The essential elements of a valid deed are frequently tested on the exam. The grantor must be of legal age and sound mind. The grantee must be identifiable but does not need to sign the deed. Consideration must be stated but does not need to reflect actual market value. The property must be identified by a legal description, and the deed must include a granting clause (words of conveyance). The grantor must sign the deed, and it must be delivered to and accepted by the grantee.
A deed states that "John Smith, for ten dollars and other valuable consideration, hereby grants and conveys to Mary Jones the following described property..." It includes the full legal description, is signed by John, notarized, and physically delivered to Mary at closing. All essential elements are present.
Use the mnemonic "GILD-CS" — Grantor (competent), Intent (granting clause), Legal description, Delivery and acceptance, Consideration, Signature. Note that a deed does NOT require recording, a grantee's signature, or witnesses in most states to be valid. The grantee does NOT sign the deed — this is a common exam trick.
Related Terms
Related Concepts
A deed is a written legal document that conveys (transfers) ownership of real property from one party to another. It must be delivered to and accepted by the grantee to be effective.
A general warranty deed provides the greatest protection to the grantee by guaranteeing that the grantor holds clear title and has the right to sell the property. It includes covenants that protect against all defects in title, even those arising before the grantor owned the property.
A special warranty deed guarantees that the grantor has not caused any title defects during their period of ownership, but does not warrant against defects that existed before the grantor acquired the property.
A quitclaim deed transfers whatever interest the grantor may have in a property without making any warranties or guarantees about the quality of title. It offers the least protection to the grantee.
A bargain and sale deed implies that the grantor holds title and possession of the property but does not include warranties against encumbrances or title defects.
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