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Chapter 7
Transfer of Title
to Real Property
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IN THIS CHAPTER
The transfer of real property.
The recording system, legal descriptions, abstracts of title, title insurance, surveys, and deeds.
Transfer of title to real property is described in law as alienation which may be voluntary or involuntary.
Transfer may be during an owner’s life or upon the owner’s death.
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TRANSFERRING TITLE
Descent
Will
Voluntary Alienation
Involuntary Alienation
Lien Foreclosure Sale
Adverse Possession
Filing of Bankruptcy
Condemnation Under Eminent Domain
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DEEDS
Essential Elements of a Valid Deed
Writing
Grantor
Grantee
Property Description
Consideration
Words of Conveyance
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Deed Contents
Premises Clause
Habendum Clause
Testimonium Clause
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DEEDS
Execution - it must be signed by each grantor conveying an interest in the property.
Witnessing - as of 2002, Michigan does not require a deed to be witnessed to be recordable.
Acknowledgment - grantor must appear before a public officer and state that signing of the deed was done as a voluntary act.
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DEEDS
Acknowledgment - grantor must appear before a public officer and state that signing of the deed was done as a voluntary act.
Delivery and Acceptance - the grantor must deliver a valid deed to the grantee, and the grantee must accept the deed.
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Types of Deeds
General Warranty Deed
Special (Limited) Warranty Deed
Quitclaim Deed
Grant Deed
Bargain and Sale Deed
Sheriff’s Deed
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Revenue Stamps
Michigan requires the seller to be responsible for paying this tax.
The amount of the tax is based on the consideration the seller receives.
the tax is $4.30 per $500 ($8.60 per $1,000) or any portion of $500 (rounded up to the next $500) of the sales price.
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TITLE ASSURANCE
Title Examination
Abstract of Title with Attorney Opinion
Title Insurance Policy
Owner’s Policy
Mortgagee’s Policy
Leasehold Policy
Contract Buyer’s Policy
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RECORDATION
Provides protection for the owner’s title against subsequent claimants.
This protection is provided by the theory of constructive notice:
all the world is bound by knowledge of the existence of the conveyance of title if evidence of the conveyance is recorded.
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12. Uniform Commercial Code (UCC)
provides for the lender to retain a security interest in the personal property or chattel until the lender is paid in full.
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13. Property Descriptions
Metes and Bounds
Description by Reference or Plat
Government or Rectangular Survey
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Metes & Bounds
Beginning at a point marked by an oak tree on the North Side of M-125; thence along M-125 in a southeasterly direction for 380 feet to a stake; thence in a northeasterly direction for 729 feet to the center thread of Phlowing Creek; thence along the center line of said creek in a southwesterly direction for 405 feet; thence southwesterly for 349 feet back to the point of beginning. S
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15. Rectangular Survey System
Section
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Plat
Lot and Block
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CHAPTER TERMINOLOGY REVIEW
abstract of title
acknowledgment
adverse possession
alienation
bargain and sale deed
baselines
beneficiary
bequest
bona fide purchaser
certificate of title opinion
chain of title
cloud on a title
constructive notice
contract buyer’s policy
covenant against
encumbrances
covenant for further assurances
covenant of quiet enjoyment
covenant of seisin and right to convey
covenant of warranty
delivery and acceptance
descent
description by reference
devise
devisee
executor/executrix
general warranty deed
grant deed
grantee
granting clause
grantor
habendum clause
intestate
involuntary alienation
leasehold policy
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more CHAPTER TERMINOLOGY REVIEW
lien foreclosure sale
Marketable (merchantable) title
metes and bounds
mortgagee’s policy
notary public
owner’s policy
personal representative
plat
premises clause
principal meridians
probate
property description
quarter-section
quiet title action
quitclaim deed
ranges
recordation
rectangular survey system
revenue stamps
section
sheriff’s deed
special (limited) warranty deed
subrogation of rights
tacking
testator/testatrix
testimonium clause
title examination
title insurance
township
transfer tax
voluntary alienation
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