1. 2011©Cengage Learning. All Rights Reserved.

2. Voluntary Transfers of Property 2011©Cengage Learning. All Rights Reserved.

3. Nature of Deeds An instrument used to transfer title to real estate. 2011©Cengage Learning. All Rights Reserved.

4. TYPES OF DEEDS Grant Deed Quitclaim Deed Warranty Deed 2011©Cengage Learning. All Rights Reserved.

5. Warranties Grant deeds the grantor warrants not to have previously conveyed the same interest to someone else. And not to have previously encumbered the property. 2011©Cengage Learning. All Rights Reserved.

6. Warranties A quitclaim deed contains no warranties whatsoever. Commonly used to clear title when the grantor has no real interest to convey. 2011©Cengage Learning. All Rights Reserved.

7. Warranties Warranty deeds guarantee that there are no encumbrances against the property & that no one will disturb the peaceful, quiet possession of the grantee. The grantor agrees to defend the warranties in a lawsuit or otherwise. Rarely used in California. 2011©Cengage Learning. All Rights Reserved.

8. Warning to Brokers Many deposit receipts state that title is to be free from all liens & encumbrances except those listed. The broker must be extremely cautious to check title & to list documents of record & taxes due but not yet of record. 2011©Cengage Learning. All Rights Reserved.

9. Basics of Valid Deed 1. Written document 2. Signature of competent grantor 3. Grantee capable of holding title 4. Description of property 5. Operative words of conveyance 6. Delivery 7. Acceptance 2011©Cengage Learning. All Rights Reserved.

10. Other Elements Consideration Not Required Recording Not Required Acknowledgment 2011©Cengage Learning. All Rights Reserved.

11. Requirements Competent Grantor  Agent Signing  Using Powers of Attorney Competent Grantee Adequate Property Description 2011©Cengage Learning. All Rights Reserved.

12. More Requirements Words of Conveyance Legal Delivery  Example of delivery  Presumptions on Delivery Acceptance 2011©Cengage Learning. All Rights Reserved.

13. Types of Wills Witnessed Will  Formal  Witnessed Statutory Will Holographic Will 2011©Cengage Learning. All Rights Reserved.

14. Intestacy Testate (with will) Intestate (without will) Laws of intestate succession 2011©Cengage Learning. All Rights Reserved.

15. Community Property All community property passes to the surviving spouse, regardless of any children or other heirs. 2011©Cengage Learning. All Rights Reserved.

16. Separate Property 1. One-half to surviving spouse; one-half to child 2. One-third to surviving spouse; two-thirds equally to children 3. All to children if there is no surviving spouse 2011©Cengage Learning. All Rights Reserved.

17. Separate Property 4. One-half to surviving spouse; one-half to parent, if there are no children 5. All to collaterals (aunts, uncles, cousins), only if there are no parents, brothers, sisters, nephews, nieces, children, grandchildren, or surviving spouse 2011©Cengage Learning. All Rights Reserved.

18. Will Terms Testate Intestate Testator Executor 2011©Cengage Learning. All Rights Reserved.

19. More Will Terms Administrator Devise Bequest Legacy 2011©Cengage Learning. All Rights Reserved.

20. Will Terminology Ambulatory Codicil 2011©Cengage Learning. All Rights Reserved.

21. Escheat When there are no heirs, the property passes to the state. 2011©Cengage Learning. All Rights Reserved.

22. LAND SALES CONTRACTS Seller’s Right & Duties Buyer’s Rights & Duties Reasons for Demise Trustee’s Sale 2011©Cengage Learning. All Rights Reserved.

23. Advantages & Disadvantages to Seller Buyer’s interest can be expeditiously and inexpensively terminated. Contract may provide a means of selling property without paying an assumption fee or facing an acceleration of an existing loan. The seller must clear title. 2011©Cengage Learning. All Rights Reserved.

24. Advantages & Disadvantages to Buyer Possibility of recovery of part of the payments over the amount of the seller’s damages. Possibility of purchasing the property with an existing loan without changing interest rate. Judgment lien will not attach to the buyer’s equitable title. Difficulty in obtaining financing from lenders. 2011©Cengage Learning. All Rights Reserved.