- Deeds: A deed is a signed and notarized document conveying an ownership interest in land by identifying the buyer and seller, including names and address, the date of transfer, legal description of the property, and recital that the transfer was made for “good and valuable consideration”. If the seller is a man, his marital status must be identified. Encumbrances and exceptions to title and a list the liens and restrictions to which the property is subject should also be included. If the property to be conveyed is unplatted land, and not in a condominium, the grantor must state whether the grantor is conveying the right to make further divisions exempt from the platting requirements of the Land Division Act.
- Recordable format: A document can be either 8 ½ x 11 or 8½ x 14, a minimum top margin of 2 1/2 inches on the first page and at least 1/2 inch on all remaining sides of each page. The paper must be at least 20-pound weight white. A minimum 10-point type size is required, and all of the text must be in black ink. The first line of print on the first page must be a single statement identifying only one recordable event that the document evidences.
- Warranty Deed: Unless exceptions are listed in the document, the seller warrants to the buyer that the interest that the buyer is receiving is fully vested in the seller and that there are no exceptions to clear fee title.
- Quit claim deed: A quitclaim deed conveys to the purchaser only the interest in the premises that the seller actually holds, if any, with no warranty of title. Quitclaim deeds are often used for gifts or compliance with court orders. These types of transfers typically involve transfers for a sum less than $100.00 and are therefore exempt from transfer tax under State law. The document should recite the tax exemption.
- Private Road Notice: If you are selling a parcel in an area outside of a city and not located on a public road, notice must also be given to the buyer in a separate document attached to the deed that the street or road is private and not required to be maintained by the board of county.
- Land contract: A land contract is an agreement to convey land, but not a conveyance. The purchaser does not obtain full title to the property until all payments are made. Therefore, a land contract is generally not recorded. Instead a Memorandum of Land Contract is typically recorded. If the Seller has a mortgage with a “due-on-sale” clause a land contract will typically trigger it; therefore, the Seller must obtain the mortgagee’s consent to the land contract sale or, alternatively, agrees to pay the entire mortgage balance in full at or prior to closing on the land contract. Remedies for breach of a land contract can be to foreclose or forfeit the land contract. Forfeiture is a quicker remedy done through the landlord tenant Court, but the contract must provide for this remedy. 15-day notice of demand to cure default is required before a Judgment for possession can be sought. After a judgment of possession, a writ of restitution can be obtained after 90 days if less than 50% of the purchase price has been paid, or after 180 days if 50% or more of the purchase price has been paid at the time of the possession judgment.
The foregoing is general information only and does not constitute legal advice regarding your specific legal matter nor does it create an attorney-client relationship regarding your matter.
To schedule an appointment to discuss drafting conveyance documents, land contracts or to enforce a land contract, please call (734) 475-4659.x