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Parties 101

By: W. Paul Lewis, Title Counsel, Pinehurst & Wilmington

Due to various phone calls on this issue, and to take a break from Best Practices and the new Disclosure form, we are going to talk about parties necessary to a real property conveyance.  Every now and again it is beneficial to review basic conveyancing concepts.  A valid conveyance of real property requires five elements:  a grantor, a grantee, an ascertainable subject matter, operative words of conveyance and a proper execution and delivery.   This article will review two of these five requirements, the parties to the deed.

Typically this discussion would begin with the grantor requirements, but I would prefer to begin with the grantee because the requirements to be a good grantee are less stringent than that of a grantor and because, generally, one is a grantee before they become a grantor.

Early Common Law recognized that a grantee could be a natural person.  This expanded to include legal entities capable of holding title.  While you will find no statute authorizing a natural person to hold title, you will find authorizing statutes for corporations, partnerships, LLCs, unincorporated associations and, more recently, trusts.  Prior to this statutory authority, for a trust to hold title, the conveyance had to be to the trustee of the trust or the deed was void for lack of a grantee.  Also, prior to this statute, older deeds in the chain of title, to a trust, which may have been previously void, are now good links in the chain of title.



Holiday Closings

Attorneys Title offices across the state will be closed on Monday, May 25th for Memorial Day. We hope everyone has a happy and safe holiday weekend.


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