© 2013 All rights reserved.Chapter 7.1 Conveyance of Real Property 1

New York Real Estate for Brokers, 5th e

By Marcia Darvin SpadaCengage Learning

© 2013 All rights reserved.Chapter 7.1 Conveyance of Real Property 2

Chapter 7

Conveyance of Real Property and Title Closing

Part I: Conveyance of Real Property

© 2013 All rights reserved.

Chapter 7 Key Terms Abstract of title Accretion Acknowledgment Actual notice Adverse possession Assessment Bundle of rights Chain of title Closing statement

Constructive notice Conveyance Credits Debits Dedication Delivery and acceptance Erosion Escheat Executor/executrix

Chapter 7.1 Conveyance of Real Property 3

© 2013 All rights reserved.Chapter 7.1 Conveyance of Real Property 4

Chapter 7 Key Terms (continued)

Full covenant and warranty deed

Habendum clause Intestate Involuntary alienation Lien foreclosure sale Marketable title Proration Quitclaim deed Real Estate Settlement

Procedures Act (RESPA)

Reconciliation Survey Tacking Testate Title Title closing Title insurance Title search Voluntary alienation

© 2013 All rights reserved.Chapter 7.1 Conveyance of Real Property 5

Real PropertyReal Property is real estate + legal rights, powers, and privileges

RealProperty

RealProperty

Land Land Improve-

mentsImprove-

mentsBundle of

rightsBundle of

rights

© 2013 All rights reserved.Chapter 7.1 Conveyance of Real Property 6

Real Estate Ownership as a Bundle of Rights

Ownership rights

are less as “sticks”

from the bundle are

given away or sold

© 2013 All rights reserved.Chapter 7.1 Conveyance of Real Property 7

Voluntary and Involuntary Alienation

Voluntary Involuntary

During alifetime

Deed 1. Lien foreclosure2. Adverse

possession3. Condemnation4. Bankruptcy5. Eminent domain

After death

Will(testate)

6. Escheat(Intestate)

© 2013 All rights reserved.Chapter 7.1 Conveyance of Real Property 8

Definition of a Deed Writing Grantor Grantee Property Description

Consideration Words of

conveyance Execution Acknowledgeme

nt Delivery and

Acceptance

© 2013 All rights reserved.Chapter 7.1 Conveyance of Real Property 9

Legal Descriptions Metes and

bounds

A legal description with a point of beginning

Reference, plat, or lot and block

Refers to a subdivision map (plat) or a tax map with lot and block numbers

© 2013 All rights reserved.

Verifying the Property DescriptionFor residential or

commercial sale of improved property, the property’s common address (street address) is used

When tracts of unimproved land or lots are transferred, the deed, tax map, and/or survey may be attached on the contract of sale

Chapter 7.1 Conveyance of Real Property 10

© 2013 All rights reserved.Chapter 7.1 Conveyance of Real Property 11

Forms of Deeds

Full covenant and Warranty Deed

Strongest guarantee of title

Bargain and sale deed

With or without covenantsof warranty

Quit-claim deedNo

warranties

© 2013 All rights reserved.Chapter 7.1 Conveyance of Real Property 12

Elements of foreclosure

Priority/Subordination

Deficiency judgment

Equity of Redemption

Foreclosure

Deed in lieuof foreclosure

© 2013 All rights reserved.

Accession Rights

Chapter 7.1 Conveyance of Real Property 13

© 2013 All rights reserved.Chapter 7.1 Conveyance of Real Property 14

Water Rights Riparian rightsBelong to the owner

of property bordering a flowing body of water

Littoral rightsProperty bordering a stationing body of water such as a lake or sea

© 2013 All rights reserved.

Adverse PossessionC-Claim of RightH-HostileA-ActualN-Notorious and OpenC-Continuous (uninterrupted for 20-

years)E-Exclusive

Chapter 7.1 Conveyance of Real Property 15

© 2013 All rights reserved.Chapter 7.1 Conveyance of Real Property 16

Conveyance After Death

Intestate Descent No valid will upon

death

Involuntary alienation

NYS intestatesuccession statutes

Testate Descent Valid will upon

death

Voluntary alienation

Executor/executrix