Deeds

Question 1

A deed must…

Answer 1

a. identify the parties and property in a transaction
b. recite the nominal consideration
c. include a granting clause (demonstrates the grantor’s intent to make a present transfer and conveyance)
d. be signed against the party to be charged(grantor) - grantee does not sign because it is an instrument of conveyance.

Question 2

DIA: Legal Requirements of a Deed

Answer 2

a. intent
b. delivery (must be written, typically manually delivered accompanied by words of intent to immediately transfer the property, can also use an unambiguous statement or action by the seller to relinquish ownership and control of the property), must be irrevocable.
c. acceptance

Question 3

Title Assurances

Answer 3

• Recording system
• Title insurance
  -Deed warranties(title covenants)

Question 4

Quitclaim Deeds

Answer 4

Contain no promises regarding title.
“I hereby convey to you the property described in the deed, to the extent that I own it. However, at least in the deed, I do not represent that I own the property at all or guarantee the state of my title.”
- Common uses: to clear title, divorce or other settlements, gifts.

Question 5

General Warranty Deeds

Answer 5

Protects buyer against encumbrances and defects in title that arose at any time before the conveyance.
- During and after seller’s time.
- Contains specific protections for the buyer.

Question 6

Present Warranties

Answer 6

Promises that are breached, if at all, at the time of the conveyance.
- Statute of limitations begins at delivery of deed.

Question 7

Present Warranties (covenant of Seisin)

Answer 7

Grantor warrants that he has rightful freehold possession of the property.

Question 8

Future Warranties

Answer 8

Promises that are breached, if at all, at some point following the conveyance.
-Statute of limitations begins when someone asserts property rights.
-Defense of general warranty(grantor warrants that he will appear in court and defend grantee).
-Further Assurances (grantor promises to act as necessary to correct a title problem that would otherwise be a violation of the present warranties.)

Question 9

Limited/special warranty deeds

Answer 9

Protects the grantee against encumbrances and defects in title made by, through or under the immediate grantor only.
- The actual warranties are identical to those in a general warranty deed.
a. However, the coverage is limited to defects created by the grantor of the deed, or during her ownership.
b. the grantor makes no promises about defects that arose prior to grantor’s ownership.