Deeds

Question 1

General Warranty Deed

Answer 1

Promises that title is free of any encumbrances or defects

==> all six covenants (both 3 present & 3 future)

Question 2

Special Warranty Deed

Answer 2

Promises that title is free of defects created by grantor

==> same covenants of title as general warranty deed,** but only
warrants against defects arising during the time grantor has title**

Question 3

Quitclaim Deed

Answer 3

Transfers any interest grantor has in property without any guarantees as to state of title

==> no covenants

Question 4

Present covenants (3)

Answer 4

Seisin—grantor owns land as described in deed

Right to convey—grantor has right to transfer title

Against encumbrances—no undeclared encumbrances against land

Question 5

Future covenants (3)

Answer 5

Quiet enjoyment—grantee not disturbed in possession by third party’s lawful claim

Warranty—grantor will defend grantee against third party’s claim

Further assurances—grantor will do whatever future acts reasonably
necessary to pass title if later determined title is imperfect

Question 6

A contract for deed (ie, installment land contract)

Answer 6

Type of mortgage alternative.

Under this contract, the** buyer may take immediate possession of the property, but the seller retains title until the buyer makes the final payment under an installment payment plan.**

Traditionally, a contract for deed allowed the seller to keep all installment payments and retake possession if the buyer failed to make a single payment—even if all but one payment was made.

However, states now seek to assist a buyer in default by:
1. **treating an installment land contract as a mortgage and requiring the seller to foreclose **on the property to gain clear title

2. offering the buyer the equitable right of redemption by paying the remaining contract balance to retain possession and obtain ownership

3.** allowing the seller to retain ownership of the property but requiring some form of restitution to the buyer**—eg, refunding the contract payments to the extent that they exceed the damages caused to the seller by the buyer’s default

Question 7

Void & Voidable

Answer 7

VOID
Transfer of deed is invalid & cannot be enforced by bona fide purchaser if:
1. grantor’s signature is forged
2. deed is forged (ie, falsely made or materially altered with intent to defraud)
or
3. grantor is deceived about nature of executed document

VOIDABLE
Transfer of deed is valid until set aside & may be enforced by bona fide purchaser if:
1. procured by fraudulent inducement
or
2. party lacks capacity to execute deed (eg, infancy, lack of capacity)

A void deed conveys no title even if later relied upon by a bona fide purchaser.