Real Estate Basics – Ways to Transfer Property

Posted by admin on May 19, 2010 under Real Estate License Basics | Be the First to Comment

This time, our Real Estate Basics series will look at the many different ways that there are to transfer property from one individual or entity to another. Real estate courses will take you in detail through each of the ways to transfer property as this is essential knowledge you will need to earn a real estate license in any state.  When it comes to transferring property, there are many different ways for this to take place. Voluntary alienation is the transfer or conveyance of ownership of property by deed. A deed is a document transferring ownership of the property and considered evidence of title.

There are also a number of ways to transfer property through involuntary alienation or without the consent of the grantor. With Eminent Domain, the government has the right to take possession of a person’s property when it is deemed for necessary public use and/or for public good. Adverse Possession is a transfer that has many similarities to an easement by prescription.

Escheat is the transfer of property to the government because the owner has died without a will, or intestate, and has no heirs. If the decedent has heirs then the property is transferred upon the death of the grantor to the heirs as per the Statute of Descent and Distribution. Should the owner die with a will, or testate, the estate will be probated prior to the heirs taking possession.

In order for a will to be deemed valid, it must be made by a person who is of sound mind, legal age, and not under undue influence. It must contain proper wording. Giving real estate in a will is to devise while transferring property in a will is to bequest property. A handwritten will is known as a holographic will and is not legal in every state. When a will is given orally upon ones imminent death, written down by a nurse and witness by a doctor it is a nuncupative will.

In order to transfer the title of a property, that property must have marketable title. This means that the property in question is free of any problems that would hinder the sale. A marketable title requires a clear chain of title, or record of property ownership from the property origin to the current owner. If there are any gaps in the chain of title, a Suit to Quiet the title must be filed by the owner or title company involved with the sale in order to have marketable title. A Certificate of Title is necessary to prove that the ownership of the property is valid and that is has no significant liens or encumbrances.

Title Insurance is protection against the unknown when transferring title. A standard title insurance policy will protect you in the event that something is uncovered on the public record. An extended coverage policy covers encroachments and other things that you would not find as a matter of public record.

All of this and much more will be a part of the real estate training you need to earn your real estate license.