Real Property _ Titles

Question 1

Deeds
What does it do?

DEEDS

Answer 1

• Transfers legal title on day of closing

Question 2

Present Warranties (3)

DEEDS

Answer 2

• Warranty of Seisin: The grantor promises that they actually own the property and that no other person has a conflicting present or future possessory interest
• Right to Convey: The grantor asserts they have the legal right to convey or transfer legal title to the property.
• Covenant Against Encumbrances: The grantor warrants that there are no encumbrances (like easements, mortgages, real covenants, liens or outstanding claims) on the property

Note: If Present Warranties are breached, they are breached on the day of closing

Question 3

Rules Regarding Breach of Covenant Against Encumbrances
(Majority v Minority)

DEEDS

Answer 3

Under the majority rule, a covenant against encumbrances is breached even if the buyer knows of an
encumbrance.

Under the minority rule, there is no breach if the seller knows of a physical encumbrance.

Question 4

Future Warranties

DEEDS

Answer 4

• Warranty of Quiet Enjoyment: The grantee will not be disturbed by any future claims against the property.
• Warranty: The grantor promises to defend the grantee against future claims that may arise.
• Warranty of Further Assurances: The grantor agrees to do whatever is necessary to fix any defects in the title in the future.

Note: Future Warranties last forever

Question 5

DEEDS

General Warranty Deed:

Answer 5

• Promise for all 6 warranties since property was developed/created

RULE: The grantor of a warranty deed conveys six covenants with the deed: (1) the covenant of seisin; (2) covenant of right to convey; (3) covenant against encumbrances; (4) covenant of quiet enjoyment; (5) covenant of warranty; and (6) covenant of further assurances.

Question 6

DEEDS

What are the typical limitations on a grantee’s damages in case of a breach of one of the covenants of title?

Answer 6

When a grantor breaches one of the covenants of title, the grantee’s damages are generally limited to the purchase price received by the grantor plus incidental damages.

Question 7

DEEDS

Special Warranty Deed:

Answer 7

• Promise for all 6 warranties since seller had title

“everything is okay while I HAD TITLE not anything previous to me”

Question 8

DEEDS

Quitclaim Deed:

Answer 8

• No promises regarding title

quitclaim deed = no promises, no assurances. i giving you what title i have today, can’t promise it’s good title.
- can’t sue the buyer, bc you didn’t sell good title w/ promises

“it isss what it issss”

Question 9

Writing

FORMALITIES OF CLOSING

Answer 9

• To satisfy Statute of Frauds
• the deed must be in writing, SOF part performance allowed

Question 10

Delivery of Deed:

FORMALITIES OF CLOSING

Answer 10

• Intent of the seller to give up control

INTENT to transfer title, relinquish all control to give grantee/buyer the deed

Question 11

Acceptance of Deed:

FORMALITIES OF CLOSING

Answer 11

Acceptance is presumed, unless grantee/buyer rejects it or gives it back to seller/grantor!

Question 12

Merger

FORMALITIES OF CLOSING

Answer 12

• On the day of closing, the contents of the real estate contract merge into the deed.
• All terms, obligations, and conditions are then governed by the deed itself.

Question 13

Description of the Property:

FORMALITIES OF CLOSING

Answer 13

• Must be “reasonably definitive”
• Unique, distinctive features can suffice if they clearly differentiate the property (e.g., a house with a large, unique rock or a distinctive lawn marking).
• Generic descriptions (like a white fence) are insufficient in neighborhoods where multiple properties share similar features.
• The key is whether a reasonable person can identify the property based on the description given

Question 14

Conveyance of Deed by Inter Vivos Trust

TRANSFER OF PROPERTY BY WILL OR LAW

Answer 14

A landowner may transfer property by deed when there is (1) donative intent, (2) delivery, and (3) acceptance (which is presumed).

Question 15

TRANSFER OF PROPERTY BY WILL OR LAW

Donative Intent

Conveyance of Deed by Inter Vivos Trust

Answer 15

Courts examine whether the grantor intended to pass title; no physical transfer of a deed is required.

Question 16

Delivery

Conveyance of Deed by Inter Vivos Trust

Answer 16

• Recording a deed implies a presumption of delivery, even if the Grantee does not know about the deed.
• In many jurisdictions, an oral condition set by the grantor is often ignored, and delivery is considered complete.
• If the grantor dies and the deed is still with them, it is presumed there was no delivery. However, this presumption can be contested and potentially overturned by the grantee.

Question 17

Transfer by Will

TRANSFER OF PROPERTY BY WILL OR LAW

Answer 17

• Property can be transferred through a will.
• If no will exists, property passes by intestate succession according to state laws.

Question 18

Ademption

TRANSFER OF PROPERTY BY WILL OR LAW

Answer 18

• Occurs when property bequeathed in a will is sold by the testator before they die.
• The beneficiary loses the bequest as the specific property is no longer part of the estate.

Question 19

Lapse

TRANSFER OF PROPERTY BY WILL OR LAW

Answer 19

• If a beneficiary predeceases the testator, the bequest lapses.
• The property then typically goes into the residuary estate.

RULE:
* Under common law, if the beneficiary died before the testator, the gift in the will lapsed and the gift was void.
* Under modern law, most states have adopted anti-lapse statutes that prevent lapse by allowing a gift to pass to certain relatives of the pre-deceasing beneficiary.

Question 20

Exoneration of Liens

TRANSFER OF PROPERTY BY WILL OR LAW

Answer 20

• If property left in a will has liens or encumbrances, the estate usually pays these off.
• This ensures the beneficiary receives the property free of such encumbrances.

Question 21

What are the ELEMENTS of ADVERSE POSSESSION (5) (list it out)

ADVERSE POSSESSION

Answer 21

Acquire legal title if:
1) Continuous for Statutory Period
2) Actual
3) Open and Notorious
4) Hostile
5) Exclusive

Question 22

Continuous

ADVERSE POSSESSION

Answer 22

A person’s use is continuous when she uses the property as the property owner would

Question 23

Statutory Period

ADVERSE POSSESSION

Answer 23

A person must be on the land for the statutory period. Under common law, the statutory period is 20 years.

Question 24

Tacking

ADVERSE POSSESSION

Answer 24

• Intentional transfer from one person to another
• A person may tack (i.e., add) successive periods of adverse possession with another individual to meet the statutory period requirement.
• Note: Can’t tack disabilities!

Question 25

Impact of Disability on Adverse Possession: Starting Before vs. After AP Period

Answer 25

**Disability Before AP Period Begins:** If the **true property owner is under a legal disability** (minor, incompetent, imprisoned) **at the start** of the adverse possession, the **statutory period is paused or extended** until the disability is removed. **Disability After AP Period Begins:** If the property owner **acquires a disability after the adverse possession period has begun**, it ***does not affect the adverse possession timeline***. The statutory period **continues to run** regardless of the new disability.

Question 26

Actual

Answer 26

The possessor must physically use the land

Question 27

Open and Notorious

Answer 27

The use should be **visible and obvious** so a reasonable person would notice someone is using the land

Question 28

Hostile | Adverse Possession

Answer 28

Use of the land is without the owner's permission and in a manner that appears to claim ownership.

Question 29

Exclusive

Answer 29

* The possessor does not share the use of the land with the owner or others

Question 30

Drafting Documents: | DRAFTING & ENFORCING DOCUMENTS

Answer 30

* Non-attorney can draft documents * BUT not give legal advice

Question 31

Equal Dignity Rule:

Answer 31

* Agent may sign deed on behalf of grantor * Need permission in writing

Question 32

Exceptions – Equal Dignity Rule:

Answer 32

1) Officer of Corporation with authority 2) Signing agent 3) No writing – Grantor is estopped if he tried to induce reliance Basically - these are people whose only job it is to sign at the grantor's request

Question 33

List the Three (3) Types of Recording Acts/Statutes | RECORDING STATUTES

Answer 33

There are three types of recording acts/statutes: (1) notice, (2) race, and (3) race notice.

Question 34

Notice Statute

Answer 34

Notice A notice statute protects subsequent bona fide purchasers who take without notice of the earlier conveyance. * Key words: “subsequent purchaser for value without notice” * Last Bona Fide Purchaser prevails

Question 35

Race Statute

Answer 35

Race In a race jurisdiction, the first person to record wins. A subsequent purchaser need not be a bona fide purchaser * First person to record prevails * No requirement to be a BFP. * Statutory language focuses on the act of recording. * "no conveyance shall be good against..."

Question 36

Race-Notice Statute

Answer 36

A race-notice statute protects all subsequent bona fide purchasers for value who take without notice and are the first to record. * First Bona Fide Purchaser to record * Key words: “first recorded”

Question 37

Bona Fide Purchaser:

Answer 37

* Pay for property * Take property without notice A bona fide purchaser is a purchaser for value who takes without notice of a burden. Examples: **BFP**: o Mortgagee **Not BFP**: o Creditor o Gift o Will o Adverse possession

Question 38

Shelter

Answer 38

One who takes from a BFP will prevail against anyone the transferor-BFP would have prevailed against

Question 39

**Shelter Rule Hypo: ** Scenario: O conveys property to A on Monday, but A does not record. Then, O conveys the same property to B on Wednesday, and B records. B later gives the property to C as a gift. (1) Who wins in a notice JX (2) Who wins in a race-notice JX (3) Is C "sheltered?"

Answer 39

**In a Notice or Race-Notice Jurisdiction**: B, as the subsequent bona fide purchaser who recorded, would prevail over A. **Shelter Rule Application**: Even though C, who received the property as a gift, is not a bona fide purchaser, C wins against A. This is because C is "sheltered" by B’s status. Since B would have prevailed against A, C also prevails due to being sheltered by B.

Question 40

Wild Deed:

Answer 40

* A recorded deed outside the chain of title (This occurs when a deed is not traceable back to the original grantor in the chain of title.)

Question 41

Wild Deed Hypo Scenario: Original Grantor (O) conveys Greenacre to A, who doesn't record. Then A conveys to B. Meanwhile, O separately conveys Greenacre to C. (1) Would B have notice? (2) Who will win?

Answer 41

(1) B would not know of O's transactions because the conveyance A to B is a "wild deed". It's outside the chain of title since B can't trace the deed back to the original grantor (O). (2) C, the third grantee, would win against B because B's deed (from A) is not part of the original chain of title that starts with O. This makes the A to B deed a wild deed, untraceable to O