"The deed shall be in proper statutory form for record," etc. This is most important. At no place in the contract up to this point has the seller stated any particular form of deed he would deliver. He might give any kind of deed which was sufficient to pass title. He must under this clause use the form prescribed by law and which is short, contains no useless verbiage and is therefore more satisfactory and cheaper to record. In the form of contract under discussion, it further provides that the deed shall contain the usual covenants and warranties by which the seller guarantees to the purchaser the title and the rights conveyed by the deed. These covenants are very valuable to the purchaser. A discussion of them will be found in the chapter on Deeds. It is usual, though not compulsory, for the seller to agree to give such a deed. Occasionally the seller will give no covenants and the contract must then be altered to so state. The purchaser in such case should seek advice as to whether or not he may safely take the form of deed which the seller desires to give.
The deed "shall be duly executed and acknowledged by the seller at the seller's expense, and in form for recording." The seller obligates himself to sign and deliver the deed; the purchaser may desire to have this particular seller's covenants by reason of his solvency where he would not take the deed from another. Without this stipulation the seller could convey to a dummy and tender the dummy's deed to the purchaser. The seller must also bear all expense of the deed. This is fair, as delivery of the deed is part of the transfer. For his own protection the purchaser should record his deed upon the public records; hence the provision that the deed be "in form to be recorded."
The vital necessity that the contract set forth fully the exact state of the title and encumbrances is apparent from the next provision that the seller shall deliver such a deed "as to convey to the purchaser the fee simple of the premises, free of all incumbrances except as herein stated." By this clause the seller absolutely covenants to give a full, free title except for such encumbrances as are stated. The exception following, referring to the zoning restrictions, applies only to New York City and so much property therein being affected, this clause now usually appears in the printed part of the form.
The paragraph referring to the existing mortgage, if any, relieves the purchaser of doubt or speculation as to its terms, which may have been modified, and obligates the seller to procure and deliver at his expense, as he properly should, recordable proof of the amount and interest rate of such mortgage.