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Chapter 8 Deeds.

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Presentation on theme: "Chapter 8 Deeds."— Presentation transcript:

1 Chapter 8 Deeds

2 Objectives After reading this chapter, you should be able to
Identify the types of deeds used in modern real estate practice. Explain the basic requirements of a valid deed. Prepare a deed.

3 Historical Development of Deeds
Originally, land conveyed by the actual delivery of vacant possession to the land in which a seller would place or “seize” the purchaser in possession Later, the fine became the preferred method of conveyance Today, written deeds are used to describe property and parties Recorded in public files

4 Types of Deeds General warranty deed
Covenants (warranties) by grantor to grantee Covenant of seisin Covenant of right to convey Covenant against encumbrances Covenant of further assurance Covenant of quiet enjoyment Covenant of warranty

5 Types of Deeds Present versus future covenants Case
Lunsford v. King, 132 Ga. App. 749, 209 S.E.2d 27 (1974) Plaintiff entitled to prove case before jury Including amount of unliquidated damages

6 Types of Deeds Limited (special) warranty deed
Warranty deed in which the grantor covenants only against lawful claims of people claiming by, through, or under the grantor Grant deed Transfers only the interest the grantor has in the land and not the land itself Type of limited warranty deed commonly used in California

7 Types of Deeds Quitclaim deed
Contains no covenants or warranties of title Found in other forms of deeds Foreclosure deeds Executor’s deeds Administrator’s deeds Trustee’s deeds

8 Types of Deeds Executor’s and administrator’s deeds Trustee deeds
Transfer of a title to real property from the estate of a deceased individual Without warranty of title Trustee deeds Deed transferring property held in trust for a beneficiary

9 Basic Requirements of a Valid Deed
Written instrument Competent grantor Identity of grantee Words of conveyance Adequate description of land

10 Basic Requirements of a Valid Deed
Consideration Signature of grantor Witnesses Delivery of completed deed to grantee

11 Preparation of a Valid Deed
Most deeds have the following parts: Caption Premises or preamble Granting clause Description Habendum Warranty clause Testimonium

12 Completing Sections of a Deed
Preamble Grantor designations Grantee designations Granting clause Description Testimonium

13 Correction of Deeds Grantor must execute and deliver corrective deed to the grantee Corrective deed is valid without any additional consideration Acceptance by the grantee is admission of error found in the original deed Reformation and cancellation of deed

14 Practical Tips for the Paralegal
Grantor Legal ownership (individual or business entity) must be verified through a title report Or court documents, if necessary Name must be spelled correctly

15 Practical Tips for the Paralegal
Grantee Same attention to detail applies to the grantee If grantees are receiving property as co-owners, that language must be in the deed Legal description

16 Practical Tips for the Paralegal
Witnessing a deed If acting as a witness, must see grantee(s) sign the deed If acting as a notary public, must properly identify the parties signing the deed Notarizing a deed without seeing the actual signature(s) is a violation of the notary oath May be considered perjury in many states

17 Checklist: Preparing a Deed
Research before preparation Review the contract or other agreement covering the transfer of ownership to the property Review the title examination to ensure the correct name of title owner to the property

18 Checklist: Preparing a Deed
Research before preparation Confirm the correct spellings of all names of the grantor and grantee Carefully review the title examination and determine what title exceptions should be identified in the deed

19 Checklist: Preparing a Deed
Research before preparation Confirm prospective purchasers have no special requirements for taking title E.g., joint tenancy with right of survivorship Review survey legal description against description in grantor’s current deed to ensure no difference exists between the two descriptions

20 Checklist: Preparing a Deed
Preparing the deed Draft the caption and preamble Indicate the county and state where the deed signed Date the deed with the date of execution and delivery Indicate the correct name of the grantor Indicate the correct name of the grantee, noting any special forms of ownership

21 Checklist: Preparing a Deed
Preparing the deed Draft the consideration Draft the legal description Use the correct legal description verified by survey and title examination If the legal description is too long to be included on the face of the deed, use an exhibit List all title exceptions being transferred with the property

22 Checklist: Preparing a Deed
Preparing the deed Draft signature blanks Grantor is the only person who signs the deed Correctly identify the grantor’s name Type all names underneath the signature lines Deed must be signed and sealed Make certain the deed contains the proper number of witnesses and the correct notary designation

23 Ethics: Falsification of Documents
ABA Code of Professional Responsibility prohibits an attorney from falsifying a document for any reason Likewise, a paralegal cannot falsify a document for any reason Including changing a date on the deed

24 Summary Ownership to real property transferred by a deed
Warranty or quitclaim Deeds must properly identify the grantor/grantee and a description of the property to be transferred Deeds must be signed and witnessed Title is not transferred until deed is delivered to the grantee


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