Deck 40: Transfer of Real Property

Question 1

What is the difference between a general warranty deed and a special warranty deed?

Answer 1

The general warranty deed can be defined as the seller's promise to buyer that prior problems will be warranted by a title apart from those that happen during the ownership of sellers.
The special warranty deed can be defined as the deed where the seller guarantees or warrants the title only against defects or problems coming up during ownership period.

Question 2

Alma Goddard jointly owned with her adult son Carl a residence situated less than 1,000 feet from a school. Alma conveyed her interest to Carl in exchange for his agreement to care for her for the remainder of her life and allow her to reside in the home. Subsequently, Carl informed his mother that he was required to move from the home because he was a sex offender. Alma hired an attorney to prepare a quitclaim deed from Carl to her. Carl executed the deed, and Alma gave him money to record it. Carl informed Alma that he had recorded the deed. When Alma attempted to return home after a hospital stay, she learned that instead of recording the deed, Carl had transferred the property to a third party. What happened to Alma's home?

Answer 2

Quitclaim Deed:
Quitclaim deed - this type of deed conveys the interest in real property that the grantor had and carries the possibility of undisclosed liabilities
Valid Transfer of Land:
In order for a transfer of land to be valid, the deed must be delivered. Further, a transaction is not completed until the buyer has been supplied with evidence of title, delivery of deed, and an accounting of the transaction together with delivery of possession of the premises to the buyer.
A delivery occurs when an item is physically passed from one individual to another. For example, when the UPS person shows up with an item for you s/he gives it to you and the item has been delivered.Constructive delivery occurs when a person intends for a transfer of an item such as property via title to another person, the intention plus conduct of the parties equals a constructive delivery even if something does not pass physically between the parties.
For example, when an owner signs a lease to rent a property and gives it to the rental company to give to the renter, the lease has been constructively delivered because the intent to relinquish the property under the lease terms was performed.Legal Reasoning:
In Goddard v. Goddard, 192 Ohio App.3d 718, 2011-Ohio-680 (2011), the trial court declared Alma Goddard to be the legal owner of a piece of real estate.The appellate court affirmed the trial court's judgment because thre was a constructive trust over the property in Alma's favor.
The trial court determined that Carl executed a valid deed transferring the property but that he failed to record it; however, there was sufficient evidence that Carl delivered the deed.Therefore, Alma was recognized as the sole owner of the property.

Question 3

What are six necessary elements in a deed?

Answer 3

Following are the major provisions in any deed:
• Consideration
It is the amount for the property paid to grantor.
• Description
The description of the property that needs to be conveyed is required correctly.
• Acknowledgement
The property authorized officer makes a declaration where the guarantor signs the instrument as a deed or free act, this declaration is known as acknowledgement.
• Parties
There are two parties involved in any deed, one is grantor and the other is grantee who should be a legal or living person.
• Covenants
If any deed contains a promise, it is called as covenants.
• Signature
There is a special 0place where the guarantor needs to sign in a deed.

Question 4

Woods purchased property which was subject to an express easement in favor of a neighboring property owner (Shannon) for ingress and egress. At the time of the purchase, the neighboring property had no other access to a road. Subsequently, a road was built on the opposite side of Shannon's land, so Shannon decided to use the easement for running his ATV. Woods filed for an injunction against Shannon's use of the easement, citing the fact that there was now a public road Shannon could use for ingress and egress. Did Shannon have a right to drive his ATV over the easement property?

Question 5

Why might a deed not cite the actual consideration paid?

Question 6

Weaver and J. E. Jordan executed a warranty deed of 50 acres to Daniel and Pearline Dallinga. The deed contained restrictive covenants prohibiting commercial enterprise or enterprise of any kind on the property and was signed by Weaver and Jordan, but not by the Dallingas. There were several subsequent conveyances of the property until Jeremiah 29:11 Inc. became the owner. None of these conveyances referenced the restrictions of the Jordans' deed. Jeremiah used the property as a leadership-training center for pastors and leaders of nonprofit corporations and as a Boy Scout camp. Ernest Douglas and Leslie Seifert owned adjacent property formerly owned by the Jordans and alleged that Jeremiah's use violated the commercial enterprise restriction. Jeremiah alleged that it was not limited by the Jordans' restrictions because they had not signed the original deed, and the restrictions were not in subsequent deeds. Did the restrictive covenants apply to Jeremiah?

Question 7

What is the difference between affirmative and negative covenants?

Question 8

Goodell was injured while doing carpentry work for Cathell Custom Homes. Rosetti was the developer of the property. For the purpose of securing financing for construction costs, Cathell would execute a deed for a particular lot to Rosetti, which would be held in escrow until the actual sale of the property to the buyer. Goodell sued Rosetti as record owner of the property. Rosetti claimed that as there was no intention actually to transfer ownership of the land, he did not own the property. Was the deed effective to transfer title to Rosetti?

Question 9

How is a deed delivered?

Question 10

What is the purpose of recording a deed?

Question 11

What does an abstract of title show?

Question 12

A.B., Alma, and Mike owned a home as tenants in common. As part of a swap transaction, they deeded their interest to Troy. Troy was not present when the deed was executed, but Mike brought the deed to Troy's house in an envelope. Mike said that he had recorded the deed, when in fact it had not been recorded. Mike handed the envelope to A.B., who placed it in the trunk of his car. A.B. told Troy he would leave Troy the car when A.B. died, and the deed would be right there in the trunk with the important papers. Mike subsequently deeded his one-third interest to his sisters, who did in fact record those deeds. Upon A.B.'s death, Troy retrieved his deed from the trunk of the car and discovered that it had not been recorded. Troy filed suit to set aside the subsequent recorded deeds. Did the deed left in the trunk of A.B.'s car effectively transfer the home to Troy?

Question 13

How may an owner of real property be protected against defects in title?

Question 14

When is title to real estate transferred?

Question 15

Guyton entered into a contract to buy a homesite on which she moved her mobile home. The purchase price was to be paid as a down payment and 180 monthly payments. The seller executed a deed, but one of terms of the sale was that the deed would not be recorded until six monthly payments were timely made. Guyton made payments for about eight years, but only five were made on time. As a result, the seller had not recorded the deed by the time Guyton filed for bankruptcy. Who was the legal owner of the homesite?

Question 16

What is the inherent risk in accepting a quitclaim deed for property?

Question 17

Harvey Foster executed a deed for his home to his daughter, Jean Burbage, as trustee. Foster later was hospitalized and lived in an assisted living facility for a year. During this time, Burbage handled his finances. When he recovered, Foster asked a court to void the deed, saying he had signed it without reading it because he trusted his daughter. Foster had never executed any written trust declaration. He alleged that the deed was void because it named a grantee who did not exist. Is the deed valid?