© 2015 OnCourse Learning Chapter 7 Transfer of Title to Real Property

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.

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 $0.55 per $500 county and $3.75 per $500 state 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. 2010©Cengage Learning. All Rights Reserved.

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 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

Rectangular Survey System Section

Plat Lot and Block

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

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