Requirements for a Valid Deed
October 12, 2020
In order to have a valid deed, there are several requirements. The first thing we need is to have a grantor or the seller. The grantor must be of legal age and of sound mind. We also need the grantee, the receiver of the deed, or the buyer. The grantee simply needs to be clearly identified in the deed itself. Another requirement will be consideration. Consideration is simply something of value. It is usually money, but it could be anything of value, whether it be property, livestock, the discharge of debt, the performance of services, or anything else of value. Also, in a deed, we need to have what's called the granting clause, which would be words of conveyance or transfer. Proper wording would be something like, “I the seller, hereby convey and warrant this property to the buyer.” That would be sufficient words of conveyance. Another item needed would be a property description. Typically, a legal description is used.
Also, the grantor must sign the deed. The grantee never signs the deed because the grantee or buyer receives the deed. So, we simply need the grantor’s signature on the deed. And if two people were to co-own property, we would need both their signatures to have a valid transfer take place. Finally, delivery and acceptance of the deed are what transfers title. It is not when the deed is recorded on the public record, but rather when we close on the transaction. That's when the seller gives the deed to the buyer; at that time, the title is transferred and the buyer would own the property.
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