CHAPTER 8 Deeds

Home , Deed, Quitclaim deed, Warranty deed

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CHAPTER 8 Deeds

CHAPTER SUMMARY

1. A deed is a written document that transfers ownership of a real property from one person to another. 2. The three types of deeds commonly used in the United States are (1) general warranty deed, (2) limited (special) warranty deed, and (3) quitclaim deed. 3. A general warranty deed contains six covenants or warranties: (1) covenant of seisin, (2) covenant of right to con- vey, (3) covenant against encumbrances, (4) covenant of further assurance, (5) covenant of quiet enjoyment, and (6) covenant of warranty. 4. The two parties to a deed are the grantor, the person who is transferring ownership of the land, and the grantee, the person who is receiving ownership of the land. 5. A limited or special warranty deed is a warranty deed in which the grantor covenants only against the lawful claims of people claiming by, through or under the grantor. A limited warranty deed is called a grant deed in Califor- nia. 6. A quitclaim deed is a deed that contains no warranties of title. A quitclaim deed transfers only the interest that the grantor has in the land without warranty. 7. The basic requirements of a valid deed are (1) written instrument, (2) competent grantor, (3) identity of the grantee, (4) words of conveyance, (5) adequate description of the land, (6) consideration, (7) signature of grantor, (8) witnesses, and (9) delivery of the completed deed to the grantee. 8. The law of the state in which the land to be conveyed by the deed is located controls the form as well as the for- mal requirements of the deed. It is important to check local and state laws before preparing a deed. 9. Most states require the signature of the grantor to be witnessed and notarized. In some states, a deed is not valid without the proper witness requirements, and in other states the deed is valid but cannot be recorded. 10. The customary method of correcting an error in a deed is for the grantor to execute and deliver to the grantee a corrective deed. A corrective deed is valid without any additional consideration. Acceptance by the grantee is admis- sion of the error found in the original deed. 11. One of the duties of a legal assistant is to prepare deeds. The preparation of a deed requires careful attention to the key parts of the deed: the grantor, the grantee, and the description of the land as well as the formalities for wit- nessing and signing a deed. The grantor must be the owner of the property being transferred. This ownership may need to be verified by a title report or other means. The grantee should be properly identified as well. It is important that all names be properly spelled and all persons who intend to be owners be identified as grantees in the deed. 12. A deed will only transfer the property that is described in it. It is important when drafting a legal description for a deed that it be the correct description of the property to be transferred. This description should come from a sur- vey or another source, such as a previous deed. 13. A checklist to help in the preparation of a deed is included in the chapter. Forms vary from state to state, and a legal assistant should be familiar with the forms used in the state in which he or she works.