Unit 1 Chapter 11

Question 1

deed

Answer 1

a legal written instrument by which an owner as Grantor conveys to a Grantee an ownership interest in real property.

Question 2

Elements of a Deed

Answer 2

• Written Instrument – must be written to valid.
• Date – not required but will prevent future controversy concerning the deed’s delivery
• Named parties (Grantor and Grantee) – grantor name must be exactly as on title grantor received;
discrepancy creates a Cloud on Title
• Consideration (or a recital thereof) – must have tangible consideration for deed to be valid
• Words of Conveyance – statement of intent to transfer interest in property; Habendum clause indicates
type of deed being conveyed
• Legal Description – must be full legal description exactly as on previous deeds
• Exceptions and Restrictions – exception is a right grantor does not have and cannot convey; restriction is
right-to-limitation
• Warranties and Covenants – see next page
• Signature of the Grantor – deed must be signed by grantor to be valid
• Delivery and Acceptance – depends on intent of grantor to pass title to grantee
• Acknowledgment – designed to prevent forged or fraudulent documents
• Recording – protects innocent purchaser who might otherwise act in ignorance of an unrecorded deed;
presumes all persons have knowledge of contents of recorded deed

Question 3

Constructive notice

Answer 3

information an individual is legally responsible for.

Question 4

Actual notice

Answer 4

express or direct knowledge.

Question 5

General Warranty Deed

Answer 5

“No one has a better claim than I, the Grantor, and therefore, I grant you the following
covenants or promises…” This kind of deed is the greatest protection for the buyer.
Contains each of the five covenants:
1. Covenant of Seisin - Grantor says that he/she is the owner and has the right to convey title.
2. Covenant Against Encumbrances - Grantor promises that the property is free of liens or encumbrances
other than those stated in the deed.
3. Covenant of Further Assurance - Grantor promises if there are defects, he/she will take care of any
problems.
4. Covenant of Quiet Enjoyment – protects against title dispute between grantor and any former claimants to
the title.
5. Covenant of Warranty Forever - Grantor promises the grantee will have title and possession of the
property free from claims of third parties.

Question 6

Special Warranty Deed

Answer 6

Contains only one covenant, the Covenant against encumbrances - he/she will defend and correct any flaws in the title that occurred during the time that he/she owned it, but not before.

Question 7

Bargain & Sale Deed

Answer 7

Makes no promises against encumbrances, yet it warrants grantor has personally done nothing to harm the title.

Question 8

Quit Claim Deed

Answer 8

Provides the purchaser with no warranties or covenants. Grantor simply releases or quit claims his/her interest in
the property to the grantee.