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Robert executes a warranty deed conveying his Fort Lauderdale property to his daughter Susan, but he continues to live in the house, pay all expenses, and collect rental income from a tenant in the garage apartment. Susan never takes possession or exercises any ownership rights. Five years later, Robert sells the same property to Tom, who pays full value and has no knowledge of the earlier deed to Susan. Who owns the property?

Correct Answer

A) Susan, because she received the first deed

Susan owns the property because she received a valid deed first, regardless of Robert's continued possession. A valid deed transfers title upon delivery, and the grantor's continued possession doesn't invalidate the transfer. Tom acquired no rights because Robert had no title to convey after the first deed. Susan has no obligation to compensate Tom - his remedy is against Robert for breach of warranty. No co-ownership is created.

Answer Options
A
Susan, because she received the first deed
B
Tom, because Robert's continued possession negated the earlier conveyance
C
Susan, but she must compensate Tom for his purchase price
D
They become tenants in common with equal interests

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Related Topics & Key Terms

Key Terms:

deed_deliverytitle_transfercontinued_possessionsubsequent_purchaser
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