6.2 Deeds of Conveyance

Deeds of Conveyance

A deed is a legal instrument used by an owner (grantor) to transfer title to real estate voluntarily to another party (grantee).

Delivery and Acceptance: For title to pass, the deed must be delivered to and accepted by the grantee. The grantor must be competent and intend delivery; the grantee must accept by taking possession or recording the deed. Once accepted, title passes and the deed cannot be reused to transfer the property.

Validity: To be valid, a deed must:

• Be delivered and accepted
• Have a competent grantor and legitimate grantee
• Be in writing
• Contain a legal description
• Contain a granting clause (intent to transfer title)
• Include consideration (monetary or good)
• Be signed by the grantor
• Be acknowledged (notarized in most states)

Recording is not required for validity, but gives constructive notice of ownership.

Deed Clauses and Covenants:

• Conveyance clauses: Describe the transfer (granting, habendum, reddendum, tenendum clauses).
• Covenant/warrant clauses: Grantor’s assurances (seisin, quiet enjoyment, further assurance, warranty forever, encumbrances, against grantor’s acts).

Statutory Deeds:

• Bargain and sale deed: Grantor owns but may not defend title.
• General warranty deed: Grantor owns and will defend against all claims.
• Special warranty deed: Grantor defends only against claims during their ownership.
• Quitclaim deed: Grantor may or may not own and offers no defense; used to clear title.

Special Purpose Deeds:

• Personal representative’s deed (executor’s deed)
• Guardian’s deed
• Sheriff’s deed
• Deed of trust / deed in trust
• Master deed (condominiums)
• Partition deed
• Patent deed (government to private)
• Tax deed (tax sale)

Transfer Tax: Most states require a documentary stamp tax on real property conveyances, based on sale price. Exemptions include transfers within immediate family, low consideration, government/non-profit transfers, and some trust or tax deeds.

Check-In Questions

• What is required for a deed to transfer title?
  Execution only
  Delivery and acceptance
  Notarization only
  Verbal agreement
  Show Answer

  Correct Answer: Delivery and acceptance
  The deed must be delivered to and accepted by the grantee for title to pass.
• Which deed provides the greatest protection to the grantee?
  Quitclaim deed
  Special warranty deed
  General warranty deed
  Bargain and sale deed
  Show Answer

  Correct Answer: General warranty deed
  The general warranty deed offers the fullest assurances and protection for the grantee.