Exam 14: Methods of Transfer and Conveyance in Real Estate

In the late spring or summer of 1970, Dan Jutting's father planted grass on his lot, including a ten-foot strip bordering the adjoining property belonging to Jack and Georgine Hendrix, and kept it watered as it grew. During that summer, he also planted two trees on the strip of property near the boundary. These trees are now fully grown. Jutting's father also constructed a clothesline on the property that ran from the west to the east. The west support for the clothesline was also located on the strip. Later, a swing was hung from that support and used by the Jutting children and grandchildren. Behind the west support, Jutting's father planted lilac bushes. From the summer of 1970 until 1998, the Jutting family has continuously watered and mowed the grass on the disputed strip and raked it when necessary. Jutting's father died in the early 1990s, and Jutting's mother remained in the home until 1997, when she sold it to Jutting. Before Jutting purchased the property, a surveyor was hired to do a location survey for the title insurance company. The survey showed that the west boundary of the property was where it was presumed to be, that is, approximately 10 feet from the west side of the Jutting residence. The Hendrix residence has had a number of different owners since its construction in the late 1960s. The Hendrixes purchased the property in late 1997. Through subsequent discussions with Jutting, Mr. Hendrix learned there was uncertainty over the exact location of the line between their two properties. In the summer of 1998, he hired a surveyor to do a complete survey to determine the boundaries. The surveyor discovered a ten-foot error in the original platting of the subdivision that "slid" the boundaries of the Hendrix and Jutting properties ten feet to the east. This pushed the east line of the Hendrix property to within an inch of the west side of Jutting's residence. Although Jutting was made aware of the true property line, he persisted in trying to maintain the disputed strip of property. Harsh words were eventually exchanged between Jutting and Mr. Hendrix, and Hendrix began to construct a split rail fence along the property line within an inch or so of Jutting's residence. Jutting sued the Hendrixes for an injunction to prevent construction of the fence and to quiet title to the disputed strip of property. Jutting also raised claims for trespass and property damage and claimed adverse possession of the disputed strip. Who owns the strip?

Summary of transfers and recording: Day 1 0 → A Day 2 0 → B (bfp) Day 3 B records Day 4 A records -In a notice state, who would take title to the property?

Payment of taxes by the title holder precludes adverse possession.

Which of the following is not a requirement for a valid deed?

Damage from second-home smoke is an example of a covered item under a title policy.

Grant Woods conveys a tract of land to Dee Dee Fitzpatrick. Dee Dee does not record her deed. Grant then conveys the same tract of land to Joe Arpaio, who also does not record his deed, but Joe is unaware of Dee Dee's acquisition. Then Grant conveys the same property to Larry Davis who knows about Dee Dee and Joe but records his deed. Who has title to the property under a race state statute?

The period of possession for claiming title by adverse possession is 5-25 years in most states.

August 1, 2019 - Mortgage recorded January 3, 2020 - Lien recorded January 31, 2020 - Owner conveys to Buyer 1; Buyer 1 records These transactions take place in a notice/race state. Suppose on February 11, 2020, the owner conveys to Buyer 2. Assume Buyer 1 does not record. If the owner defaults, who gets the property?

​For five years, Ryan Rob has lived on a ranch and grazed cattle on a neighboring land knowing the land belonged to another. Rob passes away during the sixth year and leaves all the property to his son, who continues with the ranch operation and the grazing. Fifteen years later, the son wishes to quiet title to the grazing land. The prescriptive period is 20 years. What result?

​Gladys Whatley was hospitalized for blindness, diabetes, and various problems with her hips. At the time of her admission, hospital personnel described her as "considerably impaired" mentally. She received various medications while in the hospital and the medical records refer to her as "ill" and "appearing very weak." While she was in the hospital, her daughter, Kay, brought Gladys a new will in which some beach property owned by Gladys was conveyed to Kay and her husband. Kay had Gladys execute the new will. After Gladys was released from the hospital to Kay's care, Kay had a deed drawn up in which the beach property was conveyed to Kay and her husband outright. When the remaining children learned of the conveyance, they sought an easement so that they could use the beach on the property. When Kay refused, they sought to have the will and deed set aside for undue influence. Can they succeed?

Grant Woods conveys a tract of land to Dee Dee Fitzpatrick. Dee Dee does not record her deed. Grant then conveys the same tract of land to Joe Arpaio, who also does not record his deed, but Joe is unaware of Dee Dee's acquisition. Then Grant conveys the same property to Larry Davis who knows about Dee Dee and Joe but records his deed. Who has title under a race/notice statute?

The Torrens system requires registration of title.

Iver Martin Villa spent most of his life on his family homestead outside of Meeker, Colorado. He married his wife Mary and raised two children, Mary K. Krueger and John Villa, on the ranch. Marlyn Ary started working for the Villas as a part-time housekeeper in the mid-1970s. When Mary Villa died suddenly from a brain tumor in 1989, Ary stayed on, providing the same services for Iver Villa. The two became friends. In the mid-1990s, Villa's health began to decline. He suffered from multiple ailments, including emphysema, congestive heart failure, and macular degeneration. Ary started acting as Villa's paid caregiver in addition to being his housekeeper. She assisted Villa by administering his medication, reconciling his bank accounts, filling out and helping him sign his checks, reading him his legal and financial documents, and transporting him to his various appointments. In 1997, Villa executed a will leaving his estate to Krueger and her children. But in 2001, Villa began construction on a new house, and in April 2003, Villa conveyed an interest in the completed house and the parcel of land it occupied, worth $350,000, to Ary by executing a deed for joint tenancy. After making the conveyance, Villa told multiple people he was worried Krueger would try to overturn it. While in the hospital in November 2004, Villa wrote Ary a check for $5,000 so she could defend her ownership in court. Upon Villa's death in April 2005, Krueger became the personal representative of his estate. She brought suit against Ary, claiming Villa's conveyance of the house, land, and $5,000 were void based on Ary's breach of fiduciary duty and undue influence over Villa as his paid caretaker. Ary denied the claims, asserting the conveyances were gifts from Villa for her years of service. What do you think the court should do? What factors point to capacity? How does undue influence affect capacity?

In a race state, a non-bona fide purchaser can take title to the property.

A title insurance policy:

The existence of a confidential relationship is a prerequisite to establishing undue influence.

A bargain and sale deed is the same as a quitclaim deed.

Summary of transfers and recording: Day 1 0 → A Day 2 0 → B (bfp) Day 3 B records Day 4 A records -Suppose that A recorded on Day 1, in a race state, who would take title?

The Mansurs and the Muskopfs own adjoining lots in a subdivision located along Lake Winnipesaukee. Because of mistakes in surveys and the placement of the boundaries, there is some confusion about where the boundaries are located. The boundaries are accurate on the plat map and their deeds use the plat map as a description. However, the way the boundaries have been on the lots is different and the Mansurs have been using part of the Muskopf lot. The plat map was first recorded in 1958 and the developer conveyed the lots to the original owners who then conveyed to the Mansurs and Muskopfs. All of the owners before also used the lots the way the Mansurs and Muskopfs have. Which of the following is correct?

Title insurance affords coverage for forgeries on deeds.