Transfer Topic — Quick Reference Cheat Sheet

Types of Deeds

|---|---|---|

Deed Requirements (LASC-D-DA)

• Legal description, names (grantor/grantee), granting clause, consideration, signature of grantor (not grantee), delivery AND acceptance

• Grantee need not sign — but must accept

Recording

• Race-notice statute: first to record without notice of prior unrecorded interest wins

• Recording = constructive notice to the world

• Unrecorded instrument = binding between parties, but loses to subsequent BFP who records first

Escrow

• Neutral dual agent of both parties

• Northern CA custom: escrow officer (often title company) holds

• Southern CA custom: escrow company separate from title company

• Broker conflict: broker acting as escrow must be licensed and neutral; cannot advocate for either party

Title Insurance

|---|---|---|

Deed	Warranties	Use Case
Grant deed	2 implied: no prior conveyance; no undisclosed encumbrances	Standard CA residential sale
Quitclaim	None	Clear cloud on title; family transfers
Warranty deed	Full covenants (less common in CA)	Some commercial deals
Sheriff's/Trustee's deed	None	Foreclosure, court sale
Policy	Covers	Doesn't Cover
CLTA (standard)	Recorded defects, liens, forgery	Survey, parties in possession
ALTA (extended)	CLTA + survey, parties in possession, unrecorded easements	Active fraud (sometimes)
Lender's policy	Protects lender's interest	Buyer's equity (buyer needs own policy)

- Preliminary title report = summary of findings; NOT insurance

• One-time premium; no renewals; covers owner forever

Proration Formula

Daily rate = Annual amount ÷ 360 (30-day month calendar) or ÷ 365 (actual days)

• Seller pays through day of close; buyer pays from close forward

• Property taxes in CA: due Nov 1 (1st installment) + Feb 1 (2nd); delinquent Dec 10 + Apr 10

Common Exam Traps

• Quitclaim deed conveys WHATEVER interest grantor has — could be nothing

• Grant deed has 2 implied warranties — NOT express; warranty deed has express covenants

• Recording protects against subsequent buyers, not prior parties

• Race-notice: recording alone not enough — must record without notice of prior interest

• CLTA does NOT cover survey issues; ALTA does

• Escrow agent's duty is to BOTH parties; agent cannot take one side's instructions unilaterally