parts of a deed

parts of a deed - Caveat emptor Means"let the buyer...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 2
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 4
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Caveat emptor - Means "let the buyer beware". ( Some states continue to follow this common law viewpoint.) A DEED is an instrument used to transfer legal title to real estate from the grantor to the grantee. *lr’ARTs OF A DEED I a) Names and addresses of grantors and grantees b) Words of conveyance c) Consideration d) Legal description and source of title 2) Habendum - describes the estate to be taken (such as fee simple or life estate) 3) Warranty clauses - promises made by the grantor 4) Execution clause a) Grantors' signatures and date b) KY requires Grantees' signatures (to certify consideration) 5) Acknowledgment clause - attestation of notary 6) KY requires name & address of preparer WARRANTY DEEDS There are two general types of warranty deeds: 1) General Warranty - Here the grantor will defend against claims of Q persons - Uses words like "with warranty" or "with general warranty" 2) Special Warranty - Here the grantor agrees to defend the title against claims which relate only to the time period in which the grantor was the owner. - Uses words like "with special warranty" IMPLIED WARRANTIES Warranty deeds contain "implied warranties". These implied warranties are as follows: I) Indefeasible estate i.e., grantor owns the estate outright in' fee simple, with right to convey 2) Property is encumbrance-free i.e., property is free of claims or liens, except as noted 3) Covenant of quiet enjoyment and Covenant of warranty i.e., promise by grantor that new owner will never be evicted in whole or in part by a person with a superior claim; but if a person does assert a superior claim and evicts buyer, grantor will pay monetary damages to buyer. #4 QUITCLAIM DEEDS * - These deeds contain no warranties, express or implied. - Such a deed uses words like "conveys"and quitclaims", instead of "conveys and warrants". - Generally, a title examination is conducted twice the statute of limitations period o_r for the length of time that is the customary practice in the community. Ex: 15 year statute of limitatio in KY, so records are examined 30 years. title exam requires: ~)\ entification the chain of title 2) Eva u‘at eds for mistakes, etc. / TYPICAL DIVISION OF COSTS AT CLOSING The parties may agree to divide closing costs as they please. Typically, the closing costs are divided as follows: SELLER PAYS: Deed preparation $50-75 Transfer tax $ US l 000 consideration Lien release fees $9 for lst 3 pages + $2/pg Waing-t‘ees- W any survey costs are paid by the seller absent an agreement to the contrary.) [Title insurance differs from other forms of insurance in that insurance normally provides protection against future losses resulting from future events, while title insurance provides protection against future monetary loss from past events.) TYPICAL CLOSIN (Buyer, Seller, Lender, Broke tty Are Present) with notary ecords instruments WAYS THAT TITLE T0 REAL PROPERTY IS TRANSFERRED l)Through purchase and sale 2) By will 3) By laws of descent and distribution - These are laws that control when one dies without a will. 4) By deeds of gifl 5) Through adverse possession 6) Condemnation actions - The principle of "eminent domain" DEEDS 0F GIFT - Deeds executed and delivered without consideration. REQUIREMENTS FOR TRANSFER OF TITLE 1) The grantor must have the intent to deliver the deed; i.e., he must intend to depart with the title to the property. I 2) The grantor must part with dominion and control over the instrument. (Physical delivery of the instrument is not necessary.) Case Example: Shroyer (p. 94) Shroyer v. Shroyer (p. 94) FACTS - Deceased wrote her will in 1960 in which she devised her 80-acre farm to her sister-in- law (the Pt). - Deceased gave her will to her niece and requested niece to put her will in the niece's bank box; the niece complied. - In 1964, the deceased decided that she wanted her sister-in-law's sons (i.e., nephews) to have the 80 acres. - So the deCeased executed a deed to the nephews in 1964. - But the deceased never "delivered" the deed to nephews. - Just prior to death, deceased requested her "papers" from bank box and gave to neighbor to "hold" while she was ill. LEGAL ISSUES - Was there a "delivery of the deed"? - If there was "delivery", then the nephews held title. - If there was no "delivery", then will would control and the sister-in-law would. take title under the will. - The appellate court stated that the controlling element is "intent" of the grantor. - For a completed transfer, the grantor must part with "dominion and control" over the instrument. . - Not necessary for "physical delivery" of a deed to occur. - The court held that the deed was ineffective for a lack of delivery because of the facts: 1) Deed did not reserve a life estate 2) Grantor retained physical possession 3) Grantor retained lockbox keys 4) Grantor ofien changed her mind 5) There was secrecy involved 6) Deed had not been recorded Algood v. Algood (p. 97) FACTS - 2 brothers had purchased a farm - Brothers had oral agreement that lst brother would convey 1/2 to other brother (Fred) in exchange for Fred's labor - lst brother committed suicide on Aug 30 (had suffered violent headaches) - Just prior to suicide, lst brother: a) executed deed to brother, with notary as witness, and b) mailed deed to 2nd brother (Fred) - lst brother's wife wants deed to 2nd brother (Fred) set aside LEGAL ISSUES - Was there valid delivery of the deed? - If yes, then 2nd brother owns 1/2 of property as TC with Wife, and he can ask court to partition the property. - If no, then wife owns entire farm. HOLDING - There was a valid delivery, even though 2nd brother didn't physically receive deed until m brother's suicide. Court decided a valid delivery based upon the facts: a) postmark of Aug. 30 (day of death) b) address handwritten by lst brother c) oral agreement between brothers, and labor had been performed d) proper execution of deed, with notary present e) lst brother's competence at time deed executed t) no undue influence by Fred over lst brother PRESUMPTIONS RELATED TO DEEDS OF GIFT 1) If the grantee has the deed, then delivery is presumed. 2) If grantor has the deed, the delivery-is not presumed. 3) If the deed is recorded, then delivery is presumed. ...
View Full Document

This note was uploaded on 01/20/2011 for the course AEC AEC 324 taught by Professor Briann.thomas during the Spring '10 term at Kentucky.

Page1 / 4

parts of a deed - Caveat emptor Means"let the buyer...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online