Transfer of Property
Deeds and Title
A deed conveys title. Essential elements: competent grantor, identifiable grantee, words of conveyance, legal description, consideration (usually), and delivery and acceptance. Distinguish deed types: general warranty (broadest covenants), special warranty (only grantor's period), bargain and sale (implies consideration), and quitclaim (no warranties). Traps: a deed does not need to be recorded to be valid between parties, but recording protects against later claims.
Title Assurance
Know title search, abstract of title, title insurance (owner's vs. lender's policy), and Torrens system (registration). Recording acts: race, notice, and race-notice. Understand constructive, actual, and inquiry notice.
Closings and Transfer Taxes
The closing transfers title and settles funds. Know the roles of escrow, settlement statements, and prorations. Transfer taxes and recording fees vary by state and are often exam traps about who pays.
Adverse Possession and Other Transfers
Adverse possession requires actual, open and notorious, exclusive, hostile, and continuous possession for a statutory period. Also know dedication, escheat, eminent domain, and partition.
Worked Example
A grantor conveys by quitclaim deed. Even if the grantor had no interest, the deed is valid but conveys nothing; the grantee has no warranty claim. If the same grantor later sells to a bona fide purchaser who records first, the recording act may protect the later buyer.