Title, Deeds, Recording, and Closing
The Title, Deeds, Recording, and Closing domain tests how ownership is proved, transferred, protected, and finalized. Expect deed-validity, recording-priority, marketable-title, escrow, and settlement issues.
Deeds
A deed must identify grantor and grantee, describe the land, show intent to convey, and be signed by the grantor; delivery and acceptance are essential. A general warranty deed contains present and future covenants, including seisin, right to convey, quiet enjoyment, warranty, and further assurances. A special warranty deed limits warranties to defects created by the grantor. A quitclaim deed conveys only the grantor’s present interest. Recording is not required between the parties but protects against later purchasers and creditors.
Recording acts and title
Race, notice, and race-notice statutes determine priority among conflicting conveyances. Notice may be actual, inquiry, or record. A wild deed is recorded outside the chain of title and generally gives no constructive notice. Title insurance insures title as shown in the policy, subject to exceptions; it is not a guarantee against every defect. Marketable title means title reasonably free from doubt, not perfect title.
Closing
Closing transfers the deed, disburses funds, prorates taxes and rent, and issues title evidence. Escrow closes only when all conditions are satisfied. The settlement statement allocates debits and credits. A title search should cover the chain of title, liens, easements, and restrictions.
Worked example
O deeds Blackacre to A, who does not record. O then deeds the same land to B, who pays value, has no actual, inquiry, or record notice, and records before A. Under a race-notice statute, B wins because B recorded first without notice. Under a pure notice statute, B also wins. Under a pure race statute, B wins by recording first regardless of notice.
Traps
Recording a forged or undelivered deed does not validate it. A quitclaim grantee may lose to a prior unrecorded interest. “Marketable” does not mean flawless.