A derivation clause is a specific provision found in legal documents such as deeds of trust and mortgages. It provides essential information regarding the history of a property's title, including the name of the previous owner (grantor) and the date the title was recorded. Essentially, it outlines how the current owner acquired their title, ensuring clarity in property ownership and transfer.
Derivation clauses are primarily used in real estate transactions and property law. They are crucial for establishing a clear chain of title, which is important in various legal contexts, including:
Users can manage these transactions with the right tools, such as legal templates available through US Legal Forms, which are drafted by qualified attorneys.
Here are a couple of examples of abatement:
Example 1: A homeowner sells their property to a buyer. The deed includes a derivation clause stating the name of the previous owner and the date the title was recorded, ensuring the buyer understands the property's ownership history.
Example 2: A person inherits a property from a deceased relative. The derivation clause in the new deed specifies the name of the deceased and the approximate date of inheritance (hypothetical example).
In South Carolina, the derivation clause is governed by S.C. Code Ann. § 30-5-35. This statute outlines the requirements for including a derivation clause in deeds and mortgages, specifying the necessary details that must be included based on how the title was acquired.
| State | Derivation Clause Requirements |
|---|---|
| South Carolina | Mandatory for all deeds and mortgages executed after July 1, 1976. |
| California | Not explicitly required, but recommended for clarity in property transfers. |
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
| Term | Definition |
|---|---|
| Chain of Title | The sequence of historical transfers of title to a property. |
| Title Search | The process of examining public records to determine the legal ownership of a property. |
If you are involved in a property transaction, ensure that the deed includes a derivation clause to clarify the title's history. You can use US Legal Forms for ready-to-use legal templates that can help you draft the necessary documents. If your situation is complex, consider consulting a legal professional for tailored advice.
Browse our library of 85,000+ state-specific legal templates.
A derivation clause is a provision in a deed that outlines the history of the property's title.