medium · National Real Estate Exam
An owner signs a general warranty deed conveying her property to a friend as a gift. She tells the friend about the deed and places it in her safe deposit box, intending to hand it over during a holiday visit. Before the visit occurs, the owner dies intestate with no discoverable heirs.
What is the legal status of the property's title?
- The property is held in a constructive trust for the friend because the owner's death constitutes an involuntary alienation.
- The property passes to the state by escheat because the deed was never delivered and the owner died without a will or heirs.
- The property passes to the friend because the owner's intent to gift was clearly stated and the deed was notarized.
- The property passes to the friend through the probate process as a voluntary alienation of title.
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