Methods of Transfer and Conveyance in Real Estate

Common methods of transfer Form of property ownership Sale Gift Part gift/part sale Distribution from trust Distribution from estate-wills/intestacy Court order Other

Requirements for a Gift Donative’s intent by the donor or grantor Delivery of the gift Acceptance by the donee or grantee

Requirements for a Valid Deed Grantor with legal capacity Signature of the grantor Grantee named with reasonable certainty Recital of consideration Words of conveyance (continued)

Requirements for a Valid Deed Habendum or type of interest conveyed Description of land conveyed Acknowledgment Delivery Acceptance

Types of Deeds Quitclaim deed Warranty deed Special warranty deed Deed of bargain and sale Judicial deed

The Common Law Warranties of the Grantor Warranty of seisin Warranty of right to convey Warranty of freedom from encumbrances Covenant of warranty Warranty of quiet enjoyment Warranty of further assurances

Modern Warranties of Grantor The grantor possesses an indefeasible fee simple estate, or the grantor has good title and the transfer is proper. There are no encumbrances against the property except those specifically noted. The grantee shall have quiet enjoyment of the property, and the grantor will warrant and defend title against all claims.

Requirements for Adverse Possession Actual and exclusive possession Open, visible, and notorious possession Continuous and peaceable possession Hostile and adverse possession Possession for the required statutory period

Types of Recording Statutes Race –First to record (first in time, first in right) Notice –Last bfp to take title (failure of others to record) Race/Notice –First bfp to record Not required to transfer: required for future protection

Title Insurance An insurance contract-covered risks/exclusions Does not transfer from seller to buyer Purchased by buyer Covers property not person

Scope of Title Insurance Failure of title to the property (covers forgery, fraud, unauthorized signatures, electronic recording failure and a host of other problems that arise in recording titles to property and executing deeds) Defects in title such as liens Lack of right of access Unmarketable title Encroachments

Other Portions of Title Policies Exclusions –Outline those items not covered Schedules, generally A and B –Outline the added protections or endorsements purchased by the policy holder and exclusions Conditions –Requirements for the issuance of the policy, such as removal of liens Stipulations –Certain statements of fact that the parties agree upon

Exclusions from Title Policies Violations of environmental laws unless recorded in the public records Litigation defense costs for items excluded under schedule B exceptions Purchasers who are not bona fide purchasers Problems noted in public records other than those that are part of the property records designated by the state as the proper filing place for matters affecting property (Continued)

Exclusions from Title Policies “Unmarketability of title” items Problems with title based on usury Mechanic’s liens that arise from work contracted for and commenced after the date of the policy Eminent domain rights unless there is notice in the public records of eminent domain proceedings prior to the title policy being issued