1. Real Estate Principles and Practices Chapter 5 Estates, Interests, Deeds, and Title © 2010 by South-Western, Cengage Learning

2. Key Terms Acknowledgment Community property Consideration Co-ownership Curtesy Deed Dower Estate Fee simple Fee simple absolute Fee simple defeasible Fee simple determinable Fee simple to a condition subsequent Freehold estate Grantee

3. © 2010 by South-Western, Cengage Learning Key Terms Grantor Habendum clause Homestead Joint tenancy Legal life estate Life estate Nonfreehold estate Recordation Remainderman Reversion Severalty ownership Tenancy by the entireties Tenancy in common Title Warranty deed

4. © 2010 by South-Western, Cengage Learning Freehold Estates Ownership for an indefinite duration Freehold: Freehold: uncertain Types of freehold estates Fee simple Fee simple defeasible Life estates Estate of inheritance Not of inheritance freehold estate

5. © 2010 by South-Western, Cengage Learning Freehold Estates Fee Simple Fee Simple title: complete rights with absolute ownership Sell Will Give away Retain possession Subject to government and land use restrictions

6. © 2010 by South-Western, Cengage Learning Freehold Estates Qualified fee estates Two types: Fee simple determinable Fee simple to a condition subsequent

7. © 2010 by South-Western, Cengage Learning Freehold Estates Limits use to specific terms Conditional “as long as” used for purpose granted “qualified” the estate Violation of the condition results in land automatically reverting to original grantorReversioner

8. © 2010 by South-Western, Cengage Learning Freehold Estates Violation of the condition requires court action to regain possession

9. © 2010 by South-Western, Cengage Learning Life Estates Granted by will or deed Ordinary life estate: based on life of life tenant Life estate pur autre vie: based on someone else's life Life tenant: Must maintain the property Pay taxes May not commit waste May lease May mortgage May sell May not will

10. © 2010 by South-Western, Cengage Learning Legal Life Estates Created by statute and

11. © 2010 by South-Western, Cengage Learning Legal Life Estates

12. © 2010 by South-Western, Cengage Learning Legal Life Estates

13. © 2010 by South-Western, Cengage Learning Nonfreehold Estates Nonfreehold estate: Less than freehold Possessory interest for a defiant period of time Leasehold interests

14. © 2010 by South-Western, Cengage Learning Nonfreehold Estates Estate for years Periodic estate Estate at will Estate at sufferance

15. © 2010 by South-Western, Cengage Learning The Deed Title: Title: evidence of ownership Deed: Deed: document used to transfer ownership Tangible proof Quality of the estate Quantity and amount

16. © 2010 by South-Western, Cengage Learning The Deed Deed gives proof of Title which represents the quality of the Estate

17. © 2010 by South-Western, Cengage Learning The Deed Livery of seizin: Livery of seizin: Transfer of possession Grantor: Grantor: Seller Grantee: Grantee: Purchaser

18. © 2010 by South-Western, Cengage Learning The Deed Deed must be executed, delivered and accepted Singed by Grantor Corporations may hold title Fictitious name

19. © 2010 by South-Western, Cengage Learning The Deed Delivery made by the grantor during grantor’s lifetime Third party mat accept on behalf of grantee

20. © 2010 by South-Western, Cengage Learning The Deed Gives constructive notice Not mandatory County office where the property is located Copy in book of records Original returned Actual notice: Actual notice: actual knowledge

21. © 2010 by South-Western, Cengage Learning The Deed Competent parties Consideration Words of conveyance Description of real estate Restrictions Quantity or quality Signatures of grantors grantorgrantee Parties: grantor and grantee Competent: Competent: capable of entering into a contract Consideration: Consideration: price paid Token amount “For love and affection” Words of conveyance: Words of conveyance: grant title in the granting clause Description: Description: identifies the real estate Restrictions: Restrictions: “subject to…” Qualities and quantity of the interest: Qualities and quantity of the interest: warranties Signatures of the grantors

22. © 2010 by South-Western, Cengage Learning Conveyance Fee State tax – varies Usually paid by grantor

23. © 2010 by South-Western, Cengage Learning Types of Deeds Most complete ownership Guarantees title: Covenant of seizin Quiet enjoyment Freedom from encumbrances Further assurances Right to convey Covenant of warranty

24. © 2010 by South-Western, Cengage Learning Types of Deeds Guarantees only during grantors ownership Grantors have not encumbered the property

25. © 2010 by South-Western, Cengage Learning Types of Deeds Warranties created by the grantors Own property Have not previously conveyed the property Encumbrances during the grantors ownership

26. © 2010 by South-Western, Cengage Learning Types of Deeds No warranties Grantor has an interest in the property

27. © 2010 by South-Western, Cengage Learning Types of Deeds No warranties Grantors “quit their claim” a cloud on the title Used to remove a cloud on the title

28. © 2010 by South-Western, Cengage Learning Types of Deeds Trust Deed Secures payment of a debt Held in trust by 3 rd party for the benefit of a lender Deed of reconveyance

29. © 2010 by South-Western, Cengage Learning Types of Deeds Used to donate real property Consideration “for $1.00 and other valuable consideration” “for love and affection”

30. © 2010 by South-Western, Cengage Learning Types of Deeds Deed of Surrender Conveys interest of life tenant or remainderman Deed of Release Clears title when mortgage is paid

31. © 2010 by South-Western, Cengage Learning Types of Deeds Correction Deed Deed of reformation Corrects errors Cession Deed Used by a subdivider to transfer streets to the government

32. © 2010 by South-Western, Cengage Learning Types of Deeds Sheriff’s Deed Referee's deed Transfers property sold at public auction No warranties Administrators Deed Transfers property of deceased Referee’s deed in partition

33. © 2010 by South-Western, Cengage Learning Types of Deeds Tax Deed Transfers property sold for unpaid taxes Executor’s Deed Transfers property of deceased No warranties except for executor’s acts States full sales price

34. © 2010 by South-Western, Cengage Learning Types of Deeds Guardian’s Deed Conveys a minor’s interst Director’s Deed Public agency sells surplus land

35. © 2010 by South-Western, Cengage Learning Taking Title to Real Property Ways to take title: Ways to take title: Joint tenancy Tenancy in common Concurrent ownership Tenancy by the entirety Severalty ownership Multiple ownership

36. © 2010 by South-Western, Cengage Learning Taking Title to Real Property Acquired prior to marriage Acquired by gift or inheritance Each may devise their portion of the community property to anyone

37. © 2010 by South-Western, Cengage Learning Taking Title to Real Property Two or more people join in a business for the purpose of making a profit Trade name – severalty Individual owner names - tenants in common or join tenancy

38. © 2010 by South-Western, Cengage Learning Taking Title to Real Property Homestead Homestead: family’s place of residence Protection from judgments Requirements: Permanent residence File as homestead

39. © 2010 by South-Western, Cengage Learning Taking Title to Real Property Claim’s which are not exempt: Real estate taxes Real estate special assessments Real estate mortgages Mechanics liens