Covenant of quiet enjoyment d. Covenant of further assurance 7. Which of the following covenants promises the grantee that the grantee will not be disturbed or evicted in his or her possession? a. Covenant of seizin b. Covenant of warranty forever c. Covenant of quiet enjoyment Copyright All Rights Reserved 6 Real Estate Law & Practie (48 credit hrs)

7 8. Which of the following deeds delivers the most complete legal title? a. General Warranty Deed b. Special Warranty Deed c. Quitclaim Deed 9. Which of the following is an essential element of a deed? a. Recital of consideration b. Signature of the grantee c. Consideration 10. Which of the following is true of acknowledgment? a. It gives notice of the deed to all the world b. It constitutes constructive notice c. The deed is not valid without it 11. Which of the following is an acceptable method of evidencing title? a. An abstract of title and attorney's opinion b. Any deed containing warranties c. Only a General Warranty deed 12. A legal document that pertains to real estate is valid against persons who have: a. Constructive notice of the instrument through recording b. Actual notice c. Both of the above d. Neither of the above 13. An abstractor is liable in which of the following situations: a. An unrecorded document does not show up in the abstract b. He only summarizes a document rather than copying it in its entirety c. He negligently fails to include a document 14. An abstract of title will show which of the following? a. Adverse possession b. Forged deeds c. Unrecorded mechanics liens Copyright All Rights Reserved 7 Real Estate Law & Practie (48 credit hrs)

8 15. A title insurance policy insures against: a. Rights or claims of parties in possession, not shown of record b. Defects not specifically excluded c. Taxes and assessments not yet due and payable 16. The mortgagee's policy insures: a. For the entire purchase price b. The owner and the lender c. The owner only d. The lender only 17. Colorado Good Funds includes: a. Certified checks b. Money Orders c. Cash d. Cashier s checks 18. Which of the following may pay closing fees, according to the Division of Insurance? a. Broker only b. The Division takes no position c. Seller only d. Buyer only 19. The Torrens Title in Colorado: a. Is used only on the Western Slope b. Requires a quiet title suit c. Is not allowed in Colorado d. Is used in the eastern part of the state 20. In the Torrens Title system, which of the following is not a step taken to transfer title from an owner to a grantee: a. The owner must surrender his duplicate certificate b. The owner must sign a deed of conveyance c. The original certificate must be marked canceled d. The deed is recorded in the county clerk and recorder's office Copyright All Rights Reserved 8 Real Estate Law & Practie (48 credit hrs)