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CHAPTER 42
TRANSFER OF REAL PROPERTY
Answers to Learning Objectives
1. Title to real estate is transferred by a deed. A deed may be either a quitclaim deed, which conveys
whatever interest the grantor has, or a warranty deed, which conveys title and also makes certain
warranties.
Lesson Outline
1. The most common way of transferring title to real estate is by sale. Usually there will be a contract
of sale followed by delivery of a deed.
2. A deed is a writing signed by the seller conveying title to real property. There are two principal
types of deeds:
a. Quitclaim deed. In a quitclaim deed, the grantor gives up any claim to the real property.
b. Warranty deed. A warranty deed not only conveys the grantor’s interest in the real property, but
in addition makes certain warranties.
4. A deed is ineffective until it has been delivered.
5. A deed need not be recorded in order to complete one’s title. Recording the deed protects the
grantee against a second sale by the grantor, and against any liens which may attach to the property
while it is still recorded in the grantor’s name.
6. The abstract of title gives a complete history of the real estate. It also shows whether or not there are
Comments on Cases
(p. 508) A quitclaim deed conveys all the grantor’s present interest in the property. It cannot convey a
future interest that does not exist at the time of the grant. Layne v. Layne, 74 So.3d 161 (Fla.
Dist. Ct. App.)
(p. 511) The court found that in light of the evolution of the term, the plain, ordinary meaning of “mobile
home” as used in the restrictive covenant included “manufactured homes.” Since the restrictive
Chapter 42 Transfer of Real Property
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Answers to Questions
(Page 513)
1. Title to real estate is transferred when the owner delivers a deed to the buyer.
2. In a quitclaim deed the grantor only gives up what interest he or she has. The grantor may not have
any interest to give, so the grantee might end up with nothing.
witnesses.
5. The parties might not cite the actual consideration paid in order to keep the actual sales price from
becoming a matter of public record.
6. An acknowledgment is a declaration by the properly authorized officer that the grantor has
acknowledged signing the instrument as the grantor’s free act and deed. An acknowledgment allows
a deed to be recorded. Recording also raises the presumption of delivery of the deed.
7. The grantor must relinquish control and lose the right to demand its return.
8. Recording is not required in order to complete transfer of title, but recording protects the grantee
against a second sale or future liens against property of the grantor.
(Page 514)
1. The court was required to consider whether or not Carl “delivered” the deed to Alma. Alma not
only saw Carl execute the deed, but she gave him money to record it and checked with him to be
sure he had recorded it. This was sufficient to prove delivery of the deed. The house belonged to
Alma. Goddard v. Goddard, 950 NE2d 567 (Ohio Ct. App.)
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but rather an interest in money generated from the sale of the property. Georgia Lien Services, Inc.
v. Barrett, 613 S.E.2d 180 (Ga. Ct. App.)
3. No. The court found that since there was never a trust set up, Burbage could not be a trustee. Since
there was no trustee the deed was void because it designated a grantee who did not exist. Foster v.
6. No. In order for restrictive covenants to run with the land, the law requires intent on the part of both
the grantor and the grantee. The Dallingas’ signatures were intended to show their acceptance of the
covenant. Their failure to sign the deed left the covenant ambiguous, and the court would not
uphold the restrictions of the covenant. Jeremiah 29:11, Inc. v. Seifert, 161 P.3d 750 (Kan.)