6.4 Involuntary Title Transfer

Involuntary alienation is the transfer of real estate title without the owner’s consent, regulated by state law. Common ways this occurs include:

Laws of descent: When someone dies without a valid will (intestate), state law determines heirs and their shares. If there are no heirs, property escheats to the state or county.
Abandonment: Property abandoned for a statutory period may also escheat to the state or county.
Foreclosure: Failure to fulfill loan or tax obligations can result in loss of property through foreclosure.
Eminent domain: Government or public entities can take private property for public use (with compensation) through condemnation.
Adverse possession: A person who occupies and uses another’s property without permission may claim title if certain legal requirements are met (claim of right or color of title, notorious and hostile possession, continuous use for a statutory period, sometimes paying taxes).
Estoppel: Prevents someone from reclaiming property if their prior actions/statements are inconsistent with a new claim. For example, a grantor cannot reclaim property after curing a title defect if it was already conveyed.

Which of the following is an example of involuntary title transfer?
Sale by deed
Transfer by will
Foreclosure
Gift to a family member

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Correct Answer: Foreclosure
Foreclosure is a common type of involuntary title transfer.
What is required for a claim of adverse possession?
Continuous, notorious, hostile possession for a statutory period
Permission from the owner
Payment of rent
Ownership by will

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Correct Answer: Continuous, notorious, hostile possession for a statutory period
Adverse possession requires open, hostile, continuous occupation for the period set by law.