Chapter 1
Virginia Real Estate Law & Agency
Course: Virginia Real Estate Exam Prep
Subject: Virginia State Salesperson Exam Prep
Chapter: Property Rights Amp Ownership
Essential Elements of a Valid Deed:Beyond the listed components, two elements are about action, not words:
- Delivery: The grantor must physically or constructively deliver the deed to the grantee (or their agent) with the present intent to transfer title. A deed signed but left in a safe deposit box is not delivered.
- Acceptance: The grantee must accept the deed. Acceptance is usually presumed if the conveyance is beneficial to the grantee.
Types of Deeds - Understanding the Covenants:
- General Warranty Deed: The gold standard. The grantor makes five present and future covenants (promises) that warrant the title against defects from the entire history of the land. These include the covenant of seisin (ownership), right to convey, against encumbrances, quiet enjoyment, and warranty (defense of title). This provides the grantee with the greatest legal recourse if a title defect emerges.
- Special Warranty Deed: The grantor makes only two covenants, and they are limited in scope: they warrant that they have done nothing during their period of ownership to create a title defect. They offer no protection against problems that existed before they owned the property. This is common from banks (REO properties), estates, and in commercial transactions.
- Quitclaim Deed: Makes no warranties whatsoever. It simply conveys "whatever interest I have, if any." It is ideal for clearing up title issues (e.g., an ex-spouse quitclaiming interest after a divorce) or transfers between family members where the title is known. It is extremely risky to accept from a stranger, as it conveys no guarantee of ownership.