The Deed & Warranties

What are the 3 types of deeds?

(1) General Warranty Deed (2) Special Warranty Deed (3) Quitclaim Deed

What what moment in time, if ever, is a future covenant broken?

A future covenant is not breached until the grantee, or his successor is evicted from the property, buys up the paramount claim, or is otherwise damaged. Statute of limitations beings running at the time when the covenant is broken in the future.

What what moment in time, if ever, is a present covenant broken?

A present covenant is broken at the moment the deed is delivered. - Either the grantor owns the property at that time, or he does not; either there are existing encumbrances at that time, or there are none - Statute of limitations begins to run on the date of delivery of the deed.

Who is a "remote grantee" and what are their rights to sue for breach of a covenant included in a general warranty?

A remote grantee is a subsequent purchaser of a land, who got a special warranty deed, but has a chain of title back to a grantor who gave a general warranty deed. A "remote grantee's" damages are limited to those the original grantee could have recovered, consequently a remote grantee is entitled to recover the amount of consideration the original grantee paid plus interest from date of conveyance to remote grantee. - Parol evidence doesn't go down the line, as such an original grantor cannot bring in oral evidence against a remote grantee.

What is the Covenant against Encumbrances?

Covenant against Encumbrances: The grantor warrants that there are no encumbrances on the property. - Encumbrances include, among other items, mortgages, liens, easements, and covenants. - This is a present covenant

What is the Covenant of Further Assurances?

Covenant of Further Assurances: The grantor promises that he will execute any other documents required to perfect the title conveyed. - This is a future covenant

What is the Covenant of General Warranty?

Covenant of General Warranty: The grantor warrants that he will— (1) defend against lawful claims; and (2) will compensate the grantee for any loss that the grantee may sustain by assertion of superior title. - This is a future covenant

What is the Covenant of Quiet Enjoyment?

Covenant of Quiet Enjoyment (often omitted): the grantor warrants that the grantee will not be disturbed in possession and enjoyment of the property by assertion of superior title. - This covenant is, for all practical purposes, identical with the covenant of general warranty and is often omitted from general warranty deeds. - Not to be confused with the landlord's covenant of quiet enjoyment. - This is a future covenant

What is the Covenant of Right to Convey?

Covenant of Right to Convey: The grantor warrants that he has the right to convey the property. - In most instances this covenant serves the same purpose as the covenant of seisin, but it is possible for a person who has seisin not to have the right to convey (e.g., a trustee may have legal title but be forbidden by the trust instrument to convey it). - This is a present covenant

What is the Covenant of Seisin?

Covenant of Seisin: The grantor warrants that he owns the estate that he purports to convey. - Minority of states (Iowa) hold that this does run with the land. - This is a present covenant

What is estoppel by deed?

Estoppel by Deed: Applies in situations where a grantor conveys land to a grantee that the grantor does not own, and the grantor warrants title to the land. If the grantor subsequently acquires title to the land, the grantor is estopped to deny that he had title at the time of the deed and that title passed to the grantee. - Since the grantee could sue the grantor on the warranty, when the grantor later acquires title, and compel the delivery of a new conveyance, the law eliminates the necessity of a lawsuit and automatically passes the subsequently acquired title to the grantee. - Note: a BFP will trump someone who has a deed via estoppel.

What are the 3 future covenants included in a general warranty deed?

Future Covenants (4) Covenant of General Warranty (5) Covenant of Quiet Enjoyment (often omitted) (6) Covenant of Further Assurances - Future covenants do run with the land. - A future covenant promises that the grantor will do some future act, such as defending against claims of third parties or compensating the grantee for loss by virtue of failure of title - A future covenant is not breached until the grantee, or his successor is evicted from the property, buys up the paramount claim, or is otherwise damaged. - Statute of limitations beings running at the time when the covenant is broken in the future.

What is required for delivery of a deed to be valid?

In order for there to be valid delivery of a deed, there must be present intent that the deed be a conveyance of land. - Future intent to convey land does not constitute valid delivery of a deed, and thus the conveyance will be void. - Future intent to convey would be made by a will not a deed.

What are the 6 "covenants" or warranties included in a general warranty deed?

Present Covenants (1) Covenant of Seisin (2) Covenant of Right to Convey (3) Covenant against Encumbrances Future Covenants (4) Covenant of General Warranty (5) Covenant of Quiet Enjoyment (often omitted) (6) Covenant of Further Assurances

What are the 3 present covenants included in a general warranty deed?

Present Covenants— (1) Covenant of Seisin (2) Covenant of Right to Convey (3) Covenant against Encumbrances - Present covenants do not run with the land. - A present covenant is broken at the moment the deed is delivered. - Statute of limitations begins to run on the date of delivery of the deed.

What is a Quitclaim Deed?

Quitclaim Deed: contains no warranties of any kind. It merely conveys whatever title the grantor has, if any, and if the grantee of a quitclaim deed takes nothing by the deed, the grantee cannot sue the grantor.

What are the required elements of a deed?

Requirements of a Deed: Must— (1) Be in writing; (2) Identify grantor and grantee; (3) Describe property (several means) (4) States grantor's present intent to convey; (5) Contains grantor's signature.

What is a special warranty deed?

Special Warranty Deed: contains warranties only against the grantor's own acts but not the acts of others before the grantor. - Thus, if the defect is a mortgage on the land executed by the grantor's predecessors in ownership, the grantor is not liable.

What is a general warranty deed?

Under a General Warranty Deed a grantor's warranty binds him to all defects in the title, whether they arose before or after the grantor took title. There are 6 "covenants" or warranties includes in a general warranty deed, all of which the grantor of the deed is liable too.

What is required for Valid Convenance via Deed?

Valid Convenance via Deed Requires— (1) Actual or constructive delivery of the deed to the grantee or third party; and (2) A present intention by the grantor to divest themselves of the conveyed interest.

What circumstances or provisions in a deed, may indicated that there is not present intent to convey the land via deed?

Where a grantor delivers a deed under which he reserves a right of retrieval and attaches to that delivery the condition that the deed is to become operative only after the death of grantors and further continues to use the property as if no transfer had occurred, grantor's actions are nothing more than an attempt to employ the deed as if it were a will.

What does it mean for a convenient to "run with the land"?

"Running with the land" refers to the rights and covenants in a real estate deed that remain with the land regardless of ownership. - When rights and covenants run with the land and the property changes hands, the rights are tied to the property (land) and not to the owner and move from deed to deed as the land is transferred from one owner to another.