Deeds

Question 1

Types of Deeds

Answer 1

(1) Quitclaim
(2) General Warranty
(3) Special Warranty

Question 2

Quitclaim Deed

Answer 2

• No promises from seller to buyer

- Does not use the words grant or convey: “I quitclaim _____ to you”

Question 3

General Warranty Deed

Answer 3

• 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

Question 4

Special Warranty Deed

Answer 4

• 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

Question 5

Present Covenants

Answer 5

(1) Covenant of Seisin
(2) Covenant of the Right to Convey
(3) Covenant against Encumbrances
(4) Texas Specific: Covenant of No Prior Conveyances

Question 6

Future Covenants

Answer 6

(1) Covenant of General Warranty or Special Warranty
(2) Covenant of Quiet Enjoyment
(3) Covenant of Further Assurances

Question 7

Covenant of Seisin

Answer 7

“I own what I am conveying to you”

Present

Question 8

Covenant of the Right to Convey

Answer 8

Generally, a duplicate of Seisin…but sometimes there is a restriction on Alienation (Present)

Question 9

Covenant Against Encumbrances

Answer 9

“I promise there are no encumbrances I haven’t told you about” (Present)

Question 10

Covenant of No Prior Conveyances

Answer 10

“I promise I have not conveyed the estate or any interest in the estate to anyone other than you” (Present — Texas Specific)

Question 11

Covenant of General/Special Warranty

Answer 11

“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

Question 12

Covenant of Quiet Enjoyment

Answer 12

Generally, a duplicate of covenant of general/special warranty/ Only broken if actual or constructive eviction (Future covenant)

Question 13

Covenant of Further Assurances

Answer 13

“I promise to execute any document or take similar steps to fix title problems that may arise”

(Future Covenant)

Question 14

How is a covenant conveyed?

Answer 14

• 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

Question 15

Successors in Interest: Present Covenants

Answer 15

-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

Question 16

Successors in Interest: Future Covenants

Answer 16

-Run with the land

Question 17

Damages for Breach

Answer 17

• 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/.

Question 18

Damages: Attorney Fees

Answer 18

If Grantee loses against grantor, grantee is awarded attorney fees. If grantee wins, no recovery for attorney fees

Question 19

Deed Transfers When:

Answer 19

(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)

Question 20

If Grantee has physical possession of the deed or has recorded it:

Answer 20

there exist a rebuttable presumption that delivery has occurred (affirmative evidence can overcome this presumption)