Transfer

Valid Deed

Capacity

grantor

grantee

In Writing

Granting Clause

Action Clause

grant

transfer

convey

Description of the parties

Description of the physical property

Grantor's Signature

Delivery and Acceptance

Acceptance

grantee must accept

Intention

title of pass immediately

possession

of deed by grantee

presumes a valid delivery

Not required

Acknowledgement

Required for recording

prima facie evidence in court

Types of Deeds

Grant Deed

implies there are no encumbrances other than those revealed

is the only deed which confers after-acquired title

Quick Claim Deed

to quiet title

Priority of Valid Deed

first valid deed recorded determines ownership

Unless prior to recording

actual or constructive had been given

Notice

Constructive Notice

recording

Taking possession

with unrecorded deed

Actual Notice

taken possession

Title Vesting

Join Tenancy

Time

Title

Interest

Possession

They can do anything with their interest except will it

May sell without permission new buyer often new buyer holds community property

Disadvantage it can be severed by voluntary transfer or operation of law

Rights of survivor-ship

Recording a Lien

Foreclosure lien will sever his particular interest

will not sever interest

Only One Title for all

May hold unequal share

Tenancy in Common

Right of Possession

May will there share

One tenant in common cannot grant an easement

Community Property

Husband and wife

The assumption is CP

each owns 50%

Purchase of real property encumbered by one spouse is voidable within one year by the non consenting adult

One party can lease for a period of less then one year

One to list; two to sell

Statue of Succession

.5 to spouse; .5 to only child

.333 to spouse; .666 two children if more than one

Title

give grantee and heir of a marketable title

Title Plant

records of recorded documents by insurance companies

Seller is the trust-or in a preliminary title report

Types of Title Insurance

Standard CLTA (buyer)

Matter of Records

Lack of Capacity

Forgery

Defective Delivery

ALTA (lender)

includes survey and unrecorded events

extended coverage

includes survey and unrecorded events

Exclusions

Defects known by buyer and seller

Acts by government

Land Description

Metes and Bounds

Recorded tract

Township and Sections

Escrow

Make sure conditions of transfer are met

Dual agent for buyer and seller

After Escrow agent may become the separate agent of either party.

Broker Escrow

Charge fee only if agent to seller or buyer

Otherwise needs license Department of Corporations

Seller should order termite Report before listing

preventative work is usually paid by buyer

buyer or seller

Can authorize changes or cancel Escrow

Only seller can give the buyer permission to move prior to close

Inter-pleader Action

unresolved disputes between buyer and seller preventing closing

Broker may file if disputes over the deposit before opening of escrow

Closing

Selling price is a debit to buyer

Prepaid Takes is a credit to seller

Assumed loan is a debit to seller and credit to buyer

Interest on an assumed loan does not appear as a debit to the buyer

Recurring cost

impounds

Debit and Credits

are usually different for buyer and seller

Pro-ration

Who is going to pay

use 30 day month and 360 day year

Short rate

Home owners insurance is cancelled

refund will be less than a pro-ration

Broker must record a deed within one closing

Miscellaneous

Notary employee of a corporation

may notarize

when notary has no personal interest

Trust Deeds and re-conveyance deeds

Not Deeds

Loan Documents

Warranty Deed

Replaced by Title Insurance

Tax Aspects

Transfer Document Tax

$.55 per $500 of new money

County Tax Assessor

assesses the value of all taxable property

creates assessment roll

Property assessed at 100% of taxable value

County board of supervisors

Determine the tax rate

limited to 1% plus an amount to cover existing debt

Tax collector

Prepares the bill

Assessment Appeals Board

hears appeals from owners who believed they have been over assessed

Tax Calendar

07/01 to 06/30

01/01

lien date

precedes tax year

First installment

Due 11/01 to 12/10 delinquent

Second installment

Due 02/01 to 04/10 delinquent

06/30

starts the 5 year lien period

Pro-ration

e.g. sold home in 10/01

Seller would pay taxes from 07/01 to 10/01 by pro-ration into escrow

buyer would pay remainder tax bill plus supplement if any

Miscellaneous

Tax bill does not have legal descriptions

use tax assessor's parcel number

Senior Citizen

State Controller

for deferment options

Special Assessments

Street Improvement Act of 1911

Specific location tax

For streets, side walks and curves

Mello-Roos act

More general

Must be disclosed to buyer

Federal Income Tax

Basis

Cost Basis

purchase price

Adjusted Cost Basis

e.g. building a wall

benefits

depreciation, 1031 tax defer and installment sales.