Question

Chapter 5: Title Transfer Question

A: Why is it important to transfer title to real estate using a written document--the deed? Answer A:

Question B: What purpose does the general warranty deed serve in the transfer of title process? Answer B:

Question C: What purpose does a special warranty deed serve in the transfer of title process? Answer C:

Question D: Under what circumstances would someone who is in the market for a home consider using the special warranty deed? Answer D:

Question E(i): Which deed is better (preferred)? Answer E(i): Question E(ii): Which deed provides a greater level of protection? Answer E(ii):

Question F(i): When should a home owner consider the use of a quitclaim deed? Answer F(i): Question F(ii): Under what circumstances should an individual seek legal advise to use a quitclaim deed? Answer F(ii):

Chapter 7: Contracts and the Statute of Frauds (Mandatory) Contracts are the essential part of all real estate transactions and no real estate can be transferred without the use of a written contract to prevent fraudulent practices and to be enforceable in a court of law. All real estate transactions are subject to the statue of frauds law. The law stems from British common law and was first established in 1677. (This chapter’s primary purpose is the discussion of a basic generic contract and later on in the course we will add the necessary elements for real estate transactions.)

Question A(i): Please, state the five elements of a generic legally binding contract. Answer A(i): 1) 2) 3) 4) 5) Question A(ii): Please, outline the five elements of a generic legally binding contract. Answer A(ii):

1)

2)

3)

4)

5)

Question A(iii): Please, briefly discuss the five elements of a generic legally binding contract. Answer A(iii):

1)

2)

3)

4)

5)

Question B:Which element of the contract do you consider the most important as related to real estate? Answer B:

Question C: Justify your statement in Question B. Answer C:

Question D(i): What is your opinion of the Statue of Frauds? Answer D(i):

Question D(ii): Does the Statue of Frauds slow down the contract process? Answer D(ii):

Answer 1

As per rules I am answering the first 4 sub parts of this question.

1. A deed is a written document which shows that the title or ownership has been transferred to another person. It must be recorded in the office of the country recorder or in the office of recorder of deeds. It helps to avoid dispute and is a clear proof that the title has been transferred.

2. A General warranty is a standard warranty in which property is transferred between the seller and the buyer. The buyer is given full warranty and the deed states that the property is not subject to any pending legal actions. The general warranty implies that the seller promises the right to convey the property and will Defend the title against claims. The seller guarantees that he owns the rights to the property and there are no encumbrances involved.

3. A special warranty does not provide the same protection as a General warranty and comes with a limited warranty regarding the condition of the title. In a special warranty the seller promises that there have been no problems or disputes as regards the title during the time that he was the owner of the property.

4. The special warranty deed is considered in the case when the buyer wants to be sure that there were no disputes regarding the title of the property during the time the seller and the property. He may be knowing the previous history of the property and would just want to ensure the period of ownership by the seller.