Class Notes 2-22 - Class Notes 2/22/12 Title: Marketable...

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Class Notes 2/22/12 Title: Marketable title – Title that a reasonable purchaser would accept. Doesn’t have unnecessary encumbrances to the title. Encumbrances – 1. Easements – Puts a burden on the title and may or may not affect its value. 2. Mortgage – Uses the property as security for debt. Obligates the borrower to pay back that money. Reported and will appear on the title report. 3. Lis Pendens – Notice of pendency of proceeding (lawsuit). It may be used to satisfy a money judgment from the court. 4. Lien – When a third party has an interest in the property and uses the property to satisfy the debt. Deeds - A written instrument by the grantor and it transfers legal title from the grantor to the grantee. 1. Grant Deed – 2. Quitclaim Deed – The grantor is only conveying the interest they have in the property. They convey to the buyer whatever interest they have in the property. Mortgages – In California it is called Deeds of Trust, equivalent to a mortgage – They transfer a legal title to a trustee. 1. Trustee – Gets legal title The title company 2. Trustor – Gets Equitable title the borrower/buyer 3. Beneficiary - The lender/bank Power of Sale – When the trustor stops making payments, the trustee can foreclose and sell it in an auction. Promissory Note – The borrower promises to pay the loan Restrictive Covenants – The seller of the property makes a restriction on the lands use. These restrictions are on the Grant Deed. They run with the land and they do not attach to the grantee.
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Class Notes 2-22 - Class Notes 2/22/12 Title: Marketable...

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