387 final review - Types of Deeds Warranty deeds 1. seller...

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Types of Deeds Warranty deeds 1. seller owns property 2. seller is free of undisclosed encumbrances 3. seller will warrant and defend title against all claims regardless of time of occurrence ( ie liens that affect title) 1. seller owns property 2. free of undisclosed encumbrances 3. seller will defend title against claims made of facts occurring during seller’s ownership Quit Claim deeds 1. seller makes no promises 2. buyer purchases all attachments to property: liens, clouded title, etc *mortgage is recorded in chain of title>lien on property that will transfer Judicial/referee/sheriff deeds 1. comes out of judicial process 2. no promises to buyer 3. title clarity depends on process used to foreclose on property (all parties contacted, title commitment completed accurately) Title Transfer Title transfer requirements 1. statute of frauds: written, descriptive, signed 2. buyer and seller must be of age 3. legally competent to make deal 4. no undue influence/fraud on either part Bragdon: P legally incompetent, sells to D, P estate says incompetence>void K, D says there was fair consideration, CT says fair consideration is not a factor, incompetence alone>void in Maine Trengen: P says D had undue influence>unfair consideration, CT says love is adequate to create K, fair consideration not factor, fair consideration b/c parents reduced inheritance Rhea: dependent mother, son takes complete control (power of attorney, switches title to his name) other siblings say he had undue influence, CT agrees Recording Laws Deed is void and ineffective against a bona fide purchase for value without notice, unless and until that deed is recorded. Recording laws : situation where seller sells property multiple times Former law : 1 st in time, 1 st in right
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Now different according to jurisdiction: 1. pure race: first to record wins 2. pure notice: last bona fide purchaser who records wins so long as purchase occurs before previous purchaser has recorded (if A purchases and records before B purchases, B is on record notice) 3. hybrid race/notice: first bona fide purchaser to record wins BFP : exchange of value ($ for property), v. gift HYPO : D1: O>A D2: O>B(gift) D3: O>C D4: B records D5: A records D6: C records Pure race: B wins: 1 st to record, does not have to be bonafide purchaser Pure notice : C wins: at time of C’s purchase A had not recorded Race/notice : A wins, BFP requirement eliminates B, recording order matters CASE : Genshiemer: B>G(May) K judgment against B(Sept) K records judgment G records purc CT: lien is good and G must pay judgment>force to record in timely manner Marketable title 1. must be reasonably free from doubt (free of threat of litigation) 2. implicit in all Ks unmarketable>buyer does not have to go through with sale DEFECTS: 1. seller cannot provide chain of title 2. buyer finds undisclosed encumbrance 3. seller cannot get title commitment/abstract from insurance company CASE:Knight: marketable title subject to alteration according to history, what would once make title
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387 final review - Types of Deeds Warranty deeds 1. seller...

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