A father prepares a signed deed conveying his farm to his daughter. He places the deed in a sealed envelope on his desk and tells a friend, 'Give this to my daughter when I pass away.' He keeps the envelope on his property, retains the ability to retrieve and destroy it at any time, and never tells his daughter the document exists. After he dies, his daughter claims ownership. A court rules that no valid transfer occurred during the father's lifetime because the act needed for the deed to take effect — present intent that it become operative now — was missing. The farm passes through probate. Which deed-effectiveness requirement was the court applying?
Correct Answer
D) Delivery of the deed
The father retained control of the envelope, kept the ability to retrieve or destroy it, and never showed present intent for the deed to become operative now. The deed-effectiveness requirement that turns on the grantor's present intent for the deed to be operative immediately is delivery.
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Related Topics & Key Terms
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Related Concepts
An abstract of title is a condensed history of all recorded documents and proceedings that affect the title to a specific parcel of real property. It is a summary, not a guarantee, of title condition.
Actual notice means a person has direct, personal knowledge of a fact or interest in real property. This can come from being told, seeing something firsthand, or any form of direct awareness.
Adverse possession is a legal doctrine that allows a person to claim ownership of land by occupying it continuously for a statutory period under specific conditions, without the true owner's permission.
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- → A buyer records a deed at the county recorder's office. What is the primary purpose of recording?
- → A buyer drives past the property and sees someone other than the seller living there and maintaining the yard. This observation should put the buyer on what type of notice?
- → In a covered purchase transaction, the borrower receives a final form showing the loan terms, cash to close, and settlement charges shortly before consummation. What form is this?
- → Along with the signed offer, Quinn Brooks delivers a check to demonstrate serious intent to complete the transaction if the offer is accepted. What is this deposit called?
- → On a settlement statement, the buyer's earnest money reduces the remaining cash needed to close. How is that item characterized?
- → On a settlement statement, an item increases the buyer's amount due at closing. How is that item characterized?
- → On the seller's settlement statement, the purchase price of $400,000 appears as what?
- → At closing, the purchase price of $350,000 appears on the buyer's side of the settlement statement. Is this amount a debit or a credit to the buyer?
- → Under TRID rules, the lender must deliver the Closing Disclosure to the borrower at least how many business days before loan consummation?
- → In an escrow closing, the escrow agent discovers that the seller has not yet provided the signed deed. What should the escrow agent do?
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