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- We can send encrypted documents.
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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.
- 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.
Best PracticeD - Our Best Practices Solution for Encryption of Email
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