training_guide_deed transfers 5-2014.doc

8/15/2019 Training_Guide_Deed Transfers 5-2014.doc

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DEED TRANSFERS Drafting Basics

Friday, May 9th, 2014

Trainers

Steven Rth!erg, Es"#ire$resident, %enera& 'and Divisin

First A(erican Tit&e )ns#rance *(+any

e&&y -. %ast&ey, Es"#ireS#+ervising Attrney

$hi&ade&+hia /)$

With many thanks to our host

Di&rth $asn ''$TAB'E F *NTENTS


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T3E )M$A*T F 3MENERS3)$ )SS5ES N *')ENTS AND T3E

%REATER $3)'ADE'$3)A *MM5N)T6 7

3AND')N% A $3)'ADE'$3)A /)$ ')M)TED8RE$RESENTAT)N DEED TRANSFER *ASE FA:S.......................................................;

*NTA*T )NFRMAT)N.........................................................9

T 6$ES F T)T'E AND A6S T)T'E *AN BE 3E'D.........................10

). T3E MST *MMN ESTATES )N 'AND...................................................10

A. Fee Si(+&e...............................................................................10

1. Fee Simple Absolute..............................................................................10

2. Defeasible Fees.....................................................................................10

B. 'ife Estates...............................................................................10

*. -int Estates..............................................................................11

1. Tenancy in Common..............................................................................11

2. Joint Tenancy.........................................................................................12

3. Tenancy by the Entirety.........................................................................12

T3E $ARTS F A DEED.......................................................1<

A. Three Ma=r *(+nents f A Deed............................................1<

1. The remises.........................................................................................13

a. Date....................................................................................................13

b. !ames of arties................................................................................13

c. Consi"eration.....................................................................................13

". #rantin$ Clause..................................................................................13

e. %e$al Description................................................................................1&

f. 'ecital................................................................................................1&

$. Encumbrance Clause..........................................................................1&

() Dee" Transfer Trainin$

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h. Appurtenance Clause.........................................................................1&

2. The *aben"um......................................................................................1+

a. To *a,e an" to *ol" Clause................................................................1+

b. Co,enants..........................................................................................1+c. -arranties..........................................................................................1+

3. The Conclusion......................................................................................1+

a. Eecution............................................................................................1/

b. Acnole"$ment................................................................................1/

c. Certication of #rantees A""ress......................................................1/

T 6$ES F DEEDS...............................................................1;

). DEED T 6$ES BASED N ARRANT6 'AN%5A%E...........................................1;

A. S+ecia& arranty........................................................................1;

B. %enera& arranty.......................................................................1;

*. :#it *&ai(..................................................................................1>

)). DEED T 6$ES BASED N $5R$SE F *N/E6AN*E......................................19

A. Deed f *rrectin and Deed f *n?r(atin..............................19

1. Dee" of Correction.................................................................................... 14

2. Dee" of Conrmation................................................................................ 20

B. Deed Transferring $r+erty fr( an Estate and a&& 3eirs t 3eir!taining Tit&e..........................................................................21

$RE$AR)N% T3E DEED FR RE*RD)N% TRANSFER TA@ FRMS,ATTRNE6 AFF)DA/)T, AND S5BM)TT)N% FR RE*RD)N%.............2<

). TRANSFER TA@ FRMS......................................................................2<

A. *(+&eting the Fr(s................................................................2<

B. $ay(ent f and Ecsin fr( Transfer Ta................................2<

)). *M$'ET)N% AN ATTRNE6 AFF)DA/)T...................................................27

))). RE*RD)N% T3E D*5MENTS..............................................................27

A$$END)@


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This trainin$ $ui"e an" the complete Appen"i are a,ailable online at.philly,ip.or$5content5trainin$6materials . )f this is a printe" $ui"e7 see

8Tab 29 for instructions on accessin$ the trainin$ materials online.


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http://www.phillyvip.org/content/training-materialshttp://www.phillyvip.org/content/training-materials


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T3E )M$A*T F 3MENERS3)$ )SS5ESN *')ENTS AND T3E %REATER $3)'ADE'$3)A *MM5N)T6

:any homeoners rst n" out "urin$ a crisis that they "o not ha,e le$al

title to their homes. :any in"i,i"uals are li,in$ in a home title" in the name of a"ecease" relati,e hose estate as probate" but title as ne,er transferre".;thers may hol" title ith a family member or "i,orce" spouse ho no lon$er helpsmaintain the property.

The )mpact on Clients

-ithout le$al title to their home7 our clients may not be able to<

• obtain a $rant or loan to mae ur$ently nee"e" repairs=

• enter into a payment plan for "elin>uent ater5seer or real estate tabills7 in or"er to a,ert a Sheri?s sale of their home=

• ne$otiate ith a mort$a$e company as to a "elin>uent mort$a$e=

• obtain homeoners insurance= or

• transfer or encumber title in the future

As a result7 if title is ne,er transferre" to clients7 they are often left ith thenearly impossible choice of li,in$ in unsafe con"itions or becomin$ homeless.@nresol,e" title issues may also e,entually lea" to foreclosures an" Sheri?s sales7if "elin>uent bills relatin$ to the property cannot be ne$otiate". ecause of theseconse>uences7 title problems may ultimately "epri,e in"i,i"uals of the only assetthat coul" pre,ent them an" their future $enerations of sinin$ more "eeply intopo,erty.

)t is notable that many hila"elphians ithout title to their homes are el"erly.At least +B of the el"erly inter,iee" at senior centers "escribe themsel,es ashomeoners but also say that their names are not on the "ee" to their property.A""itionally7 one6thir" of all properties in hila"elphia are one" by senior citiens.

Thus7 the impact of homeonership issues on the hila"elphia housin$ stoc issi$nicant "ue to its pre,alence ithin the el"erly population alone.

The )mpact on *omes an" !ei$hborhoo"s in hila"elphia

The impact of title issues also eten"s far beyon" the in"i,i"uals hose

homes are "irectly a?ecte"7 reachin$ into the nei$hborhoo"s an" the broa"erhila"elphia community in hich these homes lie. -hen an in"i,i"ual ith a titleproblem is force" to lea,e a property "ue to her inability to repair it7 the property isleft aban"one" an" in si$nicant "isrepair. (acant homes are prone to attractin$criminal acti,ity an" also pose safety an" re "an$ers. Conse>uently7 the City mayboar" up or "emolish such homes7 hich is "one lar$ely at tapayers epense "ueto the Citys inability to collect the costs throu$h the sale of a ,alueless property.Aban"one" properties also "ecrease the ,alue of other properties on the bloc by


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an a,era$e of 7000 an" may pre,ent other homeoners ho li,e ithin +0 feetfrom obtainin$ homeoners insurance "ue to the hei$htene" riss. @nresol,e"title problems also contribute to the occurrence of homelessness in the City7 furtherstrainin$ ,ery limite" resources a,ailable to the approimately 27+00 hila"elphiansho alrea"y sleep in shelters in the City e,ery ni$ht.

The Di?erence That (olunteer Attorneys :ae

Sol,in$ homeonership issues can preser,e housin$7 stabilienei$hborhoo"s7 pre,ent homelessness7 an" stren$then the hila"elphiacommunitys real estate ta base. (olunteer attorneys ho assist clients inobtainin$ title to their homes $reatly contribute to the hila"elphia communitysability to meets these $oals. -hile homeonership issues amon$ lo6incomeclients can be "icult to pre,ent alto$ether7 early inter,ention can help eeppeople in their homes an" can "ecrease the pre,alence an" impact ofhomelessness an" home ,acancy on hila"elphias citienry an" community.


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3AND')N% A $3)'ADE'$3)A /)$ ')M)TED8RE$RESENTAT)N DEEDTRANSFER *ASE FA:S

1. hat are $hi&ade&+hia /)$ Si(+&e Deed Transfer *ases

:ost of ()s "ee" transfer clients nee" full title to their homes to pre,ent losin$their properties at Sheri?s sales. ;nce the clients ha,e full title7 they are eli$iblefor payment plans for "elin>uent real estate taes or mort$a$e mo"ications7 bothof hich stay the sale of their homes. ;ther clients nee" full title to >ualify for City6run home repair pro$rams. (olunteer attorneys limit their representation topro,i"in$ "ee" transfers only.

2. 3 can a deed transfer case !e &i(ited re+resentatin Dnt )need a tit&e re+rt

() sta? counsels the clients etensi,ely before the cases are referre" to ,olunteers

to mae it clear clients are tain$ title subGect to any "efects in title an" outstan"in$liens. The specic topics co,ere" in our counselin$ are<

Title 'eport< -hat it is an" the riss of not obtainin$ one. Clients are tol"

they ha,e the option to purchase the report.

Title )nsurance< -hat it is an" the riss of not obtainin$ it. Clients are tol"

they ha,e the option to purchase title insurance.

The importance of obtainin$ property HhomeonersI insurance an"

information on a ho to obtain property insurance.

)f a transfer of title is from an estate to an in"i,i"ual7 there is etensi,ecounselin$ about the 8at6ris9 "istribution7 if applicable. This inclu"esinformin$ the client7 ho is also the personal representati,e of the estate7about the potential personal liability for not formally "istributin$ estateassets. )n the ,ast maGority of our cases7 the real property is the only estateasset.

After clients are counsele" on the abo,e7 they are ase" if they still ant to

procee" ith their cases. H:ost "o.I The a",ice is then conrme" by letter.;ur referrals to ,olunteer attorneys inclu"e copies of these letters.


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es. () is the primary malpractice insurer for all () ,olunteer attorneys.

7. i&& ) have t &cate (issing +arties needed t sign the deed

!o. All parties ith a le$al interest in the property ha,e been ascertaine" an" areillin$ to $i,e their interest in the property to the client. )f you learn otherise once

you accept the case7 you "o not ha,e to procee". 8:issin$ party9 cases are notsimple "ee" transfers= they are han"le" as tan$le" title cases. HShoul" you ha,e aninterest in orin$ on a tan$le" title case7 please let () no. -e ha,e plenty.I

. hen ) taCe a si(+&e deed transfer case, hat i&& /)$ send (e

The client le ill be emaile" to you an" ill inclu"e the client contact information7case summary7 an" the last recor"e" "ee". () has "ee" templates an" all thenecessary forms on our ebsite un"er 8Trainin$ :aterials9 foun" here<.philly,ip.or$5content5trainin$6materials.

;. )f ) have "#estins, h( d ) cntact at /)$

Each () case is assi$ne" to a () sta? member. Sta? members are responsible forreferrin$ their cases to ,olunteers an" pro,i"in$ ,olunteer support for "uration ofthe case. )f you ha,e >uestions7 you contact the sta? member ho sent you thecase. H;ccasionally7 () sitches case assi$nments internally an" a ne sta?member ill be assi$ne" to your case. This shoul" not impact the support yourecei,e from ().I

>. 3 des the deed get recrded

Department of 'ecor"s Commissioner7 Joan Decer7 permits () clients "ee"s to berecor"e" for free. ;nce the "ee" is complete7 sen" the "ee"7 the transfer ta

forms7 an" attorney a"a,it to your () contact an" the "ee" ill be submitte" forrecor"in$. ;nce the "ee" is recor"e"7 e return the ori$inal to you so that you cansen" it to your client alon$ ith a case closin$ letter.

9. hat a!#t transfer ta

;ur simple "ee" transfer cases are either eempt from transfer ta or the clientsha,e the fun"s sa,e" to pay for the ta.

10. My ce is in the s#!#r!s. *an ) (eet ith (y c&ient at /)$sce in $hi&ade&+hia

Absolutely. () has pri,ate meetin$ areas for ,olunteers an" their clients. The "ee"can be eecute" at () an" notarie" by our notary free of char$e. our () contactcan reser,e the meetin$ space an" sche"ule the notary ser,ices.


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*NTA*T )NFRMAT)N

ou can alays contact () ith any >uestions or concerns that you cannototherise resol,e. -e are alays here to pro,i"e $ui"ance or a",ice hene,er e

can.

3ever, e asC that #r vnteer attrneys #se #r training(ateria&s as a +ri(ary res#rce. ;ur most current trainin$ materials7 inclu"in$sample forms7 are a,ailable at http


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T 6$ES F T)T'E AND A6S T)T'E *AN BE 3E'D1

The substance of this section of the materials lar$ely relies upon Frie"man7'onal" :.7 %a"ner7 Pennsylvania Real Estate Law H+th e".7 isel 200/ N Supp.

201262013I

). The :ost Common Estates in %an"

A. FEE S):%E

1. Fee Simple Absolute

Complete onership of the property for an unlimite" "uration. This is thelar$est estate by hich an oner can hol" title. The oner has the ri$ht to sell7transfer7 an" "e,ise the property. @se an" transfer of the property is only limite" byrestrictions ithin the "ee" itself an" local7 state7 an" fe"eral la.

The or"s necessary to $rant fee simple title< 8$rant an" con,ey7 or eitherone of sai" or"s . . .9 H21 .S. O 2I

2. Defeasible Fees

Defeasible fees are fee simple estates that can be terminate" upon a state"e,ent. Fee simple "eterminable7 fee simple subGect to a con"ition subse>uent7 feesimple subGect to a con"ition prece"ent7 an" fee simple subGect to an eecutoryinterest are common forms of "efeasible fees. Defeasible fees are uncommonmo"ern times an" "isfa,ore" because they clou" the chain of title.

Defeasible fees ill not be co,ere" further in this trainin$. For a thorou$h"iscussion of "efeasible fees7 see the Restatement (First) of Property , §§ 45-58 (1936).

. %)FE ESTATES

A life estate is create" hen the property is transferre" to a $rantee for the

"uration of a persons life. The $rantee of a life estate is calle" the life tenant.@pon the "eath of the life tenant7 the property ,ests in the remain"erman7 ho7unless state" otherise7 ons the property in fee simple absolute. The life tenanthas a "uty to the remain"erman to maintain the property "urin$ his or her lifetime.

Fre>uently the life tenant an" the $rantee are the same person= hoe,er7 alife estate may be measure" by the life of a person other than the $rantee. This is

1 Tese materia!s are not inten"e" to #e a $ompreensi%e $o&rse on tit!e to rea! property. Te p&rpose of tis '&i"e

is to e!p P %o!&nteer attorneys *it teir P $ases+ an" te $ontent is !imite" a$$or"in'!y.


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non as a life estate pur aytre vie Hlife of anotherI.

The life tenant may sell7 transfer7 or lease his or her life tenancy freely. Therecipient7 hoe,er7 must reco$nie that his or her ri$hts to the property only last aslon$ as the life by hich the life tenancy is measure".

!o specic lan$ua$e is necessary to create a life estate. See In re Appeal ofBd. of Dir. of Owen J. Roberts Sc. Dist. 7 +00 a. &/+7 &0 Ha. 14K3I. As shon inthe eamples belo7 a life estate may be reser,e" by notin$ it alon$ ith the partynames an" a""in$ lan$ua$e to the encumbrance clause of a "ee". HSee the section8The Dee" :ap Dene"9 for more information about the namin$ the parties an" theencumbrance clause.I

)"entify the life estate alon$ ith the names of the parties<

P#'A!TEESQ7 ith P#'A!T;' 'ETA)!)!# A %)FE ESTATEQ7 in"i,i"ually7reser,in$ unto P*):5*E'Qself a life estate

Describe in the life estate in the encumbrance clause<

S@JECT T; a life estate reser,e" to P!A:E ;F #'A!T;' 'ETA)!)!# A%)FE ESTATEQ7 in"i,i"ually

C. J;)!T ESTATES

A Goint estate eists hen to or more people on a property concurrently. There are three common types of Goint estates< tenancy in common7 Goint tenancyHith the ri$ht of sur,i,orshipI7 an" tenancy by the entireties.

1. Tenancy in Common

Each oner7 or cotenant7 has an e>ual7 un"i,i"e" interest in the property.Cotenants ha,e e>ual ri$hts to possession. A cotenant may sell or transfer herinterest in the property ithout the permission of the other onerHsI. @pon the"eath of a cotenant7 her interest in the property passes to her heirs an" not to thesur,i,in$ co6tenantHsI.

Tenancy in common is the le$al presumption of onership unless there islan$ua$e in the "ee" statin$ otherise. Estate of Bruce7 32 a.Super. 1/7 23 Ha.Super. Ct. 14KKI.

2. Joint Tenancy


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Joint tenants ha,e an e>ual7 partial6interest in a property ith the ri$ht ofsur,i,orship. -hen a Goint tenant "ies7 the sur,i,in$ Goint tenant becomes the soleoner by operation of la. This ri$ht of sur,i,orship trumps the ri$hts of the"ecease" Goint tenants heirs. For eample7 a sur,i,in$ Goint tenant is the soleoner of the property e,en if the "ecease" Goint tenant left a ill "e,isin$ hisinterest in the property to his son.

The creation of a Goint tenancy re>uires four unities. Joint tenants mustrecei,e< 1I e>ual interests in the property7 2I at the same time7 3I ,ia the samecon,eyance7 &I ith e>ual ri$hts of possession. Seridan v. Lucey 7 1&4 A.2" &&&7&&+6&&/ Ha. 14+4I. )f a Goint tenant se,ers one of the four unities7 a tenancy incommon is create".

!o specic or statutory lan$ua$e is nee"e" to create a Goint tenancy=hoe,er7 the "ee" must mae the ri$ht of sur,i,orship eplicit. ;ften "ee"s statethe property is con,eye" to the $rantees as 8Goint tenants ith the ri$ht ofsur,i,orship7 an" not as tenants in common.9

3. Tenancy by the Entirety

A tenancy by the entirety may only eist beteen le$ally marrie" couples. Tenants by the entirety ha,e a ri$ht of sur,i,orship= upon the "eath of a spouse7 thesur,i,in$ spouse becomes the sole oner of the property by operation of la.

Tenancy by the entirety is further "ene" by the le$al ction that each partner inthe marria$e has a full interest in the property simultaneously. Such onershippro,i"es protection from cre"itors not a,ailable to Goint tenants.

)f a couple is le$ally marrie"7 unless the "ee" in"icates otherise7 they arepresume" to hol" title as tenants by the entirety e,en if the "ee" "oes not

specically state 8tenants by the entirety9.

A "ee" may erroneously $rant title to an unmarrie" couple as tenants by theentirety. Such an error is interprete" in the folloin$ ay. )f a "ee" states RJoe an"Anna Smith7 his ifeR an" later "enes the title as Rtenants by the entirety7R a Gointtenancy ith ri$ht of sur,i,orship is establishe". See !a"well v. Saylor 7 +K A.2"3++ Ha. 14&KI. )f the "ee" merely $rants title to RJoe an" Anna Smith7 his ife7Rith no oter reference to ho theyre tain$ title7 a tenancy in common results.See #eacer v. $i%urina7 / A.2" 14 Ha. 14+0I.


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T3E $ARTS F A DEED

The substance of this section of the materials lar$ely relies upon Frie"man7'onal" :.7 %a"ner7 Pennsylvania Real Estate Law H+th e".7 isel 200/ N Supp.

201262013I

A. T*'EE :AJ;' C;:;!E!TS ;F A DEED

Fr ea(+&es f the deed e&e(ents descri!ed !e&, +&ease refer tthe deed (a+ in the A++endi.

1. The remises

The premises contains the maGority of the "ee"s tet an" is the portion ofthe "ee" that most is specically tailore" to each transfer.

a. Date

A "ate is not necessary for a "ee" to be ,ali"7 but it is e,i"ence of the "ate of eecution an" is re>uire" by the hila"elphia Commissioner of 'ecor"s forrecor"in$. !ote that "eli,ery7 rather than eecution7 transfers title.

Drafting Ti+< )f there are multiple $rantors an" they "o not si$n the "ee" on

the same "ay7 the "ee" shoul" be $i,en the same "ate as the "ay the rst$rantor si$ns.

b. &a'es of Parties

arties shoul" be i"entie" ith their full names. Careful attention shoul" be$i,en to spellin$ an" correctness. Simple typos can ha,e bi$ conse>uences an"clou" the chain of title.

c. (onsideration

Consi"eration is the amount pai" by the $rantee for the property. )f no actual

consi"eration as $i,en7 a nominal amount7 usually 1.00 is liste". A "ee" isconsi"ere" ,ali" once recor"e" e,en if consi"eration is not liste". 21 .S. O &1.*oe,er7 it is $oo" practice to inclu"e the amount of consi"eration to a,oi" later"isputes o,er purchase price. Consi"eration lan$ua$e is re>uire" by thehila"elphia Commissioner of 'ecor"s for recor"in$.

d. )rantin* (lause


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The $rantin$ clause i"enties the type of estate bein$ con,eye". 21 .S. O 2pro,i"es78unless e"pressly li'ited to a lesser estate7 the or"s $rant an" con,ey7 or eitherone of sai" or"s7 shall be e?ecti,e to pass to the $rantee or $rantees name"therein a fee simple title to the premises con,eye"7 if the $rantor or $rantorspossesse" such a title . . .9 Hemphasis a""e"I.

e. Le*al Description

The le$al "escription i"enties the property bein$ transferre". -hile it "oesnot ha,e to be technically eact7 it shoul" be "ene" ell enou$h for a sur,eyor toi"entify the property. Dic+enson v. Pennsylvania Power , Li*t (o.7 &23 A.2" 117127 13 Ha. Super. Ct. 14K0I.

Drafting Ti+< For () cases7 the property "escription shoul" ne,er be

chan$e". Carefully transcribe the property "escription from the prior "ee" to

the ne "ee"7 archaic lan$ua$e an" all.

f. Recital

The "ee"s recital eplains the chain of title. The "ee" shoul" i"entify hothe $rantors too title7 ho they hel" title7 an" by hich "ee".

Drafting Ti+< )n hila"elphia7 deed !Cs na(es are $enerate" from the

initials of the Commissioner of 'ecor"s at the time the "ee" as eecute".For instance7 a "ee" recor"e" in 144 ill ha,e the "ee" boo name J.T.D forCommissioner Joan Decer.

As of December /7 14447 the hila"elphia Department of 'ecor"s mo,e" to ane recor"in$ system hereby each "ee" is electronically issue" a "ocument

)D number. This "ocument )D number is no use" in lieu of the "ee" booname7 number7 an" pa$e number.

*. Encu'brance (lause

!ot all "ee"s ha,e an encumbrance clause. )f applicable7 the encumbranceclause inclu"es any restrictions of recor" or easements.

. Appurtenance (lause

Any buil"in$s or impro,ements on the property an" ri$hts of ay7 such as"ri,eays7 are transferre" ,ia the appurtenance clause.

Drafting Ti+< For () cases7 the appurtenance clause ne,er chan$es7 ith

the eception of chan$in$ 8$rantor9 to 8$rantors9 or ,ice ,ersa.


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2. The *aben"um

The haben"um clause "escribes the etent of the estate con,eye"7 anyrestrictions in its use7 an" arranty lan$ua$e.

a. #o -ave and to -old (lause

The ha,e an" to hol" clause is also specically no as the haben"umclause. )t is another part of the "ee" that i"enties the estate bein$ con,eye"7such as Goint tenants ith the ri$ht of sur,i,orship or tenants by the entireties.

b. (ovenants

A "etaile" "iscussion of co,enants is beyon" the scope of this trainin$.

#enerally7 co,enants are promises ma"e in the "ee" re>uirin$ the lan" oner to "o7or not to "o7 somethin$ ith the lan". ;ther co,enants are promises ma"e by the$rantor $uaranteein$ that the property is free of encumbrances.

21 .S. O & "ictates that if a "ee" contains the 8or"s $rant an" con,ey7 oreither one of sai" or"s79 the "ee" co,enants the folloin$7 as lon$ as the "ee""oes not epressly state otherise<

1. the $rantor one" the property in fee simple72. the $rantor has the ri$ht to con,ey the property73. the property is free from any encumbrances create" by the $rantor7 an"&. >uiet enGoyment7 hereby no other ill claim superior title

Drafting Ti+< For () cases7 the appurtenance clause ne,er chan$es7 ith

the eception of chan$in$ 8$rantor9 to 8$rantors9 or ,ice ,ersa.

c. arranties

Dee" arranties are either special or $eneral. A s+ecia& arranty is aco,enant by the $rantor that he ill "efen" the $rantee a$ainst any claims a$ainstthe property as a result of his actions hile the oner. H21 .S. O /I A $eneralarranty is a co,enant by the $rantor hereby he ill "efen" a$ainst any an" all

claims a$ainst the property. H21 .S. O +I -arranty is "iscusse" belo in the section8Dee" Types ase" on -arranty %an$ua$e9.

3. The Conclusion

The conclusion of the "ee" inclu"es the eecution clause7 acnole"$ment7receipt an" certication of a""ress. The lan$ua$e in the conclusion of the "ee" islar$ely boilerplate= it may be copie" "irectly from the prior "ee".


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a. E"ecution

The "ee" only nee"s to be si$ne" by the $rantor= the $rantee "oes not si$n.-itness are not a le$al re>uirement but may ser,e as etra protection a$ainst

frau".

Drafting Ti+< The $rantors name must be eactly as it appears in the

8!ames of arties9 at the be$innin$ of a "ee".

b. Ac+nowled*'ent

21 .S. O 241. lists all of the forms of acnole"$ement. A notaryacnole"$ement is use" in most () cases7 an" the appropriate lan$ua$e can befoun" in the 8Dee" :ap9 section abo,e.

c. (erti/cation of )rantee0s Address

The certication of $rantees a""ress is re>uire" by 1/ .S. O 4K1. This isbillin$ a""ress use" by the property ta assessors.


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T 6$ES F DEEDS

For eplanatory purposes7 is easiest to $roup the "i?erences amon$ "ee"sinto to cate$ories< types of arranty lan$ua$e or lac thereof Hspecial arranty7$eneral arranty7 an" >uit claimI an" purpose of con,eyance Hcorrecti,e "ee"7

transfer from an estate7 a""ition5remo,al of an onerI. It is i'portant to note tatso'e of tese deed types 'ay be co'bined. 1or instance2 a deed of correction'ay contain a special warranty.

). Dee" Types ase" on -arranty %an$ua$e

The folloin$ "ee"s all "i?er in hat they "o or "o not arrant to the$rantee. Each may be "rafte" by mo"ifyin$ the arranty clause in the haben"um.

A. SEC)A% -A''A!T

Special arranty is the most commonly use" arranty lan$ua$e in "ee"s. Asmentione" in the section 8Dee" :ap Dene"97 a special arranty is a co,enant bythe $rantor that he ill "efen" the $rantee a$ainst any claims a$ainst the propertyas a result of his actions hile the oner. H21 .S. O /I

elo is arranty clause that contains a special arranty= the specialarranty lan$ua$e is bol".

Special -arranty %an$ua$e

AND the sai" #rantor7 for P*)S5*E'Qself7 heirs7 eecutors an" a"ministrators"o co,enant7 promise an" a$ree7 to an" ith the sai" #rantees an" the sur,i,orof them7 an" the heirs an" assi$ns of such sur,i,or7 by these presents7 thatthey7 the sai" #rantor an" P*)S5*E'Q heirs7 all an" sin$ular the here"itamentsan" premises hereby $rante" or mentione" an" inten"e" so to be7 ith theappurtenances7 unto the sai" #rantees an" the sur,i,or of them7 an" the heirsan" assi$ns of such sur,i,or7 a$ainst them7 the sai" #rantor an" P*)S5*E'Qheirs7 an" a$ainst all an" e,ery person an" persons homsoe,er lafullyclaimin$ or to claim the same or any part thereof7 !y fr( r #nder hi(,her, the(, r any f the(7 shall an" ill S@JECT as aforesai"7 -A''A!T an"fore,er DEFE!D.

. #E!E'A% -A''A!T

As mentione" in the section 8Dee" :ap Dene"97 a $eneral arranty "ee" isa co,enant by the $rantor hereby he ill "efen" a$ainst any an" all claims a$ainstthe property. H21 .S. O +I. The $rantor is essentially promisin$ a $rant of perfect


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title. #i,en the ei$ht an" le$al implications of such a promise7 $eneral arranty"ee"s are rarely use".

A $eneral arranty clause is create" by omittin$ the 8by from or un"er him7her7 them7 or any of them9 lan$ua$e that is use" to create a special arranty.

#eneral -arranty %an$ua$e

AND the sai" #rantor7 for P*)S5*E'Qself7 heirs7 eecutors an" a"ministrators"o co,enant7 promise an" a$ree7 to an" ith the sai" #rantees an" thesur,i,or of them7 an" the heirs an" assi$ns of such sur,i,or7 by thesepresents7 that they7 the sai" #rantor an" P*)S5*E'Q heirs7 all an" sin$ular thehere"itaments an" premises hereby $rante" or mentione" an" inten"e" so tobe7 ith the appurtenances7 unto the sai" #rantees an" the sur,i,or of them7an" the heirs an" assi$ns of such sur,i,or7 a$ainst them7 the sai" #rantoran" P*)S5*E'Q heirs7 an" a$ainst all an" e,ery person an" personshomsoe,er lafully claimin$ or to claim the same or any part thereof7 shallan" ill S@JECT as aforesai"7 -A''A!T an" fore,er DEFE!D.

C. U@)T C%A):

A >uit claim "ee" transfers the $rantors interest in a property7 hate,er itmay be7 to the $rantee= it "oes not transfer the property itself. Uuit claim "ee"scontain no arranties of title. For these reasons7 it is the least a",anta$eous formof title for a $rantee.

For a "ee" to be consi"ere" a >uit claim7 it nee" only contain the or"s8release an" >uit claim9 H21 .S. O I. Typically >uit claims "ee"s are $i,en the title8>uit claim9 an" often >uit6claim lan$ua$e is inclu"e" in the premises portion of the"ee" here the $rant of title is ma"e.

Uuit6Claim %an$ua$e

-)T!ESSET*< That the sai" #rantor7 for an" in consi"eration of the sum ofPA:;@!T ;F :;!E A)D7 )! -;'DSQ Dollars HPA:;@!T ;F :;!E A)D7 )!!@:E'SQI laful money of the @nite" States of America7 unto Phim5herQ ellan" truly pai" by the sai" #rantee7 at or before the sealin$ an" "eli,eryhereof7 the receipt hereof in full is hereby acnole"$e"7 "oes herebyre&ease and "#it8c&ai( any an" all ri$ht7 title an" interest hich sai"#rantor may ha,e in an" to the hereinafter "escribe" property unto the sai"#rantee7 Phis5herQ personal representati,es7 heirs an" assi$ns7 fore,er7

)). Dee" Types ase" on urpose of Con,eyance


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A. DEED ;F C;''ECT);! A!D DEED ;F C;!F)':AT);!

The purpose of "ee"s of correction an" conrmation are to clarify the chain of

title. There is no ne transfer of title.

1. Dee" of Correction

Dee"s of correction correct mistaes in a prior "ee". ;ften these "ee"s areuse" to correct the spellin$ of a partys name. lease see the appen"i for asample Dee" of Correction.

Ø E@AM$'E A&&isn *r&ey is the recor" oner of her property. She

ants to apply for a lo6income payment plan for her ater bill. To beeli$ible for best payment plan7 she must pro,e she is the oner of theproperty. Allison submits her application an" a copy of her "ee" to theater "epartment. *er application is reGecte" because the representati,e"etermines that she "oes not on her house. The reGection notice statesthe property belon$s to Allison Craley7 not Allison Crley. Sureenou$h7 hen Alison loos at her "ee"7 she sees that her last name ismisspelle" as Craley. Alisons case is referre" to hila"elphia () for a,olunteer to prepare a correcti,e "ee" so that she may enter a lo6income payment plan for ater.

The Stin fr A&&isn Allison nee"s a "ee" correctin$ the spellin$ of her name. Since Allison alrea"y ons the property7 she is the $rantor an"the $rantee. The +arty na(es ill loo lie this<

BETEEN A&&isn *r&ey

Hhereinafter calle" the #rantor of the one partI7 an"

A&&isn *r&ey

Hhereinafter calle" the #rantee of the other partI

The nature of the mistae is eplaine" in the Recita&<

AND 3EREAS the name of $rantee Allison Croley asmisspelle" as 8Allison Craley9 in the aforementione" Dee""ate" September 137 14447 an" the correct spellin$ of sai"$rantees name is 8Allison Croley9.

2. Dee" of Conrmation


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Dee"s of conrmation are use" to mae eplicit a $rantees interest in aproperty. A "ee" of conrmation may be recor"e" alon$ ith a court or"er $rantin$title to a "efen"ant to clarify the chain of title an" nature of the lasuit. These"ee"s may also be use" to conrm onership that chan$e" by operation la. Forinstance7 if three parties one" a property as Goint tenants7 an" one of the Goint

tenants "ies7 the parties may "esire a "ee" of conrmation to mae it clear theproperty has only has to oners.

At hila"elphia ()7 a "ee" of conrmation is use" hen a "ee" contains aSouth hilly Trust. A South hilly Trust "ee" contains >uasi6trust lan$ua$e puttin$the property in trust for the life of the $rantor Husually a parentI an" ,estin$ inremain"erman Husually the $rantors chil"renI at his or her "eath. See theAppen"i for a South hilly Trust Dee" an" Dee" of Conrmation.

The South hilly Trust is a >uasi6trust7 in part7 because the $rantor is also thetrustee an" he or she retains full control o,er the property "urin$ his or her lifetime7inclu"in$ the poers to sell an" mort$a$e the property. The South hilly Trust is not

a life estate because the $rantor5trustee has the poer to sell an" encumber theproperty at6ill an" has no "uty to the remain"erman to maintain the property.

These "ee"s ere "esi$ne" as an estate plannin$ tool to a,oi" probate. Theyessentially ser,e as ill substitutes.

Ø E@AM$'E A&ec Sa#nders is li,in$ in a property that his mother7 Tara

Saun"ers7 no "ecease"7 hel" for him in a South hilly Trust. -hen Alec$ot behin" on the real estate taes7 he ent to the Department of'e,enue to enter a nancial har"ship payment a$reement for the"elin>uent taes. Alec shoe" the 'e,enue representati,e the "ee" an"pointe" out that his name as on it. The 'e,enue representati,e sai" heas not eli$ible for a nancial har"ship plan because he is not the onerof the property. Alecs case as referre" to () for help clarifyin$ hisonership of the property.

The Stin fr R!ert Alec nee"s a "ee" conrmin$ his le$alinterest in the property. The "raftin$ an" structure of the "ee" is ,erysimilar to the "ee" of correction. Since Alec alrea"y has a le$al interest inthe property an" no property interest is bein$ transferre" to him7 he illbe the $rantor an" $rantee. See the 8Dee" of Correction9 section for aneample.

Alecs le$al interest in the property is eplaine" in the Recita& ith a brief summary. For eample7

AND 3EREAS un"er sai" )n"enture7 Tara Saun"ers hel" titlein trust for Alec Saun"ers7 the 'emain"erman7 an" upon the"eath of Tara Saun"ers7 sai" premises as to ,est in thepossession of the 'emain"erman7 his heirs an" assi$ns7

AND 3EREAS Tara Saun"ers "ie" on :ay 1K7 20027 ithoutha,in$ sol"7 con,eye"7 or otherise transferre" sai" premises


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"urin$ her lifetime7 an" fee simple onership of sai" premisesas then ,este" in Alec Saun"ers7

. DEED T'A!SFE'')!# ';E'T F';: A! ESTATE A!D A%% *E)'S T; *E)' ;TA)!)!# T)T%E

:any of our clients recei,e title to real property from the estate of a"ecease" relati,e. For a property to be transferre" from an estate7 the estate mustbe probate". Throu$h the probate process7 a ersonal 'epresentati,e HEecutor orA"ministratorI of the estate is appointe". The ersonal 'epresentati,e has the le$alauthority to eecute a "ee" transferrin$ the property from the estate to the heirs.

;ften in such cases7 the client is one of se,eral heirs ith a le$al interest inthe property. For the client to be the sole oner7 all of the heirs must be illin$ to$i,e the client their interest in the property. )f the all of the heirs are illin$7 theproperty nee"s to be transferre" from the estate to the heirs an" then from theheirs to the client. These to transfers can be ma"e ,ia to separate "ee"s V a"ee" from the estate to the heirs7 then a secon" "ee" from the all of the heirs tothe client in"i,i"ually. ;r7 the transfers can be combine" into one "ee". -erecommen" "raftin$ a sin$le "ee" that contains both transfers because it is lesscumbersome a"ministrati,ely. See the Appen"i for a sample "ee" by a personalrepresentati,e an" all heirs to heirHsI obtainin$ title.

A "ee" by a personal representati,e an" all heirs to heirHsI obtainin$ titlemust inclu"e all $rantors an" $rantees. The $rantors of the "ee" shoul" be liste"as H1I the ersonal 'epresentati,e of the estate of the "ece"ent7 H2I your clientin"i,i"ually7 if also the ersonal 'epresentati,e7 an" H3I all other heirs. The$rantees shoul" be liste" as your client an" any other heirHsI retainin$ an interest inthe property.

Ø E@AM$'E Dana A&&en is li,in$ in a property title" in the name of her

"ecease" father7 Joseph Allen. She has to brothers an" one sister. Eachof her siblin$s on their on homes an" consi"er their Da"s house to beDanas house. Dana maintains the property the best she can on her e"income from Social Security. After a recent storm7 she notice" a lea inthe ceilin$ of her upstairs be"room. She ha" the roof inspecte" an"learne" that she nee"s a ne roof. Shes "istresse" because she cannota?or" a ne roof. *er nei$hbor tells her that the City ill $i,e her a neroof for free because she is lo income.

Dana completes the City application to ha,e her roof repaire" or replace".She note" in the application that her "ecease" father one" the property7but that she as one of his heirs. She inclu"e" the %etters ofA"ministration namin$ her as the ersonal 'epresentati,e of her fathersestate an" a copy of the "ee" ith the application. She note" in theapplication that her family consi"ers the house hers7 but after payin$ theprobate fees to open her fathers estate7 she "i" not ha,e enou$h moneyto pay for a "ee" transfer.


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$RE$AR)N% T3E DEED FR RE*RD)N% TRANSFER TA@ FRMS,ATTRNE6 AFF)DA/)T, AND S5BM)TT)N% FR RE*RD)N%

). Transfer Ta Forms

A. C;:%ET)!# T*E F;':S

The folloin$ points shoul" be consi"ere" hen completin$ the transfer taforms<

• () su$$ests listin$ the client7 rather than yourself or a parale$al7 as

the 8Correspon"ent.9

•

ou "o not nee" to list a ta parcel number in Section C.

• )n completin$ the 8(aluation Data9 section on the forms<

o ou must state the actual consi"eration that the $rantee pai" for

the property7 if any.

o The 8County Assesse" (alue9 can be foun" on the ;ce of

roperty Assessment H;AI ebsite. HSee 8;A Account Details9for information on accessin$ the ;A ebsite.I e sure to usethe ;As total assesse" ,alue7 an" not its maret ,alue.

o The Common %e,el 'atio Factor HC%'FI is no 1.007 as of January 201&. *hanges in the *'RF genera&&y cc#r every -#&y 1 an" are liste" un"er the 8'ecent De,elopments an"@p"ate9 section of the *omeonership Trainin$ :aterialsebpa$e7 accessible throu$hhttp


24/26

. A:E!T ;F A!D EWC%@S);! F';: T'A!SFE' TAW

Title transfers may be subGect to transfer taes. *oe,er7 they ill beeclu"e" from transfer ta in the folloin$ situations<

• if the client is obtainin$ title to the property throu$h testate or

intestate succession=

• if the client is obtainin$ title to the property from certain family orhousehol" members Hsee imme"iately beloI=

o Transfers beteen the folloin$ familial relationships are

eclu"e" from transfer ta<

*usban" an" ife

Di,orce" couple if the property as ac>uire" before the

"i,orce "ecree as issue"

arent an" chil" arent an" chil"s spouse

Siblin$s

A siblin$ an" his or her siblin$s spouse

#ran"parent an" $ran"chil"

#ran"parent an" spouse of $ran"chil"

o Transfers beteen the folloin$ familial relationships are not

eclu"e" from transfer ta

Aunt5@ncle an" niece5nephe

#ran"parent an" $reat6$ran"chil"

o &ote< )n !o,ember of 2007 the City amen"e" the hila"elphia

Co"e to eempt from hila"elphia real estate transfer ta8nancially inter"epen"ent persons9 HF)sI. F)s are "ene" inhila. Co"e O 1461&02 as 8persons ho li,e to$ether as a sin$lehousehol" an" ho7 for at least si months7 ha,e a$ree" toshare the common necessities of life an" to be responsible foreach others common elfare.9 HSee Appen"i.I

)n or"er to claim this eemption7 you shoul" eplain your clientsstatus as an F) in relation to the $rantor on the city transfer ta

form. !ote that this eemption applies only to hila"elphia7 an"not ennsyl,ania7 transfer ta.

• if the client is recor"in$ a "ee" of correction7 to correct an error on the

last recor"e" "ee" but not otherise chan$in$ title to the property= or

• if the client is recor"in$ a "ee" of conrmation7 to conrm that s5he is

no the oner of the property He.$.7 pursuant to a South hilly Trust


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here the trustee is no "ecease"7 or "ue to a Goint tenant ith ri$htof sur,i,orship ha,in$ passe" aayI.

See 2 A. C.S. O K1026C.37 an" hila. Co"e OO 1461&02 an" 1461&0+7 or Appen"i to"etermine if your clients title transfer is eclu"e" from transfer ta. )f you areunsure as to hether your clients title transfer is subGect to transfer ta7 you shoul"

contact the sta? at hila"elphia (). HSee 8*elpful 'esources an" Contact)nformation9 for our contact information.I

If te transfer is sub%ect to transfer ta" 7 you must submit payment for thetransfer ta alon$ ith the "ee" an" transfer ta forms<

• Transfer ta is a percenta$e of one of the to folloin$ ,alues<

o If your client obtained title trou* a bona /de ar'0s len*t sale

for actual 'onetary wort7 then it is a percenta$e of the totalconsi"eration pai".

o If your client instead obtained title by ineritance2 by *ift2 or for

consideration less tan te actual 'onetary wort of te realestate7 then it is a percenta$e of the 8fair maret ,alue.9 The8fair maret ,alue9 is the OPA total assessed value as of the"ate of recor"in$ multiplie" by the (o''on Level Ratio 1actor .HSee 8Completin$ the Transfer Ta Forms9 for ho to n" these$ures.I

o See Appen"i for the ennsyl,ania statute an" hila"elphia

Co"e section that further eplain ho to use these ,alues tocalculate the transfer ta oe".

• hila"elphia transfer ta is 3B of the ,alue as "etermine" abo,e.

Checs or money or"ers shoul" be ma"e out to 8City of hila"elphia.9

• ennsyl,ania transfer ta is 1B of the ,alue as "etermine" abo,e.

Checs or money or"ers shoul" be ma"e out to 8Commonealth ofennsyl,ania.9

• Transfer ta can be pai" for by the Tan$le" Title Fun". See 8Step &<Applyin$ to the Tan$le" Title Fun"9

)). Completin$ an Attorney A"a,it

E?ecti,e !o,ember 37 200K7 attorneys must no submit a notarie" A"a,itin or"er to recor" a "ee" ithout the Department of 'ecor"s ha,in$ to run apossibly time6consumin$ 8"ee" name match.9 HSee Appen"i orhttp


26/26

City Council ill !o. 0K0&2&6A amen"e" Title 2 of the hila"elphia Co"e bycreatin$ ne re>uirements for all "ee" "ocuments submitte" for recor"in$. HSeehila"elphia Co"e ch. 26200 H200KI.I The ne or"inance re>uires the Department of 'ecor"s to perform a Rname matchR of the $rantors name on the ne "ee" an" the$rantees name on the prior "ee"7 hich can be time6consumin$ if the last recor"e""ee" has not been electronically in"ee". *oe,er7 the or"inance eempts the

Department from ha,in$ to run a name match if an attorney or title companysubmits the "ee" for recor"in$. Thus7 the Department of 'ecor"s no re>uiresattorneys an" title companies to submit an A"a,it armin$ their status an" the,ali"ity of the ne "ee"7 so that they can be eempt from the name6match process.

))). 'ecor"in$ the Documents

;nce you ha,e prepare" the "ocuments as eplaine" abo,e an" are rea"y torecor" them7 they sh#&d !e sent t /)$ !y certi?ed (ai&, hand8de&ivery, r

s(e ther ty+e f de&ivery that can !e tracCed since the rigina&,eec#ted deed is !eing trans(ittedG, s that /)$ can recrd it ith theRecrder f Deeds ith a aiver f the #s#a& recrding fee.

• I'portant

A&& "ocuments shoul" be $i,en to () to be recor"e"7 because Joan T. Decer7 Commissioner of the Department of 'ecor"s7 has $enerouslya$ree" to recor" "ocuments for () clients ith a aiver f the ty+ica&recrding fee. D#e t this arrange(ent, +&ease nte that neither/)$ nr the Tang&ed Tit&e F#nd i&& rei(!#rse vnteer attrneys,their ?r(s, r #r c&ients fr recrding fees.

)f you are sen"in$ a Dee" to () for recor"in$7 please be sure to inclu"e all ofthe folloin$ "ocuments that are re>uire" by the hila"elphia Department of'ecor"s<

• the eecute" Dee"

• 2 copies of the hila"elphia 'eal Estate Transfer Ta Certication an" 1

copy of the ennsyl,ania 'ealty Transfer Ta7 Statement of (alue

• if te transfer is sub%ect to transfer ta"es7 payment for hila"elphia an"

ennsyl,ania transfer taes

• a notarie" Attorney A"a,it

• a certie" copy of the courts or"er7 if applicable

The 'ecor"er of Dee"s ill recor" the "ocument an" return the ori$inal recor"e""ocument to (). /)$ i&& then ret#rn the rigina& recrded dc#(ent ty#, s that y# can then trans(it it t y#r c&ient.