CONVEYANCING Deeds and Recording Acts

Question 1

DEEDS – document that

Answer 1

1. DEEDS – document that passes legal title from buyer to seller (becomes controlling document after closing)

Question 2

A deed is validly executed when…

Answer 2

Execution (satisfy SOF): (1) writing; (2) signed by grantor; (3) land description (not perfect just a good lead)

Question 3

Delivery of a Deed

Answer 3

Delivery: Present intent to convey = delivery (physical transfer not req). dominion & control

Question 4

Delivery of a Deed details

Answer 4

b. Delivery: Present intent to convey = delivery (physical transfer not req). dominion & control
1. Writing grantee’s name then recording (even w/o grantee knowing) = delivery
2. Delivery by escrow is OK (even if G/or dies, title will still eventually pass from escrow agent to G/ee)
1. Relation back doctrine: deed is delivered when G/or deposits it with escrow.
3. Deed is absolute on its face – once delivered, oral conditions drop out as if they were never uttered

Question 5

Relation back doctrine:

Answer 5

Relation back doctrine: deed is delivered when G/or deposits it with escrow.

Question 6

Acceptance of a Deed

Answer 6

Acceptance: is presumed. Recipient’s express rejection of the deed defeats delivery.

Question 7

When do WILLS become effective?

Answer 7

2. WILLS – effective on the testator’s death.

Question 8

COVENANTS OF TITLE: 3 kinds of deeds:

Answer 8

COVENANTS OF TITLE: 3 kinds of deeds:
Quit Claim
Warranty Deed
Special Warranty Deed

Question 9

Quitclaim Deed

Answer 9

Quitclaim Deed – no covenants (but all land-K’s have implied promise to provide marketable title at closing)

Question 10

General Warranty Deed–OREo DAD?

Answer 10

General Warranty Deed – Warrants against all defects in title, including those due to G/or’s predecessors.
Six covenants. OREo DAD?
1. Owns: Seisin – G/or promises he presently OWNS the estate he purports to convey
2. Restrained: G/or promises he has power & capacity to make the transfer; RIGHT TO CONVEY not restrained.
3. Encumbrances – G/or promises the property is not encumbered (encroachments/liens)
4. Disturbed Not: Quiet Enjoyment – G/or promises G/ee won’t be disturbed by anyone else with lawful title.
5. Assurances: Further Assurances – G/or promises to do whatever future acts are reasonably necessary to assure perfect title.
6. Defended: Of Warranty – G/or promises to defend G/ee should there be any 3rd pty lawful claims of title

Question 11

Special Warranty Deed

Answer 11

Special Warranty Deed – promise marketable title and that

1) you have not transferred the same interest anywhere else and
2) that you have not encumbered the property in any way.

Question 12

Bona fide purchaser

Answer 12

BFP = Buyer who purchases for value, without notice (that someone else bought it before they did).

Question 13

“For Value”

Answer 13

“For Value” as long as B remits substantial pecuniary consideration

Question 14

Who are NOT bona fide purchasers?

Answer 14

Donee beneficiaries, heirs, and devisees ≠ BFP’s – note SP who is a BFP is protected.

Question 15

Race

Answer 15

Race; first BFP to effectively record prevails

Question 16

Notice

Answer 16

Notice; A SBFP prevails if the purchase was made w/o notice of the prior interest.

Question 17

Race-Notice

Answer 17

Race-Notice; A SBFP prevails if (1) purchase is made w/o notice; and (2) they record first.

Question 18

Notice – AIR:

Answer 18

Notice – AIR:
Actual (personal knowledge);
Inquiry (reas inspection should uncover the conflict);
Record (if prior deed was validly recorded - if at time B takes)

Question 19

Shelter Rule

Answer 19

Shelter Rule – One who takes from a BFP will prevail against any entity that the transferor-BFP would have prevailed against, even if the transferee had actual knowledge of the prior unrecorded interest.

Question 20

Wild Deed

Answer 20

Wild Deed – outside the chain of title. Created when deed recorded, but the PO did not. Does not put a SP on record notice.

Question 21

Estoppel by Deed

Answer 21

Estoppel by Deed – One who conveys realty in which he has no interest, is estopped from denying the validity of that conveyance if he later acquires that previously transferred property interest.

Question 22

Indexes: Grantor & Grantee Index

Tract Index

Answer 22

Indexes: Grantor & Grantee Index; search the grantee index and go far back as you can in the history of grantees – then go the other direction, looking through the grantors over time in the grantor index.

Tract Index; prop listed by location (not all jdx’s)

Question 23

Title insurance

Answer 23

Title insurance: protects from hidden risks; lose a lawsuit related to title – recover from ins. co. if undisclosed title defect.

Question 24

Two types of foreclosure sales

Answer 24

Generally, the sale may be either judicial, as with a mortgage, or nonjudicial, under a “power of sale” clause that authorizes the trustee to advertise, give appropriate notices, and conduct the sale personally.

Question 25

judicial foreclosure sale

Answer 25

judicial sale, as with a mortgage

Question 26

nonjudicial foreclosure sale

Answer 26

nonjudicial, under a “power of sale” clause that authorizes the trustee to advertise, give appropriate notices, and conduct the sale personally.