The Closing - Deeds

Question 1

The Deed Requirement

Answer 1

to pass legal title from grantor to grantee the deed must be “LEAD”: Lawfully Executed And Delivered.

Question 2

Lawful Execution of a Deed

Answer 2

• A writing signed by the grantor
• An unambiguous description of the land (The description of land in the deed need not be perfect, but it must be unambiguous and at least provide good “lead.”)
• Identification of the parties by name or description
• Words of intent to transfer, such as “grant”
• Note: No consideration needed

Question 3

Delivery Requirement of Deed

Answer 3

Could be satisfied when physically or manually transferred to grantee
* Does not necessarily require actual physical transfer
* Ask “did grantor have the present intent to be bound?”

Rejection defeats delivery

Delivery with Oral Conditions:
* Oral condition drops out
* Not provable
* Delivery is done

Delivery to Third Party (Escrow):
* Grantor may use escrow agent with instructions that the deed be delivered to the grantee once certain conditions are met
* Once conditions are met, title passes to grantee

Question 4

Quitclaim Deed (3 Types of Deeds)

Answer 4

Contains no covenants
* Grantor isn’t even promising that he has title to convey.
* This is the worst deed a buyer could hope for.
* It conveys only what the grantor has at the time of the conveyance.

Question 5

General Warranty Deed (3 Types of Deeds)

Answer 5

Warrants against all defects in title (including by grantor’s predecessors)

3 Present Covenants (breached at delivery)
* Seisin = Grantor warrrants that they own the estate they now claim to convey
* Right to Convey = Grantor has the power to transfer property
* Against Encumbrances = No servitudes/liens

3 Future Covenants (breached if grantee disturbed in possession) (SOL starts to run when grantee disturbed in possession)
* Quiet Enjoyment (different than landlord-tenant law)= No 3rd party lawful claims
* Warranty = Granter will defend claims of superior title brought by third parties
* Furth Assurances = Grantor will perfect title (promises to do whatever might be need in the future to perfect the title)

Question 6

Special Warranty Deed (3 Types of Deeds)

Answer 6

Contains the same covenants as the general warranty deed, but here the grantor makes those promises only on behalf of himself.
* Note: Grantor makes no representations on behalf of his predecessors in interest