Title to real property

Question 1

A Valid Deed requirements

Answer 1

1. must be in writing
2. signed by grantor
3. identifies the parties
4. describes the property and indicates the grantor’s intent to convey the land.

Question 2

Grantors intent to convey land - how can this be shown

Answer 2

any words indicating the grantor’s intent to immediately convey land are sufficient.

NO INTENT: grantor expressly reserves the right to revoke the deed or gives instruction to only deliver the deed upon the grantor’s death.

Question 3

general warranty deed

Answer 3

6 covenants:

present:  only breached at the time of conveyance:  
SEC: 
Seisin (rightful owner) 
Covenant against Encumbrances 
Right to convey. 

Future covenants: FEW
Further assurances (do whatever to perfect title)
Quiet enjoyment: not be bothered by a third party’s claim
Warranty: to defend against any third-party claim.

Question 4

Enforcement of present covenants

Answer 4

Common law: present covenants are NOT enforceable by remote grantees.

Some states: will enforce the covenant against encumbrances if the remote grantee did not have notice of the encumbrance

Question 5

what is a special warranty deed

Answer 5

warrants that the seller has not breached the covenant of title during ownership

1. seller has not previously conveyed the property and
2. no encumbrances against title made by seller

Question 6

what is a Quitclaim deed

Answer 6

1. it is an as-is,
   the deed has no warrantees/covenants
   a grantor isn’t liable for any encumbrances or defects.

Question 7

What is an estoppel by deed

Answer 7

if the grantor conveys title to the real property before he owns it title will automatically pass as soon as the grantor acquires title.

Question 8

what is chain of title (2 things)

Answer 8

shows all transfers for a piece of land:
1 index - organized by name of the grantor
2. index 2 - organized by name of grantees

Question 9

What is a wild deed (3 things)

Answer 9

1. it is a deed not recorded properly
2. not discoverable in the chain of title
3. doesn’t put subsequent purchasers on constructive notice.

Question 10

Recording statutes ( 3 )

Answer 10

Notice = subsequent BFP for value without notice will prevail over a prior grantee that failed to record ( No notice and pays value wins)

Race = who records first shall prevail ( no notice is required)

Race - notice - subsequent BFP for value without notice who records first shall prevail ( no notice and pays value)

Question 11

Three types of notice

Answer 11

Actual notice
constructive = records
inquiry = reasonable inspection of the land would show.

Question 12

What is a BFP

Answer 12

a person who takes real property without notice and pays valuable consideration

Question 13

what is the shelter rule

Answer 13

a person who purchases land from a BFP receives the same status and rights as the BFP

Question 14

Is a forged deed or defective deed valid

Answer 14

they do not give notice so a BFP who receives these is not protected by recording acts.

Question 15

what is a title insurance

Answer 15

it is the purchaser’s protection against unknown defects of record in the chain of tile.