| A | B |
|---|
| Deed | a special form of written contract used to convey a permanent interest in real property. Must be in writing. |
| Grantor of Deed | Person or entity conveying real property. |
| Grantee of Deed | Recipient of real property |
| Recital of Consideration | Outlines payment for deed (not required) |
| Words of Conveyance | Clarify intentions of grantor and indicate deed type |
| Convenants | legally binding promises |
| Convenant of seizin | Grantor has good title and right to convey it |
| Convenant against encumbrances | No encumbrances except as noted in deed (liens, easements) |
| Covenant of quiet enjoyment | no one with a better claim to title |
| Habendum Clause | defines or limits the type of interest being conveyed. |
| Exceptions and reservations clause | Deed restrictions may reduce the rights conveyed. (Withhold mineral rights, easement, etc.) |
| Description of land | Metes and bounds, subdivision plat lot and block number, gov't rectangular survey |
| Acknowledgement | Confirmation that grantor acted voluntarily. (Notarized) |
| Delivery | Observable, verifiable intent that deed is given to grantor. Handing over the deed. |
| General Warranty Deed | Seizin (right to convey), no encumbrances, and quiet enjoyment convenants |
| Special Warranty Deed | A general warranty deed, but it only protects against defects in title if they arose during the time the seller had the title |
| Deed of bargain and sale | Implies the grantor (seller) has title to the property and the right to convey it, but contains no express covenants of warranty. |
| Quitclaim Deed | No covenants and makes no assertions about grantor's interest. (Merely transfers whatever title he or she has the time of conveyance. |
| 3 characteristics of a good title | Marketable, insurable, and perfect of record |
| Marketable title | a title free and clear of past, present, and future claims that would cause a reasonable purchaser to reject such title |
| Insurable title | a title that a reputable title insurance company is willing to insure |
| Title Perfect of record | means no public records related to the particular title show a defect |
| Title Abstract with Attorney's opinion | Title search: examining public records to construct a "chain of title". Summary of all records in chain of title, and reviewed by an attorney for completeness |
| Title Insurance | An insurance company performs the title search to see if the title is clean. A clean title is an insurable title |
| The Torrens System | the title to the property is established with a state agency, which later issues title certificates to owners as evidence of their claim. (Chicago fire aftermath) |
| Root of title | last conveyance of the property that is at least 30-40 years old. |
| Brokers | bring buyers and sellers together. Provide expert knowledge. Collect commission for a successful transaction |
| Law of Agency | Governs relationship between a principal (client) and someone charge to act on their behalf |
| Universal agent | power to act for principal in all matters |
| General agent | power to act within limits of a business or employment relationship |
| Special agent | power to act in specific event or transaction |
| Listing Contract | Creates an agency relationship (special agent) between seller and broker. Frequently involves sub-agency through the multiple listing service (MLS) |
| Dual Agency | Represents both buyer and seller. |
| Franchises | Century 21: pay initial fee plus a percentage of your annual sales |
| Desk free arrangement | Remax: Everyone acts as a broker, but you must pay your desk fee |
| Required Disclosure | The broker is not your friend until their are your agent |
| When buyer is found | condition is called procuring clause in the listing agreement |
| Commission-on-sale clause (less common) | The broker is not entitle to a commission if the seller changes their mind when presented with the sales contract |
| Open Listing | Authorizes broker (multiple) to find a buyer. Owner can stiller sell |
| Exclusive Agency | Broker is the only agent the seller may employ over the listing's term. Owner may sell (no commission) |
| Exclusive Right of sale | Commission will be paid if property is sold within time period. |
| Net Listing | A type of listing agreement where seller gets a fixed amount of money, while the rest goes to the broker |
