Transfer of Title and Conveyancing
This domain tests how title moves by deed, how deeds are recorded, and what makes title marketable. North Carolina questions emphasize deed formalities, delivery, and the recording chain.
Core rules
- A general warranty deed contains broad title covenants. A special warranty deed limits warranties to claims arising through the grantor. A quitclaim deed conveys whatever interest the grantor has and carries no title warranty.
- A valid deed needs a competent grantor, an identifiable grantee, words of conveyance, a legal description, signature, delivery, and acceptance. Consideration is not required, but a recital is common. Acknowledgment is needed before recording.
- Recording protects against later claims and should occur in the county register of deeds. A title search traces the chain of title.
- Marketable title is title free from reasonable doubt. Title insurance and an attorney's opinion are common protections. Adverse possession may ripen into title under statute.
Worked example
Grantor signs and hands a deed to Grantee, who does not record. Grantor later deeds the same parcel to a purchaser who records first. Delivery passed title between Grantor and Grantee, but the first grantee's failure to record creates third-party risk. Under recording principles, the later recorded purchaser may prevail if the statutory requirements are met.
Traps that cost marks
Equating delivery with recording; omitting the legal description or grantee name; treating a quitclaim deed as marketable title; assuming consideration is required; and forgetting that acknowledgment is required for recording. Also check whether a deed reserves a life estate or creates a future interest.