A grantor signs a deed and hands it to the named grantee with the present intent that it take effect. The grantee refuses to take the property, and title stays with the grantor. Which element of a valid transfer is missing?
Correct Answer
A) Acceptance by the grantee
Title passes by deed only when a competent grantor executes the deed and delivers it with present intent, and the grantee accepts it. Here execution and delivery are both satisfied, so the only element left unsatisfied is acceptance. Acceptance is normally presumed when the conveyance benefits the grantee, but an outright refusal rebuts that presumption and the title never leaves the grantor.
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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.
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