22. Delivery & Acceptance

Question 1

When does title transfer?

Answer 1

After delivery + acceptance

Question 2

What is required for delivery to the Buyer?

Answer 2

Grantor’s ‘present’ intent to transfer title

Question 3

How may delivery of the deed be effected?

Answer 3

Manual/Physical delivery

• To Grantee (express delivery)
• To Grantee’s relative (implied delivery)

Notarisation

Recordation

Safeguarding
- As requested by Grantee

NOT retention of interest
- Life estate

Question 4

Can delivery of deed be cancelled/returned?

Answer 4

NO

- Must draft new deed

Question 5

What purposes may parol evidence (including after closing) be used for?

Answer 5

Seller’s intent

Delivery was conditional

• Delivery to TP in commercial transaction (NOT Buyer directly)
• Seller’s present intent

NOT failed delivery to subsequent BFP who detrimentally relied on delivery (estopped from denying failed delivery)

Question 6

How may delivery be made to a third party with no conditions?

Answer 6

Seller gives instructions to TP
- To give to Buyer immediately

Seller gives NO instructions to TP

• TP is Buyer’s agent
• TP is NOT Seller’s attorney (courts may infer merely as Seller’s agent with power to recall deed)

Question 7

How may delivery be made to a third party with conditions?

Answer 7

Commercial transactions

• Seller instructs TP to give to Buyer
• Parol evidence => Conditional delivery (unlike delivery to Buyer)

Donative transactions

• Seller instructs TP to give to Buyer
• Condition (Seller’s death)

Question 8

How may delivery not be made to a third party with conditions?

Answer 8

Commercial transactions

• Seller revokes BEFORE condition fulfilment + NO enforceable contract to convey
• Seller’s escrow holder wrongfully delivers deed to Buyer BEFORE condition fulfilment

Donative transactions
- Seller revokes where condition NOT related to Seller’s death + NO enforceable contract to convey

Question 9

How does the relation back doctrine apply in conditioned commercial transactions?

Answer 9

1) Either;
- Seller is dead
- Seller is incompetent
- Seller’s creditor attached Seller’s title

2) Seller delivers to TP
3) TP delivers to Buyer
4) Buyer’s acceptance of delivery ‘relates back’ to when Seller delivered to TP (as justice required)

Question 10

When is acceptance by Buyer presumed?

Answer 10

Deed is beneficial to Buyer (most states)

Question 11

How does the relation back doctrine apply towards acceptance?

Answer 11

Buyer’s acceptance of delivery ‘relates back’ to when Seller delivered to TP
- UNLESS it defeats intervening TPs’ rights (devisees/BFPs/surviving JTs)

Question 12

What happens if Seller reserves right to return of deed by TP?

Answer 12

NO delivery

- Seller did NOT deliver deed beyond his control