Conveyance - A conveyance is a legal document that conveys a title transfer from one party to another party.
Patent - The original conveyance was the original patent. It conveyed the original title by the Federal Government to an individual. This patent transferred title from the Federal Government to the designated new owner. The government held original title to the land prior to the patent transfer/conveyance.
Grantor/Grantee - The grantor grants title transfer. The grantee receives title transfer.
Grantor - The Federal Government was the grantor and a representative signed the patent over to the new owner.
Grantee - The new owner/grantee received the patent and obtained title to the land.
Caution - On the State Exam, you have to remember that the function of the patent document was to transfer original title to an owner. There is usually a question on this factor.
Clod of Dirt - After a person obtained the title to the land, title transfer between individuals was usually done with the handing of a clod of dirt to the new owner in front of witnesses. We do not use this form of conveyance any longer.
Deed - Today we convey title with a conveyance known as a deed. The deed is the document that allows the seller to transfer title to the buyer.
NOT Title - The deed is NOT a title document. There is NO title document. The deed only conveys/transfers title.
Hollywood Gone Wrong - Hollywood always portrayed the deed in a wrong manner . "I hold the deed to the ranch," is an incorrect statement. The deed does show proof that the grantee holds title to the ranch. Having possession of the deed is worthless. Only the Grantee on the deed has title to the ranch.
Grantee/Grantor - The OR gives and EE receives.
Signatures - Only the grantor must sign the deed to make it effective. The grantee does not have to sign the deed to make it effective.
Recorded - The deed does not have to be recorded with the county in order to be effective. It should be, but it does not have to be recorded.
Caution - You will always have at least two questions on the state exam regarding these above characteristics.
Alienation - Alienation is the giving up of a right of ownership or actual ownership whether voluntarily or involuntarily.
Deed - To give up a right of ownership to another, there must be a deed. This is true whether the alienation is voluntary or involuntary.
Voluntary Alienation - An owner gives up one of their ownership rights on a voluntary basis.
The Most Common Voluntary Alienation - When a homeowner sells their home and property to a buyer, the seller voluntarily deeds/conveys the property to the buyer. The deed is signed by the seller/grantor and handed to the buyer. Title is now transferred to the buyer.
Involuntary Alienation - When a person gives up one of their ownership rights on an involuntary basis.
The Most Common Involuntary Alienation - When lien/debt payments on real property, such as mortgage payments, are not paid, the lender will foreclose on the owner's property and appurtenances/home. The property is sold by the lender at auction by a sheriff's sale. A sheriff's deed is handed to the auction buyer. This is an involuntary conveyance.
All of the following are essential elements to a lawfully enforceable contract, EXCEPT:
A) Legality of object
B) Mutual consent
C) Consideration and competency
A voidable contract is:
To be legally enforceable, an option or a contract for the sale of real property must be all of the following, EXCEPT:
A) In writing
B) Supported by consideration
C) Signed by all parties
D) Initialed by a real estate broker or attorney
A contract must have certain specific elements in order for it to be valid. Which of the following is not a necessary element to form a valid contract?
The consideration necessary for a valid contract could be:
A) A promissory note
B) A promise to loan a horse
C) A promise of marriage
D) Any of the above
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The study of system of rules which a particular country or community recognizes as regulating the actions of its members and which it may enforce by the imposition of penalties.