Ass. 42 - Deed Must be Delivered Flashcards
undelivered deed
is void and passes no title to the grantee or her successors even if they are bona fide purchasers
how to deliver a deed?
the grantor must manifest by words or actions an intent that the deed be immediately effective to transfer an interest in land to the grantee
* Ex. Physically hand a deed w words that convey immediately effective transfer
how can delivery be conveyed?
delivery of deed can be conveyed either through words or actions
why do delivery issues mainly arise in the context of family gifts?
Because in the routine sales transaction, there is no doubt of grantors intent and the escrow agent, attorney, or other professional supervising the transaction can easily ensure that a valid delivery occurs
where do delivery issues usually arise?
family gifts
2 common delivery problems
- Grantor manifests an intent to retain some control over the deed or the property itself after execution of the deed
- Title litigation btwn the grantee and the residual devisees under the grantors will
what is a deed in the box case?
- Grantor places deed in a locked box which is found after death
- Security deposit box, safe, etc.
Why is there a problem when a grantor manifests an intent to retain some control over the deed or the property itself after execution of the deed?
because it can be seen as a will, and therefore delivery is not valid
in most states delivery will be presumed if…
- the deed is recorded, and/or
- the grantee has physical possession of the deed
why is there a problem with title litigation btwn the grantee and the residual devisees under the grantors will
if the grantor intends the deed to take effect only upon death, no delivery has occurred. Therefore, the deed in a nullity and the property is legally part of the grantors estate, where it will be distributed according to the will
how do the courts rule on deed in a box cases?
- Courts all agree that O has not manifested the requisite intent for delivery
In a deed in the box case, what happens if the grantor gives the grantee access to the box?
Yes, valid delivery occurred
what is sale escrow?
when the deed is conditionally delivered to an escrow agent w instructions that it be delivered to the grantee when K conditions are met
can a deed be conditionally delivered to the grantee?
Deed cannot be conditionally delivered directly to grantee but can to a 3rd part
relate back doctrine
when K conditions are met and escrow agent delivers the deed, the date of delivery relates back to the og date the grantor transferred to escrow agent
what is death escrow?
giving the deed to third party with the condition that it will be given to the grantee upon grantors death
how will death escrow be decided?
this will turn of whether the grantor has the ability to reclaim the deed
* if can reclaim the deed, this is sufficient retained control to preclude delivery
Hypo:
owner executes a deed conveying Wiseacre to Ruby, but owner intentionally fails to deliver it. Ruby obtains the deed, records it, and conveys to Samantha; Samantha then conveys to Teek. What is the result?
in most jurisdictions, O still holds title, even if T is a bona fide purchaser
if the grantors carelessness allowed the deed to be placed into the stream of commerce, why shouldn’t downstream purchasers be protected?
in operation, this rule is rarely as harsh as it might appear, bc
1. The disappointed purchaser will recoup the loss through title insurance or deed warranties or
2. The culpably negligent grantor will be deemed estopped from challenging the BFPs title
is the delivery of deed a question of law or fact?
FACT