(Conveyancing: Closing and Deeds) Friends In-Deed - Real Property Foundations Episode

1. What are the two stages of conveyancing?

The contract stage and the closing stage.

2. What document transfers legal title at closing?

The deed.

3. Who is the grantor?

The person transferring the property.

4. Who is the grantee?

The person receiving the property.

5. What two requirements must a deed satisfy to transfer title under the lecture?

It must be lawfully executed and delivered.

6. Does a deed need special formatting or decorative language to be effective?

No. Its legal substance matters, not its appearance.

7. What are the four requirements for lawful execution of a deed discussed in the lecture?

A writing signed by the grantor, identification of the parties, an unambiguous description of the land, and words showing intent to transfer.

8. Who must sign the deed?

The grantor.

9. Can a seller transfer title through a deed merely by saying orally, “The property is yours”?

No. The deed must be in writing and signed by the grantor.

10. Must the parties be identified by name?

No. A sufficient description that identifies them may work.

11. Can “my second eldest daughter” sufficiently identify a grantee?

Yes, if the description identifies the person receiving the property.

12. What must the deed’s description of the land accomplish?

It must identify the property unambiguously.

13. Why is “the property for which I have the greatest expectations” an insufficient land description?

It does not clearly identify which property is being transferred.

14. Can “all of my properties in Kent County” sufficiently describe the land?

Yes, because the grantor’s properties in that county can be identified.

15. What must the deed’s words of transfer indicate?

An intention to convey the property to the grantee.

16. What is an example of language expressing intent to transfer?

“I grant this land to you.”

17. What is the central issue in determining whether a deed has been delivered?

Whether the grantor intended the deed to have a present operative effect.

18. What does “present operative effect” mean for delivery of a deed?

The grantor intends title to pass immediately and irrevocably.

19. Is physically handing the deed to the grantee enough to establish delivery?

No. The grantor must also intend an immediate and irrevocable transfer of title.

20. Is physical transfer always necessary for delivery?

No. Delivery focuses on the grantor’s intent, which may be shown through words or conduct.

21. What can demonstrate the grantor’s intent to deliver a deed?

Words or conduct showing an intention for title to pass immediately and irrevocably.

22. Gatsby hands you a deed and asks you to hold it for safekeeping. Has effective delivery occurred?

No. The request for safekeeping does not demonstrate an intention to transfer title immediately.

23. Why does Gatsby’s physical transfer of the deed fail to transfer title in the lecture’s example?

He intends the grantee to safeguard the document rather than make it presently effective.

24. Does possession of the deed necessarily establish ownership of the property?

No. Possession of the document alone does not establish effective delivery.

25. What is the principal difference among the three types of deeds?

The scope of title assurance provided by the grantor.

26. What does “title assurance” refer to?

The promises about title and the protection available if title is defective.

27. What are the three types of deeds discussed in the lecture?

Quitclaim deed, general warranty deed, and special warranty deed.

28. What title promises does a quitclaim deed contain?

None.

29. Does a quitclaim deed guarantee that the grantor owns the property?

No.

30. What interest does a quitclaim deed transfer?

Whatever interest the grantor has at the time of conveyance, which may be no interest at all.

31. Can a quitclaim deed transfer good title?

Yes, if the grantor actually holds good title.

32. What does the grantee receive if the quitclaim grantor has no interest in the property?

No interest in the property.

33. Does a quitclaim deed provide protection through covenants for title?

No. It contains no covenants for title.

34. Which type of deed provides the broadest title assurance?

A general warranty deed.

35. How many covenants for title does a general warranty deed contain?

Six.

36. What are covenants for title?

Promises contained in a deed concerning title to the property.

37. How are the six covenants for title divided?

Three present covenants and three future covenants.

38. Does a general warranty deed cover title defects attributable to prior owners?

Yes. Its assurances extend to defects attributable to the grantor and predecessors.

39. What are predecessors in the chain of title?

People who owned the property before the current grantor.

40. Why does the distinction between present and future covenants matter?

It determines when a breach occurs and when the statute of limitations begins to run.

41. What do present covenants concern?

The state of title when the deed is delivered.

42. What three promises do the present covenants address in the lecture?

The grantor owns the property, has the power to convey it, and the property is free from encumbrances.

43. When are present covenants breached, if at all?

At the time the deed is delivered.

44. When does the statute of limitations begin to run for a breach of a present covenant?

At delivery, when the breach occurs.

45. What is an encumbrance?

A burden on the property, such as a mortgage, easement, or encroachment.

46. What examples of encumbrances does the lecture give?

Mortgages, easements, and encroachments.

47. A deed promises that the property has no encumbrances, but an undisclosed mortgage exists at delivery. When is that present promise breached?

At delivery.

48. What do future covenants concern?

Protection against later events involving covered title claims.

49. What kinds of protection associated with future covenants does the lecture describe?

Protection against disturbance by superior title claims, defense against covered claims, and compensation for resulting losses.

50. Are future covenants necessarily breached merely because a title defect exists at delivery?

No. Breach depends on the later event required by the relevant covenant.

51. When does the statute of limitations begin to run for a future covenant?

When the relevant future covenant is breached.

52. Does the lecture explain the detailed names and requirements of all six covenants?

No. It introduces their general functions and leaves the details for a later lesson.

53. What protection does a special warranty deed provide?

Title assurances limited to the grantor’s own ownership, excluding defects attributable to predecessors.

54. How does the lecture describe the covenants in a special warranty deed?

It describes six covenants for title whose protection is limited to the grantor’s own ownership.

55. How does a special warranty deed compare with a general warranty deed?

It provides narrower protection because it does not cover title defects attributable to prior owners.

56. How does a special warranty deed compare with a quitclaim deed?

It provides title assurances, while a quitclaim deed provides none.

57. A title defect is attributable to the seller’s ownership. Which warranty deeds may provide protection?

Both a general warranty deed and a special warranty deed.

58. A title defect is attributable to an owner before the seller. Which deed provides protection against that defect?

A general warranty deed.

59. Does a special warranty deed protect against title defects attributable to predecessors?

No.

60. How do the three deeds rank from least to most title assurance?

Quitclaim deed, special warranty deed, general warranty deed.