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