chapter 5 deeds and leases. deeds written document that transfers title (ownership) of real estate ...

Chapter 5

Deeds and Leases

Deeds

Written document that transfers title (ownership) of real estate

Necessary Elements of a Deed Designation of the parties Consideration given by grantee Legal description Specific interest conveyed Signature of the grantor and

witnesses Should be publicly recorded

Additional Deed Elements

Covenant against encumbrances

Covenant of seisin Covenant of quiet enjoyment Covenant of further

assurances Warranty forever

Types of Deeds

General warranty deed Broadest Type of Deed Grantor assures no liens exist

except those of public record

Special warranty deed Limits seller’s warranties to only

seller’s ownership period

Bargain and sale deed Carries no warranties against liens

or other encumbrances but does imply that grantor has right to convey title.

Grantor usually warrants they did not cause any problems to title during their ownership

More Deed Types

Quitclaim deed Transfers whatever interest

grantor has but doesn’t imply any valid interest at all.

Commonly used to clear title defects

Deeds for special uses E.g. Executor’s deed

Executor conveys title held by deceased but executor doesn’t claim any other warranties.

Leases

Agreement between a property owner and tenant that transfers the rights of use and possession

Requirements of a Properly Prepared Lease Names of the lessor (landlord) and

lessee (tenant) Conveyance of the premises Description of the premises Term or duration of the lease Amount of rent and manner of

payment Duties and obligations of parties Signatures of the parties

Classification of Leases

Duration of term

Type of Use

Methods of Payment

Lease Duration

Duration of term Tenancy for stated period Tenancy from period to period Tenancy at will Tenancy at sufferance

Lease Type

Type of Use Ground Lease

Residential lease

Commercial lease

Lease Payment Methods

Methods of Payment Gross lease Net lease Net net lease Net net net lease Fixed-rent lease Graduated-rent lease Reappraisal lease Percentage lease Index lease

Issues in the Landlord-Tenant Relationship

Renewal option

Expense stops

Security deposits

Improvements

Rights & Obligations of Tenants and Landlords

Covenant of quiet enjoyment

Implied warranty of habitability

Maintenance of common areas

Renewal Clauses Negative Renewal Positive Renewal

End Chapter 5