Deeds

Question 1

What is required for deed to be valid?

Answer 1

Delivered and accepted

Question 2

What is required for valid delivery of a deed?

Answer 2

The grantor had the present intent to transfer the property.

• physical transfer of the deed is not required.
• cannot be incomplete or revocable.
• The grantor can make proper delivery to agent.

Question 3

What is required for a valid acceptance?

Answer 3

Acceptance is generally presume provided the gift is for value.

Question 4

What are the contents of the deed?

Answer 4

1. Must identify the parties and it must be signed by the grantor.
2. Must include words of transfer.
   • A granting clause can include any words that evidence a present intent to transfer.
3. Must include a significant description of the property.

Question 5

Does a deed have to be recorded to be valid?

Answer 5

No

Question 6

What is the common law recording rule?

Answer 6

First in time first and right – the first grantee to receive a deed wins.

Question 7

What type of interest are covered by the recording acts?

Answer 7

• deeds
• mortgage
• lease
• option to buy
• judgment affecting title
• easements and covenants

Question 8

Who is covered by recording acts?

Answer 8

Subsequent purchasers only

Question 9

What are the three kinds of notice?

Answer 9

1. Actual
2. Recorded
3. Inquire

Question 10

What is actual notice?

Answer 10

When the subsequent grantee has real, personal knowledge of a prior interest.

Question 11

What is record notice?

Answer 11

When the prior instrument is recorded.

Question 12

What is inquiry notice?

Answer 12

What a reasonable investigation would have disclose the existence of prior claims.

Question 13

When is reasonable investigation required notice?

Answer 13

1. Dude on the land: when there is someone else living on or using the land; have the subsequent grantee investigated the land, he would have discovered the person in possession.
2. Mentioned interest: when there is interest mentioned in the Deed to some other transaction; had the subsequent grantee inquired, he would have discovered the interest.

Question 14

What is a race statute?

Answer 14

First to record wins, even if the subsequent purchaser had notice of prior, unrecorded conveyance.

Question 15

What is the language for a race statute?

Answer 15

“First recorded” or “First to record”

Question 16

What is a notice Statute?

Answer 16

Subsequent purchaser with if she buys without notice (knowing) of a prior, unrecorded conveyance.

Question 17

What is the key language for a notice statute?

Answer 17

“In good-faith” or “without notice”

Question 18

What is a race – notice statute?

Answer 18

Subsequent purchaser wins if two requirements are met:

1. Purchase without notice of a prior unrecorded convenience; and
2. Record it first

Question 19

What is the key language for race – notice statute?

Answer 19

“In good faith” or “without notice” PLUS “first the duly recorded” or “first recorded”

Question 20

What is the shelter rule?

Answer 20

A person who takes from a bona fide purchaser protected by the recording acts has the same rights as his grantor.

Question 21

What is a estoppel by deed?

Answer 21

Arises when a grantor conveys land the grantor does not own.

• if the grantor subsequently acquires title to the land, the grantor is he stopped from trying to repossess on ground that he didn’t have title when he made the original conveyance.

Question 22

What are the three kinds of deeds?

Answer 22

1. General warranty
2. Special warranty
3. Quitclaim

Question 23

What protections does the general warranty the provide?

Answer 23

Provides the greatest amount of title protection; grantor warrants titles against all defects, even if the grantor did not cause a defect.

Question 24

What present warranties are in a General warranty deed?

Answer 24

1. Covenant of season: warrants that the deed describes the land in question.
2. Covenant of the right to convey: warrants that the grantor has the right to convey the property.
3. Covenants against encumbrances: warrants that there are no undisclosed encumbrances on the property that could live it to its value.

Question 25

What future warranties are in a General warranty deed?

Answer 25

1. Covenant of quiet enjoyment: grantor promises that the grantees possession will not be disturbed by third-party claim.
2. Covenant of warranty: grantor promises to defend against future claims of title by third party. (Competing play to title)
3. Covenant of further assurances: Grantor promises to fix future title problems.

Question 26

What is a special warranty deed?

Answer 26

The grantor warrants against defects only caused by the grantor.

• it includes the same six covenants as a general warranty deed, but they only apply to acts (or omissions) of the grantors.

Question 27

What is a quit claim deed?

Answer 27

The grantor makes no warranties as to the health of the title.

Question 28

When does a breach of a present covenant occur?

Answer 28

At the time of conveyance

Question 29

When does a breach of a future covenant occur?

Answer 29

After the conveyance, when there is an interference with possession.

Question 30

What is the remedy for a breach?

Answer 30

Damages