Ask a Lawyer ...

[Woody]

I looked for an "Ask a Lawyer" forum but didn't find one. I suppose lawyers don't like to be asked questions generally. But I hope this one is innocent. For I would love some wisdom on this:

Last week we got a letter in the mail from the Title Company. After a year and a half since we bought the house ... they finally completed their work. To their credit ... they did apologize for the "delay".

Anyways ... after looking it over ... I became confused. And 'perhaps' HAPPY ? The Deed ... is called a "warranty deed" which I have no idea what that means. Anyway ... the deed states the following:

Know all Persons by These Presents that "John Doe", married, the Grantor, for the consideration of One Dollar ($1.00) and other valuable consideration received to her full satisification of Redwood and Mrs. Redwood for their joint lives, remainder to the survivor of them, the Grantees, whose Tax mailing address will be ..... does Give, Grant, Bargain, Sell and Convey unto the said Grantees, their heirs and assigns, the following described premsies:

Now please ... What in the world does all that mean? I thought we had purchased the house for a lot more money than one dollar. Did they change their minds and decide to give us the property for one dollar? I'm trying to not count my chickens before they are hatched. But, is this great news or what?

And would we receive the deed if the bank had not been satisified? Do we now own the house for the one dollar? Can we stop the mortgage payments? Okay ... I am exposing my ignorance. But this does seem strange to me.

Any HELP?

[GreatLakesGramma]

For one dollar, you purchased title insurance. The title company researched the ownership history of your house, and verified that there are no legally unsatisfied claims from past years on your home that might come back to haunt you.

[Jeannieb43]

A warranty deed is the strongest form of ownership you can get. The grantor [seller] warrants that there is no defect of title [nobody else has a right to ownership, or any lien on the property which you would have to pay off], and the title company joins in that warranty for the sum of one dollar [a token payment signifying good consideration having been paid].

The only time you'll need to invoke your rights under a title insurance policy [which is what you just received] is if a neighbor begins to dispute the property line between your two parcels, or if somebody sues you for an injury they received on your property, etc. So hold onto that policy. It may come in handy some day. The title insurance company will defend your rights in court if the lawsuit is something which is included in your policy.

Title insurance is purchased during the closing on a purchase of real estate. You may not have realized it at the time, and the title insurance company is just being slow in getting its paperwork sent to you.

[Woody]

REDWOOD

WELL it looks like you have some answers

dgrimm60

Yes. Makes me feel small that I didn't know that . And now the whole world knows how little I know !! HA HA !!!

A big thanks to you Jeannie and GLG. I do appreciate you explaining it so well that I could understand. They sure do use some strange language to say something so simple.

[Tom Wetmore]

Some background to the recital of a token of value in a transaction may be of interest. The old common law of contracts required an exchange of value to seal the deal at the point the agreement is made, since most contracts were not in writing. It was customary to exchange something connected with the property before witnesses that could verify the deal. The token could be a clod of dirt from the land. The practice even has Biblical roots. You can read about it in the story of Ruth where the custom was to exchange a sandal. (See Ruth 4:7,8)

The remnant of that ancient practice is reflected in the recital of the token of consideration of one dollar in many contracts, even though in most jurisdictions it may no longer be legally a requirement.

[Woody]

Very Interesting TOM. Thanks