Deeds

Question 1

Deed

Answer 1

A document that is sufficient to convey legal title

Question 2

Warranty Deed

Answer 2

• A deed that conveys title and makes 6 promises about title
• The Present Warranties
  1. Seisin
  2. Against Encumbrances
  3. Right to convey
• The Future Warranties
  4. Quiet Enjoyment
  5. Further Assurances
  6. Warranty

Question 3

Warranty Deed: Present Warranties

Answer 3

Present Warranties are breached at conveyance and do not run with the land

1. Seisin: grantor possesses the land or the estate
2. Against Encumbrances: no interest in a third party exists that prevents the conveyance of the fee
3. Right to Convey: the grantor has the general power to convey real estate

Question 4

Warranty Deed: Future Warranties

Answer 4

Future Warranties are breached if eviction occurs, and run with the land

4. Quiet Enjoyment: no one’s superior title or right will interfere with the grantee’s possession of the land
5. Further Assurances: the grantor will execute documents needed to perfect what was conveyed
6. Warranty: no specific meaning

Question 5

Quitclaim Deed

Answer 5

A deed that does not contain title warranties

Question 6

Habendum Clause

Answer 6

• The clause in a deed that sets forth the estate being conveyed
• Introduced by the phrase, “to have and to hold”

Question 7

Granting Clause

Answer 7

• The first clause of a deed that has the verbs needed to convey the property
• The clause in which the grantor(s) and grantee(s) are identified
• The clause in which any needed cotenancies are created
• The clause in which the consideration paid by the grantee is disclosed

Question 8

Execution

Answer 8

• The signature of the grantor, AND

- The signature of the necessary number of witnesses (2 is typical)

Question 9

Escrow

Answer 9

A multi-party agency where the agent works for both the grantor and grantee

Question 10

Delivery

Answer 10

The legal transfer of the deed from the grantor to the grantee

Question 11

Void Deed

Answer 11

• A deed that was not properly executed, OR

- A deed that was not properly delivered

Question 12

Metes and Bounds

Answer 12

• A method of describing land by defining a starting point and giving direction on how to traverse the boundaries of the property.
• To be accurate, you have to be able to find the starting point and must end up back at the starting point after traversing the boundaries.

Question 13

Governmental System

Answer 13

• The system of land description used in most of the U.S.
• Land was surveyed before the first conveyance
• The entire state is divided into townships and ranges, each of which was 36 square miles
• Each square mile is called a section
• To locate land, you have to give the state, township, range, section, and location within the section and the contained area
• Property is square unless otherwise specified.

Question 14

Recording System

Answer 14

• A statutory system to replace the common law’s “first in time” system for deed validity
• In general, the interest disclosed by doing a title search will be the one recognized by the law.

Question 15

Race Statute

Answer 15

• If there are two competing interests, the first one to be recorded will be valid
• Used in two states: NC & LA

Question 16

Race-notice Statute

Answer 16

If there are two competing interests, the first one to be recorded will be valid unless its holder knew of the other interest at the time of the conveyance
-Used in Approx. 24 states

Question 17

Notice Statute

Answer 17

If there are two competing interests, the last one to be executed and delivered will be valid unless its holder knew of the other interest at the time of the conveyance.
-Used in approx. 24 states

Question 18

Notice

Answer 18

• Evaluated at the time of conveyance

- Exists when the second grantee has knowledge of the first transaction

Question 19

Constructive Notice

Answer 19

• Evaluated at the time of the Conveyance
• Exists when the first transaction is recorded before the second transaction is delivered, OR
• In a minority of jurisdictions, exists when the second transaction is done with a quitclaim deed.

Question 20

Inquiry Notice

Answer 20

• Evaluated at the time of the conveyance
• Exists when someone other than the grantor is in possession of or uses the premises
• The possession or use has to be significant–the kind that would ripen into adverse possession or a prescriptive easement.

Question 21

Land Registration

Answer 21

• An alternate system to land records
• Starts with a judicial finding establishing the exact state of title to a parcel
• A certificate is issued which is title to the land
• Interests that are not shown on the certificate or invalid except:
  
  • Federal tax liens
  • Interests held by parties who were not properly served in the original judicial action

AKA the Torrens System

Question 22

Good & Valuable Consideration

Answer 22

• Money or something that is worth money
• Needed to claim the protections of the recording statute against a prior unrecorded transaction
• Only Colorado protects donative grantees against prior unrecorded interests

Question 23

Title Abstract

Answer 23

A synopsis of each deed and other transactions that affects title to a given parcel

Question 24

Title Certificate

Answer 24

An attorney’s conclusion about the state of title to a given parcel

Question 25

After Acquired Title

Answer 25

• The rule used when a grantor conveys something that is not owned when the grantor obtains title at a later point
• In general, when the grantor subsequently obtains title, it will automatically be transferred to the earlier grantee
• Historically, the earlier conveyance must have been by a warranty deed; today, a quitclaim deed will be sufficient if the grantor made a representation of title in another document (I.E. contract of sale containing a promise to deliver marketable title)
• AKA Estoppel by deed

Question 26

Implied Warranty of Habitability

Answer 26

• Extended by a builder-vendor
• Covers latent defects in construction that make the house unfit for use as a house
• Damages are the cost to repair, if practicable, but if not, the value if as promised less the value as delivered
• In extreme cases, the transaction cannot be rescinded