Titles - Transfer By Deed Flashcards
If A executes and delivers a deed to B for recited consideration, but B never actually pays the consideration, who owns the land?
B owns the land, because the validity of conveyance of land does not depend upon consideration being paid, whether recited or not; just need execution and delivery of the deed.
Although a marketable title will be implied in a contract for the sale of land, the doctrine of merger provides
that one can no longer sue on title matters contained in the contract of sale after the deed is delivered and accepted.
Therefore, the time to sue on marketable title is BEFORE the closing.
A gift may be made of
real estate.
A deed is required as are the elements for a gift. The homeowner had the requisite donative intent as shown by his words. Delivery occurred when the homeowner physically handed the deed to the nephew’s friend as the agent of the nephew. Acceptance is presumed if the gift is beneficial. At this point, the homeowner could not recall the gift.
To be valid, a deed must…
A valid deed must:
- Satisfy the statute of frauds (i.e., be in writing + signed by the grantor);
- Identify the parties (i.e., the grantor and grantee);
- Describe the property sufficiently;
AND
- Be delivered and accepted.
What is required for delivery?
PRESENT INTENT.
A deed is delivered when the grantor demonstrates a present intent to transfer the property (physical transfer of a deed is not required – present intent can be demonstrated orally). A deed is NOT delivered if the delivery is revocable (e.g., “I will transfer you this property in 3 weeks, unless I change my mind before then”). A grantor can make a valid delivery to an agent (e.g., a grantor can deliver a deed to his attorney with clear instructions to deliver it to the grantee).
What is required for acceptance?
Acceptance is generally presumed provided that the transfer is for value, unless the grantee explicitly rejects it.
What is a general warranty deed?
General Warranty Deed. General warranty deeds provide the greatest amount of title protection. The grantor warrants title against all defects, EVEN IF the grantor did not cause the defects.
What is a Special Warranty Deed?
. Special warranty deeds provide less title protection than general warranty deeds. The grantor warrants titles against defects caused by the grantor.
What is a quitclaim deed?
Quitclaim Deed. Quitclaim deeds provide the least amount of title protection. The grantor makes no warranties as to the health of the title.
How many implied covenants are contained in general and special warranty deeds?
Six.
Three present: seisin, right to convey, no encumbrances
Three future: quiet enjoyment, warranty, further assurances
Covenant of Seisin.
Warrants that the deed describes the land in question and that the grantor is the rightful owner.
Covenant of the Right to Convey.
Warrants that the grantor has the right to convey the property.
Covenant Against Encumbrances.
Warrants that there are no undisclosed encumbrances on the property that could limit its value (e.g., easements, mortgages, etc.).
Covenant of Quiet Enjoyment.
Grantor promises to defend against future
challenges to the grantee’s title to the property.
Covenant of Warranty.
Grantor promises to defend against future
developments that extend into the grantee’s property boundary.
