Real Estate
Principles and Practices
Chapter 5
Estates, Interests, Deeds,
and Title
© 2010 by South-Western, Cengage Learning
Key Terms
Acknowledgment
Community
property
Consideration
Co-ownership
Curtesy
Deed
Dower
Estate
Fee simple
Fee simple absolute
Fee simple defeasible
Fee simple
determinable
Fee simple to a
condition subsequent
Freehold estate
Grantee
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Key Terms
Grantor
Habendum clause
Homestead
Joint tenancy
Legal life estate
Life estate
Nonfreehold estate
Recordation
Remainderman
Reversion
Severalty ownership
Tenancy by the
entireties
Tenancy in common
Title
Warranty deed
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Freehold Estates
Ownership for an indefinite duration
Freehold: uncertain
Types of freehold estates
Fee simple
Fee simple defeasible
Life estates
Estate of inheritance
Not of inheritance freehold estate
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Freehold Estates
Fee Simple title: complete
rights with absolute
ownership
Sell
Will
Give away
Retain possession
Subject to government
and land use restrictions
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Freehold Estates
Qualified fee estates
Two types:
Fee simple determinable
Fee simple to a
condition subsequent
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Freehold Estates
Limits use to specific terms
Conditional
“as long as” used for purpose
granted
“qualified” the estate
Violation of the condition
results in land automatically
reverting to original grantor
Reversioner
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Freehold Estates
Violation of the condition
requires court action to
regain possession
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Life Estates
Granted by will or deed
Ordinary life estate: based on life of life
tenant
Life estate pur autre vie: based on
someone else's life
Life tenant:
Must maintain the property
Pay taxes
May not commit waste
May lease
May mortgage
May sell
May not will
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Legal Life Estates
Created by statute
and
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Legal Life Estates
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Legal Life Estates
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Nonfreehold Estates
Nonfreehold estate:
Less than freehold
Possessory interest
for a defiant period of
time
Leasehold interests
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Nonfreehold Estates
Estate for years
Periodic estate
Estate at will
Estate at sufferance
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The Deed
Title: evidence of ownership
Deed: document used to
transfer ownership
Tangible proof
Quality of the estate
Quantity and amount
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The Deed
Deed
gives proof of
Title
which represents the quality of the
Estate
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The Deed
Livery of seizin: Transfer
of possession
Grantor: Seller
Grantee: Purchaser
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The Deed
Deed must be executed,
delivered and accepted
Singed by Grantor
Corporations may hold
title
Fictitious name
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The Deed
Delivery made by the
grantor during grantor’s
lifetime
Third party mat accept on
behalf of grantee
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The Deed
Gives constructive notice
Not mandatory
County office where the property is
located
Copy in book of records
Original returned
Actual notice: actual knowledge
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The Deed
Competent parties
Consideration
Words of conveyance
Description of real estate
Restrictions
Quantity or quality
Signatures of grantors
Parties: grantor and grantee
Competent: capable of entering into a contract
Consideration: price paid
Token amount
“For love and affection”
Words of conveyance: grant title in the granting clause
Description: identifies the real estate
Restrictions: “subject to…”
Qualities and quantity of the interest: warranties
Signatures of the grantors
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Conveyance Fee
State tax – varies
Usually paid by grantor
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Types of Deeds
Most complete ownership
Guarantees title:
Covenant of seizin
Quiet enjoyment
Freedom from
encumbrances
Further assurances
Right to convey
Covenant of warranty
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Types of Deeds
Guarantees only during
grantors ownership
Grantors have not
encumbered the property
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Types of Deeds
Warranties created by the
grantors
Own property
Have not previously
conveyed the property
Encumbrances during the
grantors ownership
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Types of Deeds
No warranties
Grantor has an interest in
the property
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Types of Deeds
No warranties
Grantors “quit their claim”
Used to remove a cloud on
the title
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Types of Deeds
Trust Deed
Secures payment of a debt
Held in trust by 3rd party for
the benefit of a lender
Deed of reconveyance
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Types of Deeds
Used to donate real
property
Consideration
“for $1.00 and other valuable
consideration”
“for love and affection”
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Types of Deeds
Deed of Surrender
Conveys interest of life
tenant or remainderman
Deed of Release
Clears title when
mortgage is paid
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Types of Deeds
Correction Deed
Deed of reformation
Corrects errors
Cession Deed
Used by a subdivider to
transfer streets to the
government
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Types of Deeds
Sheriff’s Deed
Referee's deed
Transfers property sold at
public auction
No warranties
Administrators Deed
Transfers property of
deceased
Referee’s deed in partition
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Types of Deeds
Tax Deed
Transfers property sold for
unpaid taxes
Executor’s Deed
Transfers property of
deceased
No warranties except for
executor’s acts
States full sales price
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Types of Deeds
Guardian’s Deed
Conveys a minor’s interst
Director’s Deed
Public agency sells surplus
land
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Taking Title to Real Property
Ways to take title:
Joint tenancy
Tenancy in common
Concurrent ownership
Tenancy by the entirety
Severalty ownership
Multiple ownership
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Taking Title to Real Property
Acquired prior to marriage
Acquired by gift or inheritance
Each may devise their portion of the
community property to anyone
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Taking Title to Real Property
Two or more people join
in a business for the
purpose of making a profit
Trade name – severalty
Individual owner names tenants in common or
join tenancy
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Taking Title to Real Property
Homestead: family’s place of residence
Protection from judgments
Requirements:
Permanent residence
File as homestead
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Taking Title to Real Property
Claim’s which are not exempt:
Real estate taxes
Real estate special assessments
Real estate mortgages
Mechanics liens
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