Real Property- Deeds and Recording Flashcards
What is a deed?
- Basics: A deed is a legal instrument that transfers ownership of real property.
What are the requirements for a valid deed?
- For a deed to be valid, it must be delivered and accepted. The delivery requirement houses the issue of intent.
What is the most important element of delivery
The controlling question is whether the grantor had the present INTENT to transfer the property.
How can you accept a deed?
Acceptance is generally presumend, provided the transfer is for value.
What is the function of a broker?
Brokers can be involved in land sale contracts as long as they don’t practice law/
Most states permit real estate agents and brokers to prepare contract of sale.
It is not permissible for them to draft a deed or mortgage because they are legal docs.
What are the contents of a deed?
Valid deed must identify:
1) the parties (grantor/grantee)
2) must be signed by the grantor
3)must include works of transfer
*a granting clause can include any words that evidence a present intent to transfer.
4) must include sufficient description of the property
How do we execute a deed?
The grantor must sign it for it to be effective.
The grantee doesn’t need to sign it
If the signature is forged, the deed is not valid.
What is the Equal dignities rule?
If the principal appoints an agent to execute the deed then the Equal dignities rules prescribes that if the agent is required to sign the deed, then the agency relationship (between principal and agent) has to be in writing too.
What does it means to record a deed and what for?
Recording means publicly registering your deed.
The purpose is for notice. To notify subsequent buyers of your title.
Not registering your deed does not affect its validity.
What is the common law rule about recording deeds?
The common law rule is the baseline for recording problems. If the state does not have a recording statute, then this one applies:
First in time, first in right.- the first grantee to receive a deed wins.
What types of interests can be recorded?
deeds
mortgages
leases
options
judgements affecting title
other docs creating interest in land such as easements and convenants
who is protected by recording and who is not?
subsequent buyers are protected.
Not protected
grantees acquiring by gift, intestacy (no will) devise (will)
Why? because the law wants to protect those who makes investment and not get it for free.
What are the three types of notice?
Actual: when the subsequent grantee has real personal knowledge of the prior interests
o Constructive (i.e., record notice)—when a prior interest is recorded
o Inquiry—when a reasonable investigation would have disclosed the existence of prior claims.
What are some facts that would put a subsequent grantee on inquiry notice?
Dude on the land: When there is someone living on or using the land, the subsequent grantee would have discovered it if he had investigated.
mentioned interest: When there is an interest mentioned in the deed to some other transaction; had the subsequent grantee inquired he would have discovered the interest.
What is the criteria to win in a race statute?
The first to record wins, even if subsequent purchaser had notice of a prior unrecorded conveyance.
Key words: First recorded, first to record
