Chapter 5
Deeds and Leases
Deeds


Written document that
transfers title (ownership) of
real estate
Necessary Elements of a
Deed






Designation of the parties
Consideration given by grantee
Legal description
Specific interest conveyed
Signature of the grantor and
witnesses
Should be publicly recorded
Additional Deed Elements





Covenant against
encumbrances
Covenant of seisin
Covenant of quiet enjoyment
Covenant of further
assurances
Warranty forever
Types of Deeds

General warranty deed



Special warranty deed


Broadest Type of Deed
Grantor assures no liens exist
except those of public record
Limits seller’s warranties to only
seller’s ownership period
Bargain and sale deed


Carries no warranties against liens
or other encumbrances but does
imply that grantor has right to convey
title.
Grantor usually warrants they did not
cause any problems to title during
their ownership
More Deed Types

Quitclaim deed
Transfers whatever interest
grantor has but doesn’t imply any
valid interest at all.
 Commonly used to clear title
defects


Deeds for special uses

E.g. Executor’s deed

Executor conveys title held by
deceased but executor
doesn’t claim any other
warranties.
Leases


Agreement between a property
owner and tenant that transfers the
rights of use and possession
Requirements of a Properly
Prepared Lease







Names of the lessor (landlord) and
lessee (tenant)
Conveyance of the premises
Description of the premises
Term or duration of the lease
Amount of rent and manner of
payment
Duties and obligations of parties
Signatures of the parties
Classification of Leases

Duration of term

Type of Use

Methods of Payment
Lease Duration

Duration of term




Tenancy for stated period
Tenancy from period to period
Tenancy at will
Tenancy at sufferance
Lease Type

Type of Use

Ground Lease

Residential lease

Commercial lease
Lease Payment Methods

Methods of Payment









Gross lease
Net lease
Net net lease
Net net net lease
Fixed-rent lease
Graduated-rent lease
Reappraisal lease
Percentage lease
Index lease
Issues in the LandlordTenant Relationship

Renewal option

Expense stops

Security deposits

Improvements
Rights & Obligations of
Tenants and Landlords

Covenant of quiet enjoyment

Implied warranty of habitability

Maintenance of common
areas

Renewal Clauses
Negative Renewal
 Positive Renewal

End Chapter 5