Chapter 8
Deeds
Introduction
• Deed—a formal written instrument that
conveys title to real property from one party
to another
– Signed only by the person(s) conveying the
property
– Serves as documentary evidence of the transfer
– Describes the quality of title transferred
– Outlines any restrictions regarding the transfer of
the property
Legal Requirements of a Deed
• Basic requirements for a valid deed
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A written instrument
Signed by a competent grantor
Identifying the grantee(s),
Indicating the date of conveyance, and
Containing a recital of consideration and
Words of conveyance of
Real property described with specificity, which is
Witnessed (if required by state statute) and
Acknowledged (if required by state statute) and which is
Delivered by the grantor to the grantee.
Legal Requirements of a Deed
• Grantor—the person (or entity) that transfers
ownership of the real property
– Must be competent
– If an unmarried individual, deed should so indicate
– If married, spouse should also be named as
grantor
– If a business entity, legal name of the business
entity should be designated, followed by its state
of domicile
Legal Requirements of a Deed
• Grantor (continued)
– Name must appear precisely the way it is written
in the deed by which he or she acquired the
property
– Name on the signature line of the deed should
conform to the grantor’s name as it appears in the
opening paragraph
Legal Requirements of a Deed
• Grantee—the person to whom the real
property is to be conveyed
– Does not sign the deed
– No requirement to be of sound mind or of the age
of majority
– Marital status should be indicated
– If a business entity, the type of entity and its state
of domicile should be noted
Legal Requirements of a Deed
• Grantee (continued)
– If there is more than one, the manner by which
the grantees take joint title should be clearly
indicated
Legal Requirements of a Deed
• Date
– Date of execution of the deed should appear in
the opening paragraph or clause or near the
signature
• Delivery date is presumed to be the date appearing on
the face of the deed.
• Consideration
– Must include a recital of consideration
• In most instances, a recital of nominal consideration is
sufficient.
Legal Requirements of a Deed
• Words of conveyance
– Grantor expresses his or her intention to make a
present conveyance of title to the property to the
grantee
– Indicate the type of estate being conveyed
Legal Requirements of a Deed
• Legal description
– Must have an accurate description of the real
property to be transferred
– Should meet the requirements for one of the
three major types of land descriptions
1. The metes and bounds description
2. The government survey description
3. The plat description
Legal Requirements of a Deed
• Witnesses and acknowledgment
– Rules vary from state to state.
– State law should be consulted prior to execution
of the deed.
• Delivery
– Legal transfer of ownership of real property is not
complete until the deed is physically delivered by
the grantor to the grantee and the deed is
accepted by the grantee.
Deed Clauses
• Premises clause
– Sets forth the date of execution of the deed, the
parties to the deed and, in states that so require,
the addresses of the parties
• Granting clause
– Contains the words of conveyance expressing the
grantor’s intention of transferring the real
property
• Includes the recital of consideration and the legal
description of the real property to be conveyed
Deed Clauses
• Encumbrance clause
– Sets forth the existing mortgages or other liens,
leases, easements, or restrictions on the property
• Reddendum clause
– Reserves some right in the real property for the
grantor or imposes a restriction on the use of the
property by the grantee
Deed Clauses
• Habendum clause
– Describes the type of estate being conveyed to the
grantee(s)
• Tenendum clause
– Indicates the improvements that are being
conveyed together with the land, such as the
buildings built on the land
Deed Clauses
• Warranty/seisin clause
– Grantor warrants that he or she is the rightful
owner of the property in question and thereby
has the right and power to convey the property to
the grantee.
• Testimonium clause
– Deed is executed, witnessed, and acknowledged.
Common Types of Deeds
• General warranty deeds
– Seller has valid title; will defend that title against
any defect arising from the actions of the seller or
the actions of any of the seller’s predecessors
– Covenants
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Covenant of seisin
Covenant against encumbrances
Covenant of quiet enjoyment
Covenant of further assurances
Covenant of warranty forever
Common Types of Deeds
• Special warranty deeds
– Seller has done nothing to encumber the title to
the property; does not provide further assurances
or guarantees with regard to the seller’s
predecessors
Common Types of Deeds
• Bargain and sale deeds
– Seller is transferring the real property itself,
together with any structures on the property,
rather than transferring any particular interest in
the property.
• Quitclaim deeds
– Grantor is transferring whatever interest he or she
may have, without making any warranties
regarding the quality of his or her interest.
Special-Purpose Deeds
• Corrective deeds
• Deeds conveying government-owned property
• Fiduciary deeds
– Personal representatives’ deeds
– Guardians’ deeds
• Sheriffs’ or referees’ deeds
Preparation of Deeds
1. Review state statutes to determine:
– Statutory deed forms
– If no statutory forms, state requirements
regarding number of witnesses, form of
acknowledgment, inclusion of parties’ addresses,
and so on
– Documentary stamp tax
Preparation of Deeds
2. Review grantor’s current deed for:
– Correct spelling of grantor’s name and grantor’s
marital status
– Legal description of the property
– Listing of any encumbrances
– Property appraiser’s tax identification number (if
required)
Preparation of Deeds
3. Review updated title examination for a listing
of any encumbrances.
4. Review contract for sale and purchase for:
– Type of deed required by contract
– Correct spelling of grantee’s name and marital
status
– Closing date
Preparation of Deeds
5. Determine manner in which title is to be held
by grantee(s).
6. Determine whether additional encumbrances
(other than those of record) exist or will be
created. These must be included in the deed.
Preparation of Deeds
7. Using the information obtained, draft:
– Premises clause
• Leave date of execution blank.
• Insert appropriate county and state, names and
statuses of the parties, manner in which title will be
held, and the addresses of the parties, if applicable.
– Granting clause
• Insert the recital of consideration and the manner in
which title is to be held by the grantees if this was not
included in the premises clause.
• Insert legal description.
Preparation of Deeds
7. Using the information obtained, draft
(continued):
– Encumbrance and reddendum clauses; insert all
“subject to” provisions and any reserving clauses
– Testimonium clause
• Prepare signature lines for grantor(s) and witnesses.
• Prepare acknowledgment.
Preparation of Deeds
8. Before the deed is signed:
– Have supervising attorney review it.
– Once date of closing is confirmed, insert date, and
then make copies for grantor, lending institution,
and office file.
Preparation of Deeds
9. After the deed is signed:
– Conform copies to the original.
– Prepare or acquire the check for the documentary
stamp tax and recording fee.
– Record deed and comply with local and state
taxing departments.
– Return original deed to the grantee.
Recording Deeds and Other
Real Estate Documents
• Recording documents
– Delivered to the appropriate government official
for transcription into a plat book, deed book,
mortgage book, or official records book
– Put the public on notice regarding the information
contained in the document
• Construction notice
• Actual notice
Recording Deeds and Other
Real Estate Documents
• Recording statutes
– Prescribes the requirements for recording a
document and determines the priority of rights to
real property if there are conflicting claims
– Three types
1. Race statutes
2. Notice statutes
3. Race-notice statutes
Deed Fraud
• Factors leadings to deed fraud
– The ease of access to public records
– The rise in identity theft
– The increased number of vacant properties
– The lack of verification or authentication systems
at time of recording deeds