Deeds

1. Deeds Real Estate I Mike Brigner, J.D.

2. Some Basic Questions • What is the difference between • TITLE to property & DEED to property? • A recorded deed & an unrecorded deed? • How many ways can interests in real estate be transferred? • Deed - Mortgage - Lien – Assessment - Lease • Adverse Possession - Dower - Bankruptcy • Easement by Affidavit or Prescription (use)

3. Basic Deed Requirements • Definition: A deed is a legal instrument for the conveyance of real property • All deeds must be in writing (Statute of Frauds) • Grantor = transferor • Grantee = transferee • Grantor competent Deed My Red House To Sue Grantee Signed, Myrtle Grantor

4. Basic Deed Requirements • Grantor must state intent to transfer real estate, by using words of conveyance – “grant, convey, assign, give” • Ohio uses “grant” • Legal description of the property • Consideration - but amount not necessary Deed My Red House To Sue Grantee Signed, Myrtle Grantor

5. Basic Deed Requirements • What interest exactly is granted by Grantor? • What warranties are given by Grantor? • How is property to be owned by Grantees? • Properly executed, as follows: Deed My Red House To Sue Grantee Signed, Myrtle Grantor

6. Basic Deed Requirements • Signed by the grantor • Signature notarized • Witnessed - TWO witnesses required until 2002. Now, NO witnesses required. • Delivery by grantor • Acceptance by grantee Deed My Red House To Sue Grantee Signed, Myrtle Grantor

7. Interest (or “Estate”) Granted • Full ownership forever w/o conditions • = Deed in fee simple absolute • Unless deed says otherwise, full ownership • Full ownership with conditions • “No development”, or “Lake to be maintained” • Life estate – Can be for life of Grantor, life of Grantee, or life of a third party

8. What Warranties Given by Grantor? G • General Warranties • Limited Warranties • Fiduciary Warranties • No Warranties (Quitclaim) L F Q

9. How Will Property Be Owned by Grantee? • Individually – sole ownership • Tenants in Common – each grantee owns a share, & can sell or bequeath that share • Joint with Rights of Survivorship (J&S) – each grantee owns all & if one dies, his interest passes automatically to the survivor(s)

10. Basic types of deeds L F G Each type has its own section of Ohio Revised Code, giving exact deed language required

11. Basic types of deeds J&S Q Each type has its own section of Ohio Revised Code, giving exact deed language required

12. General Warranty Deed G • Grantor covenants against all claims • Covenant = a promise that a fact is true or that an event will take place • R.C. 5302.05 defines general warranty deed • R.C. 5302.06 defines covenants • http://www.legislature.state.oh.us/laws.cfm • http://dictionary.law.com/

13. Covenants in General Warranty Deed • By using deed words “with General Warranty Covenants”, Grantor gives: • 1. covenant of seisin • 2. covenant of right to convey • 3. covenant against encumbrances • 4. covenant of further assurances • 5. covenants of quiet enjoyment and warranty

14. Limited Warranty Deed L • Grantor covenants only against the lawful claims of people claiming by, through or under the grantor • R.C. 5302.07 Limited warranty deed • R.C. 5302.08 Limited covenants

15. Covenants in Limited Warranty Deed • By using deed words “with Limited Warranty Covenants”, Grantor gives: • 1. Covenant against encumbrances created by the grantor only • If grantor had put (for example) an easement on the land, grantor liable • If someone prior to the grantor had placed an easement on the property, grantor not liable

16. Fiduciary Deed F • Used when executor, administrator, trustee, guardian, or other fiduciary transfers real property • R.C. 5302.09 Fiduciary Deed • R.C. 5302.10 Fiduciary Covenants

17. Covenants in Fiduciary Deed • By using deed words “with Fiduciary Covenants”, Grantor warrants: • 1. that the fiduciary was properly appointed • 2. that fiduciary has legal authority to sell the property • 3. that fiduciary has complied with all other legal aspects of sale • 4. that fiduciary has done nothing to encumber the land

18. Quitclaim deed Q • Transfers only the interest the grantor has in the land and not the land itself • No covenants or warranties • Used as deed in lieu of foreclosure • Clears up dower problems • R.C. 5302.11 Quitclaim Deed Form

19. Joint & Survivorship Deed J&S • Grantees acquire joint ownership of property with right of survivorship • If one dies, decedent’s interest in property passes automatically to survivor • No deed required at death, but • Affidavit as to death, & including legal description, must be filed at Recorder’s • R.C. 5302.17 Survivorship deed form

20. Joint & Survivorship Deed J&S • Remember that “J&S” is just the way the Grantees choose to own the property • J&S deed form says Grantees take property “for their joint lives, remainder to the survivor of them,” • (J&S deed form also says Grantors give with General Warranty Covenants) • J&S language can be added to any other type of deed, G, L, F, Q

21. Distinguish • Warranties are what GRANTOR gives • Form of ownership is what GRANTEE gets • So we can have: • Gen. Warranty Deed that includes J&S rights • Fiduciary Deed that includes J&S rights • OR • Ltd. Warranty Deed to individual • Ltd. Warranty Deed to Tenants in Common

22. Preparation of an Ohio Deed • Accuracy in all details! • “Grantor” • Grantor’s marital status REQUIRED • If name has changed since acquiring, state “fka” – further known as • If corporation, partnership, state status • “of Montgomery County, Ohio” • “for valuable consideration paid” – amount not needed

23. Preparation of an Ohio Deed • “grants” shows intent to convey real estate • Warranty clause, such as “with general warranty covenants” • By using correct Ohio form, shows what warranties grantor intends to be obligated to • Or, if Quitclaim, intent to give no warranties • Any limitations or conditions on type of estate being transferred, such as a life estate • “Grantee” name. Marital status not required

24. Preparation of an Ohio Deed • How property is to be owned by grantees • Individually (no special words needed) • “As Tenants in Common” • “for their joint lives, remainder to the survivor of them,” • “Whose tax mailing address is. . . .” • Deed cannot be recorded without information as to where to send tax bills

25. Preparation of a Deed • Property Description • Metes & bounds description, or • Lot number (Shortcut. Somewhere a metes & bounds description is recorded for every lot) • Every lot number includes words & numbers • Prior Instrument Reference – mandatory • The Volume/Page or Microfiche # “of the Deed Records of Montgomery County, Ohio” • This tells how grantor obtained ownership

26. Preparation of a Deed • Name of spouse, if waiving dower, with waiver language • Execution part of the deed • Executed this ___ day of __, 2008 • Each grantor’s signature, name typed beneath • Spouse’s signature, if waiving dower rights • Acknowledgment – notary clause • No witnesses now required in Ohio • This deed prepared by (attorney or grantor)

27. Deeds Concluded Thank you Mike Brigner