6. Deeds

Question 1

Deed/Conveyance

Answer 1

= signed legal document used to transfer ownership/interest in property from grantor to grantee
- evidence of title
- legally binding when: signed by both parties, notarized, officially recorded with municipality
- 3 Types Grant Deed, Quitclaim Deed, Warranty Deed

Question 2

Title

Answer 2

= actual lawful ownership of real property
- concept that grants right to ownership
- title is transferred from grantor to grantee within a deed
- actual Title: will be transferred by deed at closing
- Equitable Title: interest in property created on the execution of a valid sales contract

Question 3

Elements that make deed valid

Answer 3

1. in writing
2. Grantor must be of sound mind and 18yo (NY: address if deed is recorded)
3. Grantee must be specific: complete and proper name, designations like Mrs, Mr, Dr. (Ny: address if deed is recorded)
4. Act of conveyance= granting clause: legal clause in deed, that states grantor intends to convey title, includes terms like give, grant, assign, convey, warrant, sell
5. Consideration: something of value that is exchanged between parties (money, goods, rights), exact amount doesn’t need to be stated (except in executors or trustee deed)
6. The legal description: $291 deeds must describe the property being conveyed (may include parcel number, metes and bounds, lot and block)
7. Habendum clause= to have and to hold clause: describes the type of estate granted, must agree with granting clause
8. Limitations: how property may or may not be used (restrictions imposed by farming, developer, planned community, etc)
9. Exceptions and Reservations = “Subject to” clause: anything that affects property, e.g. easements
10. Signature of grantor: signed in presence of notary public, grantees do not need to sign
11. Delivery and Acceptance: must be delivered by grantor and accepted by grantee
12. Acknowledge: providing signature in presence of notary public
13. Recording: not required for deed to be valid but protects grantee, to be officially recorded deed must contain: notary public seal, certificate of address for tax purpose, evidence of real estate transfer of tax

Question 4

Types of deeds

Answer 4

1. Full Covenant and Warranty Deed
2. Bargain and Sale Deed
3. Bargain and Sale Deed with covenants/ special warranty Deed
4. Quit claim Deed
5. Judicial Deed

Question 5

Full Covenant and Warranty Deed

Answer 5

• Guarantee will receive ownership free of encumbrances and burdens
• greatest guarantee of any title
• Contains:
• Covenant against encumbrances = promise to guarantee that property is free of liens, mortgages, taxes etc.
• Covenant of further assurances= promise to guarantee that grantor will assist if issue should arise
• Covenant of right to convey= ensures that grantor owns land and is legally entitled to transfer property to grantee
• Covenant of quiet enjoyment = guarantee that no third party will claim property),
• Covenant of seizin = assurance that grantor holds title
• Covenant of warranty forever = promise of compensation if title is discovered as defective later on, grantor will defend grantees interests against claims of title - most important

Question 6

Bargain and Sale Deed

Answer 6

• Grantor owns property and can sell it but no warranties

Question 7

Special Warranty Deed

Answer 7

= Bargain and sale deed with covenants
- Commonly used in NYC
- Guarantees that grantor has not encumbered property except as stated in deed
- Grantors warrant only for the time they owned the property, not before

Question 8

Quit claim Deed/ Deed of release

Answer 8

• Transfer property in non sale situations, e.g. gifting of property between family members , adding /removing spouse
• no warranties
• conveys whatever right/title/interest grantor holds
• used to remedy clouds on title

Question 9

Judicial Deed

Answer 9

• Court order
• Typically no covenants or warranties
• Administrator Deed: person appointed by court to convey property of deceased
• Executor’s deed: convey property of deceased
• Guardian’s Deed: convey property by a court appointed representative (e.g. transfer property owned by minor)
• Referee’s Deed: bankruptcy or foreclosure
• Sheriff’s deed: sheriff’s sale at foreclosure

Question 10

Alienation

Answer 10

=Process of transferring real property
- property is alienable = can be sold or transferred without restrictions, 3 ways to transfer: Voluntary Alienation, Involuntary Alienation, Devise or Descent

Question 11

Voluntary Alienation

Answer 11

= unforced, willing transfer of sale or gift
- can be accomplished via:
a. Dedication: property has been dedicated for public use
b. gift: deed and title transferred without compensation
c. Grant: government transfers title to individual
d. Sale

Question 12

Involuntary Alienation

Answer 12

= transfer of title without owner’s consent
a. Adverse possession: adverse possessor may be granted title if owner can’t be found or reasonable belief property belongs to adverse possessor (10years, notorious open, etc.)
b. Accession: artificial accession when someone acquires property due to his labor on land, accretion is when someone acquires property due to force of nature (Alluvion= land added/Avulsion= land lost), Reliction when water receded and more land is exposed
c. Eminent Domain: government takes property for public use
d. Foreclosure: property will be sold, proceedings used to pay liens and judgments

Question 13

Accretion

Answer 13

= someone acquires property due to force of nature (Alluvion= land added/Avulsion= land lost), Reliction when water receded and more land is exposed

Question 14

Devise or Descent

Answer 14

a. Devise: transfer property via will (testate), heirs who will get it are called devisees, process is called probate
b. Descent: when owner passes without will (intestate succession), court distributes property to natural heirs (spouses, children, relatives), no heirs property goes to state, process is called escheat

Question 15

probate

Answer 15

= process by which property of a deceased is distributed if he has a will

Question 16

escheat

Answer 16

= process by which property goes to the state if deceased has died without will and no heirs

Question 17

Legal Description

Answer 17

= identifies property
- address is not enough, verbal not enough
- methods: metes and bounds system, block and lot system

Question 18

Metes and Bounds System

Answer 18

= describes property in terms of distances (metes) and compass directions (bounds), survey starts at POV point of beginning and goes clockwise
- used for rural property

Question 19

acre to sq feet

Answer 19

a. 1 township= 36 sections
b. 1 Section= 640 acres (1sq mile)
c. 1 square mile = 640 acres
d. 1 acre= 43560 sq feet

Question 20

Monument System

Answer 20

• similar to Metes and Bounds but natural monuments used as point of beginning

Question 21

Block and Lot System

Answer 21

= used for land that has been divided into blocks and lots
- terms used in NY: block, lot, section - SEC BLK LOT

Question 22

Platted Subdivisions

Answer 22

• in subdivision legal description contains: 1. Lot and block, 2. Section, 3. Subdivision name, 4. City, 5. County, 6 state, 7. zip code, 8. recorded plat info

Question 23

Government Survey System

Answer 23

= based on pairs of intersecting meridians and baselines, land divided into squares (= townships)
- not used in NY
1 township= 36 sections
1 Section= 640 acres (1sq mile)
1 square mile = 640 acres
1 acre= 43560 sq feet