Title: Who Owns the Property.
Deed: Document that conveys Title to Real Property from a Grantor to a Grantee. The
strongest is a General Warranty Deed, the weakest is a Quitclaim Deed. Certain Deed
Restrictions are not enforceable.
Grantor: seller of property
Grantee: recipient/buyer of property
Deed is a document that evidences title. Given by Grantor to Grantee.
General Warranty Deed: Most protection. Seller is saying that deed is good. No problem with the deed,
nothing wrong with the property I am selling/transferring to the buyer. It covers the buyer. It is a broad
Quitclaim Deed: Least protection. Weakest evidence of title.
Many old deed restrictions are not valid anymore. Eg; Discrimination against pregnant women. (“A
pregnant woman cannot live in this apartment”). But you can have some valid deed restrictions.
Security Interests: Borrower/Mortgagor/Trustor signs a Mortgage or Deed of Trust
in favor of a Lender/Mortgagee/Beneficiary typically to secure the repayment of a loan.
A security interest doesn’t give the lender any rights unless you default on the loan.
Mortgage (“death pledge”) is a security interest. If the borrower doesn’t make payments, the lender can
foreclose you out. It isn’t use, ownership or possessory interest. It is a security collateral interest only. It
is conditional upon you not performing the terms in the mortgage.
Security Interest: Usually has 2/3 parties involved.
Document used to secure a loan: Mortgage (requires 2 parties) or Deed of Trust (requires 3 parties)
In the real world, a 3 party Deed of Trust is also called a Mortgage.
CA is a Deed of Trust state.
Recording Acts: All states have statutory rules to resolve the Priority of Claims relating to
Real Property and to give the public Constructive Notice.