REAL ESTATE UNIT 6

1. REAL ESTATE UNIT 6 DEEDS

2. REVIEW QUESTIONS UNIT 4

3. On January 5, 2003, an owner files a notice of commencement per state statute for construction of his new home. The framing subcontractor submits a notice to owner and begins work on April 1, 2003, and completes the job on May 15, 2003. The owner refuses to pay the subcontractor. The subcontractor files a lien on July 1, 2003. On what date is the subcontractor’s mechanic’s lien effective? A. JANUARY 5, 2003     B. APRIL 1, 2003     C. MAY 15, 2003     D. JULY 1, 2003

4. On January 5, 2003, an owner files a notice of commencement per state statute for construction of his new home. The framing subcontractor submits a notice to owner and begins work on April 1, 2003, and completes the job on May 15, 2003. The owner refuses to pay the subcontractor. The subcontractor files a lien on July 1, 2003. On what date is the subcontractor’s mechanic’s lien effective? A. JANUARY 5, 2003     B. APRIL 1, 2003     C. MAY 15, 2003     D. JULY 1, 2003

5. Sonny and Cher have been married for forty years and live in Nevada, a community property state.  Before their marriage, Sonny's only property was a winery in Parumph, Nevada, worth $1 million, while Cher had $5 million worth of property, including a ranch in northern Nevada. During their marriage, Sonny and Cher accumulated an additional $6 worth of property, including $3 million worth of property Sonny inherited from his uncle.  The TOTAL amount of community property held by Sonny and Cher is: A. $6 MILLIONB. $3 MILLION     C. $7 MILLIOND. $12 MILLION

6. Sonny and Cher have been married for forty years and live in Nevada, a community property state.  Before their marriage, Sonny's only property was a winery in Parumph, Nevada, worth $1 million, while Cher had $5 million worth of property, including a ranch in northern Nevada. During their marriage, Sonny and Cher accumulated an additional $6 worth of property, including $3 million worth of property Sonny inherited from his uncle.  The TOTAL amount of community property held by Sonny and Cher is: A. $6 MILLIONB. $3 MILLION  C. $7 MILLIOND. $12 MILLION    

7. A real estate broker is not required to make disclosures of ______ A. ALL OFFERS FOR PURCHASE              B. FINANCING ISSUES              C. TAX CONSEQUENCES              D. THE SELLER’S WILLINGNESS TO ACCEPT A LOWER PRICE

8. A real estate broker is not required to make disclosures of ______ A. ALL OFFERS FOR PURCHASE              B. FINANCING ISSUES              C. TAX CONSEQUENCES              D. THE SELLER’S WILLINGNESS TO ACCEPT A LOWER PRICE

9. Riparian rights refers to a requirement that all owners of riparian lands   A. USE THE WATER EQUALLY WITH OTHER RIPARIAN OWNERS              B. SHARE THE WATER EQUALLY WITH OTHER RIPARIAN OWNERS              C. BOTH A AND B             D. NONE OF THE ABOVE

10. Riparian rights refers to a requirement that all owners of riparian lands   A. USE THE WATER EQUALLY WITH OTHER RIPARIAN OWNERS              B. SHARE THE WATER EQUALLY WITH OTHER RIPARIAN OWNERS              C. BOTH A AND B D. NONE OF THE ABOVE

11. Which of the following examples is not a license? A. GRANT TO A FRIEND TO HUNT ANNUALLY ON PRIVATE PROPERTY              B. LAND OWNER LETS POLITICAL GROUP HOLD AN ELECTION DAY CELEBRATION             C. STORE PERMITS CUSTOMERS TO SHOP ON ITS PREMISESD. SUBDIVISION GIVES A PERMIT TO A HOMEOWNER TO BUILD A SHED ON HIS PROPERTY

12. Which of the following examples is not a license? A. GRANT TO A FRIEND TO HUNT ANNUALLY ON PRIVATE PROPERTY              B. LAND OWNER LETS POLITICAL GROUP HOLD AN ELECTION DAY CELEBRATION             C. STORE PERMITS CUSTOMERS TO SHOP ON ITS PREMISESD. SUBDIVISION GIVES A PERMIT TO A HOMEOWNER TO BUILD A SHED ON HIS PROPERTY

13. Wayne and Mitch own adjoining parcels of land.  Wayne allowed Mitch to install pipe across his property for the purpose of pumping spring water onto Mitch's property.  Mitch's use of Wayne's property is:   A, AN EASEMENT IN GROSS              B. AN EASEMENT APPURTENANT            C. A LICENSE              D. A PROFIT

14. Wayne and Mitch own adjoining parcels of land.  Wayne allowed Mitch to install pipe across his property for the purpose of pumping spring water onto Mitch's property.  Mitch's use of Wayne's property is:   A, AN EASEMENT IN GROSS              B. AN EASEMENT APPURTENANT         C. A LICENSE              D. A PROFIT

15. DEEDS – UNIT 6 A DEED is a written document that transfers ownership of real property from one person to another.

16. TYPES OF DEEDS General Warranty Deed A DEED containing full warranty of title

17. TYPES OF DEEDS General Warranty Deed Limited (special) Warranty Deed A DEED wherein the grantor covenants and warrants only against the lawful claims of people claiming by, through, or under the grantor.

18. TYPES OF DEEDS General Warranty Deed Limited (special) Warranty Deed Quitclaim Deed A DEED that contains no warranties of title A quitclaim deed transfers only the interest of the grantor has in the land and not the land itself.

19. TYPES OF DEEDS General Warranty Deed Limited (special) Warranty Deed Quitclaim Deed

20. General Warranty Deed: Deed containing full warranty of title Covenants: seisin (Old English Law)

21. General Warranty Deed: Deed containing full warranty of title Covenants: seisin (Old English Law) covenant of right to convey

22. General Warranty Deed: Deed containing full warranty of title Covenants: seisin (Old English Law) covenant of right to convey covenant of against encumbrances

23. General Warranty Deed: Deed containing full warranty of title Covenants: seisin (Old English Law) covenant of right to convey covenant of against encumbrances covenant for further assurances

24. General Warranty Deed: Deed containing full warranty of title Covenants: seisin (Old English Law) covenant of right to convey covenant of against encumbrances covenant for further assurances covenant for quiet enjoyment

25. General Warranty Deed: Deed containing full warranty of title Covenants: seisin (Old English Law) covenant of right to convey covenant of against encumbrances covenant for further assurances covenant for quiet enjoyment covenant for warranty

26. General Warranty Deed: Deed containing full warranty of title Covenants: seisin (Old English Law) covenant of right to convey covenant of against encumbrances covenant for further assurances covenant for quiet enjoyment covenant for warranty

27. Present covenants: • seisin • right to convey • against encumbrances

28. Future covenants: • further assurance • quiet enjoyment • warranty

29. Basic Requirements of a Valid Deed • Written instrument • competent grantor • Identity of grantee • Words of conveyance • Adequate description of the land • Consideration

30. Basic Requirements of a Valid Deed • Written instrument • Competent grantor • Identity of grantee • Words of conveyance • Adequate description of the land • Consideration

31. Preparation of a Valid Deed Real Property law is local law. Deeds must comply with state law. In Unit 8 you will asked to draft a deed. What are the required elements of a valid deed?

32. Preparation of a Valid Deed – Exhibit 5-2 p 119 Caption Portion of the DEED that indicates the county and state in which the deed was signed by the grantor

33. Preparation of a Valid Deed – Exhibit 5-2 p 119 Premises or Preamble Portion of the DEED that sets forth the parties to the DEED and the date of the DEED Must indicate the proper designation (p120)

34. Preparation of a Valid Deed – Exhibit 5-2 p 119 Granting Clause Language indicating that the instrument is a DEED and the land is being granted or conveyed. Also include a recital of the consideration

35. Preparation of a Valid Deed – Exhibit 5-2 p 119 Description A description of the land to be conveyed.

36. Preparation of a Valid Deed – Exhibit 5-2 p 119 Habendum Clause Clause found in a DEED that indicates what estate in real property is being transferred by the DEED “TO HAVE AND TO HOLD”

37. Preparation of a Valid Deed – Exhibit 5-2 p 119 Warranty Clause The warranty clause contains the words of warranty NOTE: A quitclaim DEED has no warranty clause

38. Preparation of a Valid Deed – Exhibit 5-2 p 119 Testimonium Portion of the DEED that the grantor signs and the signature witnessed and notarized

39. Formal Parts of a DEED: • Caption • Premises • Granting clause • Description • Habendum • Warranty Clause • Testimonium

40. The model DEED is found on page 119 – EXHIBIT 5 -2 The instructions on how to complete each section is found on pages 120 - 123

41. Unit 7 – Title Examination and Title Insurance • Meet for the weekly Seminar (graded) • Discuss on the Discussion Board – two questions (graded) • Take the Unit Quiz (ungraded)

42. Unit 8 – Closings • Meet for the weekly Seminar (graded) • Discuss on the Discussion Board – two questions (graded) • Written Assignment • Locate your state statute on Deeds • Draft a Deed • Take the Unit Quiz (ungraded)

43. Unit 9 – Leases • Meet for the weekly Seminar (graded) • Discuss on the Discussion Board – One question (graded) • Take the Final Examination (graded) • Included all materials from the term

44. Unit 10 – Reflection This is your opportunity to reflect on our work this term. I hope everyone will post to the Unit 10 reflection.

45. I hope you have enjoyed our Seminar tonight. And QUESTIONS??

46. SEE YOU ON THE DISCUSSION BOARD! GOODNIGHT and GOOD LUCK!