A seller signs a deed naming the buyer as grantee, then locks it in a desk with no present intention that it take effect. Which requirement has the grantor failed to satisfy?
Correct Answer
C) Delivery of the deed
A deed operates only when the grantor parts with it intending that it take effect now, and that act is delivery. Signing the deed while keeping both the document and the intention to withhold it defeats the transfer no matter how complete the paper looks. Acknowledgment and recording affect provability and notice rather than validity between the parties, and acceptance is the grantee's step, which cannot occur while the deed sits in the grantor's desk.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Title insurance is a policy that protects the insured party against financial loss from defects in title that were not discovered during the title search. Unlike other insurance, it covers past events rather than future risks.
A title search is an examination of public records to determine the history of ownership, liens, encumbrances, and other interests affecting a property. It verifies that the seller has the legal right to transfer the property.
A transfer tax is a tax imposed by state, county, or local government on the transfer of real property from one owner to another. It is typically based on the sale price or a flat rate per dollar of consideration.
More Transfer Of Property Questions
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- → Under California law, what is the consequence when a property buyer fails to file the Preliminary Change of Ownership Report (PCOR) at the time the deed is recorded?
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