Deed Flashcards
Contract of sale
- Before a deed is elivered, the contract of sale is signed.
- Under equitable conversion, as soon as the contract is signed (but before closing), the buyer’s interest is real property (land) and the seller’s interest is personal property (money). Thus, the risk of loss remains on the buyer under equitable conversion, even if the seller remains in possession and control of the land.
Validty of a deed
To be valid, a deed must:
* iidentify the buyer and the seller,
* describe the land,
* contain words denoting a present intent to convey,
* and be signed by the grantor.
* It must also be delivered. Devliery is a question of intent to pass title presently.
Types of Deed
- Warranty deed
- Quitclaim deed
six implied covenants
- Covenant of Seisin
- Covenant of Right to Convey
- Convenant Against Emcumbrances
- Covenant of Quiet Enjoyment
- Covenant of Warranty
- Convenant of Further Assurances
Covenant of Seisin
Warrants that the deed describes the land in question and that the grantor is the rightful owner.
Convenant of the Right to Convey
Warrants that the grantor has the right to convey the property
Covenants Against Encumbrances
Warrants that there are no undisclosed encumbrances on the property that could limits its value (e.g., easements, mortgages, etc).
Covenant of Quiet Enjoyment
Grantor promises to defend against future challenges to the grantee’s title to the property.
Covenant of Warranty
Grantor promises to defend against future developments that extend into the grantee’s property boundary.
Covenant of Further Assurances
Grantor promises to do what is reasonably necessary to cure future problems with title.
Remote grantees
Under common law, remote grantees can use only under future (not present) covenants.
Implied Warranty of Fitness of Suitability
- applies to defects in new construction. It protects against** latent defects** and warrants that the new construction is safe and fit for human habitation
