Chapter 4 Flashcards
Grantee must be named
A valid deed must identify the grantee in an unmistakable fashion; however, legal competency is not required.
A man signs a deed conveying a property to his grandson. When he dies the deed is found in his safe deposit box. In this case, the property has not been conveyed because the intention to deliver is not clear.
Once a deed has been has been recorded, it is presumed that there was a valid delivery and acceptance. Recording of the deed is not required for it to be valid; but it is very important for the grantee to record the deed, giving notice of ownership and establishing a priority over subsequently recorded instruments.
Covenant of Warranty Forever
This obligates the grantor to compensate the grantee for any loss suffered in defending the title against anyone asserting a rightful claim to the property from any time in the past.
Attestation
The act of a person witnessing the grantor’s signature and signing the deed as a witness. It is not a requirement for a valid deed, but is necessary in some states if the deed is to be recorded. Georgia requires this’
Acknowledgment
And acknowledgment is a formal declaration made by the grantor in the presence of an authorized official, usually a notary public, that the deed is being signed voluntarily. The purpose is to prevent forgery or a fraudulent inducement to sign. The authorized official should ask for identification, if not personally acquainted with the grantor. Although not a requirement for a valid deed, acknowledgment is a requirement if the deed is to be recorded.
Constructive notice
Constructive notice is knowledge that one is presumed by law to have, even though there is no actual knowledge of the fact. Since anyone is free to examine documents that have been recorded, the law presumes that they have done so. In other words if the purchaser could not have known that the deed or encumbrance existed, he or she should have known.
Purpose of recording
To defend a claim of ownership one must give notice to the world of their interest. The best way to accomplish this would be to record the deed as constructive notice. The physical possession of the property or visibly making use of the land also serves as notice.
Owners policy
An owners policy protects the owners equity in the property. The protection lasts at a minimum for as long as the owner or the heirs have an interest or any obligation report regarding the property. It is not transferable.
