Important Deed Characteristics
Patent - A patent is a document conveying property from the government to a person. The original transfer.
Seizen = Ownership - Of the 5 deed covenants, the covenant of seizen promises ownership. Seizen means ownership.
Deed - The deed is the transfer vehicle granting/conveying the buyer/grantee title. It states the type of estate being conveyed.
Deed Conveys Title - Title is conveyed by deed. Interest is conveyed by deed as well.
Deed Specifies - A deed conveys title. It names the grantor conveying title. It specifies the consideration offered by the grantee to the grantor.
Changes to Title - Easement interests, if terminated by the dominant estate, are usually done by a quitclaim deed. Whenever parties want to clear up ownership or an interest in property, and they both agree, they can use a quitclaim deed. It's quick!
New Deed - Once a deed is recorded, a new deed is required to convey title to another.
Recording is SUGGESTED - Deeds do not have to be recorded. The deed is still valid.
Best Deed - The general warranty deed is best. It guarantees the 5 covenants back to the original government patent.
5 Covenants (Guarantees) - The general warranty deed has all 5 covenants. It guarantees ownership clear back to the original patent. All the other deeds limit the number of covenants.
Special Warranty Deed - The special warranty deed only has one covenant, the covenant of no encumbrances during ownership by the seller.
Injury to the Grantee - If the buyer/grantee experiences a "cloud on title" (an injury); there is nothing in the deed about reimbursing him/her for injuries. The grantee would have to get a court judgment against the seller/grantor.
Quitclaim Deed - The quitclaim deed has no warranties or covenants at all. It says "all my power is transferred." This way a person's "interest" can be transferred quickly and inexpensively.
Quitclaim Use - It is used to quickly clear up "clouds." A person can terminate all claims by issuing a quitclaim deed.
Sheriff's Deed - The sheriff's deed is used by the authorities to convey title such as a foreclosure of property.
Grantor Must Be Competent - A deed would be voidable if the grantor was a minor. A deed conveys, it doesn't define title.
Recording with the County - Recording of a deed is not necessary. A deed conveys immediately. It just isn't known by the public unless it is recorded with the County.
Deed Conveys - A deed conveys ownership from one party to another. It is not the title. The movies and the public talk about "holding the deed to the property" as if it is title ownership. The deed only conveys/changes title of the property.
Quiet Title Action - Joint owners and disputed owners can request a quiet title action in court. The court will then decide the ownership and interests of the property.
Deed - A deed is a conveyance. It conveys/transfers title to another.
Title - Title to real property is ownership of real property. A deed is not a title to real property. Think of a deed as a receipt for the transfer of title. It is evidence that a change of title has taken place.
Different Types of Deeds - There are 4 basic deed forms. One guarantees all ownership rights/sticks to the deed holder. Another deed form guarantees nothing. An individual sold the Brooklyn Bridge 1,500 times with the use of this type of deed. This is why it is important to understand the different deed forms and their function.
Deeds Cannot Be Sold/Assigned - When a person holds a deed to real property (such as a buyer), that deed can only be used once. If the buyer wishes to convey title to another, the buyer/new owner cannot sell/assign their deed to another.
New Deed - Any time real property is to be transferred to another by sale, gift, bequest, etc., a new deed must be drawn on behalf of the new owner.
Caution - This characteristic is often times on the State Exam.
Grantor - When an owner of real property wishes to transfer/convey ownership to another party, they accomplish this by deed. The person who grants this change of ownership is known as the grantor. The grantor would form the deed if they wish too:
Remember - The EE receives. The grantee receives ownership of the property through the use of the deed or the grantor grants/gives title to the grantee.
Grantor Must Provide a Signature - In order for the grantor to convey/transfer title to the grantee, the grantor must sign the deed.
Grantee Can Sign - The grantee on the deed does not have to sign the deed in order for the deed to be effective. Remember, a deed is only used once. The grantee on the deed cannot assign or sell it to another party. This is why no signature is required of the grantee receiving title.
Recorded - When a deed is drawn to convey/transfer title to another, the deed can be recorded with the County where the property is located. It does not have to be recorded to be effective.
Recording With the County - If the grantee records the deed with the County, the grantee/new owner is giving "constructive notice" to the world, that they are the owner of the property. If the deed is not recorded, no one knows of the transfer of ownership.
Deed is Still Effective - If the deed is not recorded with the County, the deed is still effective. The conveyance of ownership by the deed has not been announced to the public. There is no constructive notice to the public. But, the grantee is still the owner of the property.
Requirements of a Valid Deed
Written Form - Under the Statute of Frauds, all deeds must be in writing. Handing a clod of dirt to a new owner in front of witnesses does not work anymore.
Real Estate Documents - All real estate documents must be in writing except lease agreements less than 1 year.
Name of Grantor and Grantee - The legal name of the participants must be present on the deed.
Competency-. The grantor/seller must be legally competent to "sign" the deed.
Consideration - The grantor must provide legal title to the grantee. The grantee must provide money, love and affection, or a forbearance (promise) of an act.
Granting Clause - There must be a statement by the grantor to convey/transfer title to the grantee.
Wording - The granting statement will vary with the different forms of deeds that are used in the various States. Most deeds grant/guarantee a fee absolute estate to the grantee. Some deeds guarantee nothing and are used to clean up title problems quickly.
Remember - Deeds convey title. They also specify the estate rights of the titleholder as well.
Habendum Clause - It is the Habendum clause that specifies the "estate rights" that are being conveyed to the grantee. It specifies the possession and use rights of the titleholder.
Fee Simple Absolute Estate - If the Habendum clause states that the grantee has a fee simple absolute estate "to have and to hold," the grantee/new owner would have all possession and use rights.
Life Estate - If the Habendum clause states that the grantee has a life estate "to have and to hold," the grantee would only have the right of possession and use for the grantor's lifetime. This is done when the grantor is selling their life estate to another.
Complete Legal Description - The deed must clearly/legally describe the real property being conveyed/transferred from the grantor to the grantee. This needs to be the the full legal description and not an abbreviated version.
Different Forms - There are several different legal description forms that are used within the real estate community.
County Description - Each County will have a legal description of the titled property in question. The deed could simply use the county's language.
Former Deed Description - Some deeds use language of former deeds. This language could have been used for hundreds of years of conveying property from grantors to grantees over the years.
Descriptions - There are many types of legal descriptions; for this reason 4 sections will be dedicated to legal descriptions.
Subject to Clause - Some deeds place restrictions on the grantee regarding the use and possession of the property being conveyed. This is known as a Deed Restriction. Obviously the grantee would have to agree to these restrictions when buying/accepting the property.
Examples would include:
Servient Estate Restriction - A deed could state that the grantee is accepting the property "subject to" an easement enjoyed by the neighboring dominant estate across the property being conveyed.
Grantor's Restrictions - A deed may have requirements that the grantor placed upon the deed.
Community Restrictions - Some communities have restrictions on the use and possession by owners within its confines. This could be specified in the "subject to clause" as well.
A patent issued by government would involve:
A) An easement
C) A gradient
D) A conveyance
Of the 5 covenants, the covenant whereby the grantor warrants that he/she is the owner and the possessor of the property being conveyed is called the covenant of:
B) Quiet enjoyment
Which of the following documents will transfer title to real property?
A) Trust deed
B) Bargain and sale deed
C) Purchase money mortgage
D) Both 1 and 2
Which of the following documents may be used to terminate an easement?
A) Deed of reconveyance
B) Quitclaim deed
C) Trustee deed
Ted Mahoney gave a general warranty deed to his nephew John when John bought the apartment building Ted owned. John had the deed recorded. Later John decided to convey the property back to Ted. How could this best be accomplished?
A) John must give Ted a reconveyance deed
B) John must make a new deed to Ted, and Ted should record it
C) John must endorse the deed and return it to Ted
D) Any of the above
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