North Carolina General Warranty Deed

The North Carolina General Warranty Deed serves as a cornerstone in real estate transactions, providing a comprehensive framework for conveying property ownership. Its intricate legal structure and various clauses warrant a thorough examination, as they safeguard the rights and interests of both parties involved.

Within this document, the legal description establishes the precise location and boundaries of the property, ensuring its unambiguous identification. The granting clause, a pivotal element, transfers ownership from the grantor to the grantee, while the habendum clause specifies the nature and duration of the estate being conveyed.

Legal Description

A legal description in a North Carolina General Warranty Deed is essential for identifying the exact location and boundaries of the property being conveyed. It provides a precise and permanent record of the property’s location, ensuring clarity of ownership and preventing disputes.Common

legal descriptions used in North Carolina include:

Metes and Bounds, North carolina general warranty deed

Metes and bounds descriptions use specific measurements and angles to define the property’s boundaries. This method involves starting at a known point and then proceeding along the boundary lines, providing specific distances and directions.

Government Survey System

The government survey system divides land into rectangular sections, townships, and ranges. Legal descriptions using this system identify the property’s location within the designated section, township, and range.

Recorded Plat

Recorded plats are maps that have been filed with the county register of deeds. They provide a visual representation of the property’s boundaries and may include additional information such as easements and building locations.

Granting Clause: North Carolina General Warranty Deed

The granting clause in a North Carolina General Warranty Deed is the section that transfers ownership of the property from the grantor (seller) to the grantee (buyer). It is typically the first operative clause in the deed and is essential for conveying title to the property.

The language used in the granting clause is important because it determines the extent of the warranties that the grantor is making about the title to the property. In a general warranty deed, the grantor warrants that they have good and marketable title to the property, that they have the right to convey the property, and that the property is free from any liens or encumbrances.

This is the strongest form of warranty that a grantor can make.

Special Warranty Deed

In contrast, a special warranty deed only warrants that the grantor has not done anything to impair the title to the property during the time that they owned it. This means that the grantor is not making any warranties about the title to the property before they acquired it.

Special warranty deeds are less common than general warranty deeds, but they may be used in situations where the grantor is not sure about the history of the property’s title.

Habendum Clause

The habendum clause in a North Carolina General Warranty Deed specifies the nature of the estate being conveyed and to whom the estate is being transferred. It defines the type of ownership interest being granted and the rights and responsibilities associated with that interest.

Common habendum clauses used in North Carolina include:

Fee Simple

Grants an estate in fee simple, which is the highest and most complete form of ownership interest in real property. The habendum clause typically reads as follows:

“To have and to hold the above-described premises, together with all appurtenances, to the Grantee, his/her heirs and assigns forever.”

Life Estate

Grants a life estate, which gives the grantee the right to possess and use the property for the duration of their life. The habendum clause typically reads as follows:

“To have and to hold the above-described premises, together with all appurtenances, to the Grantee, for the term of his/her natural life, with remainder to the Grantee’s heirs.”

Covenants

Covenants are promises or assurances made by the grantor in a deed. They are typically included to protect the grantee’s title to the property and to ensure that the property is used in a certain way.

There are several different types of covenants that can be included in a North Carolina General Warranty Deed, including:

Covenant of Seisin

The covenant of seisin is a promise by the grantor that they own the property and have the right to convey it to the grantee. This covenant is implied in all North Carolina General Warranty Deeds, even if it is not expressly stated.

Covenant of Right to Convey

The covenant of right to convey is a promise by the grantor that they have the legal authority to convey the property to the grantee. This covenant is also implied in all North Carolina General Warranty Deeds.

Covenant Against Encumbrances

The covenant against encumbrances is a promise by the grantor that the property is free of any liens, mortgages, or other encumbrances. This covenant is not implied in North Carolina General Warranty Deeds, but it can be added by the parties to the deed.

Covenant of Quiet Enjoyment

The covenant of quiet enjoyment is a promise by the grantor that the grantee will be able to peacefully possess and enjoy the property without interference from the grantor or any third party. This covenant is not implied in North Carolina General Warranty Deeds, but it can be added by the parties to the deed.

Covenant of Warranty

The covenant of warranty is a promise by the grantor to defend the grantee’s title to the property against any claims by third parties. This covenant is the most important covenant in a North Carolina General Warranty Deed, and it is what distinguishes it from a quitclaim deed.

The covenant of warranty is implied in all North Carolina General Warranty Deeds, but it can be strengthened by the addition of the words “and defend the same.”

Legal Implications of Covenants

The legal implications of covenants vary depending on the type of covenant. However, in general, covenants are binding on the grantor and their heirs and assigns. This means that if the grantor breaches a covenant, the grantee can sue the grantor for damages.

Covenants can also be enforced by third parties who are injured by the breach of a covenant. For example, if the grantor breaches the covenant against encumbrances, a third party who holds a lien on the property can sue the grantor for damages.

Execution and Acknowledgment

Proper execution and acknowledgment of a North Carolina General Warranty Deed are essential to ensure its validity and enforceability.

To execute a deed, the grantor must sign it in the presence of two witnesses, who must also sign the deed. The witnesses must be at least 18 years old and must not be related to the grantor or the grantee.

Notarization

In addition to being executed, a deed must also be acknowledged before a notary public. The notary public will verify the identity of the grantor and the witnesses and will witness their signatures.

The following is an example of a proper acknowledgment:

State of North Carolina

County of Wake

I, [name of notary public], a notary public for the State of North Carolina, certify that [name of grantor] personally appeared before me this day and acknowledged that [he/she] executed the foregoing instrument as [his/her] free act and deed.

This [date] day of [month], [year].

[Notary public signature]

[Notary public seal]

Recording

Recording a North Carolina General Warranty Deed is crucial for several reasons. It provides public notice of the ownership transfer, protecting the grantee from potential adverse claims and establishing a chain of title for the property. Moreover, recording ensures that subsequent purchasers or lenders are aware of the existing deed, safeguarding their interests and preventing title disputes.

The process of recording a deed in North Carolina involves submitting the original deed to the Register of Deeds office in the county where the property is located. The deed must be properly executed and acknowledged before a notary public.

The Register of Deeds will then record the deed in the county’s land records and return the original to the grantee. The recording fee varies by county.

Benefits of Recording

Provides public notice of ownership transfer.
Protects grantee from adverse claims.
Establishes a chain of title for the property.
Informs subsequent purchasers and lenders of existing deed.
Prevents title disputes.

noelle