2011©Cengage Learning. All Rights Reserved.. Voluntary Transfers of Property 2011©Cengage Learning. All Rights Reserved.

2011©Cengage Learning. All Rights Reserved.

Voluntary Transfers of Property


Nature of Deeds

An instrument used to transfer title to real estate.


TYPES OF DEEDS

Grant Deed Quitclaim Deed Warranty Deed


Warranties

Grant deeds the grantor warrants not to have previously conveyed the same interest to someone else.

And not to have previously encumbered the property.


Warranties

A quitclaim deed contains no warranties whatsoever.

Commonly used to clear title when the grantor has no real interest to convey.


Warranties Warranty deeds guarantee that there

are no encumbrances against the property & that no one will disturb the peaceful, quiet possession of the grantee.

The grantor agrees to defend the warranties in a lawsuit or otherwise.

Rarely used in California.


Warning to Brokers

Many deposit receipts state that title is to be free from all liens & encumbrances except those listed.

The broker must be extremely cautious to check title & to list documents of record & taxes due but not yet of record.


Basics of Valid Deed

1. Written document

2. Signature of competent grantor

3. Grantee capable of holding title

4. Description of property

5. Operative words of conveyance

6. Delivery

7. Acceptance


Other Elements

Consideration Not Required Recording Not Required Acknowledgment


Requirements

Competent Grantor Agent Signing Using Powers of Attorney

Competent Grantee Adequate Property Description


More Requirements

Words of Conveyance Legal Delivery

Example of delivery Presumptions on Delivery

Acceptance


Types of Wills

Witnessed Will Formal Witnessed

Statutory Will Holographic Will


Intestacy

Testate (with will) Intestate (without will) Laws of intestate succession


Community Property

All community property passes to the surviving spouse, regardless of any children or other heirs.


Separate Property

1. One-half to surviving spouse; one-half to child

2. One-third to surviving spouse; two-thirds equally to children

3. All to children if there is no surviving spouse


Separate Property

4. One-half to surviving spouse; one-half to parent, if there are no children

5. All to collaterals (aunts, uncles, cousins), only if there are no parents, brothers, sisters, nephews, nieces, children, grandchildren, or surviving spouse


Will Terms

Testate Intestate Testator Executor


More Will Terms

Administrator Devise Bequest Legacy


Will Terminology

Ambulatory Codicil


Escheat

When there are no heirs, the property passes to the state.


LAND SALES CONTRACTS

Seller’s Right & Duties Buyer’s Rights & Duties Reasons for Demise Trustee’s Sale


Advantages & Disadvantages to Seller

Buyer’s interest can be expeditiously and inexpensively terminated.

Contract may provide a means of selling property without paying an assumption fee or facing an acceleration of an existing loan.

The seller must clear title.


Advantages & Disadvantages to Buyer

Possibility of recovery of part of the payments over the amount of the seller’s damages.

Possibility of purchasing the property with an existing loan without changing interest rate.

Judgment lien will not attach to the buyer’s equitable title.

Difficulty in obtaining financing from lenders.


2011©Cengage Learning. All Rights Reserved.. Voluntary Transfers of Property 2011©Cengage Learning. All Rights Reserved.

Documents

clear title

spouse onehalf

real estate

liens encumbrances

grantee capable

warrantieswarranty deeds

separate property1

list documents of record