CONVEYANCING Deeds and Recording Acts Flashcards
DEEDS – document that
- DEEDS – document that passes legal title from buyer to seller (becomes controlling document after closing)
A deed is validly executed when…
Execution (satisfy SOF): (1) writing; (2) signed by grantor; (3) land description (not perfect just a good lead)
Delivery of a Deed
Delivery: Present intent to convey = delivery (physical transfer not req). dominion & control
Delivery of a Deed details
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
Relation back doctrine:
Relation back doctrine: deed is delivered when G/or deposits it with escrow.
Acceptance of a Deed
Acceptance: is presumed. Recipient’s express rejection of the deed defeats delivery.
When do WILLS become effective?
- WILLS – effective on the testator’s death.
COVENANTS OF TITLE: 3 kinds of deeds:
COVENANTS OF TITLE: 3 kinds of deeds:
Quit Claim
Warranty Deed
Special Warranty Deed
Quitclaim Deed
Quitclaim Deed – no covenants (but all land-K’s have implied promise to provide marketable title at closing)
General Warranty Deed–OREo DAD?
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
Special Warranty Deed
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.
Bona fide purchaser
BFP = Buyer who purchases for value, without notice (that someone else bought it before they did).
“For Value”
“For Value” as long as B remits substantial pecuniary consideration
Who are NOT bona fide purchasers?
Donee beneficiaries, heirs, and devisees ≠ BFP’s – note SP who is a BFP is protected.
Race
Race; first BFP to effectively record prevails
Notice
Notice; A SBFP prevails if the purchase was made w/o notice of the prior interest.
Race-Notice
Race-Notice; A SBFP prevails if (1) purchase is made w/o notice; and (2) they record first.
Notice – AIR:
Notice – AIR:
Actual (personal knowledge);
Inquiry (reas inspection should uncover the conflict);
Record (if prior deed was validly recorded - if at time B takes)
Shelter Rule
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.
Wild Deed
Wild Deed – outside the chain of title. Created when deed recorded, but the PO did not. Does not put a SP on record notice.
Estoppel by Deed
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.
Indexes: Grantor & Grantee Index
Tract Index
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)
Title insurance
Title insurance: protects from hidden risks; lose a lawsuit related to title – recover from ins. co. if undisclosed title defect.
Two types of foreclosure sales
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.
judicial foreclosure sale
judicial sale, as with a mortgage
nonjudicial foreclosure sale
nonjudicial, under a “power of sale” clause that authorizes the trustee to advertise, give appropriate notices, and conduct the sale personally.
