Deeds Flashcards
Traditional Methods of Conveyancing an Interest in Real Property
Feoffment, or the sale of property, still qualifies as a valid transfer of interest
Statutory Short-Form Deed
Defined by state statute
Warranty Deed
Personal covenants of the grantor relating to the nature of the estate conveyed (generally a fee simple estate)
Quit Claim Deed
Promise to convey what is owned by the seller (usually without any covenant for title)
Deed Elements
1) Identification of the parties
2) Description of the land
3) Indication of a present intent to convey full title
4) Signature of the grantor
Patent Ambiguity
An ambiguity that appears in an instrument and is present on the document itself
Latent Ambiguity
Appears in its application–extrinsic evidence helps determine whether there are ambiguities
Where there is doubt about whether a deed intended to convey a fee simple or lesser interest
That doubt should be resolved in favor of the grantee, and the greater estate shall pass
Where the intent of parties is undiscernible, creating conflict between the granting clause and other parts of the deed
The granting clause will prevail
Determining Grantors Intent
Intention of the Grantors is based upon the recitals in the deed and extrinsic facts
Deed Delivered Without A Name …
Where a deed is delivered by grantor, with intent to vest it in the person to which it was delivered, and they are expressly authorized at the time of delivery to insert his or another’s name, title passes upon delivery
Signature of the Grantor
Any mark or writing that is intended to serve as the grantor’s approval of the instrument will do, or an agent can do it
Interest in a Third Party
Majority Rule: Grantor may grant more than one interest to more than one party in a single deed
Minority rule: there must be one deed, for each interest to be created in a property
The Escrow Agreement
Deposit of a deed or other document with a third party to be delivered upon performance of specified conditions (must be recorded by the grantee)
Deed and Money Escrow
The third party holds the document until payment is completed and may even be authorized to use purchase money to discharge liens and encumbrances
Money Lender’s Escrow
Deposit of the proceeds of a mortgage loan with a third party to be disbursed as directed when satisfactory evidence shows the mortgage to be a valid first lein
When The Deed Takes Effect
No effect as conveyance, and no estate passed until the second delivery has been made, or at least until the grantee has become absolutely entitled to such delivery
Relation Back
Where the condition is fully performed and delivered by the escrowee, under certain circumstances, it will be treated as taking effect at the time of the original deposit in escrow
When Conditions are Unmet
No title passes when a deed is delivered in escrow and then delivered to a grantee without the conditions being met/without authorization
Voidable Deed
Majority: cannot be passed from a party with a void deed (i.e., grantee who obtained the deed by fraud or without meeting the condition precedent)
Minority: a BFP will be successful in obtaining a good title (acts in good faith and pays market value)
