Deeds Flashcards
Types of Deeds
(1) Quitclaim
(2) General Warranty
(3) Special Warranty
Quitclaim Deed
- No promises from seller to buyer
- Does not use the words grant or convey: “I quitclaim _____ to you”
General Warranty Deed
- Covers any defects in title that have ever occurred
- Deed contains covenants of title that warrant against any defect in the grantor’s title regardless or when it arose
Special Warranty Deed
- Covers defects in title during current grantor’s ownership
- May contain the same covenants as in a GWD, but covenants only apply to defects that occurred during the current ownership
Present Covenants
(1) Covenant of Seisin
(2) Covenant of the Right to Convey
(3) Covenant against Encumbrances
(4) Texas Specific: Covenant of No Prior Conveyances
Future Covenants
(1) Covenant of General Warranty or Special Warranty
(2) Covenant of Quiet Enjoyment
(3) Covenant of Further Assurances
Covenant of Seisin
“I own what I am conveying to you”
Present
Covenant of the Right to Convey
Generally, a duplicate of Seisin…but sometimes there is a restriction on Alienation (Present)
Covenant Against Encumbrances
“I promise there are no encumbrances I haven’t told you about” (Present)
Covenant of No Prior Conveyances
“I promise I have not conveyed the estate or any interest in the estate to anyone other than you” (Present — Texas Specific)
Covenant of General/Special Warranty
“I will compensate you for any losses if title conveyed falls short of title the purports to convey”
(Future Covenant)
-Only broken if actual or constructive eviction
Covenant of Quiet Enjoyment
Generally, a duplicate of covenant of general/special warranty/ Only broken if actual or constructive eviction (Future covenant)
Covenant of Further Assurances
“I promise to execute any document or take similar steps to fix title problems that may arise”
(Future Covenant)
How is a covenant conveyed?
- In most states, the covenants must be expressed/ No covenants are implied unless implied by statute (never implied by common law).
- Under some state statutes, using a term like “grant” or “convey” implies two covenants: No Prior Conveyances and No Encumbrances
- Rest must be Express
Successors in Interest: Present Covenants
-Jurisdiction Split
-Majority Rule: claim for breach is
not implicitly assigned to
subsequent owners.
-Minority Rule: claim for breach is
implicitly assigned to subsequent
owners
Successors in Interest: Future Covenants
-Run with the land
Damages for Breach
- For most covenants: damages are all or part of the purchase price + interest (damages can never surpass full purchase price + interest)
- For breach of covenant against encumbrances: if easily removable: the cost of removal. If not easily removable: the difference between FMV w/o E and FMV w/ E/.
Damages: Attorney Fees
If Grantee loses against grantor, grantee is awarded attorney fees. If grantee wins, no recovery for attorney fees
Deed Transfers When:
(1)The grantor intends to convey an interest in the property
-Intent by words or actions that it
be immediately effective
(2)The grantor delivers a deed to the grantee; and
-Physical Delivery not required
-There must only be an intent to
transfer
(a)intent in your brain is not
enough, you have to have
words to manifest said intent
(3)Grantee accepts (acceptance presumed)
If Grantee has physical possession of the deed or has recorded it:
there exist a rebuttable presumption that delivery has occurred (affirmative evidence can overcome this presumption)
