Modern Real Estate Practice in Pennsylvania 12 th

Modern Real Estate Practice in Pennsylvania 12 th Edition Chapter 9: Transfer of Title

9 Transfer of Title • Learning objectives – Identify the basic requirements for a valid deed – Describe the fundamental types of deeds – Explain how property may be transferred through involuntary alienation – Distinguish transfers of title by will from transfers by intestacy – Define key terms © 2012 Kaplan, Inc. 2

9 Transfer of Title • Title has two functions – Right to or ownership of the land – Represents the owner’s bundle of legal rights – Evidence of that ownership • Voluntary transfer of real estate – Sale – Gift – Will • Involuntary transfer: operation of law © 2012 Kaplan, Inc. 3

9 Transfer of Title • Voluntary alienation – A grantor conveys property title to a grantee – A grantee receives property title from a grantor – A deed is the instrument that conveys property title from a grantor to a grantee © 2012 Kaplan, Inc. 4

9 Transfer of Title • Requirements for a valid deed – – – – – Grantor with legal competency to execute the deed Identifiable, named grantee Statement of consideration Granting clause Habendum clause Accurate legal description of the property conveyed Exceptions or reservations Signature of the grantor, including acknowledgment Delivery and acceptance by the grantee © 2012 Kaplan, Inc. 5

9 Transfer of Title © 2012 Kaplan, Inc. 6

9 Transfer of Title • General warranty deed – Greatest protection to buyer – Covenants of • • • Seisin Against encumbrances Quiet enjoyment Further assurance Warranty forever – Defends title against current owner and all those who previously held title © 2012 Kaplan, Inc. 7

9 Transfer of Title • Types of deeds – Special warranty deed – Bargain and sale deed – Quitclaim deed – Deed in trust – Trustee’s deed – Deed executed pursuant to court order © 2012 Kaplan, Inc. 8

9 Transfer of Title • Transfer tax – May be paid by seller or buyer – May be imposed at state, county, or city level – In Pennsylvania • Full consideration • Some deeds exempt © 2012 Kaplan, Inc. 9

9 Transfer of Title Action Process Property Taken By Person dies intestate no heirs Escheat (Chapter 7) State or county Land needed for public use Eminent domain (Chapter 7) Public or government agency Nonpayment of a debt secured by real property Foreclosure (Chapter 14) Creditor Open, notorious, continuous, hostile, and adverse use of another’s property for prescriptive period Adverse possession (Chapter 7) Adverse possessor © 2012 Kaplan, Inc. 10

9 Transfer of Title • Involuntary alienation – Adverse possession • Open and notorious and continuous use • Hostile and adverse to true owner’s consent • Pennsylvania requires 21 years © 2012 Kaplan, Inc. 11

9 Transfer of Title • Transfer of deceased person’s property – Transfer of title by will • • • 18 years of age Sound mind Singed by testator Witnesses should not be named in will PA also permits holographic and nuncupative wills – Transfer of title by descent – Probate proceedings © 2012 Kaplan, Inc. 12