Definitions

Title: refers to ownership of property, and is not a document.
Deed: is a piece of paper that documents transfers of title to a property from one person to another.

Deed Requirements

1. Define what is being transferred
2. Determine who owns the property
3. Determine who will own the property
4. Define the property boundaries
5. Determine what rights are being transferred

Statue of frauds: legislation that specifies all transfers of title be in writing.

• Grantor: the current owner of the property
• Grantee: the person receiving the title to the property
• Consideration clause: the part of the deed that specifies what is being exchanged for the property
• Granting clause: is a part of the deed that specifies transfer of title from grantor to grantee
• Habendum clause: defines the rights being transferred from grantor to grantee.
• Legal description: defines what the property is in terms of boundaries
• Exceptions and reservations: limitations on how the property can be used.
• Acknowledgement: proof that grantor voluntarily signed the deed.
• Delivery and acceptance: when title has officially been transferred from grantor to grantee.

Types of deeds

1. General warranty deed: provides protection to grantee by holding grantor responsible for previous title problems.
   • Covenent of seisin: guarantees that grantor is owner of property and has a right to transfer title
   • Convenant of quite enjoyment: holds the grantor responsible for and title issues in the future.
   • Convenant against encumbrances: holds the grantor responsible for any easements or liens.
   • Covenant of further assurance: holds the grantor responsible to clear any problems with the title
   • Covenant of warranty forever: hold grantor responsibility to pay costs to clear up title problems in the future.Special warranty deed:
2. Special warranty deed:
   • Guarantee that grantor holds title
   • Holds grantor responsible for property only during his ownership
3. Grant deed:
   • Guarantees property has not been conveyed to anyone else
   • All encumbrances are listed on the deed
4. Bargain and sale deed:
   • Deed with no warranties and provides no protection to grantee
   • Common in foreclosure and tax sales
5. Quitclaim deed:
   • No warranties
   • No guarantee of grantors title
   • Common amongst transfers within families
6. Trust and reconveyance deeds: used to convey ownership as security for a debt. [vague]
7. Trustee’s deed: [vague]
8. Court-ordered deeds:
   • Issued as a result of legal proceeding.
   • Executors deed: transfer of deceased person’s estate
   • Sheriff’s deed: transfer because of government seizure

Defining Property Boundaries

1. Metes and bounds system: Starting from a “point of beginning”, description follows a line or curve in a specific direction and distance, and eventually ends back at the beginning.
2. Rectangular survey system:
   • Principal meridians: longitude lines running north and south
   • Baselines: latitude lines running east and west
   • Quadrangles: 576 square miles (24 miles per side) delineated by a principal meridian and baseline, divided into 16 townships.
   • Townships: 36 square miles (6 miles per side) delineated by township lines. Divided into 26 sections
   • Sections: one square mile (640 acres)
   • Quarter sections: ¼ section = 160 acres
   • Half sections: ½ section = 320 acres
   • Correction lines and guide meridians: correct errors related to curvature of earth
   • Government check: 576 square miles (24 miles per side)
3. Lot and block system: Often used to describe property divided into subdivisions. [vague]

Title Closing

Before closing:

1. Proof of marketable title
   • Marketable title: title is free of doubts regarding who the property belongs to.
   • Abstract of title: report of what was found in all public records related to property title.
   • Certificate of title: a lawyer’s opinion on validity of title based on information retrieved from public record.
   • Title insurance: protects grantee (and lender) against future claim made against title to property.
   • Torrens system: court certificate issued as official proof of title ownership.
2. Removing liens: all financial claims against property must be removed before sale.
3. Examining encumbrances: limitations on usage of property are exposed during title search.
4. Meeting conditions of sales contract: before closing buyer completes all conditions put into sales contract, ex. Home inspection.

At closing:

1. RESPA: Real estate settlement and procedures act to protect consumers who borrow money through federal loans to buy residential properties.
2. Allocating expenses with proration [investigate]
   • Credit:
   • Debit:
   • Attorney’s fees:
   • Appraisal fees:
   • Brokers commission:
   • Loan fees:
   • Recording fees:
   • Survey fees:
   • Tax and insurance reserves:
   • Title expenses:
   • Transfer tax:
   • Accrued item:
   • Prepaid item:
3. Passing title
4. Closing in escrow

After closing:

1. Preparing final closing statement
2. Recording the rights documents
   • Constructive notice

• Three courses are required for a Salesperon License, 8 courses for a Broker License

• Salesperson licenses do not require experience. Broker licenses require 2 years of full-time work experience, completed within five years.

• A four year degree can be substituted in lieu of the two year work experience requirement (although I am unsure whether the degree has to be related to real estate).

Requirements to apply for Salesperson License in California

1. Be 18 years or older
2. Be a legal resident of the US.
3. Honest and truthful disclosure of criminal violations
4. Completion of:
   • Real Estate Principles
   • Real Estate Practice
5. And 1 course from the following list:
   • Real Estate Appraisal
   • Property Management
   • Real Estate Finance
   • Real Estate Economics
   • Legal Aspects of Real Estate
   • Real Estate Office Administration
   • General Accounting
   • Business Law
   • Escrows
   • Mortgage Loan Brokering and Lending
   • Computer Applications in Real Estate
   • Common Interest Developments

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