22. Delivery & Acceptance Flashcards
When does title transfer?
After delivery + acceptance
What is required for delivery to the Buyer?
Grantor’s ‘present’ intent to transfer title
How may delivery of the deed be effected?
Manual/Physical delivery
- To Grantee (express delivery)
- To Grantee’s relative (implied delivery)
Notarisation
Recordation
Safeguarding
- As requested by Grantee
NOT retention of interest
- Life estate
Can delivery of deed be cancelled/returned?
NO
- Must draft new deed
What purposes may parol evidence (including after closing) be used for?
Seller’s intent
Delivery was conditional
- Delivery to TP in commercial transaction (NOT Buyer directly)
- Seller’s present intent
NOT failed delivery to subsequent BFP who detrimentally relied on delivery (estopped from denying failed delivery)
How may delivery be made to a third party with no conditions?
Seller gives instructions to TP
- To give to Buyer immediately
Seller gives NO instructions to TP
- TP is Buyer’s agent
- TP is NOT Seller’s attorney (courts may infer merely as Seller’s agent with power to recall deed)
How may delivery be made to a third party with conditions?
Commercial transactions
- Seller instructs TP to give to Buyer
- Parol evidence => Conditional delivery (unlike delivery to Buyer)
Donative transactions
- Seller instructs TP to give to Buyer
- Condition (Seller’s death)
How may delivery not be made to a third party with conditions?
Commercial transactions
- Seller revokes BEFORE condition fulfilment + NO enforceable contract to convey
- Seller’s escrow holder wrongfully delivers deed to Buyer BEFORE condition fulfilment
Donative transactions
- Seller revokes where condition NOT related to Seller’s death + NO enforceable contract to convey
How does the relation back doctrine apply in conditioned commercial transactions?
1) Either;
- Seller is dead
- Seller is incompetent
- Seller’s creditor attached Seller’s title
2) Seller delivers to TP
3) TP delivers to Buyer
4) Buyer’s acceptance of delivery ‘relates back’ to when Seller delivered to TP (as justice required)
When is acceptance by Buyer presumed?
Deed is beneficial to Buyer (most states)
How does the relation back doctrine apply towards acceptance?
Buyer’s acceptance of delivery ‘relates back’ to when Seller delivered to TP
- UNLESS it defeats intervening TPs’ rights (devisees/BFPs/surviving JTs)
What happens if Seller reserves right to return of deed by TP?
NO delivery
- Seller did NOT deliver deed beyond his control
