Deeds Flashcards
what are the two steps to every conveyance of real estate?
1) land sale contract
2) closing
what does the deed convey to the buyer?
LEGAL title
what must happen to pass legal title to the buyer?
the deed must be LEAD (lawfully executed and delivered)
what is required to execute a valid deed? (4)
1) writing signed by grantor
2) unambiguous description of the land
3) ID of the parties by name or description
4) words of intent to transfer (ie–grant)
must consideration be recited in the deed for the deed to be valid?
NO
must consideration pass for the deed to be valid?
NO
what is sufficient for a land description to be “unambiguous”?
need not be perfect, but must at least provide a good lead (not too imprecise to determine)
what happens if a land description is insufficient/inadequate?
title is NOT transferred (remains with the grantor)
what happens if a land description is merely ambiguous?
outside (parol) evidence is permitted to clear up ambiguity
what is the delivery requirement?
a deed isn’t effective to transfer an interest in realty unless it has been delivered
what does sufficient delivery require?
the grantor’s present intent that title pass immediately – even if possession is postponed
does a grantee need to provide express acceptance to accept a deed?
NO (acceptance is presumed)
how must a grantee validly reject a deed?
expressly
does delivery require physical transfer of the deed itself?
NO (legal standard that turns on present intent only)
under what circumstances is delivery presumed? (3)
when it’s been…
- handed to the grantee, or
- acknowledged by the grantor in front of a notary, or
- recorded
what happens if a deed (absolute on its face) is transferred to the grantee with an ORAL condition?
the oral condition drops out
what is a 3d party transfer with conditions? (escrow transaction)
grantor delivers executed deed to a 3d party (escrow agent) with instructions that the deed be delivered to the grantee once certain conditions are met (usually payment of purchase price)
what happens once the conditions are met in an escrow transaction?
title passes to the grantee
what are the 3 types of deeds?
1) general warranty deed
2) special warranty deed
3) quitclaim deed
what covenants does a quitclaim deed contain?
NONE (not even a promise that he has title to convey)
what does a quitclaim deed convey?
only what the grantor has at the time of the conveyance (worst deed option)
what is a general warranty deed?
deed that warrants against all defects in title, including those attributable to grantor’s PREDECESSORS
what are the 6 covenants contained in a general warranty deed? (also special warranty deed)
(3 present and 3 future)
PRESENT:
- covenant of seisin (grantor owns)
- covenant of the right to convey (grantor can transfer)
- covenant against encumbrances (no servitudes/liens/etc)
FUTURE:
- covenant for quiet enjoyment
- covenant of warranty
- covenant of further assurances
what does the grantor promise in the covenant of quiet enjoyment?
promises that grantee will not be disturbed in possession by a third party’s lawful claim of title
what does a grantor promise in the covenant of warranty?
promises to defend against reasonable claims of title by a third party and to compensate the grantee for any loss sustained by the claim of superior title
what does a grantor promise in the covenant of further assurances?
promises to do whatever is needed to perfect grantee’s title if it later turns out to be imperfect
when, if at all, can the future covenants be breached?
only once the grantee is disturbed in possession (this is when the SoL period begins to run)
what is a special warranty deed?
deed that contains the same covenants as the general warranty deed BUT grantor makes promises only on behalf of HIMSELF (NOT predecessors)
what deed is PRESUMED in a conveyance without a designation of the type of deed?
STATUTORY special warranty deed
what two promises are included in a STATUTORY special warranty deed?
1) promise that the grantor has not conveyed the same estate or any interest therein to anyone other than the grantee, and
2) promise that the estate is free from encumbrances made by the grantor
