Real Property Flashcards
What type of recording act does Virginia have?
Virginia has a race-notice recording act, meaning priority of title goes to the party that records first, provided they lack notice of prior unrecorded claims.
Doctrine of Merger
Provisions in a contract for sale are extinguished and merged into the deed.
This means that if a buyer has a claim against a seller, it must be based on the covenants in the deed, not the contract.
What types of provisions are not merged into the deed?
Provisions which are collateral to the passage of title and not covered by the deed are not merged into the deed and survive its execution.
What criteria must an agreement meet to be considered collateral to the sale?
An agreement must meet the following criteria:
* Distinct agreements made in connection with the sale of the property
* Do not affect the title to the property
* Not addressed in the deed
* Do not conflict with the deed
If all these criteria are met, the agreement is collateral and survives the execution of the deed.
Mutual Mistake Doctrine
A court may grant relief when there has been an innocent omission or insertion of a material stipulation that is contrary to the intent of both parties.
True or False: The Merger Doctrine is disfavored in Virginia
True
narrow scope and disfavored
Requirements for Valid Deed
- Meets formalities (includes Parties, Description, Consideration, Signatures, Notarization);
- Delivered by the Grantor
- Accepted by the Grantee
Grantor
someone who transfers a property right to a grantee (the seller)
Grantee
the person in a transaction who receives something (the buyer)
Effect of Non-Recording
Failure to record a deed does not, in an of itself, invalidate it. Once delivery occurs, title passes to the grantee.
Delivery of Deed
Can occur through various methods, including manual delivery (personal service, certified mail, recording)
“English Covenants of Title”
Grantor conveys the property in fee simple, free from tenancies, liens, or encumbrances.
The English covenants of title include:
- Covenant of Right to Convey
- Covenant of Quiet Possession
- Covenant of Freedom from Encumbrances
- Covenant of Further Assurances
- Covenant of No Act to Encumber
Covenant of Right to Convey
The grantor has legal authority to transfer the property.
Covenant of Quiet Possession
The grantee will enjoy the property free from lawful claims of others.
Covenant of Freedom from Encumbrances
The property is free from undisclosed encumbrances.
Covenant of Further Assurances
The grantor will take necessary actions to perfect the title.
Covenant of No Act to Encumber
The grantor has not taken actions that burden the title.
Encumberance
Generally includes physical intrusions, encroachments, or superior title/interest held by another party.
Effect of Zoning Ordinances on Title
A lawfully adopted zoning ordinance does not constitute an encumbrance under the English covenants of title.
The covenant of quiet possession free from encumbrances does not guarantee freedom from zoning restrictions.
Breach of Covenant Against Encumbrances
A grantor breaches the covenant that the property is free from encumbrances if a lien or other encumbrance exists on the property at the time of conveyance.
Liability for Breach of Covenant Against Encumbrances
The grantor is not immediately liable for damages unless:
The grantee satisfies the lien or suffers damages due to enforcement of the lien.
A dormant lien does not create liability unless it is enforced or causes actual harm.
Judgment Lien
A legal claim placed on a debtor’s property, allowing a creditor to seize that property if the debtor fails to pay a debt owed, essentially giving the creditor the right to take possession of the debtor’s assets to satisfy the debt after a court judgment has been issued against them.
