The Closing (Deeds)

Question 1

Closing

Answer 1

At closing, the contract is merged (consumed) by the deed, which is now controlling and transfers legal title from the grantor to the grantee

Question 2

Valid deed

Answer 2

Lawful execution of a deed:
-A writing signed by the grantor
-Unambiguous description of the land (should be discoverable w/ research)
-Identification of the parties by name or description
-Words of intent to transfer, such as “grant” (did grantor have present intent to part with legal control?)

*No consideration required
*Rejection defeats delivery of acceptance
*Oral condition makes deed void

Question 3

Escrow transaction

Answer 3

When a grantor delivers an executed deed to a third party (escrow agent) with instructions to deliver the deed to the grantee once certain conditions (usually payment) have been met
-Title passes automatically once payment has been made

Question 4

Three types of deeds

Answer 4

1. General warranty deed
2. Special warranty deed
3. Quitclaim deed

*Difference is in the scope of title assurance (i.e., covenants in title)

Question 5

Quitclaim deed

Answer 5

Conveys only what the grantor has at the time of conveyance
-Contains no covenants (promises)
-Worst type of deed from the buyer’s perspective

Question 6

General warranty deed

Answer 6

Warrants against all defects in title, including those attributable to grantor’s predecessors
-Contains six covenants (three present and three future)
-Best type of deed from the buyer’s perspective

Question 7

Present covenants

Answer 7

Covenants that are breached at the time the deed is delivered:

1. Covenant of seisin: grantor owns this estate
2. Covenant of the right to convey: grantor can transfer
3. Covenant against encumbrances: no liens or servitudes of the land

Question 8

Future covenants

Answer 8

Covenants that are not breached until the grantee is disturbed in possession

1. Covenant of quiet enjoyment: no 3rd party lawful claims (no double dealing)
2. Covenant of warranty: grantor will defend the grantee against other claims on title
3. Covenant for further assistance: grantor will do whatever is needed to perfect title

Question 9

Special warranty deed

Answer 9

Contains the same six covenants as general warranty deed, but the grantor makes those promises only on behalf of himself (in contrast to all predecessors)