The Deed Flashcards
Deed
A deed is a legal document used to confirm or convey the ownership rights to a property. Once conveyed everything before that is wiped
Two functions of the deed:
Transfers property rights
Protects transferee from others
5 requirements of the deed
- Be in writing
- Identify the grantor and grantee
- Describe property to be conveyed
-Reference to natural or artificial monuments and reference to directions and distances
-Reference to government survey, recorded plat, or some other record
-Reference to street and number or name of the property
4.State grantor’s intent to convey
- Contain grantor’s signature
Types of Deeds
General warranty, special warranty, quitclaim
General warranty deed:
warrants title against defects in title, whether they arose or after grantor took title
-protects legal defects from whoever they came from
-Provides most protection out of all deeds
Special warranty deed
contains warranties only against grantor’s own acts but not the acts of others (if done by predecessor of grantor is not liable)
-Grantor has not done anything maybe but no guarantees before they owned the property
Quitclaim deed:
contains no warranties
-If grantor has nothing, grantee takes nothing
-Usually a lower price
deed quick notes
Every deed transfers property rights
Not every deed protects the transferee
Once a deed is accepted all obligation from the executory stage fade away*** (marketable title is example)
When type of deed not specified, we assume it is general warranty
Warranty definition
A warranty/covenant is a promise. Determines scope of protection **
6 Types of Express warranty:
A general and special will contain any of these but quitclaim will not have any of these
Present Covenants: covenant of seisin, covenant of right to convey, covenant against encumbrances
Future Covenants: A covenant of general warranty, A covenant of quiet enjoyment, A covenant of further assurances
seisin (present)
The grantor warrants that he owns the estate that he purports to convey.
right to convey (present)
The grantor warrants that he has the right to convey the property. (e.g., a trustee may have legal title but be forbidden by the trust instrument to convey it).
against encumbrances (present)
The grantor warrants that there are no encumbrances on the property. Encumbrances include, among other items, mortgages, liens, easements, and covenants.
covenant of general warranty (future)
The grantor warrants that he will defend against lawful claims and will compensate the grantee for any loss that the grantee may sustain by assertion of superior title.
covenant quiet enjoyment
Not to be confused with the landlord’s covenant of quiet enjoyment, which we studied on pages 541-550, the grantor warrants that the grantee will not be disturbed in possession and enjoyment of the property by assertion of superior title. This covenant is, for all practical purposes, identical with the covenant of general warranty and is often omitted from general warranty deeds.
covenant further assurances
The grantor promises that he will execute any other documents required to perfect the title conveyed.
Rockafellor v. Gray (minority) seisin
Rule of Law
The covenant of seisin is a promise of title that runs with the land such that a remote grantee may bring an action under it.
Facts
Rockafellor (plaintiff) received a piece of land that was encumbered by a mortgage to Gray (defendant). Rockafellor agreed to assume this mortgage. Four years later, the property went through foreclosure, and Connelly acquired a sheriff’s deed to the property. Connelly conveyed the land to Dixon for $4,000; the conveyance deed contained the usual covenants of warranty. Two months later, Dixon conveyed the property to Hansen & Gregerson by special warranty deed for $7,000. After these transfers, Rockafellor sued Gray to have the sheriff’s sale vacated for lack of jurisdiction. Hansen & Gregerson filed a cross-petition asking that if the foreclosure sale were vacated, Connelly be found liable to them for damages stemming from Connelly’s faulty deed as conveyed to Dixon. The trial court found in favor of Rockafellor and vacated the foreclosure sale. With respect to the cross-petition, the court held that the covenant of seisin ran with the land and awarded Hansen & Gregerson $4,000 (the consideration paid by Dixon) plus interest starting from the date of the conveyance from Dixon to Hansen & Gregerson. Hansen & Gregerson lost property because the government said foreclosure was not good. Reverted back to Rockefeller. Hansen and Gregerson sued Connelly. Connelly appealed.
D-R-C-X-H/G-R
H/G can’t sue Dixon (x) because of special warranty
Can’t sue Rockafeller because Rockafeller had home taken by foreclosure so he never entered into contractual obligation with anyone
D made no promises to H/G and did not break any covenants (he did have covenant of seisin)
district court affirmed
Delivery of the deed
Must be delivered with intent
Either grantor hands deed to grantee upon receipt of the purchase price or the grantor puts the deed in the hands of a third party (escrow) who hands over deed upon closing transaction
Escrow is both agent of grantor and grantee if there is an enforceable contract of sale \
Does not have to be handed over
