Conveyance by Deed

Question 1

Conveyance by deed

Answer 1

A deed is a document that serves to pass legal title from the grantor to the grantee when it is lawfully executed and properly delivered.

Question 2

Deed requirements

Answer 2

Much like a land sale contract, a deed must meet the following formalities in order to be lawfully executed (with the big difference being that consideration is not required for a deed):

a. Identification of the parties.
b. Signature of the grantor, which is witnessed or notarized.
c. Adequate description of the property.
d. No consideration is required (it may be an inter vivos gift).

Question 3

Three types of deeds

Answer 3

a. Quitclaim deed
b. General Warranty Deed
c. Statutory Special Warranty Deed

Question 4

Quitclaim deed

Answer 4

A quitclaim deed conveys whatever interest the grantor actually has in the property but contains no covenants of title.

Question 5

General warranty deed

Answer 5

Warrants against all defects in title and contains six covenants for title. Three of the covenants are present and three are future covenants.

1. Present covenants are breached at the time of the sale (when deed is delivered), if breached at all.
   a. Seisin: Grantor warrants he owns what he purports to own.
   b. Right to convey: Grantor warrants he has the power to make the conveyance.
   c. Against encumbrances: Grantor warrants there are no mortgages, liens, easements, or use restrictions on the land.
2. Future covenants run with the land, are continuous, and are breached, if ever, at the time the grantee is disturbed in possession.
   a. Warranty of title: Grantor promises to defend should there be any lawful claims of title asserted by others.
   b. Quiet enjoyment: Grantor promises grantee will not be disturbed in possession by any third parties’ lawful claims of title.
   c. Further assurances: Grantor will do whatever future acts are reasonably necessary to perfect title.

Question 6

Statutory special warranty deed

Answer 6

Some states enforce promises by statute where the grantor promises (on behalf of himself only) that he hasn’t conveyed the property to others and that the estate is free from encumbrances.

Question 7

Delivery of deed

Answer 7

A deed must be properly delivered and accepted to have effect. Title passes immediately to the grantee upon proper delivery, thus it is not revocable.

Question 8

Delivery requirements

Answer 8

1. There must be a physical transfer of the deed by the grantor to the grantee or a third party; and
2. Words or conduct indicating the grantor’s intent to make a present transfer of the deed. The following create a strong presumption of present intent to transfer:
   a. Recording the deed.
   b. Grantor giving the deed to the grantee.
3. Acceptance of the deed by the grantee must also occur. Rejection of the deed by the grantee defeats delivery.

Question 9

Merger doctrine

Answer 9

Once the property closes, the deed, rather than the underlying land sale contract, becomes the operative document governing the transaction. Any obligation imposed in the contract is deemed discharged at closing unless the obligation is repeated in the deed.