Deeds

Question 1

what are the two steps to every conveyance of real estate?

Answer 1

1) land sale contract
2) closing

Question 2

what does the deed convey to the buyer?

Answer 2

LEGAL title

Question 3

what must happen to pass legal title to the buyer?

Answer 3

the deed must be LEAD (lawfully executed and delivered)

Question 4

what is required to execute a valid deed? (4)

Answer 4

1) writing signed by grantor
2) unambiguous description of the land
3) ID of the parties by name or description
4) words of intent to transfer (ie–grant)

Question 5

must consideration be recited in the deed for the deed to be valid?

Answer 5

NO

Question 6

must consideration pass for the deed to be valid?

Answer 6

NO

Question 7

what is sufficient for a land description to be “unambiguous”?

Answer 7

need not be perfect, but must at least provide a good lead (not too imprecise to determine)

Question 8

what happens if a land description is insufficient/inadequate?

Answer 8

title is NOT transferred (remains with the grantor)

Question 9

what happens if a land description is merely ambiguous?

Answer 9

outside (parol) evidence is permitted to clear up ambiguity

Question 10

what is the delivery requirement?

Answer 10

a deed isn’t effective to transfer an interest in realty unless it has been delivered

Question 11

what does sufficient delivery require?

Answer 11

the grantor’s present intent that title pass immediately – even if possession is postponed

Question 12

does a grantee need to provide express acceptance to accept a deed?

Answer 12

NO (acceptance is presumed)

Question 13

how must a grantee validly reject a deed?

Answer 13

expressly

Question 14

does delivery require physical transfer of the deed itself?

Answer 14

NO (legal standard that turns on present intent only)

Question 15

under what circumstances is delivery presumed? (3)

Answer 15

when it’s been…
- handed to the grantee, or
- acknowledged by the grantor in front of a notary, or
- recorded

Question 16

what happens if a deed (absolute on its face) is transferred to the grantee with an ORAL condition?

Answer 16

the oral condition drops out

Question 17

what is a 3d party transfer with conditions? (escrow transaction)

Answer 17

grantor delivers executed deed to a 3d party (escrow agent) with instructions that the deed be delivered to the grantee once certain conditions are met (usually payment of purchase price)

Question 18

what happens once the conditions are met in an escrow transaction?

Answer 18

title passes to the grantee

Question 19

what are the 3 types of deeds?

Answer 19

1) general warranty deed
2) special warranty deed
3) quitclaim deed

Question 20

what covenants does a quitclaim deed contain?

Answer 20

NONE (not even a promise that he has title to convey)

Question 21

what does a quitclaim deed convey?

Answer 21

only what the grantor has at the time of the conveyance (worst deed option)

Question 22

what is a general warranty deed?

Answer 22

deed that warrants against all defects in title, including those attributable to grantor’s PREDECESSORS

Question 23

what are the 6 covenants contained in a general warranty deed? (also special warranty deed)

Answer 23

(3 present and 3 future)
PRESENT:
- covenant of seisin (grantor owns)
- covenant of the right to convey (grantor can transfer)
- covenant against encumbrances (no servitudes/liens/etc)
FUTURE:
- covenant for quiet enjoyment
- covenant of warranty
- covenant of further assurances

Question 24

what does the grantor promise in the covenant of quiet enjoyment?

Answer 24

promises that grantee will not be disturbed in possession by a third party’s lawful claim of title

Question 25

what does a grantor promise in the covenant of warranty?

Answer 25

promises to defend against reasonable claims of title by a third party and to compensate the grantee for any loss sustained by the claim of superior title

Question 26

what does a grantor promise in the covenant of further assurances?

Answer 26

promises to do whatever is needed to perfect grantee's title if it later turns out to be imperfect

Question 27

when, if at all, can the future covenants be breached?

Answer 27

only once the grantee is disturbed in possession (this is when the SoL period begins to run)

Question 28

what is a special warranty deed?

Answer 28

deed that contains the same covenants as the general warranty deed BUT grantor makes promises only on behalf of HIMSELF (NOT predecessors)

Question 29

what deed is PRESUMED in a conveyance without a designation of the type of deed?

Answer 29

STATUTORY special warranty deed

Question 30

what two promises are included in a STATUTORY special warranty deed?

Answer 30

1) promise that the grantor has not conveyed the same estate or any interest therein to anyone other than the grantee, and 2) promise that the estate is free from encumbrances made by the grantor