Also known as: absolute deeds · deed absolute
Written by attorneys · grounded in primary & secondary sources — see below
2 senses
A deed conveying title to real property without condition, reservation, or encumbrance. The instrument passes the largest estate the grantor can convey, typically a fee simple of potentially infinite duration.
A deed conveying title to real property without condition, reservation, or encumbrance. The instrument passes the largest estate the grantor can convey, typically a fee simple of potentially infinite duration.
Select any source to read its text and confirm it supports the definition.
A deed transferring legal title to real property to the grantee but intended solely as security for an obligation owed by the grantor. The grantor retains an equitable right to redeem upon repayment, and parol evidence is admissible to establish the security purpose.
Select any source to read its text and confirm it supports the definition.
A deed transferring legal title to real property to the grantee but intended solely as security for an obligation owed by the grantor. The grantor retains an equitable right to redeem upon repayment, and parol evidence is admissible to establish the security purpose.
Each sense below has its own examples, sources, and questions.
An unconditional absolute deed passes complete title without any retained interest. An absolute deed given as security transfers legal title but functions as a mortgage, preserving the grantor's equitable right of redemption.
Supporting sources
Anita Ali conveyed her apartment building to Alliance Holdings by absolute deed after falling behind on payments to the company. She remained in possession, collected rents, and sent monthly statements showing a declining balance. Alliance Holdings prepared internal documents labeled reconveyance deeds to be used once the balance reached zero. When Anita tendered full payment, Alliance Holdings refused to return title.
Antonio Alvarado delivered an absolute deed for his warehouse to Apex Dynamics in exchange for emergency funds. Contemporaneous emails described the transfer as temporary security until repayment. Antonio stayed on site to operate his business and made payments labeled as interest. After full repayment, Apex Dynamics claimed outright ownership and refused to reconvey.
Courts admit parol evidence to establish that an absolute deed was given only as security for a debt. The deed alone does not capture the full agreement, so extrinsic writings, conduct, and statements are considered to determine the parties' intent.
Supporting sources
The grantor retains an equitable right to redeem the property by repaying the underlying obligation. Upon repayment the grantee must reconvey legal title to the grantor.
Supporting sources
Courts examine whether the grantor retained possession, continued paying taxes or making payments labeled as interest, and whether the amount advanced approximates a loan rather than fair market value. Contemporaneous writings describing the deed as collateral also support security treatment.
Supporting sources
…substance of the transaction. Although no set criterion has been established, the controlling factor in determining whether a deed absolute on its face should be deemed a mortgage is the intention of the parties. Sheets v Huben , 354 Mich 536; 93 NW2d 168 (1958), Miskinis v Bement , 301 Mich 365; 3 NW2d 307 (1942). Such…