Ass. 42 - Deed Must be Delivered

Question 1

undelivered deed

Answer 1

is void and passes no title to the grantee or her successors even if they are bona fide purchasers

Question 2

how to deliver a deed?

Answer 2

the grantor must manifest by words or actions an intent that the deed be immediately effective to transfer an interest in land to the grantee
* Ex. Physically hand a deed w words that convey immediately effective transfer

Question 3

how can delivery be conveyed?

Answer 3

delivery of deed can be conveyed either through words or actions

Question 4

why do delivery issues mainly arise in the context of family gifts?

Answer 4

Because in the routine sales transaction, there is no doubt of grantors intent and the escrow agent, attorney, or other professional supervising the transaction can easily ensure that a valid delivery occurs

Question 5

where do delivery issues usually arise?

Answer 5

family gifts

Question 6

2 common delivery problems

Answer 6

1. Grantor manifests an intent to retain some control over the deed or the property itself after execution of the deed
2. Title litigation btwn the grantee and the residual devisees under the grantors will

Question 6

what is a deed in the box case?

Answer 6

• Grantor places deed in a locked box which is found after death
• Security deposit box, safe, etc.

Question 6

Why is there a problem when a grantor manifests an intent to retain some control over the deed or the property itself after execution of the deed?

Answer 6

because it can be seen as a will, and therefore delivery is not valid

Question 6

in most states delivery will be presumed if…

Answer 6

1. the deed is recorded, and/or
2. the grantee has physical possession of the deed

Question 6

why is there a problem with title litigation btwn the grantee and the residual devisees under the grantors will

Answer 6

if the grantor intends the deed to take effect only upon death, no delivery has occurred. Therefore, the deed in a nullity and the property is legally part of the grantors estate, where it will be distributed according to the will

Question 7

how do the courts rule on deed in a box cases?

Answer 7

• Courts all agree that O has not manifested the requisite intent for delivery

Question 8

In a deed in the box case, what happens if the grantor gives the grantee access to the box?

Answer 8

Yes, valid delivery occurred

Question 9

what is sale escrow?

Answer 9

when the deed is conditionally delivered to an escrow agent w instructions that it be delivered to the grantee when K conditions are met

Question 10

can a deed be conditionally delivered to the grantee?

Answer 10

Deed cannot be conditionally delivered directly to grantee but can to a 3rd part

Question 11

relate back doctrine

Answer 11

when K conditions are met and escrow agent delivers the deed, the date of delivery relates back to the og date the grantor transferred to escrow agent

Question 12

what is death escrow?

Answer 12

giving the deed to third party with the condition that it will be given to the grantee upon grantors death

Question 13

how will death escrow be decided?

Answer 13

this will turn of whether the grantor has the ability to reclaim the deed
* if can reclaim the deed, this is sufficient retained control to preclude delivery

Question 14

Hypo:
owner executes a deed conveying Wiseacre to Ruby, but owner intentionally fails to deliver it. Ruby obtains the deed, records it, and conveys to Samantha; Samantha then conveys to Teek. What is the result?

Answer 14

in most jurisdictions, O still holds title, even if T is a bona fide purchaser

Question 15

if the grantors carelessness allowed the deed to be placed into the stream of commerce, why shouldn’t downstream purchasers be protected?

Answer 15

in operation, this rule is rarely as harsh as it might appear, bc
1. The disappointed purchaser will recoup the loss through title insurance or deed warranties or
2. The culpably negligent grantor will be deemed estopped from challenging the BFPs title

Question 16

is the delivery of deed a question of law or fact?

Answer 16

FACT