Modern Real Estate Practice in Texas, 16th Edition
Chapter 17 Answer Key
1. c
2. a
3. d
4. a
5. c
6. b
7. a
8. b
9. b
10. a
11. a
12. b
Involuntary alienation involves the transfer of title without the owner’s
consent. Such transfers during the owner’s lifetime could occur by eminent
domain, tax or mortgage foreclosure, and erosion. Although escheat is a form of
involuntary alienation, it occurs after death as does transfer by descent or
devise.
To be valid, a deed in Texas must be signed by all grantors named in the deed.
Although a valid deed must name the grantee, it need not be signed by the
grantee.
A deed executed by an infant (one who has not reached majority) is considered
to be voidable, not void. A person reaches majority in Texas at the age of 18
(unless married or a member of the armed services prior to that age).
A sheriff’s deed is a deed executed pursuant to a court order. It is a form of
involuntary transfer of title resulting from tax foreclosure.
A will differs from a deed in that a deed conveys a present interest in real estate
during the lifetime of the grantor; a last will and testament conveys no interest
until after the death of the testator.
An acknowledgement is a formal declaration before a notary public or
authorized public officer that authenticates signatures on a document for the
purpose of recording. That is, the person whose name is on the document stands
before a notary and acknowledges that the signature on the document is his or
hers.
An owner who does not use his or her land or inspect it for a number of years
may lose title to another person by adverse possession. In this case Harold only
need prove that he used, cultivated, or enjoyed the property for the statutory
period of 10 years. A deed or chain of title or payment of taxes in support of his
claim would not be necessary.
The general warranty deed affords the purchaser the greatest protection of any
deed because the grantor is legally bound by the covenant of seisin and the
covenant against encumbrances.
In Texas, title is not considered transferred until the grantor (Alvin) delivers the
deed and it is accepted by the grantee (Sylvia). The grantor may deliver the deed
personally or through a third party (such as an escrow agent.) Recording of the
deed is not mandatory in Texas.
In Texas, a decedent’s title to real estate passes immediately upon his or her
death to either the heirs by descent or to the persons named in the will by
devise. Probate will be required, however, if there is a dispute among the
devisees.
Grantees receive the least protection with a quitclaim deed. It conveys only
such interest that the grantor may have had when the deed is delivered and
carries no warranties or covenants. If the grantor has no interest, the grantee
receives nothing in a quitclaim deed. It is generally used to cure a cloud on a
title.
The one receiving title is the grantee (Kasey); that which is received by the
grantor in exchange for the real estate (“$10 and…”) is the consideration; and
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Modern Real Estate Practice in Texas, 16th Edition
13. c
14. b
15. d
16. d
17. b
18. b
19. a
the clause which begins with “…to have and to hold…” is the habendum
clause.
The testator must be of sound mind at the time he or she executes the will. A
will made by someone who had previously been declared mentally incompetent
by the courts would be void and all property would be distributed according to
the statute of descent and distribution.
A warranty deed contains five basic implied warranties including seisen, against
encumbrances, and further assurance. Escheat is the reversion of property to the
state in the event the property is abandoned or the owner dies without leaving a
valid will and has no heirs.
Real estate is the only asset in a land trust, which is generally created by the
owner (trustor and beneficiary named in the land trust) when he or she wishes to
retain management and control of the property. A deed in trust would be the
means by which Harley conveys title to the land trust. A trust deed (deed of
trust) creates a mortgage, not a trust. A trustee’s deed conveys title out of the
trust.
Involuntary alienation involves the transfer of title without the owner’s
consent. Seisin is one of the five basic implied warranties in a general warranty
deed.
A testator is the party making a will. In a last will and testament, a devisee
receives real property; a legatee receives personal property. (Note: The “or”
gives to the “ee”.)
The statute of frauds requires that instruments affecting interests in real estate (a
contract; for example, a deed) be in writing to be enforceable.
An attorney-in-fact is any person who has been given a power of attorney
(specific written authority) to act on behalf of another. A power of attorney may
be durable or non-durable. In both cases the grantor must be legally competent
when granting the power of attorney. However, if the power of attorney is not
made durable, the grantor must also be competent at the time it is used, which
often defeats the purpose of the power of attorney.
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