TYPES OF DEEDS

TYPES OF DEEDS

Grant Deed

Because of inclusion of the word “grant” in a grant deed, the grantor impliedly warrants that he or she has not
already conveyed to any other person and that the estate conveyed is free from encumbrances done, made or
suffered by the grantor or any person claiming under grantor, including taxes, assessments and other liens. This
does not mean that the grantor warrants that grantor is the owner or that the property is not otherwise
encumbered. The grant includes appurtenant easements for ingress and egress and building restrictions. The
grantor’s warranty includes encumbrances made during grantor’s, but no other individual’s, possession of the
property. It conveys any title acquired after the grantor has conveyed the title to the real property (after-
acquired title), generally. Observe that these warranties carried by a grant deed are not usually expressed in the
grant deed form. They are called “implied warranties” because the law deems them included in the grant
whether or not explicitly expressed in the deed

Quitclaim Deed

A quitclaim deed is a deed by which a grantor transfers only the interest the grantor has at the time the
conveyance is executed. There are no implied warranties in connection with a quitclaim deed. This type of deed
guarantees nothing and there is no expressed or implied warranty that grantor owns the property or any interest
in it. Moreover, a quitclaim deed does not convey any after-acquired title. A quitclaim deed effectively says, “I
am conveying all the title that I have in the property described in this quitclaim - if I have, in fact, any title.”

A quitclaim deed is generally used to clear some “cloud on the title.” A “cloud on the title” is some minor
defect in the title which needs to be removed in order to perfect the title. Deeds of court representatives, such as
guardians, administrators, and sheriffs, usually have the effect of a quitclaim pursuant to court order.

Warranty Deed

A warranty deed contains express covenants of title. Warranty deeds are uncommon in California, no doubt
because of the almost universal reliance in this state on title insurance to evidence marketable title.

Trust Deed

A trust deed (or deed of trust) is a 3-party security instrument conveying title to land as security for the
performance of an obligation. There are three parties to a trust deed: borrower (trustor), lender (beneficiary),
and a third party, called a trustee, to whom legal title to the real property is conveyed. The trustee holds the
legal title in trust for the beneficiary and has the power to sell the property if the trustor does not fulfill the
obligations as recited in the instrument. The trustee also possesses power to reconvey the legal title to the
trustor provided the beneficiary requests a reconveyance of that title. This event occurs if the promissory note is
paid in full.

A trustor signing the trust deed retains what is called an equitable title. That is, the trustor enjoys the right of
possession and can do with the property whatever the trustor pleases so long as the trustor does not jeopardize
the interest of the lender (beneficiary).

Business and Professions Code Section 10141.5 requires that a real estate licensee record a deed of trust within
one week after closing of a transaction or deliver it to the beneficiary with a written recommendation that it be
recorded or deliver it to the escrow holder. Failure of a real estate licensee to carry out the duties prescribed in
Section 10141.5 does not affect the validity of the transfer of title to the real property.

Reconveyance Deed

A reconveyance deed is an instrument conveying title to property from a trustee back to the trustor on
termination of the trust. This title is held by the trustee until the note or obligation is fully paid. Then, when the
beneficiary issues a “Request for Full Reconveyance,” the trustee executes the reconveyance to the borrower.
Termination of the trust usually occurs when the promissory note is paid in full.

Sheriff’s Deed

A sheriff’s deed is a deed given to a party on the foreclosure of property, levied under a judgment for
foreclosure on a mortgage or of a money judgment against the owner of the property.

The title conveyed is only that acquired by the state or the sheriff under the foreclosure and carries no
warranties or representations whatsoever.

Gift Deed

A grantor may make a gift of property to the grantee, and use a grant deed form or a quitclaim deed form for
the purpose. Grantor may, but need not, say in the deed that grantor makes the transfer because of love and
affection for the grantee.

A gift deed made to defraud creditors may be set aside if it leaves the debtor/grantor insolvent or otherwise
contributes to fraud. (Uniform Fraudulent Transfer Act, Civil Code Sections 3439 through 3439.12)

Void Deeds

Deeds that are void and pass no title even in favor of a bona fide purchaser for value include:

1. A deed from a person whose incapacity has been judicially determined, e.g., a deed from a person for
whom a conservator has been appointed (Civil Code Section 40);

2. Forged deeds (Meley v. Collins, 41 Cal. 663);

3. A deed from a person under 18 years and not emancipated;

4. A deed executed in blank, where the name of the grantee has been inserted without authorization or
consent of the grantor (Trout v. Taylor, 220 Cal. 652); and

5. A deed purely testamentary in character, i.e., when the grantor intends that the deed not become operative
until his or her death.

Voidable Deeds

Deeds which are not void, but are voidable and pass title subject to being set aside in appropriate judicial
proceedings include:

1. A deed from a person of unsound mind whose incapacity has not been determined (Hughes v. Grandy, 78
Cal. App. 2nd, 555);

2. Prior to March 4, 1972, a deed from a person over 18 years of age and under 21 years of age, except a deed
from a lawfully married person 18 years of age or older (Family Code Sections 6700, 6701, 6710). Family
Code Section 6701(b) limits the authority of a minor to “make a contract relating to real property or any
interests therein”. Since any person 18 or over, and under 21, who was lawfully married was deemed to be
an adult for the purposes of dealing in property, it may be necessary to determine the legality of the
marriage. If the person was married outside of California, and the marriage was valid by the laws of the
state or the county in which the same was contracted, the marriage was valid in California. If the person
was married in California, the age of the person will determine the procedure necessary to effect a valid
marriage. (Family Code Sections 301 and 302.)