The Deed

Question 1

What is a Bona Fide Purchaser? (BFP)

Answer 1

BFP is an innocent party who buys property without notice of another’s claim to property

Question 2

What is a deed?

Answer 2

Fundamental, basic, legal written instrument that is used to transfer title from the grantor to the grantee

Consideration is NOT needed

Question 3

Deed requirements? (2)

Answer 3

1) Lawfully executed
- Deed must be signed by the grantor and must reasonably identify the parties and the land

2) Delivered
- Title passes upon effective delivery, i.e., can’t be rescinded
- Acceptance – grantee must accept the deed; acceptance is usually presumed upon valid delivery
- Rejection by grantee = ineffective delivery

Question 4

What happens if a deed is forged?

Answer 4

VOID

Question 5

What if a deed is fraudulent?

Answer 5

VOIDABLE

Not automatically void

Can still be a BFP with good title because no notice of fraud

Question 6

Types of Deeds (3)

Answer 6

1) General Warranty Deed
- Most protective of buyer

2) Special Warranty deed
- Provides grantee with limited, implied protections

3) Quitclaim deed
- Provides almost no protection to grantee

Question 7

General Warranty Deed

Answer 7

Most protective of buyer & most protective deed against any defects in the grantor’s title

Present Covenants – only may be breached at time of delivery
1) Seisin: Grantor covenants that she is the rightful owner of the property

2) Right to Convey:Grantor covenants that she has the right to convey or transfer the property
3) Against Encumbrances: Grantor covenants that the land is free from encumbrances (e.g., mortgages, liens, easements)

Future Covenants – Only may be breached after delivery
1) Quiet Enjoyment: Grantor covenants that grantee will not be disturbed by a third party’s claim of lawful title

2) Warranty: Grantor agrees to defend against unlawful claims of title by others
3) Further Assurances:Grantor promises to perform future acts reasonably necessary to perfect the title conveyed

Question 8

Special Warranty Deed

Answer 8

Provides the grantee with limited, implied protections.

Grantor assures that:
1) He has not conveyed the land to another; AND

2) The land is free from encumbrances MADE by the grantor
i. e., not defects that existed before grantor got his title

Question 9

Quitclaim Deed

Answer 9

Provides almost no protection to grantee – grantor conveys whatever title he has

Transfers whatever interest grantor purports to have in the property
i.e., grantor not even promising he has title

NO COVENANTS INCLUDED

Often used in foreclosure actions