FIN 368 Exam 2 Study Guide - FIN 368 Exam#2 Study Guide FIN...

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FIN 368 Exam #2 Study Guide FIN 368 Exam #2 Study Guide CH. 16- Deeds Deed-a legal instrument conveying title to real property Elements of a Deed 1. Complete Grantor- must be 18 years or older Must be in the right mental capacity Must understand (for mental state)- must be approved or disprove 1. They are transferring title 2. To whom they are conveying 3. Nature & value of property - Undue influence- that the people didn’t understand those 3 things above EX: when transferring deed make sure to have a legal name - Grantee-old deed name=Jana Alt - Grantor new deed=Jana Phillips - Say Jana Alt Philips or “ formally known as…” -then later on, if you want to sell then you have to find that person on the deed which results in costing money - If you know grantor is married but spouse is not on the deed then you have to wait because she still has interest on the property *Can’t put too much on a deed *Be detailed as possible in deed 2. .Identifiable Grantee - Make sure everything is right legally - If against a corp. then see if it is a real corp. and is in good standing 3.Words of Conveyance - What makes a deed a deed (granting clause) - Tells us what type of deed we are dealing with - Bargain & sale, Quitclaim, Fiduciary - Have to use right language in deed QuitClaim deed- An instrument that transfers the grantor’s interest only EX: grantor says-does not transfers title –Grantor- says I am releasing any claim I have to this property -More of a release - When in use-an inheritance -basically if they sign quitclaim deed they they are giving up property -to make sure there are not any other owners *Grantor-likes quitclaim *Grantee prefers not to get quitclaim deed, not getting any promises General Warranty Deed- conveys the seller’s title and contains covenants of title, or warranties. - Exact opposite of Quitclaim - Grantor is making a promise to grantee at least 3 things 1. Own fee simple title 2. No-one else has any claim to property 3. If anyone else makes claim through grantor (or anyone prior) then grantor will pay to defend
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Limited Warranty Deed- exact same thing as general except for one exception 1. If anyone makes a claim through grantor (but not anyone prior to grantor) that they have a right to the property than grantor will defend EX: 1990 Abe(mortgage) Gen W.D. > Ben(he is subject to lien) 2000 Ben Limited > Chuck (also has claim to deed, claims on only title problems only on Ben) 2005 Chuck refinances Chuck can sue Abe and then Ben can sue Abe ; Chuck cannot sue Ben because problem with title was through Abe, not Ben, and Ben’s limited warranty deed does not include promises for title problems that occur before Ben’s ownership Grantor-better off to give Limited Deed with the land 4.Adequate Legal Description - sufficient enough to distinguish that that is the property *Describe physical surroundings of property *Highest margin of error 5.Proper Execution
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This note was uploaded on 09/27/2011 for the course FINANCE 368 taught by Professor Phillips during the Spring '11 term at Missouri State University-Springfield.

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FIN 368 Exam 2 Study Guide - FIN 368 Exam#2 Study Guide FIN...

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