Real Estate Principles
UNL Finance 382
Chapter 5

Real Estate Principles, 11th Ed., Charles J. Jacobus
	© 2010 by Cengage Learning

Transferring Title

While “Title” of real estate most often refers to O                       of land it also refers to the E                              of ownership.   A                            refers to a change of ownership.  Livery of Seizin refers to the alienation of lands which established the custom and law that in order for land to be transferred there must be D                          and A                                in order for there to be a transfer of the land from one owner to another. Today instead of using a representative of the land, a clod of dirt or a twig from the land, we use D                       

Deed

The S                      of F                           requires that transfers of real estate ownership be in writing.

Transfer of Title

The most common way to voluntarily transfer real estate is by a D                .  The deed must contain certain essential elements
1. The parties to the deed must be identified, the person conveying title is called the G                    , the one receiving the transfer is called the G                     .
2. There must be C                           
3. The deed must use words of conveyance
4. The real estate must be adequately identified.
5. The G                            must sign the deed.

Competent Parties

The grantor must be a competent party in order to convey title.  They must be          years of age (in Nebraska) and must have contractual C                         which means:	

Other Deed Facts

Date on deed is               required to be valid.
Deed must be D                       and A                          in order to be valid.
In some states a deed must be witnessed and in most states a deed must be acknowledged (signed before a N                           acknowledging that the grantor signed the deed voluntarily and that they are the owner of the property).  Acknowledging is not actually a required element it is required in order to be recorded.
Recording provides C                     N                    of the transfer of the real estate.
Certain deeds may be declared V            (that is they are V                      ) if:
	Incompetent parties
	Fraud or duress
	Failure of consideration

Parts of the Deed

Premises:	
Habendum:	
Testimonium:	
	Covenants of W                                         

Deed Qualifiers

Deeds may include other information which may qualify the transfer.
	Reservations:	

	Restrictions on title:	

Covenants of Title

Covenant of S                                  grantor guarantees that:	
	
Covenant of Quiet Enjoyment guarantees that:	
	    
The Covenant Against Encumbrances guarantees that:	
	
The Covenant to Defend and Further Assistance guarantees that:	
	
Some deeds only offer limited guarantees or warranties.

Covenants of Title in Use

G                       W                   Deed has all 5 warranties, provides the most protection for the buyer.
Special Warranty Deed warrants title                                              
Bargain and Sale Deed no warranties save an I                            of ownership
G                  deed warrants that grantor has not conveyed the real estate, nor E                               the real estate.  
Quitclaim Deed give no warranty and does not even imply that there is any ownership interest or right.

Delivery and Acceptance

Conveyance occurs on acceptance of delivery
If not delivered in hand to Grantee
Grantee must know of deed
Physical delivery to other than Grantee
To third party (agent of Grantor invalid)
Escrow
Presumed delivery (held by Grantor for safekeeping)
Delivery and acceptance must be voluntary

Witness and/or Acknowledgment

Formal declaration before public officer
Notary
Cannot be interested party nor related
May receive a fee
Must be commissioned
Other officer:
Judges and certain military officers
Distinction between acknowledgment and Verification
Not required to make deed valid, only to record
Date Not required

Other Voluntary Transfers

Inheritance by intestacy and devise by Will
Testate: Realty transfers from Testator/Testatrix by devise to the Devisee. Personality is a bequest or legacy to a Legatee.   Personal Representative/Executor gives deed.
Holographic Will, Fill in the blank Will, Codicil
Intestate succession: first to surviving spouse, then to surviving children (heirs)
Grants from Government
Gifts and Dedications

Involuntary Transfers

Adverse possession
Elements: actual, visible, continuous, hostile, exclusive and notorious for statutory period
Tacking and “color of title” (giving the appearance of title) 
“Breaking the chain”: removing the occupant, giving permission and preventing occupant from entering (do something)
Foreclosure: Judicial and Non-judicial and Tax
Eminent Domain (condemnation)
Escheat
Forfeiture of Title
Accession or Accretion: Alluvion and Reliction 

Special Situation Deeds

Sheriff/Master Commissioner Deed
Guardian/Conservator’s Deed
Deed of Distribution/Personal Representative
Tax Deed
Deed of Reconveyance
BUT NOT: Deed of Trust

Review

When does title transfer from Grantor to Grantee?
Which deed affords Buyer most protection?
Which deed imposes least liability to Grantor?
What is “intestate succession”?
Why won’t a tenant ever become an adverse possessor?
What is two key elements in a deed?

Key Terms

Cloud on title
Color of title
Consideration
Grantor & Grantee
Intestate succession
Testator & Testatrix
Words of Conveyance (Examples)
Adverse possession
Deed:
	Quitclaim deed
	Warranty deed
Covenant
Statute of Frauds