DOCUMENTS EVERY FARMER SHOULD UNDERSTAND
All property implies an owner. Property is of two kinds, real and
personal. The former is permanent and fixed, the latter can be
moved.
Every occupant of realty holds it through a deed, which carries
with it sole ownership, or through a lease which carries with it
the right to occupation and use in accordance with the conditions
as to time and the amount to be paid, set forth in the written
instrument.
A deed carries with it sole ownership, a lease covers the right of
use for a fixed period.
AS TO DEEDS
The purchaser of real estate, say a farm, should receive, from the
person selling the property, a written instrument, or conveyance
known as a deed.
The deed must show clearly that the title to or interest in the
property has been transferred from the seller to the buyer.
Before the deed is signed and delivered, the buyer should know
that he is getting a clear title to the property described in the
conveyance.
In order to insure the accuracy of the title and thus avoid
subsequent complications and perhaps lawsuits, the paper should be
submitted to some good lawyer, or other person acquainted with
real estate law and the methods by which titles are traced from
the first owner to the present possessor.
TITLE ABSTRACTS
In all the great business centers of the United States there are
Title Guarantee Companies, who for a consideration--to be paid by
the seller--furnish an abstract of title, and insure its validity.
In smaller places the local lawyers know how to make up an
abstract and one should be employed. Never trust the search of the
inexperienced.
An abstract of title is a memorandum taken from the records of the
office where deeds are recorded, and showing the history of the
title from the Government up to the present time.
The seller should furnish the buyer with a certificate from the
proper county officer, showing whether or not all taxes have been
paid up to the last assessment.
In addition to this, before the money is paid and the deed
accepted, the purchaser should be satisfied that there are no
mortgages, liens, attachments or other claims against the
property.
If such claims exist and are known to the buyer, he may assume
them as a condition of the sale.
PARTIES TO A DEED
The person selling the land and making the deed is known in law as
the Grantor. The person buying the property is known as the
Grantee.
A deed is a form of contract, and in order to have its terms and
statements binding on the maker, he must be twenty-one years of
age, or over, and he must be of sound mind.
The grantee need not be twenty-one, nor of sound mind in order to
make the terms of the deed binding on the grantor.
In some states, if the grantor be a married man, his wife must
sign the deed with him. This should be seen to, for without the
wife's signature the grantee will not have a clear title, for the
woman could still claim an interest in the property equal to her
dower right.
Also, if the grantor is a woman, her husband, for the reasons
given, should join with her in the execution of the deed.
The preparation of a deed should not be left to the unskilled.
DIFFERENT DEEDS
There are three kinds of deeds, viz.: General warranty deeds,
special warranty deeds, and quit-claim deeds.
The general warranty deed, if it can be had, is the one every
purchaser should get.
In the general warranty deed the grantor agrees for himself, "his
heirs, executors, administrators, and assigns," that at the time
of making the deed he is lawfully in possession, "seized" is the
legal term, of the estate described in the deed, that it is free
from all incumbrance, and that he will warrant and defend the
grantee and his heirs and assigns against all claims whatsoever.
In the quit-claim deed the grantor conveys to the purchaser his
interest in or right to the property under consideration.
The quit-claim grantor does not guarantee the title to the
property, nor warrant the grantee against any other claims. He
simply, by the deed, quits his claim to the property.
The special warranty deed covenants and warrants only against the
acts of the grantor and those claiming title under him.
MAKING A DEED
After a deed is properly drawn, it is ready to be signed, sealed,
and delivered to the grantee.
If the wife of the grantor is to sign, her name should follow that
of her husband.
If one or both cannot write, the signature can be made in this
way:
His
George X Jones.
Mark.
Witness..............
In some states one or more witnesses are required to the signature
of the grantor; in others, witnesses are not necessary, except
where a "mark" is made.
An important part of a deed is the Acknowledgment. This is the act
of acknowledging before a notary public, justice or other official
properly qualified to administer an oath, that the signatures are
genuine and made voluntarily.
The acknowledgment having been taken, the official stamps the
paper with his seal and signs it.
In some states the law requires that a wax or paper seal be
attached to the paper, while in others a circular scroll, made
with the pen, with the letters "L.S." in the center answer the
purpose.
When the foregoing essentials are complied with the deed must be
delivered to the grantee. The delivery is essential, for without
it the deed is of no value, even though every other requisite be
complied with.
A deed may be made for land on which full payment has already been
acknowledged, but if the grantor dies before the deed is
delivered, then the deed has no legal value.
A deed obtained by fraud, deceit or compulsion is void.
RECORDING DEEDS
As soon as possible after the grantee has received the deed, he
should have it recorded.
In every county in the different states there is an officer, known
as register or recorder, whose duty it is to enter in regular
folios, or books, a copy of every deed or mortgage presented to
him. The document then becomes a part of the county records.
The grantee must pay the recording fees.
Anyone, on paying the fee for copying and certifying, can obtain a
copy of any document that has been recorded in a register's
office.
If an original deed is lost, the certified copy of the register
has all the legality of the original.
All deeds and other papers of value should be carefully kept, so
that they may be available, if needed.
A small safe deposit box with a company that keeps such spaces for
rent, is often a wise investment.
Keep all related papers in one package or envelope.
If there is one lawyer who attends to all your legal business, he
will be a good custodian of all papers of record, for he usually
has a fireproof safe.