Delivery

Definition

Delivery in the real estate context is the official act of transferring the possession of a deed or real property from one entity to another. For delivery to be effective, there generally needs to be an intent by the grantor (the person transferring the property) to transfer the property and the actual handing over of the deed to the grantee (the recipient). Delivery can occur directly to the grantee or through a third-party such as an escrow agent.

Examples

Direct Delivery: A homeowner sells their property and hands over the deed directly to the buyer. The buyer now has possession and can officially record the deed to confirm ownership.
Escrow Delivery: A seller places the deed with an escrow company. The company will only deliver the deed to the buyer upon fulfillment of agreed-upon conditions, like securing financing or completing inspections.
Non-delivery Consequence: A person intends to transfer land to their nephew, signing a deed but not physically handing it over. Upon the person’s death, the court may rule that the non-delivery means the land does not legally transfer to the nephew.

Frequently Asked Questions

What constitutes a valid delivery of a deed?

A valid delivery involves intent by the grantor to transfer the property and the actual handing over of the deed to the grantee.

Can delivery be revoked once the deed is handed over?

Once a deed has been properly delivered, especially when recorded, it is typically irrevocable.

Does a deed need to be recorded to be effective?

While recording is not required for the deed to be valid, it is essential for public notice to assert ownership rights.

Can an electronic transfer count as delivery?

Laws regarding electronic transfers vary by jurisdiction, but in some cases, electronic deeds are acceptable if they meet specific criteria.

Deed

A legal document that transfers ownership of real estate from one party to another, often requiring proper execution and delivery to be effective.

Escrow

A neutral third-party service that holds funds and documents in trust until conditions are met for completion of a real estate transaction.

Grantor

The individual or entity transferring the property or interest in property via a deed.

Grantee

The individual or entity receiving the property or interest in property via a deed.

Online Resources

References

U.S. Department of Housing and Urban Development. Real Estate Transactions Overview. HUD.gov
Nolo Press. Legal Guide to Buying and Selling Property. Nolo.com
Richard R. Powell, Powell on Real Property. LexisNexis

Suggested Books for Further Studies

“Real Estate Law” by Marianne M. Jennings
- A comprehensive guide to real estate law, covering all aspects of property transactions, including delivery and transfer procedures.
“Real Estate Principles: A Value Approach” by David C. Ling and Wayne R. Archer
- This book provides a detailed understanding of the principles underlying real estate practices, focusing on value creation and legal processes.
“Practical Real Estate Law” by Daniel F. Hinkel
- Offers a practical approach to real estate law, complete with sample documents and step-by-step explanations of real estate transactions.

Real Estate Basics: Delivery Fundamentals Quiz

### What is a crucial element for a valid delivery of a deed? - [x] Intent by the grantor to transfer the property - [ ] Presence of two witnesses - [ ] Payment of property taxes - [ ] Inspection of the property by the grantor > **Explanation:** For delivery to be valid, there must be intent by the grantor to transfer the property and the actual handing over of the deed, either directly or through an agent. ### Can a deed be recorded without physical delivery? - [ ] Yes, recording replaces the need for delivery. - [x] No, physical delivery is generally needed first. - [ ] Only if the grantee is absent. - [ ] It depends on the property's value. > **Explanation:** Physical delivery of the deed is typically required first to establish the grantor's intent before recording it as public notice. ### Who ultimately holds the property in an escrow transaction until conditions are met? - [ ] The grantor - [x] The escrow agent - [ ] The grantee - [ ] The county recorder > **Explanation:** In an escrow transaction, the escrow agent holds the property and relevant documents until all conditions for the transaction are satisfied. ### What might make a delivery of a deed invalid? - [x] Lack of intent by the grantor - [ ] Payment delays - [ ] Incomplete landscaping - [ ] A storm on delivery day > **Explanation:** For delivery of a deed to be valid, there must be a clear intent by the grantor to transfer ownership. Without this intent, the delivery can be ruled invalid. ### Can electronic delivery substitute physical delivery of a deed in some jurisdictions? - [x] Yes, if it meets specific criteria. - [ ] No, only physical delivery is recognized universally. - [ ] Only if both parties agree beforehand. - [ ] Only for large commercial properties. > **Explanation:** Some jurisdictions accept electronic delivery of deeds, provided it meets certain legal criteria. However, specifics can vary widely by location. ### Who is considered the grantor in a real estate transaction? - [ ] The mortgage lender - [x] The person transferring the property - [ ] The county clerk - [ ] The person receiving the property > **Explanation:** The grantor is the individual or entity transferring the property or interest in property via a deed. ### Who is the grantee in a real estate transaction? - [ ] The mortgage underwriter - [x] The person receiving the property - [ ] The title agent - [ ] The previous owner > **Explanation:** The grantee is the individual or entity receiving the property or interest in property via a deed. ### What action should be taken after the delivery of the deed for public notice? - [ ] Inspect the property - [ ] Notify local brokers - [x] Record the deed - [ ] Sign a separate title deed > **Explanation:** Recording the deed provides public notice and helps establish official ownership. ### What court action might follow if a deed is found but not delivered upon the grantor's death? - [x] Ruling that the property does not transfer to the intended recipient - [ ] Automatic transfer to the next of kin - [ ] Transfer based on the property's value - [ ] Environmental review of the property > **Explanation:** If a deed is found but not delivered upon the grantor’s death, the court may rule that the property does not transfer to the intended recipient, as the necessary intent was not fulfilled. ### Can failure to deliver a deed affect who owns the property? - [x] Yes, ownership may not transfer without proper delivery. - [ ] No, ownership is based solely on the deed itself. - [ ] Only if the land has not been used. - [ ] Only for commercial properties. > **Explanation:** Proper delivery is critical in transferring ownership. Without it, the intended recipient may not gain legal ownership of the property.