Chapter 8 Review Questions

List and briefly describe the formal parts of a deed.

1.) Caption 2.) Premises or preamble 3.) Granting clause 4.) Description 5.) Habendum 6.) Warranty clause 7.) Testimonium

Briefly list three presumptions regarding the delivery of a deed.

1.) Possession of the deed by the grantee is a presumption of delivery. 2.) Possession of the deed by the grantor is a presumption of nondelivery. 3.) Recordation of a deed in the public records is a presumption of delivery.

What are the basic requirements of a valid deed?

1.) Written instrument 2.) Competent grantor 3.) Identity of the grantee 4.) Words of conveyance 5.) Adequate description of land 6.) Consideration 7.) Signature of grantor 8.) Witnesses 9.) Delivery of the completed deed to the grantee

When can a deed be rescinded?

A deed can be rescinded if there is a unilateral mistake of fact or fraud involved in the execution and delivery of the deed. In this event, the deed can be rescinded by the party who is mistaken or on whom the fraud was perpetrated.

What six covenants or warranties are included in a general warranty deed?

A general warranty deed contains six covenants or warranties: 1.) Covenant of seisin 2.) Covenant of right to convey 3.) Covenant against encumbrances 4.) Covenant of further assurance 5.) Covenant of quiet enjoyment 6.) Covenant of warranty

What is the difference between a general warranty deed and a limited warranty deed?

A general warranty deed is an absolute warranty regarding the property, which includes warranties against what prior owners may have done. A limited warranty deed warrants only against lawful claims of parties by, through, or under the grantor. The grantor in a limited warranty deed does not warrant against the actions of any prior owners.

What is a quitclaim deed, and what are some of its uses?

A quitclaim deed is a non-warranty deed that transfers only the interest the grantor has in the land. Quitclaim deeds are often used in situations such as foreclosure sales, deeds executed by an executor of an estate, deeds executed by a trustee of a trust, or deeds given to release some interest in the property.

Which state's law will control the legal requirements for a deed?

Generally, the law of the state where the real property is located will control the legal requirements for a deed.

What is the importance of having a grantor's signature witnessed?

In many states, a deed is not valid unless the grantor's signature is witnessed by a disinterested witness and/or notary. Other states require that a grantor's signature be witnessed in order for the deed to be recorded in the public deed records.

What is the difference between a present covenant and a future covenant contained in a general warranty deed?

Present covenants are the covenants of seisin, right to convey, and against encumbrances. A present covenant is breached, if at all, at the time the deed is delivered. The immediate grantee is the only person who can sue for the breach of a present covenant. Future covenants are the covenants of further assurance, quiet enjoyment, and warranty. They are called future because they can be breached in the future after the deed is delivered. Future covenants are transferable and run with the land. Any owner of the land has standing to sue for breach of a future covenant contained in a general warranty deed.