1. Tlre neah! Bliue Book of Califonin
ry
1-
e.
e
MELVILI,E P. FRASIER,EsQ,
Althor ol
"Reokl! La1r3 ol Califomia"
2. 36 ThA Reuttlt BLueB,'ok ol C'Llilornin
Clonve)''ancing
lIEl,vILLn ['. FRASIDR
111/
Joint Tetuot|! '7'ctttr'tttttin Comno -PnrtlLershi In-
l.ter!-Ptut1,/"ixt'r' U " l ) n " ' Io " l l l : f ' Cnl"'t'nt.t
"
i,.),att. L"Li.tu,i' l;t .."'t .a" t R t:r'J -D"'L ;-
of D.ed-Itsttr ' tl)t1t "L)'past at
Caif o ii"-n"tt|n,t
Es(ror'.
;iiLiltif]iil:'", l.ilnjl,r:,";.
"Si;i.;.;';,'rt
ily limited space of thjs chapter c can do no4more
I lli ' " , : :r i ^ ' * " r ' " " i ; r*n::k*it h " h o r ' "'l ' r ; rs*i;
* 1 c 1 i p ; 6 " e r rb 1 d - d , 1 1$ i l b p o u r '
1
.r, loir,:"n
i
""."5^1 u'h
"?[ii,i: "^t'"1l'
t e s h i , l n / p $ i l s p ' a P l ' g r l i l l c . l o ' r l 1 1 l ' ' r f A s ' j r l' r '
" o 'nsre.r,'n '' p , s "D t a ' t ' . a h a l ' s i r ' a r a r l d r t t r n n s j r " ' r u n ' f o I r I u r r u r s -
o r ' -i "
t.2 I
;";i;';-;i ;h;".i ,jr 'n" t"'i oJ inil rrlolc' v ;r ' o r :rornia r
'ri r r i l " dl '
",1
ii," '.ia" r , 1 t . .u . ,t : ? , 1 t )t ",ts,l c(i:to";n-
ifr"" *t:iinii"tnt"n""
"li ' to x'hich is madeelsewhcle this vollrnle' il
Fir'st as to the natlrle of eslatesin land iD Cali{omia: The owr-
e r s l ^ i n l o r o p o r ' lo ) , s i r r l " i r . d i i d u a r ' ' o r ? o " D l i urrs k l r o $ na s
o ) o
a soli oI s.t"r'a u$ .i isnrl HpIe no nur'lion n:- Io rlerLsr ilr'rses
The ownership o{ Dropedy br- scYer':rlpelsons is cither':
1. Of joirt intelests
2. Of paltnership interests
3. Of interests itt comnou.
i. Or interest of husba d a d $'ife Husband and
wlfe may fre jonrt teiralts, tcnants in conmon, or o1l.rers of com-
"il1't"'i-itv
munity plopeltt'.
JOlNT T]iNANCY
Now to clefine and distirguish these iDtelests A p s l a l D ioirlt intclest'
o, ioint t"||aj": a s r t ' s u q u r l ] t a r n ' " d .i . a p p c u ' i a r in Lhi::
t t i s o r o o $ r ' " d L J s p ! ^ r a lp " r ' s o n s . : P ' , u a l r o p l e l o l s r l 0 ) . a r r r r c
l
pxp'Fs'ly da llrrPdrn lne wlrr
crearpdbv a s,r'rlP $ ill o" ira'"fcl' wcrr
or.trans"ef l o b e a j o i , , , r F r s , , r ) . T h . e c . p ,l i 2 l s l o t h F . l p a r , o n o r
^n.iL:. rl'l'na:Thal te ifla bP'o vnvpdl': o"p irsl.r'rrrneni
"""1 har il ba "* _hrt th" rs Io llp hplclIn lornr
ar'd eprpcsly declarpd "antp
lir." a gtrnr is tn Fst rhP full rille irf:rch and
i"."""".
"'{It",".i"suct
'i *r^"i*i,,t'ur ," LoJv Lhai aa' grrrlFA (L' oa'ota.'dl^and
p
"
"ri"i succession
as to owns dll Ihp Lillp ri ^ll 'j'n^s (o lhar tl claarh one oi
a""" the tiUe at atl. It rests as under-the original
i"".tio" in the srrrviv-ors This fiction of the law has no bea ng on
""*t"" ".t "ft."ge
3. The Rea,ltlJBkre Book of Caklornia 37
to tlle title; it only existsto give the right of succe3sion to
The theory of joint ownership is of no concem io a
mortgagee creditor of any joint tenant. The shareof one
or
'nan(s-dling not desc.nd his he'rs rrorcan-.il q illed
does to be
rn The last sur'vivor holds all as he did from the
of "oroiuot"" The joirt tenancy may be destroyed at any
the estate.
the act o{ one of the joint tenants conveyinghis interest to jen-
oger, by deedby eiihe[ spouse thc other if the joint
or to
tr"t*""ri trusfa.i and wiie, or bv executron sale of the in-
of;ny tenant. Where three or more personshold as j-ointten-
"]
oneconveys hi" interestto a slranger. Lhestranger holds}js
as tenant in .omrron siih thp olhpm, whilp tha remaining
hotd their intelest dr 4?rzo?rg themselves as joint tenants A
lion cannot be a joint tenant but may hold as a tenant in com-
A ioin( tFnancv .annot be cr'"a'ed bl deed or agrcPmentbe-
r the crantees. Il must be .reated by lhe grantor or dpvisor.
Lnds teld in ioinl tcnancyor in lanancy in commonare not sub-
homestead declaration, unlesslhe Iencnrsbe husbandand wjIe.
deedsto create a joint tenancy it should rua to the
tees";s joint tenants with ihe ght of survivoNhip." It cannot
to "th€it heirs," for the heils do r)ot take. Cut out the "to have
to hold" clause. It has no place in a California deed. Thele must
o &puglance in the deed.
MNANCY IN COMMON
An interest or tenancy in comr4on is one owned by several per_
lot in joint ownership or paltnership. The difierence beiween
tenancyand tenancy in commonis this: In a tenancy in com-
eachtenant owns a propo*ionate share of the prolerty which
to his heirs or devisees, interest being sevetedfrom that
his
co-tenants.Under a joint tenancy,strictly speaking, there are
cha&s;as betweenthe tenants eachowns all. Th€re is but little
ctical difiercnce between these estates except as they efiect heirs
crcdito$ of a tenant after his death. Upon the death of a joint
snt his estate is terminated. While alive he can deal with the
by d€edor mortgageand his estateis subj€ct to execution.
PARTNEBSTIIP INTEREST
A DaltnershiDrnlerest is one owned by severnlpersonsfor part_
hip purposes. A pa*nership. as such or any asso'iajion of in-
rtls, as such.cannottake Iitle. Thospwho .ompose partner-a
or aasociation may own property, but as such partnershipsor
siciationsthey cannoi le STailteas,under such desiglation, as there
no legal entity. In case of a conveyanceto a partnership to.vest
-the
ia seveial part)'ters tll€ deed must rul1 to tlem in their indi-
;l names. Whether or not it be partnership property only con-
ns the DartDers Ihe;r creditors. Onetaking a deed from all the
or 'Sunset Realty
tne$ i; in no qnse concemed. lf a deed run to
'; and it be a partncrshiP the deed is void.--ff,it be to "Suns€t
Co..' a co-parLnefshlp,composed of William Jones and
Brown, the deed is Sood for the tille vests in the individuals
4. 3a The l?eult.! BILteRoot of CQ,lift,t
)titL
ained and a deed out lr.onl Lhem is good. Purchasem dealing with
DartD(rship pl'oper'l]- nra:'trcat the grantols as telants in comnlon.
PROPENTY RIGIITS OF HUSBANTJ AND 'IITE
Now as to prop€rt) figlrts of hrsband and wife: .{ll prope}ty of
the ri1e oyned br het' befole rralriage and that acctuiled after-walds
by gilt, devisc, 01'descent,$'ith the rents, issues and p]'ofils thereof, is
hef sepalnte plopelty and she m:ry conve)-it without thc consenl of the
husb.rrd. Any plopeltt_ corlveled t Ler silce n{a}' 19, 1889, is pr.e
suned to be hel. SeDflratclr'opcrtl', and i{ it be colle}'ed to hel and
het husbt|nrl, or her !d oth,"r' Dal'tics. slle is presunlc.l lo hold :s a
tcnant in cornnon, r.lnlessa coDtlary intelt appear's irl the deed to
her. She can .lc€d this sort of property $'ithout the consent of her
husba d and this plesumptior becomesfiDal irl favor of a purchaser
or enclrmblancel ir good faith and {or a veluable consideratior.
(]OIIMUfIY PNOPERT
The property of the husb:ud owned Ly hi]n befolc marriage and
that acquired allelwalds by gift, devise or- descent, 'ith thc rcnts,
issues anC profii.s thereof, is his sepalate ploperLy and he ciln convey
it without the consent of his wifc.
All other pr'opclty ol husband and rife is corrmunili prirpert]'.
but its st?rtuscan be changed by dceds betwcer the spouses,oI agree
ments betrveenU'Lem as to tender it the scpzuateIrloperty of either.
so
If propefty be purchased viljh commuDity funds and the deed taken
irr the name of the {ife alonc with fhe knowledge and consent of the
husband it yill be lresumed that he irltended to make a grft to her as
her sepalate !ropert.. Without reciiing the vAious enactments and
decisiolls this may be taken as th€ law r€garding coD.eyances by
eiUrer hLrsbtrndaud $-ife or' by both. Nole carefull-v thc lbllof ire, lol
rn nany instanccs it will save delay and expelFe.
LtrGISLATIVE
ACTSAND COURT
R,ULINCS
Often the signatule of a husb:ud or wife to a deed is denanded
when there be Do legal necessity for it. Here then is the present rule
as laid do$n by the Legislature and the Coufis:
1. The sep:rlate plopclty of either husband or-wife may be con-
veyed at any tirnc, lvith or {ithout consideration by the ownar, lvith-
out consent or sigratule of tha other.
2. Conmunity lroperty acquired prior to X{alch 13, 1891, no
matter if the deed Intl to either spouseot both, is in the absolute con-
ir'ol ol lhe husbaD.l nnd nray be conyeyed bt him {ithout his lrife's
consent oI srgrlatrue.
3. Comrnurity propelty acqui)ed s'irrce i{arch 13, 1891, and
?t?jor to May 23, 191?, is fu the control of the husband and he c4n
make conve)'anceof it alone plovided the corsideration bc valuable.
He canrlot make gift dceds of community propelty acquil'ed since
March 13, 1891.
4. All conveyances, mortgages or leasesfor a longer pedod than
one year, of conlmunity ploperty acquired sir'I'c€ Mau 23, 1917, rn]ust
5. The Req.ltaBhe Book ol Cqlifortin 39
executed both husbandand wife. Any deed,mortgageor lease
by
morethan a year of suchproperty madeby the husbandaloneis
It must be rcmember€d, and this is of the greatestimportance:
the propedy dealt with be hom€steadall conveyances mortgages
or
be the joint pelsoral act of htisband and wife, no mattel wheth€r
property be separate,community or held in joiDt tenancy. It
be the persatui act of the parties. Executionby an Attolney
Factis not sufficient.
RECITE FACTS TO P&OVE SEPA&ATE PROPF,RTY
A careful conveyancer 'lvill insert in a deed to either husband or
any facts that will tend to sho1vthat same is sepalate prcperty.
mer€statement that effect is rot conclusive; simply acts to
to it
the rules of evidence, the statenent of such facts as, that
but
p$perty is a gift, or purchased with gift funds, oI in exchange
for otherseparate property the status of which is established. the
or
like,may be of gleat value to a purchaserin caseof attack.
DEDDS IN CALIFORNIA
Now as to form and effect of deedsin conrmoD in the State: use
the Code pmvidesthat a grant in r'€alproperty may be madein sub-
stance follows: "I, A. 8., grant to C. D., all that real ploperty situ-
as
oted (inselt nameof county) County,State of California, bound€d
in
rnd descdbed follows: (here inser-tdescription) Wihressmy hand
as
t h i s . . . . . . . . d a y f . . . . . . . . . . , S i g r e d A . B . " T h i s f o r n ro f d e e d s
o . i
sufficient pass the full fe€, and any tiUe which the grantor may
to
aJterwards acquileadverseto that granted. A quit clain deednlay
beiDthe same fonn, changingthe yord "Grant" to "Quit Claim." A
quitclaimdeedpasses title of the Crantoras fully as a grant d€ed
the
to all interestownedby him at the date of deliverTof the de€dbut
does passaDy title which he may subsequently
not acquile. A deed
containing words "grant all my ght, title and interest iD etc.,"
the
b a quit claim. Care shouldbe exercised using the codeform of in
deed insertthe proper personalpronoun,either "I" or "We" as the
to
csse may be, beforethe nameof the gr-antoror grantors in the body
of the deed.
Pmperly oi any kind mal be rrar,sfefrpd excepr a mere possi-
biliw not coupled with an inter€st. Thus the possiblefuture inter-
est of a soll in his father's property which upon the death of the
fathermay vest in the son is not transferable. Likewise the possible
hterest of the wife in the community prcperty lvhich nlay be hers
uponthe dissolutionof the community by death of the husbandor
divorce not transferableby her alone. A deedto lards taken up
is
under United StatesHomestead
the Laws before final Droof is nade
is voidanda subsequ."t prtent to rhe granlordoesnot feedthe title.
A colveyance may be made of all propetty ownedby the gmntor at
the dateof conveyance generaltenns, but such a conveyance
in will
notpass title to property subsequently acquiredby grantor, no matter
if it beso staied.
6. 40 The Realtu BkE Book of Califarnia
..GRANT,,
IMPLIES CMTAIN COVDNANTS
I The use of the word "Grant,, in the fonn of deed above shown
implies the following covenantsaDdnone omer:
1. That previous to the time of the execution of such convey-
ancelhe grantorhas not .onveyed sameestale any rishl. titie.
ihe or
or jnlerestthcreinlo any pprson other lhan the srantee.
2. That surh estalcis ar rhe lime of the execution suchcon-
of
veyance free from encumbrancesmade or suffered by the grantor or
any one claiming uuder him. This is not a generalwan;nty. If a
granteeis taking clear of (,ll encumbrances, whether so made or suf_
fered or not, fle must not rely on this form of warranty but make
separate irquirl'r and investiEation.
PARTIESTO A CONVEYANCE
Now as to parties: There must be a legal capacityin the grantor
to convey and in the grantee to receive, otherwise the instrument is
invalid. Minors uDdel elghteenyears of age aDd those adjudgedin-
sane, or aD incomDetenthaving a guardian, calnot make valid deeds.
A woman under the laws of this state reaches majority at eighteen,
a man at twenty-one. The deedof a minor, boy or girl, under the age
of eighteen trcars is absolutely void and requires no disatrirmanie
upoD a[tajningrnajofity. Sucha gmnior may rplain bothmoney and
propefly. A decdby a boyovp| pightee year.s rrnder. at)d twenty-one
may be disafirmedwithirra rpasonable aller reaching
rime majority
by restoringjhe pul.haseprice. A deedby one adjudged"insane, oi
by onehavinga guardian void and requires disafirmance re-
is no to
cover the prope*y. Comoraiionsmay lake and conveyreal proper[y
as freely as individuals.The deedlo a corporaiion must run in its
corporate name-not to its officers. A deed from a corporation must
be in the corporate name, by its officials thereunto duly autho zed
by;1s governingboard. A dpedby a cor?oralion exonuled any
by
other personsthan by thoseauthorizedro aci,by its board of dir;ctors
or trustees acling as suchin a bodyjs a nullity and cannotbe after_
wards ratified. The deedmust be under thp scal oI the corporation,
if it has adopied spal,
a olherwise statemcnt
rhp should madelhai
be
tt hasnoseal. Tf lhe idenlilyof the granteedoes appearihedeed
no1
rs a nurrry. A.dped attcrnative
to gr'^nleps. to JohnSmirl. Mary
as
5mrrn.rs a nu rty, ueectq certajnpersons ifustaes an utrin_
lo ns ".
lof
corpor_ated association suchas a lodgeor a churchesrs the l;Ue in
the rnctrvrduats named and the titlp descends their heirs. A deed
lo 1,o
a grantee as "trustee" without disclosingthe nature of a valid trust
vestsjhe title in. thc granLee individualiy he pay a ronsideration.
if
rI thel.onsldpj-arron paid by cnotherhe holdsas tfus{eelor the
be
one pajnng the consideration with no powersexcep+ conveyto the
to
real.owrer. .tt no (-onsideration paid l,hegranteeholds only a bare
be
legall,tllein,trust for his 0r.o,r/o,' $ilhouf any powers wharsoever,
uo nor permttyour.trentsto mskeor accepl suchdeeds,Thev onlv
lead lo doubt. confusionand possibte loss. In drawing d.;;;".-;-k;
sure you are de-aling s,'itll the proper partiFs. Identitiyour grantor
ano gran-tec, _lt-youtind your grantora.quiredritle as J. Smith and
ne rs ln tael J. Smyhe tet that facl appearby proper re.ital. lt is
7. Thz Redta Bk& Book of Caltc0'1),1'(1, 41
of party not name vrhich govems. If the grantor be
state. Ascertain if the property be homestead and if so
that husbsnd and wife ioin in the sameinstrument andlthat
p€$onally. It is not necessary name the consideration,
to
deedbe by way of gift set out that fact that it may show
that the pxoperty is separate. Do rot multiply words in
of property or in covenants. The simplest form of ex-
'is be,st it truly set forth the intent.
if
DEI,IVEBY OT DEED
deed of no effect until delivered. This doesnot mean that
is
manualdelivery of the instrument itself must be made to
but there must be someact which standsfor' an absolute
intent to deliver in any event before the deed becomes
ve at all. A deed may be delivered to a third peNon to be
to the grantee under ceflain condilionsbut the inleni to
on fulfillment must be absolute and inevocable or there is no
in fact It is a commonpractice for husbandand wife to
one to lhe other ol fhe samcproperLyand io deliver thpm
deeds
with instructions io deliyer in caseof the death of the
to the survivor or to destroy or return to grantor in case of
This is no legal delivery aDd the deedsare not efiective.
To become €ffective delivery of a deed must be made in such man-
t the srantor surrenders all dominion over the instr.ument.
It is lroper to distinguish between a purely legal escrc9 and
deliveryin escrow,srhich latter will be seenconstitutesthe
an agentand not a true escrowholder.
..ESCROW"
AND "DEPOSIA IN ESCROW.,
A purely legal escror;v created by the deposit of a grant with a
is
I personto be delivered to the gtantee upon perfomance of condi-
cerlain and detprmined in advance and all agreements made
thele be nothing further requiring coDsent meeting of minds.
or
this is done the srantor has surrendered all dominion over the
and he cannot recall it. However, where such a deposit is maale
there yet renuins something to be agreed upon between the
; in short, if the contract is not executed anal complete, the
holds as agent for the grantor, and when the grantee
his documentsor money the depositary is then the agent of
gnntee as well. WheDa deedis depositedunder a legal escrow
authority of the depositary canhot be revoked without the con-
of both parties, but where the instruments and money are de-
ited under such circumstalces as constitute the depositary the
only of the one making deposit,this authority is revocable.
in mind herc the sharT distinction between an escrow which is
executed contract and nothing remains as a matter of agreement,
4 so-called "deposit in escrow" where the contract is executory
there rcmain further matters of settlement and agreement. In
firut casethe authorif,y of the depositary cannot be levoked, while
tlle second caseit can be. Wher€parties under valid coDsideration
a delivery of a deed conditioned upon the papnent of money, or
8. Thr Re(ltlt Bl e Bork r)l Cel.ilon.ul
the rer,dering of furthel considerution to the grantor, they may, as a
'part of thc transaction, crcate a valid escror.. The escrow holdel is
the age[t of the grantor for the purpose of holding the deed and re-
ceiving the purchase price, and there is imposed the obiigation to
retuln the deed at the end of the tine fixed if pa]'nent is not made.
Undel such circumstances the vendor has no rjght to withdraw the
deed until the expiration of thc stated time. We will take a case
where "A" deposits his deed wiih "B" lvith instNctions to deliver to
"C" *ithin ten days jf "C" Day the consideration or to securc for him
a note secllred by mortgage for the balance of the purchase pr.ice.
"A" can withdraw the deed and the instluctions at anv time befor€
' ' C " r , i r sn e t t h e s pc o n d i r i os . A t
r 0 ' , y t i n . aL , " l o t . le p i f . r , s r c t ; o r 'i g
h
completed either party may demaDd return of his dcposit and the
deposital'y can surlender wjlhoul lzri'irg hinself jieble. Ilo!'e|er,
alter the tlansacti(D is conUteled ard €'er'ghing in the dcpositaly's
hands and the contract be cxecuted, all save actual delilefv. the de-
positaly may not surrelrdel eitber docunents or. money tvithout con-
scnt of both par.ties. for h€ is the agent ot each. It is a grcwing prac
tice in the State to conduct real estAte tlansactions under. condiiions
cited above. It is a highly commendable placlice, one facilitating
business and making for- th€ safety oI lhe Darties, and such pEctice
should be understood in all its details and lesal asDects and
p n . . r a g p d . I r i s n o , i n o u r . o p ; " i o )A r l i . r b t et o r e r f l o L r " ; l i e n t h a r
,
when he has deposited his mone-!.' documents that hc has lost con-
ot
trol of them. It appears to ns Ural it is $,ell for him to knolv what
the Iights, duties, lesponsibilities ard obligations of all par.lies really
are that disputes may be avoided. By a so-called "deposit in escr.ow"
Ur€ padies to a transaction have not changed their tegal status. They
have simply appointed an agent to acl for. each. This agent owes to
each party the same obligations and must act impartially. He cannot
be censlired nor can he be held to account if the palties to the traDs-
action fall apart and he refuse to afbitr.ate between them or refuse to
comply with the demands of one paiiy without the coDsent of th€
other. He is agent for both without distiDction.