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

2010©Cengage Learning. All Rights Reserved. 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. 2010©Cengage Learning. All Rights Reserved.

2010©Cengage Learning. All Rights Reserved. TRANSFERRING TITLE Descent Will Voluntary Alienation Involuntary Alienation Lien Foreclosure Sale Adverse Possession Filing of Bankruptcy Condemnation Under Eminent Domain 2010©Cengage Learning. All Rights Reserved.

2010©Cengage Learning. All Rights Reserved. DEEDS Essential Elements of a Valid Deed Writing Grantor Grantee Property Description Consideration Words of Conveyance 2010©Cengage Learning. All Rights Reserved.

2010©Cengage Learning. All Rights Reserved. Deed Contents Premises Clause Habendum Clause Testimonium Clause 2010©Cengage Learning. All Rights Reserved.

2010©Cengage Learning. All Rights Reserved. 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. 2010©Cengage Learning. All Rights Reserved.

2010©Cengage Learning. All Rights Reserved. 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. 2010©Cengage Learning. All Rights Reserved.

2010©Cengage Learning. All Rights Reserved. Types of Deeds General Warranty Deed Special (Limited) Warranty Deed Quitclaim Deed Grant Deed Bargain and Sale Deed Sheriff’s Deed 2010©Cengage Learning. All Rights Reserved.

2010©Cengage Learning. All Rights Reserved. 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. 2010©Cengage Learning. All Rights Reserved.

2010©Cengage Learning. All Rights Reserved. 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 2010©Cengage Learning. All Rights Reserved.

2010©Cengage Learning. All Rights Reserved. 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. 2010©Cengage Learning. All Rights Reserved.

Property Descriptions Metes and Bounds Description by Reference or Plat Government or Rectangular Survey 2010©Cengage Learning. All Rights Reserved.

2010©Cengage Learning. All Rights Reserved. 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 2010©Cengage Learning. All Rights Reserved.

Rectangular Survey System Section 2010©Cengage Learning. All Rights Reserved.

2010©Cengage Learning. All Rights Reserved. Plat Lot and Block 2010©Cengage Learning. All Rights Reserved.

2010©Cengage Learning. All Rights Reserved. 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 2010©Cengage Learning. All Rights Reserved.

2010©Cengage Learning. All Rights Reserved. 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 2010©Cengage Learning. All Rights Reserved.