Chapter 11

Elements of a Deed

1. mention a grantor 2. mention a grantee 3. have an element of consideration (money) 4. legal description 5. type of interest being conveyed ( what rights are being traded) - usually fee simple 6. Signatures - Only the "grantors" is required

Covenant against encumbrances

A promise that the property is not encumbered with liens, easements, or other such limitations except as noted in the deed

In an unbroken chain of general warranty deeds, who may be held responsible for all warranties of all previous owners?

Each grantor in the unbroken chain.

The Grantor of a deed?

Must be clearly designated.

Once restrictions are in place on a property, how does this impact future owners?

Once restrictions are in place, they run with the land and are limitations on the rights of all future owners.

Habendum clause

"To have and to hold forever" indicates a fee simple absolute title. "To have and to hold for as long as you shall live" indicates a life estate.

Warranties and Covenants

A general warranty deed offers the maximum number. A special warranty deed offers a limited number. A quit-claim deed offers no warranties or covenants. Although deeds vary in the number of warranties and covenants given, ALL DEEDS CONVEY ALL (100%) OF THE GRANTOR'S INTEREST, whatever that interest may be.

Covenant of Quiet Enjoyment

A promise that the property will not be claimed by someone with a better claim to title, it relates to the future.The covenant of warranty forever is under this.

Name and briefly explain the five covenants of a general warranty deed

Covenant of Seisin relates to the past and guarantees the grantor owns the property and has a right to convey it. Covenant against Encumbrances relates to the past and guarantees there are no monetary claims against the property. Covenant of Further Assurance relates to the future and forces the grantor to correct the deed if necessary. Covenant of Quiet Enjoyment relates to the future and protects the grantee against any title dispute arising between the grantor and any former claimants to the title. Covenant of Warranty Forever relates to the future and guarantees grantee will have title and possession of the property free of claims from third parties.

Covenant of Seisin

Gives the assurance that the grantor has the exact estate in the quantity and quality which is being conveyed. "I own and I have the right to sell it."

Deed exception

Is a right that the grantor does not have and, therefore, is not able to convey. For example, the grantor might sell the above 100 acres, but the mineral rights remain the property of another previous owner.

Deed Reservation

Is a right that the grantor has but is not going to convey. For example, an owner may sell 100 acres but keep the mineral rights.

Recording

Is done to make a document part of the public record, and is advisable, though not mandatory for all deeds.

Covenant of Warranty Forever

The grantor promises to compensate the grantee for the loss sustained if the title fails at any time in the future.

Quitclaim Deed

The grantor warrants absolutely nothing. There are no covenants associated with a quitclaim deed. The grantor does not even claim to own the property described in the deed. The grantor is saying: "If I have any interest in this property, and I have not said that I do, it is all yours." Most often used to clear up a cloud (technical defect) in the chain of title, or to release lien claims against the property. if you receive a quitclaim deed from someone who owns the property in fee simple, you have no warranty to back up your claim of ownership.--False statement

Bargain and sale deed

The grantor warrants only that he/she has personally done nothing to harm the title. This deed is a special warranty deed.

The words on a deed "for love and affection" are

The recital of consideration

Special Warranty Deed

Warrants only that the grantor has not done anything to diminish or encumber the estate during the grantor's ownership other than stated in the deed, and specifically does not warrant against any defects of title that may have resulted from the acts of previous owners. Used by grantors who cannot or do not want to make any warranties other than for the time they have held title to the property. Many types of deeds fall in this category (known as "grant deeds" in some states). They often concern fiduciary or judicial functions (transfer of title of a deceased party's property, for example, as in a personal representative's deed). Bargain and sale deeds often have a covenant (which does not run with the land) against the grantor's acts, by which the grantor warrants only that the grantor has personally done nothing to harm the title, so they qualify as special warranty deeds.