REAL ESTATE TRANSACTIONS & FINANCE Deeds: Contents of the Deed and Land Descriptions Deeds: Delivery and Escrow Reading Assignment: Nelson/Whitman pp. 127-152 1. The deed appearing on page 139 identifies the grantee as “Robert Paul Jones, a Single Man.” What is the reason for identifying the grantee’s marital status in the deed? Would the deed be valid if it had just said “Robert Paul Jones”? 2. Review the “warranty deed” and “bargain and sale deed” forms provided by the Washington statutes, as reflected on pages 135-136. Is there any difference between the two types of deeds in terms of the quality of the title each would convey? Is there any other difference between the two types of deeds? 3. At the closing of a sale transaction, Smith tenders a deed conveying his home at 215 Smith Avenue to Jones. The deed states: “Grantor hereby conveys ... the following described real property to Grantee and Grantee’s heirs, successors, and assigns: all of 215 Smith Avenue.” Is the deed legally sufficient? Should Jones accept it? Why or why not? 4. Consider the following description based on the government survey system: “The SE 1/4 of the SE 1/4, Section 7, Township 48 North, Range 12 West (5th P.M.).” Explain, based on the material in your casebook, how you would locate this parcel. What is its size, shape, and location? Note: If you want high-tech help in locating this parcel, you might try using Google Earth. If you have Google Earth loaded on your computer, you can then go to the website for Earthpoint, http://earthpoint.us/Townships.aspx. This site will allow you to superimpose the government survey grid (townships and sections) onto Google Earth, to view Google Earth with the superimposed grid, and then locate the parcel described above. 5. Consider the following “metes and bounds” land description: “Beginning at the northwest corner of Section 10, Range 4 West, Township 2 North, Fifth Principal Meridian; thence west 245 feet along the north edge of Section 9 to the POINT OF BEGINNING; thence S15E50'10"W a distance of 51.89 feet to an iron pin, thence S20E00'00"W a distance of 109 feet to an iron pin, thence N89E21'00"E 167.23 feet to an iron pin, thence N20E00'00"E 109 feet to a point, thence N15E50'10"E 51.89 feet to an iron pin, thence N89E21'00"E 167.23 feet to the POINT OF BEGINNING.” Based on the material in your casebook, sketch out the shape of this parcel. 6. Consider the question in note 3 on page 152. If the deed in question conveyed to the Grantee “the West 50 feet of Lot 13,” as Lot 13 is depicted on page 152, what would be the shape of the land conveyed to Grantee? Why? 7. Questions about the Martinez case (p. 153):
a. Why did Delfino and Eleanor insist (even if only orally) that Carlos and Sennie allow Southwest Savings & Loan to hold the deed in escrow until the mortgage had been paid in full? Does this call into question whether Delfino and Eleanor intended to make a present transfer of the land when they handed the deed to Carlos and Sennie? Why or why not? b. Why did the common law refuse to enforce oral conditions, i.e., conditions not expressed in the deed? Why does the court in Martinez enforce the oral condition in that case? Is this a sensible result? c. What should Delfino and Eleanor have done differently? [Be specific.]
8. Kessler executed a quitclaim deed purporting to convey his home to Fielder and physically handed the deed to Fielder. The deed contained the following language: “Grantor hereby reserves a Life Estate in and to said property, with power to sell, rent, lease, mortgage or otherwise dispose of said property during his natural lifetime.” Kessler continued to reside in the home until his death six months later, without ever selling, renting, leasing, mortgaging or otherwise disposing of the home during his lifetime, nor attempting to do so. Kessler’s will devised his estate to St. Louis County National Bank (Trustee), as trustee for Kessler’s daughter and three grandchildren. If Trustee challenges the validity of the deed to Fielder, what should be the basis for that challenge? Should a court uphold the deed, or conclude that it was invalid? Why? 9. Questions about the Wiggill v. Cheney case (p. 157): a. What purpose does it serve for the court to hold Lillian’s deed invalid?
b. Suppose that both Lillian and Francis had keys to the safe deposit box. Same result, or different result? Why? c. 10. What should Lillian have done differently?
Question about the use of escrow in sale transactions: a. Smith contracted to sell his home to Jones for $250,000, with the closing to occur on September 1. Smith delivered a deed to First Escrow, with instructions to deliver the deed to Jones once Jones had paid the purchase price. On September 1, Jones paid $250,000 to Davis, an officer with First Escrow. Davis released the deed to Jones, but then took the $250,000 and disappeared to the Caribbean. When Smith learns of Davis’s action, Smith refuses to move out of the home, and Jones sues Smith to recover possession. What result and why? How might Smith have better avoided this risk? b. Smith contracted to sell his home to Jones for $250,000, with the closing to occur on September 1. Smith delivered a deed to First Escrow, with instructions to deliver the deed to Jones once Jones had paid the purchase price. On September 1, Jones failed to
pay the purchase price, but Davis (an officer of First Escrow) released the deed to Jones anyway. On September 2, Jones deeded the home to Williams, who paid Jones $250,000 in cash. As between Smith and Williams, who has title to the home and why?