Talking about Deeds with Lisa - Real Estate Exam!

Talking about Deeds with Lisa – Real Estate Exam!

hi this is Joe from prep page with my friend Lisa how's it going Lisa I'm glad you excited for your exam it of course everybody says that but I think it's more nervous and excited what do you think absolutely that's why I'm calling you you are okay we're gonna go over some things today mostly we're going to look at parts of deeds and like always everybody is watching this in YouTube land if you have any questions comments or you think I missed something you think I could do a little better put it in the comments below I'm humble enough to know I do not know everything so your feedback below is appreciate it and I don't mind you making it public because we all learn together we learn more right Lisa that's right yeah so with that being said let's get it started okay what's a deed it's a paper that shows proof of ownership nope nope what you just described is something called title title is ownership okay okay let me give you this stuffy definition here here read that out loud a deed is a document that conveys or passes real estate from one party to another whether you buy a house from a stranger and hear it from your parents or as yourself to the home title a deed accomplishes the deed of transferring the title sounds rather mumbo-jumbo right kind of let's make it a little simpler evidence of transfer okay how's that I make a little easier hey guys a deed is just evidence of transfer if you got shopping recently yeah would you buy a bathing suit when you got that bathing suit okay would they give you at the store a receipt what does that receipt that I purchased that that's your deed that receipt doesn't necessarily mean you own it all it means is that you purchased it it was evidence of the transfer does that make sense because you may have bother somebody else or whatever the purpose but that that receipt represents a deed okay that's a lot clearer yeah perspective it's much better than this big mumbo jumbo technical definition correct yeah absolutely yeah to give it this right you have a daughter correct thank you okay so you buy some suit for her okay and you don't want her to lose it he's you know kids lose stuff all the time are you when those parents had put her name on the back of her swimsuit or back of her shirt I don't know you know you know what I'm talking about right yeah yeah that like title think of that name on the back of her shirt like title deed is the evidence that transmitted deeds the receipt but your daughter's the one who actually owns that shirt or owns that swimsuit whatever it is because you put her name on it that's title okay a lot of fun yeah maybe not a shirt or swimsuit me sure you put your name her name on something at some point maybe her lunchbox I don't know yeah not that okay so first I want to remember that a deed is evidence of a transfer title is ownership okay now I know we're not talking about this today but just real quick to review there's two different ways you could own property do you know if they are and really simplify it don't make this more complicated that it is do you know what it is I don't hear you could own it by yourself or with somebody art okay now that's not the technical definition and that's why I said keep it simple all right you're either there with somebody else or by yourself when you want to by yourself do you know what that's called they're very stubborn severalty only in severalty okay and you want to know this for your exam okay and when you own it with somebody else it's called a concurrent estate okay alright and there's different types of concurrent estates we won't get into it too much now do that another time for this joint joint tenancy you ever heard of that before yeah tenancy in common yeah when they're talking about that they're talking about different types of concurrent estates different types of ways you could own it with somebody else okay does that make sense mm-hmm all right pull back titles ownership and spoiled here deed is evidence of a transfer gotta know that all right okay okay all right a deed is not a sales contract do you read that for me this part a deed is not a sales contract a sales contract is a promise to convey property and exchange for something usually money and a contrast ad isn't a deed isn't promised to convey it is the conveyance itself okay once again sounds kind of mumbo-jumbo right sounds like something Charleston Heston would say all right so what are the four essentials of a valid contract do you know them – I know it's accept them good it's lovely actually okay offer it up then people often call that mutual consent or meeting of the minds all means the same thing and I'm not sure what the other two are okay no problem consideration consideration okay then you have lawful object okay okay capable party yeah so what are the four essentials of valid contract for an acceptance consideration lawful object and capable party does consideration have to be money no we could be a hug and kiss exactly it could be love and affection it could be a hug me anything that you think of is valuable all right right so now we go back to this and this would make a little more sense a deed is not a sales contract the sales contractors are promised to convey property in exchange for something usually money as you just said not always in contrast a deed is not a promise to convey is the conveyance itself and what we talk about here is something called an execute or contract executed contract that's a totally different subject my point here is that a deed is just evidence of the transfer people think of it as a contract but it's not a contract it's more like that receipt that I was giving the example before and people get that confused a lot okay does that make sense yeah a lot more clear yeah okay so you get your proposal which is the contract you did it I bought it you're good now you get the receipt otherwise it was a deep okay okay it's performance one of the essentials of a valid contract umm no good excellent because what are the four central valley contract consideration offer and acceptance capable parties and lawful object good testing you there I want you remember that got to keep that in mind right right right do you know what the OREA rule is you ever heard this before yeah I have I'm one of your videos okay so tell well what do you good what do you know about it then I got works you a little bit like the give or and the trust are and excellent I'm not sure I mean I I'm not sure any more confident yeah you do know well so what was the gist of it was it just of it so what is that remember how okay so the low are is the give War II II receives well you're referring to that little story I do I go lessor vend or trust or option or grant or the give or the profit or for your pleasure let's see vendee option II grantee makes me happy because I have property right it sounds kind of goofy and stupid but you'll totally remember it on your exam right I mean whatever he's looking and you're like offer or vend or trust or repent or for your pleasure biblically or weird you'll pass the exams like haha screw off I passed so don't worry about you've been acronyms okay so what is the oro about after I just did my little song and dance at the person I'm giving excellent good and that's the point of that give or than EE and then eating is the person receiving good ops my spelling is awful he makes a point ie receives so let's go back to that shirt you got not are you the gift door or the gift II when you give that gift of a shirt I'm thinking more rights you're the gift or I go see where as a gift gift or she received it a giftie hey now why am i bringing this up now well these were talking about deeds and the whole point of jeans is what what is a deed what we say indeed is the receipt with evidence of way or it's the evidence of transfer good don't get to cut off my example receipt was just there to make the point it's not actually a receipt that's not going to answer on your exam or like right just so don't get caught up with that so so the deed is evident the transfer so obviously when you have a transfer there's somebody giving and receiving so you're gonna see this o ree thing come up a lot when you talk about deeds does that make sense yeah okay good okay first you have the granting clause part of the deed here read this out loud okay the granting clause lists that transfer and the transferee and the statement to effect that a transfer or and the transferring to the land of the transferee sounds very complicated doesn't it it does but when you break it down and remember my ree rule it makes a little simpler because transfer is the giver okay transfer is the person receiving basically up says the grant AG the granting clause that thing that names the guy given to the guy receive it that's it that's all it is and when you see this legalese if you can remember things like the O R and ie rule it'll really break it down to makes it much more simple so granting Clause really does is list that you lease are giving me the property Jo you're the Grand Tour I'm the grantee do you know what a quitclaim deed is I know it's like the the worst the worst need you could have why you say it's the worst isn't like the it's just like transferring the title and you really don't know if it's a good title a lot of people that are going through a divorce get the quitclaim deed I believe yeah and they're just I'm conveying the interest the recipes the interest that they have I'm not sure actually you're doing very well okay okay oh you've got me as you said it's the worst one where'd you really none are bad or good they all just serve different purposes like nobody made a deed like let's make one that's horrible let's make a horrible deed this one's gonna be the worst right like they never make that make any bad intention so quickly indeed does have a purpose you use the example of a couple ganna divorce okay why would they use a quitclaim deed like what's that point of that quick lending cuz they're just conveying the interest good they have and it doesn't no ownership for so you do well so the basic point of getting at a quitclaim deed is the quickest way to transfer interest okay it's just an immediate transfer which is why people make this mistake all the time it's not a quick clean it's a quit clean okay I hear people all the time say quick claim deed quick claim cook claims it sounds similar but and the reason they think of that is it's a word it's a way to quickly transfer interest okay let give an example father wants to give property to his son he doesn't need you know the property he wants to give it to he wants in his son's name she'd use a quitclaim deed yeah yeah he's usually want to do when there's a position of trust involved because there's great warranties so use the example of the divorce it's not a matter of them checking the property see what's going on there just transfer their interest immediately so for example if we're married right and under the marriage statutes of our state we have the property together but there's a problem you have great credit I have terrible credit and terrible income you basically didn't marry a big winner married a big loser here okay no credit no income no nothing you can't get alone with me there you you get alone just me fireworks so what the lender may do is say Lisa you know it have Joe quick claim his interest over to you and then it's easier to get the loan because you got great credit he's just he's just a big bump here he's not helping at all so I could quit claim that interest so that we can live in the house and we could get a better loan under your name does that make sense yeah there's lots of scenarios okay we reuse this but the basic gist of it a lot of truck yeah I was gonna say so it's basically you do have to have trust you have to know that he actually holds title to the to the what he's conveying and your interest you dry know them personally here retriever I have on the board here okay quitclaim deeds often are used when property isn't sold examples include when the owner adds the spouses name to the title and when a former spouses name is removed from the title after divorced and the property is transferred to a living trust and parents wants to transfer the property to a child there's many examples those are not all of them I was just writing down a few to make the point because the property isn't sold you're just transferring the interest okay here so quick claim deed is a legal instrument which is used to transfer interests real property but and to be transferring interest called the grantor and when the quitclaim deeds property completing it executed transfers in any inch of the Grand Tour has a property to a recipient called the grantee and if you remember my OREA rule who's the grantee who is this guy the grantee the receiver good why I don't know why I know it just has a ee at the end of it therefore that's the answer right so quickly indeed says I'm not warranting what I owned by I'm transferring what I do own to you basically all it says and this segues us is something this thing called a warranty deed okay now some states use a grantee the state you're in you use a warranty deal a warranty deed guarantees certain things you read that last paragraph there with a quitclaim deed the grantee has no legal recourse if problems with the title turn up or if a forgotten lien holder emerges from the woodwork there isn't a title policy that's why it's a risk err on the other hand a lot of quick claim quick claims are executed when the property stays and the family and that reduces the risk okay so there's a lot going on that sentence okay first of all who's the grantee who we say their grant he is the person receiving okay what is title title is ownership okay a forgotten lien holder roof it's a big word what's a lene lene is money owed excellent good so what would a lien holder be I'm not sure that'd be the person to the money's owed to so like the bank lien holder somebody files a mechanic's lien or if you lose a judgment so that's the lien holder okay so okay so basically I transfer property to you as the grantee and then I turn up out of nowhere as the lien holder and say hey Lisa that guy you bought it from well he bought it from a guy who owes me a lot of money I never got my money and you'll say I don't care not my problem and I will say yeah kinda is your problem because my lien is attached to the property does that make sense and yes the whole point of the warranty deed the warranty D is there to make sure that doesn't happen and there's something else you have you have something called a title policy title a church do you know what that is No so what's title would you say it was title is ownership okay so when you have title okay you have title insurance that's what's insurance to make sure that we you have is called clear and marketable title to make sure everything's okay and they check something called a chain of title you ever heard this term before a chain of title yeah what does that mean it's um they go back to the very beginning chain of title ii all of these area perfect history of ownership history of ownership okay it's basically you just said same thing they go back and see who's owned it why is it important because it bill sells it to Bob and Bob sells it to to Sam but Bill had a problem when he transferred to Bob well that's a problem for Sam and say check the history to make sure all the transfers were done correctly okay okay so you got these warranty deeds right in certain states you would use a grant deed so warranty deed for those who are in other states that don't use this this may be more familiar to you when you talk about grant deeds okay but you use a warranty deed and a warranty deed basically warrants that the seller has the right to sell it okay so if you look at it says the grantor is rightful owner so basically it's yours to sell there's no outstanding claims liens the property can't be claimed by somebody else in other words nobody else could say hold on lee so you can't sell it's mine it's mine it's mine okay and a title insurance II can back up the claim of warranty t Thailand scripts won't back up a quitclaim deed why because quitclaim deed says I don't know anything I'm just signed this over boom it's going over to somebody else so when you sign me over a quitclaim deed I'm accepting all the good parts and the bad parts I'm accept what it is is what I'm getting that's it that makes a lot of fun okay good do you know what the difference between a general warranty deed and a special warranty deed is I know general warranty deed covers a lot more covers five things I'm not sure exactly what it is it's much too I can't make it out to be okay so a general warrants need and a special warranty deed will both ensure that the seller owns the property no liens all that good stuff that's free and clear marketable title here both general warranty deed can be used for real estate or property sold like we just said the difference between a warranty a warranty is the extent of the courage coverage to the warranty which is kind of what you just said right mm-hmm so big whoop okay nothing big here okay here's the difference for you a special warranty deed covers the period of time for which the seller owns it a general warranty deed general warranties for buyers wish insure they won't face title challenges and make sure that it's an unbroken chain does that make sense I'm broken chain chain of title remember that chain of title okay yes the history of ownership so the special warranty deed will say all right Lisa you sold to me I'll make sure everything's fine in your duration of ownership Wow Lisa on the property a general warranty which is what you're more likely gonna use when you sell real estate will go back from you to the person you bought it from to the person they bought it from and so on down the line okay that's the one you're more likely to use when you transfer it your house when you buy a house okay okay does that make sense yeah okay good okay okay Lisa you got any more questions for me I do not okay good so we went over some basic things here hopefully that helped and like I said before if anybody has any comments please put them in the show notes below other than that this is Joe from prep agent saying goodbye and thank you Lisa

40 thoughts on “Talking about Deeds with Lisa – Real Estate Exam!”

  1. What if a person brother, cousins or nephew write a warranty deed to a seller but his not the owner of the land? Is not legal to do that?

  2. Just passed my exam at my second attempt. Thanks Joe, all I did was watch your videos on the areas I was behind ; agency, financing, title and valuation! Thank you so much for doing this publicly! God bless brother, onto selling homes now 😋

  3. Passed!! Passed!!! Passed!!!! Don't sleep on Prep Agent! He is the truth!!! I've been listening to his videos three months straight! Thank you Prep Agent for breaking down concepts and making it make sense!!!!

  4. Hi Prep Agent…another awesome and very helpful vid! I was trying to clarify what happens with outstanding mortgage and who is responsible for payments….and saw below. Can you clarify? It sounded like your description suggested all liens went to person receiving, but below says giver or Grantor still responsible for liens/ mortgage etc?:
    Thanks for all your info!

    "Can you quit claim deed a house with a mortgage?

    A quitclaim deed merely transfers ownership: It doesn't confer any responsibility for the underlying mortgage or outstanding liens against the house"

  5. Sooo maybe I’ll make it more complicated but the word mortgage is OLD FRENCH. Mort: means DEATH 💀 shocking 😂 and Gage: means PLEDGE. When you take out a mortgage, you are GIVING a DEATH PLEDGE(sometimes it feels like it really is that😂) Since YOU are GIVING, it makes you the mortgagor, and the one RECEIVING your pledge(lender) is the mortgagee. It helps if you know the roots of things so you don’t just remember but know how to use it and why it works.

  6. I love your videos but I think they’re much better when you have people who know what they’re talking about included! She sounded like she had not studied at all. Just a suggestion! Thanks!

  7. Just wanted to say thank you so much for your videos and explanations! I was having such a hard time understanding all the info given on my online classes, but after watching your videos everything is finally starting to click! 🙂

  8. I've worked for a title company for 10 years and your receipt/bathing suit is a good example of deed/title.

  9. Another way that I have remembered Mortgagor and Mortgagee .. Mortgagor has 2 O's and so does borrower. Mortgagee has 2 E's and so does Lender.

  10. After I took my class and passed their exam I felt like I really didn't understand anything. I took one of the prep classes for the Exam and then didn't pass the state exam.Needless to say I was discourage, now I have about 2 months left to take the state exam again. I found Joe the Prep agent and I'm starting to feel like I might do it this time.
    Thanks Joe

  11. Love you're educational videos, I listen and learn every single day! I really like How you're examples!!

  12. Hello,
    Where do you cover the difference between a bargain and sale deed vs quitclaim deed? In one discussion you said that Art explained it to Michael in one of your webinars but I couldn’t find it on your website. Thank you 🙏

  13. I failed class final, didn't even take the state exam. I got discouraged and never went back to take it again. I'm prolonging this process bc teacher said come back when I'm ready, I don't know if and when I'm gonna be ready! Your webinars are awesome and are helpful, I'm just still scared. I'm in NY and a lot of the laws here dealing with the health department, environmental department, and all these different taxation departments is what's stressing me out. Who is in charge of what and blah blah blah. So tedious and annoying.

  14. I like how you begin with the basic vocabulary and build upon it. So many instructors assume the viewers are familiar with Real Estate language when in fact they are not. Thank You

  15. I took my exam yesterday and passed the PA state portion, however I failed the national by 6 questions which were all math and I did not do any of the math:(

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