1. The Deed PropertyProperty Prof. David Glazier Jan 23, 2007

2. Today’s Class Implied Warranty of Quality The Deed - Types of deeds - Traditional requirements - Deed covenants: Brown v. Lober - Delivery: Rosengrant v. Rosengrant Reading for Thursday

3. Implied Warranty of Quality Imposed on home builders only - may also apply to additions, major remodeling Liable for cost of repairing latent defects - not obvious to visual inspection - duty is to provide “workmanlike construction” Warranty extends to subsequent purchaser - no privity of contract required Duration set by “standard of reasonableness” * Some jurisdictions call it “habitability”*

4. DefinitionsDefinitions title n. ownership of real property or personal property, which stands against the right of anyone else to claim the property. deed n. the written document which transfers title (ownership) or an interest in real property to another person.

5. Types of Deeds General Warranty Deed - warrants title against all defects Special Warranty Deed - warrants title only against grantor’s acts Quitclaim Deed - transfers only grantor’s interests (if any) - no warranties of any kind

6. Deed Problem 1 Billy Byer bought a home from Sally Seller. Six months later Flybynight Mortgage Co. tries to foreclose on mortgage taken out by Sally. Billy had no knowledge. Does he have a remedy against Sally if he got: (a) A quitclaim deed? (b) A special warranty deed? (c) A general warranty deed?

7. Deed Problem 2 Billy Byer bought a home from Sally Seller. Six months later Johnny Comelately says he owns the house, having bought it from an owner previous to Sally. Does Billy have a remedy against Sally if he got: (a) A quitclaim deed? (b) A special warranty deed? (c) A general warranty deed?

8. Traditional Deed Requirements Stevie Wonder summarizesStevie Wonder summarizes: - Signed - Sealed - Delivered * No longer required in most jurisdictions *

9. Deed Substantive Content Identification of parties involved Consideration - establishes “bona fide purchaser” - deed need not say how much Description of property conveyed Signature Notarization - usually required for recording

10. Property Description *** Metes and Bounds

11. Metes and Bounds Survey ***

12. Public Land Survey System *** Grid system proposed by Thomas Jefferson Text 571-74

13. Plat - Subdivision Plan

14. Deed Warranties (“Covenants”) *** Present covenants: Seisin – grantor has ownership Right to convey – grantor has right to sell Encumbrances – no mortgages, liens, etc. Future covenants: General warranty – promise to defend Quiet enjoyment – no superior title exists Further assurances – seller promises to sign any additional documents necessary

15. Brown v. Lober (Illinois 1979) Timeline: 1947 – land sold to Bosts less 2/3 mineral rights 1957 – Bosts sell all rights to Browns 1974 – Browns contract out mineral rights - discovered they only own 1/3 - renegotiate sale for 1/3 of price - seek recovery from Bosts’ executor

16. Deed Warranties (“Covenants”) *** Present covenants: Seisin – grantor has ownership Right to convey – grantor has right to sell Encumbrances – no mortgages, liens, etc. Future covenants: General warranty – promise to defend Quiet enjoyment – no superior title exists Further assurances – seller promises to sign any additional documents necessary 1974 -1957 17 yrs

17. Brown v. Lober “Takeaways” Covenants can be important in litigation Title issues can emerge well after SOL has run - Adverse possession won’t cure all Always, always, always do a title search! Get title insurance!!

18. Rosengrant v. Rosengrant (Ok. 1981) The Basic Facts?

19. Rosengrant v. Rosengrant Where do things go South? J.W. Rosengrant or Harold H. Rosengrant

20. Rosengrant v. Rosengrant What would you have advised Harold and Mildred to do? Your Name Here Attorney at Law Tecumsah, OK Kindness does still pay: 1/6 of farm $20,000 in CDs $67,000 in 2006 dollars

21. Rosengrant v. Rosengrant Takeaways Delivery requirement for deeds is real - just like for gifts Don’t take shortcuts with will substitutes! - Put it in a will - Establish a trust - Create a joint tenancy - Deed a life estate and vest remainder

22. Reading for Thursday Jan 25 The Mortgage Readpp. 541-46 Read The Mortgage and nn. 1-3 pp. 541-46 Readpp. 546-551 Read Murphy v. Fin. Dev. Corp. pp. 546-551

23. Questions?