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Deeds, Conveyance of Title | Real Estate Exam Prep Videos - YouTube
Channel: The Real Estate Classroom
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everybody my name is Paul V Chesky and
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welcome to the real estate classroom
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YouTube channel just a place where if
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you're studying for your real estate
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licensing exam you can get videos and
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information to help you pass that exam
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before we get started do me a favor give
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this video a thumbs up hit that
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subscribe button click the notification
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bell alright in today's video we're
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gonna discuss deeds now I'm not going to
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talk about the different types of deeds
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in this video if you want a video on the
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different types of deeds go ahead and
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click right up here the little I in the
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upper right hand corner that'll take you
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to that video today we're going to
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discuss basically the purpose how we
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convey title using a deed and remember
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conveyance a title simply means transfer
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of ownership we're going to talk about
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essential elements what kind of things
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must a deed contain for it to be legal
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and valid and then what's the purpose of
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recording the deed so let's get started
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the first thing we want to talk about is
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the deed what's the purpose of the deed
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well the purpose of the deed is to
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transfer to transfer ownership now we
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call that conveyance of title that those
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two terms can be used interchangeably
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and you don't know how the real estate
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licensing exam question is going to be
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structured so they mean the same thing
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the other part is is transferring title
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has a technical aspect to it so we have
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the deed
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now that the deed itself is proof of
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ownership now what I mean by that is
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it's a proof that a conveyance of title
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has happened alright the other thing
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that it does is the type of deed and
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there are several different types of
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deed and again check out that other
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video to understand the different types
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that represents the quality
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of the interest that means the quality
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of the estate because not every transfer
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of title or transfer of ownership
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interest is different some is fee simple
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absolute where the grantor is providing
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absolute ownership to the new to the new
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owner of the grantee other times with a
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quitclaim deed for example it may just
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be hey I think I might have some
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ownership but I don't really know to be
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honest with the end whatever I have here
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you can have it so the type of deed
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represents the quality of the estate or
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what we call the quality of the legal
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interest in the property now there are
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several things that we have to know that
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must be part of or included in that deed
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for the deed to be valid the first one
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is what we call the competency of the
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parties so the buyer the seller or what
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we call the grantor in the grant t they
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must be competent they must be that
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can't be mentally incompetent those type
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of things so they have the mental
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capacity has to be there basically they
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have to have the ability the legal
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ability to enter into a contract alright
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the second thing is consideration
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now remember consideration simply means
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something of value it can be for the
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love and affection of a son or daughter
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it could be a pile of dirt it could be
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money typically it is money however it
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doesn't have to be and most of the time
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what we see on the deeds to be quite
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honest with you a consideration is in
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the amount of $1 even though the even
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though the property actually sold for
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$250,000 so it just one of those little
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trivia things there but anyways
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competency of the party consideration
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both of those must be evident in a deed
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the next thing is what we call the grant
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team clause GRA and T ing granting
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clause this is just a legal clause
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that's written into the deed that
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basically says
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conveyance of title so the granting
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Clause is just conveying the ownership
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to to the new buyer the grantee the
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number four element has to be the legal
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description now the legal description is
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different than the postal address a lot
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of times the legal description will look
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like this particularly in Platts lot one
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block zero and then you know the
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subdivision name piedmont legal
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descriptions though depending on the
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type of ground it is in the land it can
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be quite extensive I actually seen legal
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descriptions that are over a page long
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but typically in town type properties
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it's limited to something similar to
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this but no it's not the postal address
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it's the location the legal description
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is described in the deed itself the next
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thing number five is any deed
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restrictions deed restrictions can be
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things like covenants or homeowners
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association rules or those type of
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things and deed restrictions they don't
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have to be they have to be legal first
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of all but they can be very creative for
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example I seen a deed one time that had
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a a deed restriction that was placed in
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it from the 1920s that said that the
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property is being transferred to my son
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but if my son ever marries a member of
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the Smith of the Jones family then the
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property would revert to the Catholic
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Church so as long as the restriction is
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legal it's okay to be in the the deed
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and be enforceable the next one is what
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we call the abend 'm clause abend 'm
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clause
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all these terms right these legal terms
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here huh Bentham Clause represents the
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quality of the estate the quality of the
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legal interest that's written into the
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deed and again a lot of it has to do
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with the type of deed is we're going to
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talk about and then the last one and
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most important well I shouldn't say that
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but it's the grant tors
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signatures now here's the thing to
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remember for your licensing exam all
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grant tors must sign the deed all of
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them not a majority not one out of two
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now here's what happens so if the court
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of a corporation or an LLC a limited
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liability company or or a trust or
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something like that owns a piece of
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property one of two things happens with
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the signatures within the articles of
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organization or the bylaws of that
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entity they may have assigned someone or
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a principal of that corporation or a
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shareholder in that corporation to have
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the Signet or authority and if that's
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the case then only one person signs on
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behalf of that entity however absent
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that language all the principles within
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that corporation or that LLC would have
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to sign the deed we see this also in
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estates where great-grandma dies and she
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had several kids and even more grandkids
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and even more great grandkids and people
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down downline have died I actually seen
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one time where the title company
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required 91 signatures on on the deed so
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that that's an extreme case but the
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point is anyone that has a legal
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interest in that property has to sign
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including spouses including spouses all
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right so those are the essential
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elements that must be contained in that
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deed now the last thing I want to talk
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about is well to two things how does
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title pass passing title
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now remember passing title means
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transfer of ownership and how that
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happens is the deed it's a document the
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the deed must be signed delivered and
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accepted so the deed must be signed by
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all the Grand Tours it must be delivered
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to the grantee and the grantee accepts
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very important
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that's when title passes the deed is
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signed by all Grand Tours it's delivered
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to the grantee and the grantee accepts
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the deed that's when title passes from a
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technical perspective and the other
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thing we need to know is recording now a
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lot of people think that recording the
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deed at the courthouse is compulsory or
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it's mandatory and it is not now if
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you're getting a loan on the property
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from the bank part of the agreement that
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the banks going to require that hey if
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you want our money then you're going to
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agree to record the deed at the
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courthouse now it's a really good idea
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to do that but it is not compulsory
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unless it's the term of a condition of
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getting a loan the reason we do it and
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this is an important key real estate
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term that you have to know for your real
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estate licensing exam we record deeds so
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we're giving constructive notice to the
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world that title has passed or that I
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own this piece of property and it's very
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important when to prevent liens and
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encumbrances to be a priority to ours so
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that's for a different different video
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but that's why we record a deed the
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thing you need to know is we record
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deeds or other documents to give
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constructive notice to the world all
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right that's all I have for today's
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video check out this video to my right
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if you want to continue your studies for
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your real estate licensing exam and hey
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if
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not subscribed to this channel right
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here that little circle clicked on that
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click the little notification bell I'll
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see you in the next video
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