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In assessing the formalities of a deed, when is delivery valid?

Bar Exam Prep Real Property Conveyances In assessing the formalities of a deed, when is delivery valid?
😀 Real Property • Conveyances PROP#179

Legal Definition

"Delivery" occurs when grantor has an intention to make the deed presently effective (even if actual possession does not occur until later). Delivery can be: (1) manual, (2) notarized acknowledgment by the grantor and recordation, or (3) anything else.

Parol evidence is admissible regarding intent to deliver.

Where the grantor retains control or an interest, there is lack of intent to pass title.

A proper deed that provides title will not pass until the grantor's death is valid and creates a future interest in the grantee.

Delivery can be accomplished by a third party with instructions. A valid conditional delivery happens when a grantor gives the deed to a third party with instructions to give it to the grantee after certain conditions occur—parol evidence is admissible to prove that delivery is conditional. Before the condition occurs, the grantor may revoke.

You cannot convey to a dead person.

Plain English Explanation

A deed is a physical piece of paper, and holding the physical piece of paper is super important in trying to establish ownership of property, but it's more complicated than that. The most important factor is the intent of the grantor to transfer their property to the recipient. This intent can be proven through words or conduct by the grantor that demonstrate their desire for title of the property to pass immediately and irrevocably to the recipient, even if the recipient may have to wait a little bit to actually possess the land.

Hypothetical

Hypo 1: Oz owns Blackacre. Oz wants to give Blackacre to Amy for her birthday in several months, so Oz writes up a document that conveys Blackacre "to Amy" and places it in a sealed envelope. Oz hands this envelope to Amy and says, "Here's a surprise for your birthday -- but don't peak!" Result: Oz wants Amy to own Blackacre, and Oz even went as far as to write up a document conveying ownership to Amy and gave it to Amy. However, Oz clearly does not want to give Amy Blackacre immediately. It's a birthday gift, for her to open on her birthday in several months. Thus, if Amy were to open the envelope now and attempt to claim ownership of Blackacre, she would fail due to lack of intent by Oz.

Hypo 2: Oz owns Blackacre. Oz wants to give Blackacre to Amy. Oz writes up a document that conveys Blackacre "to Amy." Unfortunately, Oz doesn't know where Amy is at the moment. Oz thinks, "Oh well, I'm sure I'll find her later." Oz packs up Blackacre and leaves it. When people ask why he moved, he says, "Because I gave it to Amy... even though I'm not sure where she is at the moment." Result: Even though no physical delivery has taken place, courts would still likely hold that Oz has successfully conveyed and delivered Blackacre to Amy. That's how important intent is.

Related Concepts

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