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Hinkel Chapter 08

Attorney / Teacher / Legal Writer um University of Memphis / QP Legal
30. Aug 2016
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Hinkel Chapter 08

  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 – 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 – Without warranty of title
  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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