Real Estate Principles of Georgia Lesson 4: Transferring Ownership 1 of 90 75 Title Title: Abstract concept referring to real property ownership rights. Cloud on title: Problem with owner’s title (such as interest claimed by someone else). Also called a title defect. Title 76 © Copyright 2006, Rockwell Publishing, Inc. Alienation Alienation: Process of transferring real property ownership (title) from one party to another. y May be voluntary or involuntary. 76 © Copyright 2006, Rockwell Publishing, Inc. 1 Alienation Voluntary alienation Voluntary alienation: Owner voluntarily transfers interest in land to someone else. Examples: y Patents y Deeds y Wills 76 © Copyright 2006, Rockwell Publishing, Inc. Voluntary Alienation Patents and deeds Patent: Instrument used to convey government land to a private individual. Deed: Instrument used to convey title to real property from a grantor to a grantee. 76 © Copyright 2006, Rockwell Publishing, Inc. Deeds Parties to a deed Grantor: One who grants interest in real property to another. Grantee: One who receives grant of real property. 77 © Copyright 2006, Rockwell Publishing, Inc. 2 Deeds Types of deeds General warranty deed Special warranty deed Grant deed Bargain and sale deed Quitclaim deed Deeds executed by court order 77 © Copyright 2006, Rockwell Publishing, Inc. Types of Deeds General warranty deed General warranty deed contains grantor’s covenants to grantee: y covenant of seisin y covenant of right to convey y covenant against encumbrances y covenant of quiet enjoyment y covenant of further assurance y covenant of warranty forever 77 © Copyright 2006, Rockwell Publishing, Inc. Types of Deeds General warranty deed Covenant of seisin: Promise that grantor actually owns property interest being transferred. Covenant of right to convey: Promise that grantor has legal power to make conveyance. 77 © Copyright 2006, Rockwell Publishing, Inc. 3 Types of Deeds General warranty deed Covenant against encumbrances: Promise that property is not burdened by undisclosed easements, liens, etc. Covenant of quiet enjoyment: Promise that grantee will be able to enjoy property in peace, free from lawful claims by third parties. 77 © Copyright 2006, Rockwell Publishing, Inc. Types of Deeds General warranty deed GENERAL WARRANTY DEED GENERAL WARRANTY DEED Covenant of further THIS INDENTURE, Made the _______________ day of __________________,THIS INDENTURE, Made in the the year _______________ two thousand day of ______________________,__________________, in the between year two thousand ___________________________________________________, between of the County of assurance: Promise that _____________________________ of the County of _________________ and the State of __________________, hereinafter_________________ called the GRANTOR, and the State and___________ of __________________, , residing at ______________________________________________,hereinafter called the GRANTOR, and___________ , residing at grantor will take any hereinafter______________________________________________, called the GRANTEE. hereinafter called theWITNESSETH GRANTEE. that in consideration of the sum of ten dollars ($10.00) andWITNESSETH other valuable that consideration in consideration in hand of the paid sum by of necessary steps to make theten Grantee dollars to($10.00) the Grantor, and other the Grantorvaluable conveys consideration and warrants in hand unto paid by thethe Grantee, Grantee the to theGrantee’s Grantor, heirs, the Grantorsuccessors conveys and assignsand warrants forever, unto the followingthe Grantee, described the Grantee’s land, situated heirs, in successors the County and of _____________, assigns forever, the grantee’s title good. Statefollowing of Georgia: described land, situated in the County of _____________, SubjectState ofto: Georgia: [list encumbrances the property will be subject to, e.g. mortgages,Subject to: easements, [list encumbrances etc.]. the property will be subject to, e.g. Themortgages, Grantor is easements, lawfully seized etc.]. in fee simple of the above property, andThe has Grantor good rightis lawfully to convey seized the in same. fee simple of the above property, Theand Grantee has good shall right peaceably to convey and the quietly same. enjoy the above property. TheThe Grantor Grantee will shall forever peaceably warrant and and quietly defend enjoy the title the toabove the above property. propertyThe Grantor against will the forever lawful warrant claims and defenddemands the of title all persons.to the above Covenant of warranty TOproperty HAVE ANDagainst TO the HOLD lawful the claims same, and together demands with ofall all the persons. buildings, improvementsTO HAVE AND and TO appurtenances HOLD the same, belonging together thereto, with all if theany, buildings, to the Granteeimprovements and Grantee’s and appurtenances heirs, successors belonging and assigns thereto, forever. if any, to the forever: Promise that grantor INGrantee WITNESS and WHEREOF, Grantee’s heirs, Grantor successors has signed and and assigns sealed forever. this deed, theIN day WITNESS and year WHEREOF, above written. Grantor Signed, has sealed,signed andand sealeddelivered this in deed, the presencethe day andof: year above written. Signed, sealed, and delivered in the will defend grantee’s title _______________________________presence of: ______________________________________________________________ Witness_______________________________ against claims that existed at ________________________________Witness Grantor________________________________ ________________________________Grantor time of conveyance. Notary________________________________ Public in and for the State of __________________ ResidingNotary Publicat ________________________________ in and for the State of __________________ Residing at ________________________________ My appointment expires ________________________________ My appointment expires ________________________________77 © Copyright 2006, Rockwell Publishing, Inc. Types of Deeds General warranty deed If covenant is breached, grantee can sue grantor for Title compensation. Insurance But grantees tend to rely on title insurance or another form of title protection. 77 © Copyright 2006, Rockwell Publishing, Inc. 4 Types of Deeds Special warranty deed Same covenants as general warranty deed, but scope limited to defects that arose during grantor’s ownership. y Special warranty deed conveys after- acquired title. 79 © Copyright 2006, Rockwell Publishing, Inc. Types of Deeds Bargain and sale deed Bargain and sale deed: y contains no warranties or covenants y does not convey after-acquired title y rarely used For Sale 79 © Copyright 2006, Rockwell Publishing, Inc. Types of Deeds Quitclaim deed QUITCLAIM DEED Quitclaim deed: AFTER RECORDING MAIL TO: Filed for Record at Request of Escrow Number: y contains no warranties Grantor(s): Grantee(s): Abbreviated Legal: Additional Legal(s) on page: Assessor’s Tax Parcel Number(s): y does not convey after- THE GRANTOR for and in consideration of $1 releases and quitclaims to _________________________________________ the following described real estate, situated in the County of ______ , acquired title State of Georgia: Dated this _____ day of __________________, 20____ y conveys only the By _________________________________________ By __________________________________________ interest held by grantor By _________________________________________ By __________________________________________ at the time it is given STATE OF ___________________________________ County of _____________________________________ I certify that I know or have satisfactory evidence________________________________________________ the person(s) who appeared before me, and said person(s) acknowledged that ______ signed this instrument and acknowledged it to be ______ free and voluntary act for the uses and Quitclaim deed is often used purposes mentioned in this instrument. Dated: __________________________________ Notary Public in and for the State of ______________________Residing at to “cure” clouds on title. _________________________________________ My appointment expires: _______________________________ 79 © Copyright 2006, Rockwell Publishing, Inc. 5 Types of Deeds Deed executed by court order Deed executed by court order is used to convey title after a court-ordered sale. Example: sheriff’s sale after court-ordered foreclosure. 80 © Copyright 2006, Rockwell Publishing, Inc. Summary Patents and Deeds Patent After-acquired title General warranty Bargain and sale deed deed Special warranty Quitclaim deed deed Deeds executed by Grant deed court order © Copyright 2006, Rockwell Publishing, Inc. Requirements of a Valid Deed Deed must: Be in writing Identify the parties Be signed by competent grantor Grantee must be clearly identified Contain adequate description of the property 81 © Copyright 2006, Rockwell Publishing, Inc. 6 Requirements of a Valid Deed, cont. Deed must: Recite consideration exchanged Contain words of conveyance (granting clause) Typically deeds also y Define…….. y State………. Define interest conveyed (habendum clause) State any reservations or exclusions 81 © Copyright 2006, Rockwell Publishing, Inc. Requirements of a Valid Deed In writing Under statute of frauds, deed to real property must be in writing. Statute of frauds: Law requiring certain contracts and other legal transactions to be in writing and signed. 81 © Copyright 2006, Rockwell Publishing, Inc. Requirements of a Valid Deed Identify parties Both