Transfer of Title

Question 1

A 50-year-old surgeon was the sole owner of a parcel of residential real estate. She wanted her eldest son to have this parcel after she died. The mother properly executed a legal deed, designating him as the grantee to the property. “I have put the deed in the top, left-hand drawer of my desk,” she told her son. “After I have died, you will find the deed there, and the property will be yours and yours alone.” Twenty years later, she passed away. The son found the executed deed in her desk drawer. This fact pattern shows:

Answer 1

Improper Delivery

• These facts reflect improper delivery of the deed. In order for title to transfer, there must be a valid deed as well as delivery and acceptance of the deed. A deed is delivered when there is intent to convey the property. Here, there was not even an intent to convey the property during the lifetime of the grantor. If the mother did not want to convey her property until after she passed, she should have used a will, a trust, or, perhaps, a deed creating a life estate in herself with a remainder interest in the son.

Question 2

The legal act of transferring ownership, or the intention to have a deed be operative and effective is manifested by _____________ of the deed.

Answer 2

Delivery

• The intent to transfer is manifested by delivery of the deed. Deeds become valid upon delivery, acceptance and notification to the deliverer of the acceptance. In most states, delivery happens when the grantor (seller) signs the deed. Notification to the deliverer that the deed has been accepted occurs when the deed is recorded. The method of legal acceptance of a deed varies by state.