Property Flashcards
(43 cards)
Quitclaim Deed
Transfer of property without any promises or representations.
Warranty Deed
Transfer of property with the promise and representation that transferor has good title.
Covenants Within the Warranty Deed
- Covenant of Seisin
- Right to Convey
- Covenant Against Encumbrances
- Covenant of Further Assurances
- Covenant of Quiet Enjoyment
- Covenant of Warranty
Covenant of Seisin
Grantor represents they own and have the right to convey the property.
Right to Convey
Grantor has capacity and authority to transfer property.
Covenant Against Encumbrances
Promise that property is unencumbered by any other interests in the property.
Covenant of Further Assurances
Promise by Grantor to assure the validity of title.
Covenant of Quiet Enjoyment
Promise by Grantor that no one with superior title will seek an eviction.
Covenant of Warranty
Promise by Grantor to stand behind title and indemnify future holders if title should fail.
Defending Covenant of Warranty
A Grantor would only be required to defend or reimburse a Grantee for lawful or reasonable claims for title.
Transfer of Property
What is in the Deed
To transfer title from one party to another there must be a valid deed that: (1) describes the property, (2) identifies the parties, (3) includes words of transfer, (4) and is signed by the Grantor.
Consideration for a Valid Deed
A deed is different from a contract, and no consideration is required for a valid deed.
Real property may be the subject of a gift, just as any other type of property.
Criteria for Effective Transfer of Property
Delivery Requirements
(1) Intent to transfer title; (2) Delivery: Giving up possession and control to an existing person or entity; and (3) Acceptance:
Acceptance is presumed unless there are indications otherwise.
Contracts to Sell Real Property
Requires the basic elements of contracts: (1) Mutual assent and consideration; (2) Must be in writing signed by party to be charged; and (3) Must identify parties, price, and property.
Controls transaction prior to closing/transfer of property – At closing contract merges with deed and terms of the deed control.
Not all transfers of property are by contract – Transfer can be by gift, will or inheritance by operation of law.
Deed Procured by Fraud
Fraud in the execution of a deed is the equivalent of a forged deed, which is void.
Delivery Presumption
Delivery of a deed is established by a proven intent to pass title, even if the title document was never physically given to the grantee.
The fact that a grantee did not physically possess the deed before their death is irrelevant in determining whether the transfer was valid.
Deed to the Dead
A deed to a dead person does not convey good title and is void.
Any such transfer results in the property reverting to the Grantor with a lien on the property to reimburse the Grantee’s estate.
Death Escrows
Through a death escrow, the grantor may give a deed to an escrow agent to deliver to the grantee on the condition that the grantor dies.
A death escrow is effective as long as two things are true: (i) the only condition is the grantor’s death; and (ii) the grantor doesn’t retain the legal right to take the deed back out of escrow (place the deed beyond his control).
Constructive Notice
Recording in the county in which the property is located.
Actual Notice
Purchaser acquires actual knowledge about the property; actual notice includes being informed by someone.
Inquiry Notice
Purchaser is on notice of anything the purchaser would discover by walking through the property.
Open and Notorious Use.
Common Law Title Rules
First in time (to received title) prevails gave legal effect to conveyances in accordance with the time of execution.
Race Recording Act
Whoever records FIRST prevails. Notice is irrelevant.
“First record”
Notice Recording Act
A SBFP without notice of previous conveyance, prevails. The subsequent purchaser wins under a notice statute if he has no actual or constructive notice of a prior claim at the time of conveyance.
“Without notice,” “In good faith,” “Unless”
