Chapter 7 Transfer of Title to Real Property 2010©Cengage Learning. All Rights Reserved.

Chapter 7Transfer of Title to Real Property

2010©Cengage Learning. All Rights Reserved.

http://www.cengage.com/realestate/fraser

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.



TRANSFERRING TITLE

• Descent• Will• Voluntary Alienation• Involuntary Alienation• Lien Foreclosure Sale• Adverse Possession• Filing of Bankruptcy• Condemnation Under Eminent Domain



DEEDS

• Essential Elements of a Valid Deed– Writing– Grantor– Grantee– Property Description– Consideration– Words of Conveyance



Deed Contents

• Premises Clause• Habendum Clause• Testimonium Clause



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.



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.



Types of Deeds• General Warranty Deed• Special (Limited) Warranty Deed• Quitclaim Deed• Grant Deed• Bargain and Sale Deed• Sheriff’s Deed



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.



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



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.



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.



Property Descriptions

• Metes and Bounds• Description by Reference or Plat• Government or Rectangular Survey



Metes & Bounds


S

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.


Rectangular Survey System


Section


Plat


Lot and Block


CHAPTER TERMINOLOGY REVIEW


abstract of titleacknowledgmentadverse possessionalienationbargain and sale deedbaselinesbeneficiarybequestbona fide purchasercertificate of title opinionchain of titlecloud on a titleconstructive noticecontract buyer’s policycovenant againstencumbrancescovenant for further assurancescovenant of quiet enjoyment

covenant of seisin and right to conveycovenant of warrantydelivery and acceptancedescentdescription by referencedevisedeviseeexecutor/executrixgeneral warranty deedgrant deedgranteegranting clausegrantorhabendum clauseintestateinvoluntary alienationleasehold policy



more CHAPTER TERMINOLOGY REVIEW


lien foreclosure saleMarketable (merchantable) titlemetes and boundsmortgagee’s policynotary publicowner’s policypersonal representativeplatpremises clauseprincipal meridiansprobateproperty descriptionquarter-sectionquiet title actionquitclaim deedrangesrecordationrectangular survey system

revenue stampssectionsheriff’s deedspecial (limited) warranty deedsubrogation of rightstackingtestator/testatrixtestimonium clausetitle examinationtitle insurancetownshiptransfer taxvoluntary alienation



Chapter 7 Transfer of Title to Real Property 2010©Cengage Learning. All Rights Reserved.

Documents

cengage learning

owners title

transfer of title

sale deed sheriffs deed

conveyance of title

abstracts of title

transfer of real property

transferring title descent