ACC 296 Lecture Notes - Lecture 3: Title Search, Listing Contract, Seisin
receipt for real estate, conveys (transfer) title
Legal title:
ownership of real estate, not a physical thing, habendum clause: to have and tol hold
Cloud on title:
something wrong with the ownership of the property
Chain of title
history of the property's ownership
** can't sign over title for nothing
must have a consideration
Involuntary alienation:
forced loss of ownership, ex. foreclosure
Voluntary alienation:
not forced loss of ownership, ex. real estate sale
Property transfer step 1
Property is put under listing agreement, after signing of P&S the lender will hire an attorney or a title
company to perform title search to examine the chain of title (history) to determine if there were any
problems with the ownership (cloud on title). If there are issues, seller must rectify before closing... this
status is outline in an abstract title and a corresponding opinion of title
Property transfer step 2
At closing, the seller's broker brings the buyer's deposit (usually 5%), deposit and loan and buyer's
remaining down payment pay for the property. In exchange the seller (grantor) provides a deed to buyer
(grantee) transferring ownership. Record all of the documents associated with the sle, along with the
municipal lien certificate which creates a public record that the bank if the first lienholder on the
property in the event of foreclosure. Documents digitized by the registry of deeds
find more resources at oneclass.com
find more resources at oneclass.com
Deeds
-Convey (transfer) property
-Must be written (per statute of frauds)
-Grantor must be legally competent
-Must name the grantee
-Involve the exchange of consideration (evidenced by recital consideration)
-Include a complete and accurate description of the land (full legal description)
-Include granting clause
-Have delivery and acceptance
MA recording stamps
Expenses paid by seller (grantor) when their deed is recorded at the county registry of deeds
Also known as documentary, excise, revenue, transfer, conveyance stamps
$2.28 per $500 of recorded value
Stamps are only charged on the cash value of the sale
MA recording stamps Math
EX. a property sold for $505,100 in Suffolk County, how much does the grantor pay for recording stamps
$505,100 rounds up to 505,500
505,500/ 500 = 1011 stamps
1011 stamps x 2.28 per stamp = $2305.80 fee
Survey sketch:
shows the location and dimension of the land itself
Spot survey:
location, dimension of land, location, size and shape of improvements on lot
Measurements to memorize
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Legal title: ownership of real estate, not a physical thing, habendum clause: to have and tol hold. Cloud on title: something wrong with the ownership of the property. Chain of title history of the property"s ownership. ** can"t sign over title for nothing must have a consideration. Involuntary alienation: forced loss of ownership, ex. foreclosure. Voluntary alienation: not forced loss of ownership, ex. real estate sale. If there are issues, seller must rectify before closing this status is outline in an abstract title and a corresponding opinion of title. At closing, the seller"s broker brings the buyer"s deposit (usually 5%), deposit and loan and buyer"s remaining down payment pay for the property. In exchange the seller (grantor) provides a deed to buyer (grantee) transferring ownership. Record all of the documents associated with the sle, along with the municipal lien certificate which creates a public record that the bank if the first lienholder on the property in the event of foreclosure.
