The CLosing - Deeds Flashcards
What happens to the K at closing?
It dies. Deed becomes operative document.
To pass title, must be…
LEAD: Lawfully executed and delivered
Lawful Execution
Requires:
1) Writing signed by grantor
2) Unambigious descrption of the land
3) ID of parties
4) Words of intent
NO CONSIDERATION NEEDED.
Description of land (lawful execution
Doesn’t need to be perfect. Just needs to be:
1) unambigious and
2) provide a good lead.
Delivery Requirement
Delivery is a LEGAL, not LITERAL standard.
Present intent test: Did grantor have present intent to part with legal control.
While it can be physical:
Grantor phyiscally/manually transfered the deed ot the grantee
—can be mial, agent, messenger
It doesn’t need to be.
Rejection of Delivery by recipient
Express rejection of deed Defeats delievery
Delivery with oral conditions
Oral conditions drop out. They are not provable.
Delivery to Third party—Transfer to third party with conditions (escrow tx)
Grantor may deliver executeed deed to third party (escrow agent) with instructions, such as it must pass from T to grantee once certain conditions are met
Once conditions are met, title passess to grantee.
Three types of deeds
1) Quitclaim
2) General Warranty
3) Special Warranty
Covenants vary depending on deed
Quitclaim Deed covenants
BAD DEED. No promises. Conveys only what hte grantor has at the time of the conveyance.
—–not even that he has title to convey
General Warranty Deed Covenants
BEST DEED. Warrants against ALL DEFECTS in title including those attributable to grantor’s predecessors.
Typiacally contains SIX covenants.
Present Covenants: (breached at time of delivery)
1)Seisin (grantor owns)
2) Rght to convey (grantor can transfer)
3) Covenant against encumberances (no servitudes/liens)
Future Covenants: (breached if grantee is distrubed in possession)
1) Quiet enjoyment (no TP lawful claims of title)
2) Warranty (grantor will defend grantee if there are tp claims of title)
3) Further assurances (grantor will perfect grantees title if it later turns out to be imperfect)
Special Warranty Deed Covenants
Deed contains the same covenants as the general warrant deed,
BUT here the grantor makes those promises only on behalf of himself (not his predecessors in interest)
Statutory Special Warranty Deed
Some states have. When language of grant is not specific about nature of the deed, this is presumed.
Covenants (on behalf of grantor):
1) Grantor hasn’t conveyed the parcel to anyone else
2) Estate is free from encumberances made by grantor
