How to Cancel a Contract for a Deed
A deed transfers or conveys an interest in real property from one party or parties to another. In most instances, contracts of sale precede most transfers of land. In order for the contract to be valid, it must be in writing and contain the signature of the party to be charged and the essential terms. It must contain the names of the parties, the description of the land, and any price or consideration to be paid for the land. These requirements fall under something known as the Statute of Fraud rule. If one or more of these are missing, the contract can be voided (or canceled). If, however, the deed is to transfer mere ownership in the property, consideration is not necessarily required.
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Instructions
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1
Locate an original or copy of the deed at issue. For a deed to be effective and to transfer title in real property, the deed must be in writing; that means that there must be a document evidencing the transfer. An oral contract for the sale of land may be specifically enforceable in equity in a number of states under the part performance doctrine.
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2
Locate on the deed whether there was consideration paid. Some form of consideration (value) must be exchanged for a deed to be effective. If there is no consideration, it must be clearly stated in the deed.
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3
Locate the names of the parties in the deed. The deed must be signed by the grantor or the grantor's agent to accomplish the conveyance and must reasonably identify the parties. If a joint owner attempts to convey property by forging the signature of the other owner, the conveyance is valid as to the owner whose signature is genuine, but it's void as to the person whose signature was forged.
The deed must reasonably identify the parties. If a deed is delivered with the name of the grantee (one who is receiving the property) left blank, the Court presumes the person taking delivery has authority to fill in the name of the grantee. If the person fills in a name, the deed is valid.
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4
Locate the description in the deed. The deed must reasonably identify the land being conveyed. If the land description is left blank, the deed is void unless the grantee was explicitly given authority to fill in the description. A description is sufficient if the land can be identified from the description in the contract or deed. A description may be incorporated by reference and it may be based on a private or government survey. If the conveyance is part of a larger tract, the description must be sufficient enough to identify the property involved. If a description contains conflicting or ambiguous measurements, priority is given to the description which the parties are least likely to be mistaken.
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5
If any of steps one through four is missing, find a lawyer that specializes in real estate. Talk with the lawyer to see if you might be able to cancel the deed. A void deed can be set aside by the court even if the property has passed to a purchaser. Void deeds are those that are forged, were never delivered or were obtained by fraud.
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6
Hire a title searcher to have a title search performed. There are some common defects that may render the land unmarketable. A qualified searcher can narrow in on this and help you.
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7
Locate the age of the parties involved in transferring the deed. A voidable deed is one that is treated as if it never occurred. They include deeds that are executed by minors or incapacitated persons, obtained through fraud, duress, undue influence, or mistake. An effective deed requires that the grantor intended to deliver the deed. A physical transfer of the deed is not necessary. A presumption of delivery arises when the grantee possesses the deed or when the grantor records the transfer.
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Tips & Warnings
Joint ownership in property can only be conveyed if both owners sign the deed. Even if a deed complies with all the formalities, it may be set aside by the grantor's creditors if it was made with the intent to hinder, delay or defraud any creditor or if the consideration received for the conveyance is not of reasonably equivalent value. A deed is not effective until it is delivered and accepted. A deed to a dead person is void and conveys no title.
