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MBE- Real Property > Deeds > Flashcards

Flashcards in Deeds Deck (30):
1

What is required for deed to be valid?

Delivered and accepted

2

What is required for valid delivery of a deed?

The grantor had the present intent to transfer the property.

• physical transfer of the deed is not required.

• cannot be incomplete or revocable.

• The grantor can make proper delivery to agent.

3

What is required for a valid acceptance?

Acceptance is generally presume provided the gift is for value.

4

What are the contents of the deed?

1. Must identify the parties and it must be signed by the grantor.

2. Must include words of transfer.
• A granting clause can include any words that evidence a present intent to transfer.

3. Must include a significant description of the property.

5

Does a deed have to be recorded to be valid?

No

6

What is the common law recording rule?

First in time first and right – the first grantee to receive a deed wins.

7

What type of interest are covered by the recording acts?

• deeds
• mortgage
• lease
• option to buy
• judgment affecting title
• easements and covenants

8

Who is covered by recording acts?

Subsequent purchasers only

9

What are the three kinds of notice?

1. Actual
2. Recorded
3. Inquire

10

What is actual notice?

When the subsequent grantee has real, personal knowledge of a prior interest.

11

What is record notice?

When the prior instrument is recorded.

12

What is inquiry notice?

What a reasonable investigation would have disclose the existence of prior claims.

13

When is reasonable investigation required notice?

1. Dude on the land: when there is someone else living on or using the land; have the subsequent grantee investigated the land, he would have discovered the person in possession.

2. Mentioned interest: when there is interest mentioned in the Deed to some other transaction; had the subsequent grantee inquired, he would have discovered the interest.

14

What is a race statute?

First to record wins, even if the subsequent purchaser had notice of prior, unrecorded conveyance.

15

What is the language for a race statute?

"First recorded" or "First to record"

16

What is a notice Statute?

Subsequent purchaser with if she buys without notice (knowing) of a prior, unrecorded conveyance.

17

What is the key language for a notice statute?

"In good-faith" or "without notice"

18

What is a race – notice statute?

Subsequent purchaser wins if two requirements are met:

1. Purchase without notice of a prior unrecorded convenience; and

2. Record it first

19

What is the key language for race – notice statute?

"In good faith" or "without notice" PLUS "first the duly recorded" or "first recorded"

20

What is the shelter rule?

A person who takes from a bona fide purchaser protected by the recording acts has the same rights as his grantor.

21

What is a estoppel by deed?

Arises when a grantor conveys land the grantor does not own.

• if the grantor subsequently acquires title to the land, the grantor is he stopped from trying to repossess on ground that he didn't have title when he made the original conveyance.

22

What are the three kinds of deeds?

1. General warranty
2. Special warranty
3. Quitclaim

23

What protections does the general warranty the provide?

Provides the greatest amount of title protection; grantor warrants titles against all defects, even if the grantor did not cause a defect.

24

What present warranties are in a General warranty deed?

1. Covenant of season: warrants that the deed describes the land in question.

2. Covenant of the right to convey: warrants that the grantor has the right to convey the property.

3. Covenants against encumbrances: warrants that there are no undisclosed encumbrances on the property that could live it to its value.

25

What future warranties are in a General warranty deed?

1. Covenant of quiet enjoyment: grantor promises that the grantees possession will not be disturbed by third-party claim.

2. Covenant of warranty: grantor promises to defend against future claims of title by third party. (Competing play to title)

3. Covenant of further assurances: Grantor promises to fix future title problems.

26

What is a special warranty deed?

The grantor warrants against defects only caused by the grantor.

• it includes the same six covenants as a general warranty deed, but they only apply to acts (or omissions) of the grantors.

27

What is a quit claim deed?

The grantor makes no warranties as to the health of the title.

28

When does a breach of a present covenant occur?

At the time of conveyance

29

When does a breach of a future covenant occur?

After the conveyance, when there is an interference with possession.

30

What is the remedy for a breach?

Damages