Real Estate Chapter 7 Flashcards

Real Estate Chapter 7 Flashcards Covenant against encumbrancesThe grantor warrants that the property is free from liens or encumbrances, except for any specifically stated in the deed. Encumbrances generally include mortgages, mechanics' liens, and easements. If this covenant is breached, the grantee may sue for the cost of removing the encumbrances.Covenant of seisinThe grantor warrants that he or she owns the property and has the right to convey title to it. The grantee may recover damages up to the full purchase price if this covenant is broken.Bargain and Sale DeedA deed that carries with it no warranties against liens or other encumbrances but that does imply that the grantor has the right to convey title. The grantor may add warranties to the deed.Reconveyance DeedA deed used by a trustee under a deed of trust to return title to the trustor.Covenant of warranty foreverThe grantor promises to compensate the grantee for the loss sustained if the title fails at any time in the future.Covenant of quiet enjoymentThe grantor guarantees that the grantee's title will be good against any third party who might bring a court action to establish superior title to the property. If the grantee's title is found to be inferior, the grantor is liable for damages; that is, the grantor will pay the grantee if the title is not good.Transfer TaxA tax charged to the owner upon the conveyance of the property.Trustee's DeedA deed executed by a trustee conveying land held in a trust.Special Warranty DeedA deed in which the grantor warrants, or guarantees, the title only against defects arising during the period of the grantor's tenure and ownership of the property and not against defects existing before that time, generally using the language, "by, through, or under the grantor but not otherwise." Deed of TrustAn instrument that grants a trustee under a land trust full power to sell, mortgage, and subdivide a parcel of real estate. The beneficiary controls the trustee's use of these powers under the provisions of the trust agreement.Quitclaim DeedA conveyance that transfers whatever interest the grantor has in the specified real estate, without warranties or obligations.

Covenant of further assurancesThe grantor promises to obtain and deliver any instrument needed to make the title good. For example, if the grantor's spouse has failed to sign away dower rights, the grantor must deliver a quitclaim deed (discussed below) to clear the title.