Chapter 8

Deeds

Objectives

• After reading this chapter, you should be able to– Identify the types of deeds used in modern real

estate practice.– Explain the basic requirements of a valid deed.– Prepare a deed.

Historical Development of Deeds

• Originally, land conveyed by the actual delivery of vacant possession to the land in which a seller would place or “seize” the purchaser in possession

• Later, the fine became the preferred method of conveyance

• Today, written deeds are used to describe property and parties– Recorded in public files

Types of Deeds

• General warranty deed– Covenants (warranties) by grantor to grantee• Covenant of seisin• Covenant of right to convey• Covenant against encumbrances• Covenant of further assurance• Covenant of quiet enjoyment• Covenant of warranty

Types of Deeds

• Present versus future covenants– Case• Lunsford v. King, 132 Ga. App. 749, 209 S.E.2d 27 (1974)

– Plaintiff entitled to prove case before jury» Including amount of unliquidated damages

Types of Deeds

• Limited (special) warranty deed– Warranty deed in which the grantor covenants

only against lawful claims of people claiming by, through, or under the grantor

– Grant deed• Transfers only the interest the grantor has in the land

and not the land itself• Type of limited warranty deed commonly used in

California

Types of Deeds

• Quitclaim deed– Contains no covenants or warranties of title– Found in other forms of deeds• Foreclosure deeds• Executor’s deeds• Administrator’s deeds• Trustee’s deeds

Types of Deeds

• Executor’s and administrator’s deeds– Transfer of a title to real property from the estate

of a deceased individual– Without warranty of title

• Trustee deeds– Deed transferring property held in trust for a

beneficiary– Without warranty of title

Basic Requirements of a Valid Deed

• Written instrument• Competent grantor• Identity of grantee• Words of conveyance• Adequate description of land

Basic Requirements of a Valid Deed

• Consideration• Signature of grantor• Witnesses• Delivery of completed deed to grantee

Preparation of a Valid Deed

• Most deeds have the following parts:– Caption– Premises or preamble– Granting clause– Description– Habendum– Warranty clause– Testimonium

Completing Sections of a Deed

• Preamble– Grantor designations– Grantee designations

• Granting clause• Description• Testimonium

Correction of Deeds

• Grantor must execute and deliver corrective deed to the grantee

• Corrective deed is valid without any additional consideration

• Acceptance by the grantee is admission of error found in the original deed

• Reformation and cancellation of deed

Practical Tips for the Paralegal

• Grantor– Legal ownership (individual or business entity)

must be verified through a title report• Or court documents, if necessary

– Name must be spelled correctly

Practical Tips for the Paralegal

• Grantee– Same attention to detail applies to the grantee– If grantees are receiving property as co-owners,

that language must be in the deed• Legal description

Practical Tips for the Paralegal

• Witnessing a deed– If acting as a witness, must see grantee(s) sign the

deed– If acting as a notary public, must properly identify

the parties signing the deed• Notarizing a deed without seeing the actual

signature(s) is a violation of the notary oath– May be considered perjury in many states

Checklist: Preparing a Deed

• Research before preparation– Review the contract or other agreement covering

the transfer of ownership to the property– Review the title examination to ensure the correct

name of title owner to the property

Checklist: Preparing a Deed

• Research before preparation– Confirm the correct spellings of all names of the

grantor and grantee– Carefully review the title examination and

determine what title exceptions should be identified in the deed

Checklist: Preparing a Deed

• Research before preparation– Confirm prospective purchasers have no special

requirements for taking title• E.g., joint tenancy with right of survivorship

– Review survey legal description against description in grantor’s current deed to ensure no difference exists between the two descriptions

Checklist: Preparing a Deed

• Preparing the deed– Draft the caption and preamble• Indicate the county and state where the deed signed• Date the deed with the date of execution and delivery• Indicate the correct name of the grantor• Indicate the correct name of the grantee, noting any

special forms of ownership

Checklist: Preparing a Deed

• Preparing the deed– Draft the consideration– Draft the legal description• Use the correct legal description verified by survey and

title examination• If the legal description is too long to be included on the

face of the deed, use an exhibit• List all title exceptions being transferred with the

property

Checklist: Preparing a Deed

• Preparing the deed– Draft signature blanks• Grantor is the only person who signs the deed• Correctly identify the grantor’s name• Type all names underneath the signature lines• Deed must be signed and sealed• Make certain the deed contains the proper number of

witnesses and the correct notary designation

Ethics: Falsification of Documents

• ABA Code of Professional Responsibility prohibits an attorney from falsifying a document for any reason

• Likewise, a paralegal cannot falsify a document for any reason– Including changing a date on the deed

Summary

• Ownership to real property transferred by a deed– Warranty or quitclaim

• Deeds must properly identify the grantor/grantee and a description of the property to be transferred

• Deeds must be signed and witnessed• Title is not transferred until deed is delivered to

the grantee