37. Who owns the land?

A property deed is a formal, legal document that transfers one person or entity's rights of ownership to another individual or entity. The deed is the official «proof of transfer» for real estate, which can include land on its own or land that has a house or other building on it.

Every deed should contain the following information:

An indication that it is a deedA description of the property involvedThe signature of the individual or entity that is transferring the propertyData regarding who is taking title to the propertyA deed is not effective in transferring land from the buyer to the seller until it has been delivered from the grantor to the grantee. The deed must be delivered to the grantee with the specific intent to give title over to the grantee. If the grantor gives the grantee the deed without the intent of passing title to the land over to the grantee, then the delivery is not effective. A deed to a non-existent grantee, such as an entity that has not yet been legally formed, is void.

B is correct. When the businesswoman tried to convey the land by warranty deed to «the corporation and its successors and assigns[,]» the corporation had not yet come into existence as a legal entity, rendering the deed void.

A is incorrect. This answer reaches the correct answer with the wrong reasoning. Regardless of the type of deed (warranty, quitclaim, or special warranty), the businesswoman tried to convey land to a non-existent grantee (the not-yet-formed corporation), which voids the deed automatically.

C is incorrect. The fact that the two friends wanted to own the corporation's stock in equal proportion is of no consequence given that the deed was void when the businesswoman tried to convey land to a non-existent grantee.

D is incorrect. Again, the friends' intention around being the sole shareholders is irrelevant because the deed itself was void.