Methods of Transfer and Conveyance in Real Estate

1

• Methods of Transfer and Conveyance in Real Estate

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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

3
Requirements for a Gift

• Donatives intent by the donor or grantor
• Delivery of the gift
• Acceptance by the donee or grantee

4
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)

5
Requirements for a Valid Deed

• Habendum or type of interest conveyed
• Description of land conveyed
• Acknowledgment
• Delivery
• Acceptance

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Types of Deeds

• Quitclaim deed
• Warranty deed
• Special warranty deed
• Deed of bargain and sale
• Judicial deed

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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

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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.

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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

10
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

11
Title Insurance

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

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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

13
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

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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)

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Exclusions fromTitle Policies

• Unmarketability of title items
• Problems with title based on usury
• Mechanics 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