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MBE - Real Property > 14. Conveyancing > Flashcards

14. Conveyancing Flashcards

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1
Q

What is the procedure for conveyancing?

A

1) Land sale contract
- Convey equitable title

2) Closing
- Convey legal title

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2
Q

What is required for land sale contract?

A

1) Writing
2) Description
3) Consideration

If only 2/3 satisfied => Equity will decree specific part performance of oral contract (e.g. take possession, substantial improvements, pay some of contract)

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3
Q

What is equitable conversion doctrine?

A

Seller has legal title + possession (until closing)

Buyer has equitable title (until closing)

  • Fire/Casualty insurance proceeds => Buyer is liable for risk of loss
  • Other casualties => Buyer is liable for risk of loss until closing
  • Buyer is automatically required to pay contract price (specific performance)
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4
Q

What implied promises are there before closing?

A

Marketable title

  • Seller must EITHER possess/deliver marketable title!!!
  • NO adverse possession
  • NO encumbrances (mortgage, lien, restrictive covenant, easement)
  • NO zoning violations (BUT ordinances are okay)

NO false statements of material fact

  • NO misrep
  • NO active concealment
  • NO failure to disclose
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5
Q

Are warranties of fitness/habitability implied in land sale contracts?

A

NO

UNLESS for new construction of homes - YES

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6
Q

What is required for lawful execution of deed?

A

1) In writing (Signed by Grantor)

2) Description (parties + land)
- Unambiguous (all my land, NOT some)
- Good lead to property identity (mere technicality still allowed by equity!!!)

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7
Q

How may deed be delivered?

A

To Grantee

  • Physical/manual* delivery (actual NOT required)
  • Notarised acknowledgment
  • Recordation
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8
Q

What is required for delivery of deed to Grantee?

A

Grantor had PRESENT intention to make Grantee bound immediately

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9
Q

Can title be returned/cancelled after delivery?

A

NO

Grantee must draw up new deed + deliver

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10
Q

What is Grantee becomes unavailable beforehand?

A

Title may pass to Grantee through Escrow Agent (TP)

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11
Q

What is the difference between Covenants for Title and Real Covenants?

A

Covenants for title - Title assurance

Real covenants - NOT title assurance (written promises)

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12
Q

What are the types of deeds for conveyance?

A

General deed
Special warranty deed
Quitclaim deed

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13
Q

What is a General Warranty Deed?

A

Warrants vs defects in title

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14
Q

What covenants of title are in General Warranty Deed?

A

Present covenants

  • Seisin (ownership of estate)
  • Right to convey
  • Against encumbrances

Future covenants

  • Quiet enjoyment (Grantee NOT to be disturbed by TP)
  • Warranty (Grantee to be protected by Grantor vs TP)
  • Further assurances (Grantee to perfect conveyed title by reasonably necessary acts)
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15
Q

What is a Special Warranty Deed?

A

NO conveyance of estate to others
NO encumbrances

Grantor only liable for promises he made (NOT precedessors’ promises)

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16
Q

What is Quitclaim Deed?

A

Releases any interest Grantor has (even if Grantor made NO promise of good title)

NO covenants of title

17
Q

What is the rule for recording conveyances?

A

Notice Statute

  • First BFP records => First BFP wins
  • First BFP fails to record => Last BFP wins (NO recording required)

Race-Notice Statute
- Whoever BFP records first => Wins

UNLESS
- Subordination agreements!!!
- Purchase money mortgages > Non-Purchase Money mortgages
=> Changes priority order!!!

18
Q

What is required for BFP?

A

1) Pays value

2) NO notice of other conveyance (at time of conveyance)

19
Q

Which parties are protected under Recording Acts?

A

BFP
Creditors
*TP (assignee of BFP) (NOT required to be BFP, therefore still protected even with notice)

NOT (no value)

  • Donee
  • Heir
  • Devisee
20
Q

What type of notice may discharge BFP?

A

AIR

Actual

Inquiry

  • Examination of land
  • Implied examination (if house constructed on land)

Record
- First deed recorded in chain of title before

21
Q

What is wild deed?

A

NOT connected to chain of title => Void
Can NOT give record notice of its existence

E.g. O => A (no record) => B

A=>B is wild deed

22
Q

What is estoppel by deed?

A

Scenario A

  • Grantor has NO interest in land
  • Grantor conveys land to Grantee
  • Grantor acquires interest in land
  • Conveyance to Grantee is valid (Grantor is estopped from denying validity)

Scenario B

  • Grantor has NO interest in land
  • Grantor conveys land to 1st Grantee
  • Grantor acquires interest in land
  • Grantor conveys land to 2nd Grantee (BFP)
  • Conveyance to 2nd Grantee is valid (UNLESS 2nd Grantee is NOT valid BFP)

Scenario C

  • Grantor has NO interest in land
  • Grantor conveys land to 1st Grantee
  • 1st Grantee builds/lives in house on land
  • Grantor acquires interest in land
  • Grantor conveys land to 2nd Grantee
  • 2nd Grantee has ‘constructive notice’ of 1st Grantee’s conveyance (2nd Grantee can see 1st Grantee’s house)
  • Conveyance to 1st Grantee is valid (NOT 2nd Grantee)
23
Q

What is the rule for estoppel by deed in recording act?

A

Conveyance to other Grantee is valid
Conveyance to original Grantee (estoppel by deed) is NOT valid

Other Grantee’s title searcher would think Grantor would not have sold house to anyone (e.g. original Grantee) if he does NOT even own it, before he sold to other Grantee.

24
Q

What are Grantee’s rights for Grantor’s breach of estoppel by deed?

A

Accept title

Sue for damages (breach of covenant - Ownership of land)

25
Q

What must Seller do in case of unmarketable title before Closing?

A

Court action
- Quieten title!!!

Use Buyer’s sale proceeds
- Must be ENOUGH to clear encumbrances!!!

26
Q

What are exceptions to lawful execution of deed?

A

VOID

  • Fraud
  • Forgery
  • Never delivered

VOIDABLE

  • Undue influence
  • Duress
  • Mistake
  • Fiduciary breach
  • Minor/Decapacitated execution
27
Q

When may voidable deeds be set aside?

A

By Subsequent BFP!!!

MBE - Real Property (17 decks)

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