Washington Real Estate Fundamentals
Lesson 3:
Transfer of Real Property
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Alienation
Alienation: Process of transferring ownership
of (title to) real property.
 May be voluntary or involuntary.
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Alienation
Voluntary alienation
Voluntary alienation: Owner voluntarily
transfers an interest to someone else.
May occur by:
 patent
 deed
 will
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Voluntary Alienation
Patents
Patent: Instrument that conveys government
land to private owner.
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Voluntary Alienation
Deeds
Deed: Instrument that conveys title to real
property from grantor to grantee, if properly
executed and delivered.

Grantor: One who grants an interest in
real property to another.

Grantee: One who receives a grant of
real property.
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Deeds
Types of deeds
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Warranty deed
Special warranty deed
Quitclaim deed
Trustee’s deed
Court-ordered deed
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Types of Deeds
Warranty deeds
Warranty deed: Carries five covenants that
warrant title against defects from before or
during grantor’s period of ownership.

Standard deed in Washington.

Also called general warranty deed.

Greatest protection for grantee.
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Warranty Deeds
Five covenants
• Covenant of seisin
• grantor actually owns interest conveyed
• Covenant of right to convey
• Covenant against encumbrances
• Covenant of quiet enjoyment
• grantee’s possession won’t be disturbed
by lawful claims
• Covenant of warranty
• grantor will defend grantee’s title
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Types of Deeds
Special warranty deeds
Special warranty deed: Carries same
covenants as general warranty deed, except
they cover only grantor’s period of ownership.

Used by grantor who lacks authority to
give more extensive warranties (such
as executor or corporation).
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Warranty Deeds
After-acquired title
After-acquired title: Title later acquired by
grantor who tried to convey property she
didn’t own yet.

All warranty deeds (general or special)
convey after-acquired title.

After-acquired title automatically passes
to grantee as soon as acquired by
grantor.
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After-acquired title
Example
Arnold Smith has willed his son, Garth, a
valuable parcel of land.
Without waiting for his father to die, Garth
sells the land to Sally Jones and gives her a
warranty deed.
When his father dies and Garth receives title
to the land, his title automatically passes to
Sally via the warranty deed.
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Types of Deeds
Quitclaim deeds
Quitclaim deed: Conveys only interest held by
grantor at time deed given to grantee.

No warranties.

Does not convey after-acquired title.

May use the words release, remise, or
quitclaim.
 Should
not use the words grant or
convey.
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Quitclaim Deeds
Curing clouds on title
Quitclaim deed often used to cure cloud on
title.
 Cloud on title: Potential claim or apparent
defect that makes title unmarketable.
 Example:
Possible interest held by
owner’s ex-spouse.
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Types of Deeds
Other types of deeds
Trustee’s deed: Deed given to successful
bidder at trustee’s sale (deed of trust
foreclosure sale).
Court-ordered deed: Most common type is
sheriff’s deed—given to successful bidder at
court-ordered foreclosure sale.
© 2011 Rockwell Publishing
Summary
Patents and Deeds
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Patent
Grantor and grantee
Warranty deed
Special warranty deed
After-acquired title
Quitclaim deed
Cloud on title
Trustee’s deed
Court-ordered deed
© 2011 Rockwell Publishing
Requirements for a Valid Deed
To be valid, deed must:
 be in writing
 identify grantor and grantee
 be signed by competent grantor
 have living grantee
 contain words of conveyance
 include adequate property description
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Requirements for a Valid Deed
In writing
Statute of frauds: State law that says certain
types of contracts and other legal transactions
are enforceable only if:
 in writing, and
 signed by party to be bound.
Statute of frauds applies to conveyance of
interest in real property.
© 2011 Rockwell Publishing
Requirements for a Valid Deed
Identify grantor and grantee
Both grantor and grantee must be identified in
deed.
Grantee can be described rather than
referred to by name.
 Example: “Conrad Adams hereby
conveys title to his only son.”
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Requirements for a Valid Deed
Signed by competent grantor
Deed must be signed by grantor.
 Grantee does not sign deed.
Grantor must be legally competent when
deed executed:
 of sound mind, and
 has reached age of majority (18)
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Signed by Competent Grantor
Signature by mark
Grantor who can’t sign name (due to disability
or illiteracy) can make mark instead.
 Mark must be accompanied by
signatures of witnesses.
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Signed by Competent Grantor
Power of attorney
Power of attorney: Document in which one
person authorizes another to act as legal
representative.
 Representative is called attorney in fact.
For attorney in fact to sign deed on behalf of
grantor, power of attorney must:
 authorize attorney in fact to convey the
property
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Signed by Competent Grantor
Transfer by corporation
Deed transferring title to property owned by
corporation:
 signed by authorized corporate officer
 signature accompanied by corporate seal
Authorization comes from resolution of board
of directors.
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Signed by Competent Grantor
More than one grantor
To convey entire property, all owners must
sign deed.
Signatures of both husband and wife
necessary to convey community property.
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Requirements for a Valid Deed
Living grantee
Grantee:
 does not have to be competent
 but does have to be alive or legally in
existence (corporation)
Child or mentally incompetent person:
 can receive title
 can’t convey title
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Requirements for a Valid Deed
Words of conveyance
Words of conveyance: Words in deed
indicating grantor’s intent to transfer an
interest in property.
 Also called granting clause.
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Requirements for a Valid Deed
Property description
Property’s full legal description should be
used in deed.

But deed can be valid without it if
property adequately identified.
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Property Conveyance
Acknowledgment, delivery, acceptance
Once valid deed executed, additional steps
are necessary to complete the conveyance.
Deed must be:
 acknowledged by grantor
 delivered to grantee
 accepted by grantee
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Property Conveyance
Acknowledgment
Acknowledgment: Grantor declares to official
witness (usually notary public) that she
signed deed voluntarily.
 Notary attests that signature is genuine
and voluntary.
 Notary can’t have interest in the transfer.
Without acknowledgment, deed may still be
valid, but can’t be recorded.
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Property Conveyance
Delivery
Delivery: Formal transfer of deed from grantor
to grantee, resulting in transfer of title.
 Delivery must take place while grantor
alive.
 Exception: “transfer on death” deed
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Property Conveyance
Acceptance
Conveyance completed when grantee
accepts deed.
 Deed may be accepted by agent of
grantee.
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Voluntary Alienation
Wills
Will: Written instrument directing how
property is to be distributed upon death of
maker, who is called the testator.
Will ordinarily must be:
 in writing
 signed by testator
 attested to by two competent witnesses
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Wills
Nuncupative will
Nuncupative will: Oral will spoken by testator
on deathbed, with two witnesses present.
In Washington, nuncupative will:
 may transfer up to $1,000 worth of
personal property
 may not transfer real property
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Wills
Holographic will
Holographic will: Unwitnessed will written
entirely in testator’s handwriting.
 Not recognized in Washington, but can
be valid in some other states.
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Wills
Terminology
Beneficiary: General term for person who
receives property under terms of a will.
 Personal property bequeathed to legatee.
 Real property devised to devisee.
Personal representative: Person who carries out
will and settles estate. Also called executor or
administrator.
Probate: Procedure for establishing will’s validity.
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Summary
Voluntary Alienation
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Deed requirements
Statute of frauds
Competent
Acknowledgment
Delivery
Will
Testator
Devise
Probate
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Alienation
Involuntary alienation
Involuntary alienation: Transfer of property
against will of or without action by owner.
May occur through:
 operation of law
 adverse possession
 natural processes (accession)
© 2011 Rockwell Publishing
Involuntary Alienation
By operation of law
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Dedication
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Intestate succession
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Escheat
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Condemnation

Court decisions
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Involuntary Alienation
Dedication
Dedication: Transfer of land from private
owner to public without compensation.
 Sometimes voluntary gift, sometimes
involuntary.
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Involuntary Alienation
Dedication
Statutory dedication: Dedication required by
law.
 Example: Ordinance requires developer
to dedicate land in subdivision for public
streets and sidewalks.
Common law dedication: May occur if public
uses private land over long period and owner
does nothing to prevent it.
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Involuntary Alienation
Intestate succession
Intestate succession: Distribution of property
of person who died without valid will
(intestate).
 Successors are called heirs.
 Receive property by descent.
 Law prescribes order of succession
(surviving spouse, children, other
relatives).
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Involuntary Alienation
Escheat
When property owner dies without valid will
and without heirs, ownership of property
escheats to state.
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Involuntary Alienation
Condemnation
Condemnation: Government acquisition of private
property for public use, through power of eminent
domain.
 Referred to as a taking of property.
 Owner must be paid just compensation.
Power of eminent domain delegated to quasipublic entities.
 Examples: railroads, utility companies
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Involuntary Alienation
Inverse condemnation
Inverse condemnation: When activities of public
entity severely diminish value of private property,
owner may sue for compensation.

Owner claims public entity’s actions amount
to taking of property.
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Involuntary Alienation
Court-ordered transfers
Involuntary alienation can also result from
court order.
Examples:
 quiet title action
 suit for partition
 foreclosure
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Court-ordered Transfers
Quiet title action
Quiet title action: Court action to settle
dispute or doubt about title to property.
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Court-ordered Transfers
Suit for partition
Partition action: Lawsuit brought by
co-owner to have property divided.
 Once divided, each co-owner owns her
interest in severalty.
 If necessary, court orders property sold
and proceeds divided.
Co-owners may also partition property by
agreement.
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Court-ordered Transfers
Foreclosure
Judicial foreclosure: Sale of real property
pursuant to court order to satisfy lien.
 May be any type of lien, not necessarily a
mortgage.
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Involuntary Alienation
Adverse possession
Adverse possession: Person other than
owner of record acquires title to real property
through long period of exclusive possession.
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Adverse Possession
Requirements
Requirements vary depending on state law.
In Washington, adverse possession must be:
 actual
 open and notorious
 hostile to owner’s interest
 exclusive
 continuous and uninterrupted for ten years
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Adverse Possession
Actual, open and notorious
Actual possession: Occupation and use of
property in manner appropriate to the type of
property.
Open and notorious possession: Possession
that would give a typical owner notice that her
interest is threatened.
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Adverse Possession
Hostile
Hostile possession: Possession with intention
to claim ownership.

Possession with owner’s permission is
not hostile.

Possession with color of title is hostile.
 Color of title: Adverse possessor
believes he is owner based on deed
that appears valid but is not.
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Adverse Possession
Exclusive, continuous, uninterrupted
Exclusive possession: Adverse possessor
can’t share possession with owner.
Possession generally must be continuous and
uninterrupted for 10 years (7 in some cases).

Tacking: Successive periods of adverse
possession by different people can be
added together to satisfy 10-year
requirement.
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Adverse Possession
Perfecting title
Adverse possessor takes title automatically
when requirements met, but must “perfect”
title to make it marketable:
 quitclaim deed from former owner
 quiet title action against former owner
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Involuntary Alienation
Accession
Accession: Addition to real property due to
natural or artificial causes; may involve
involuntary alienation.
Examples:
Accretion: Gradual buildup of soil.
 Reliction: Gradual retreat of water.
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Avulsion: Sudden removal of land by
natural forces, or sudden change in
watercourse.
© 2011 Rockwell Publishing
Summary
Involuntary Alienation
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Dedication
Intestate succession
Escheat
Condemnation
Eminent domain
Quiet title
Partition
Foreclosure
Adverse possession
Accession
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Recording System
Recording: Filing a document pertaining to
real property at county auditor’s office, so the
information becomes a matter of public
record.
 New owner should always record deed or
other transfer document.
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Recording System
Recording process
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Documents recorded in chronological order.
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Filing date establishes priority of interest.
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Each document assigned recording number.
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Can search recorded documents by grantee
or grantor name, or by other property
information such as tax parcel number.
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Recording System
Title search
Title search: Examination of public record to
determine all rights, interests, and claims
affecting title to a property.

Tracing chain of title back through series
of previous owners establishes validity of
seller's title.
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Recording System
What documents are recorded
Should record documents:
 transferring title
 establishing interest in property
 creating or removing encumbrances
Usually not recorded: purchase & sale agreement
Some documents have no effect unless recorded.
 Example: lis pendens
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Recording System
Effect of recording
Recording has two important legal effects:
 establishes priority of interest conveyed
 provides constructive notice of interest
Legal rights and liabilities often depend on
whether a party had notice of a particular fact
at a given time.
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Effect of Recording
Notice
Actual notice: Someone had actual notice of a
fact if she knew it (observed it or was informed).
Constructive notice: Someone had constructive
notice of a fact if she should have known it, even
if she did not.
 Information available, could have been
obtained by taking reasonable steps.
 Also called legal notice.
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Notice
Constructive notice
Recording document provides constructive
notice of property interest to the world.

Anyone who later acquires interest will
be held to have known about earlier
recorded document.
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Notice
Unrecorded deed
Grantee who fails to record deed may lose
title to subsequent good faith purchaser who
did not have notice of grantee’s interest.
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Notice
Possession
Taking possession of property also provides
notice of interest in property.
 Person in possession could be owner,
tenant, or adverse possessor.
So grantee with unrecorded deed who takes
possession of property is protected against
subsequent purchaser.
© 2011 Rockwell Publishing
Summary
Recording System
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Recording procedures
Title search
Actual notice
Constructive notice
Subsequent good faith
purchaser
• Lis pendens
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Title Insurance
Title insurance policy: Protects against
financial losses resulting from title defects.
 Title company:
 handles legal defense against claims
 reimburses policyholder for losses
Owner’s policy: Protects buyer (new owner).
Mortgagee's policy: Protects buyer’s lender
(security interest).
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Title Insurance
Obtaining a policy
1. Title company performs title search.
2. Company prepares title report for buyer
and lender.
3. If sale goes ahead, buyer’s and lender’s
title policies issued at closing.
Policy paid for with single premium at closing.
 Coverage lasts as long as policyholder
has legal interest in property.
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Title Insurance
Title report
Title report lists all defects and encumbrances
found in title search.

These will be excluded from coverage when
policy issued.

Undiscovered problems will be covered.
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Title Insurance
Types of coverage
Traditionally, title insurers have offered two
main types of coverage:
 standard
 extended
In recent years, joined by third type:
 homeowner’s
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Title Insurance
Standard coverage
Standard coverage protects against:
 latent title defects such as forged deed,
incompetent grantor
 recorded interests not discovered by title
searcher
Doesn’t protect against problems that could
only be discovered by property inspection.
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Title Insurance
Extended coverage
Extended coverage protects against:
 everything standard policy covers
 plus problems that should be discovered
through inspection of the property:
 encroachments, boundary problems
 unrecorded construction lien claims
 adverse possession
Lender’s policy is extended coverage.
© 2011 Rockwell Publishing
Title Insurance
Homeowner’s coverage
Homeowner’s coverage protects against:
 everything standard policy covers
 most problems extended policy covers
 plus some additional problems, such as
violation of restrictive covenants
Only available to buyers of residential
property with up to four units.
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Title Insurance
Government action
Title insurance does not cover losses due to
government action.
 Examples: condemnation, zoning
changes
© 2011 Rockwell Publishing
Summary
Title Insurance
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Title insurance policy
Owner's policy
Mortgagee's policy
Title report
Standard coverage
Extended coverage
Homeowner’s coverage
© 2011 Rockwell Publishing