Agreements to transfer property

Question 1

Types of Agreements to Transfer Property (2)

Answer 1

1) Listing Agreement - agency btwn broker/client
2) Land Sale Contract: aka “purchase and sale agreement” / “earnest money and receipt agreement”

Question 2

Listing Agreement/ what, reqs

Answer 2

• Agency btwn broker and client (agency rules apply)
• Dual agency (for seller/buyer) OK if disclosure
• Most states require SOF + license for broker

Question 3

Listing Agreement - DEWD Formalities

Answer 3

• Duration
• Earned Conditions for commission
• Writing: SOF because of land
• Description: enough to ID property

Question 4

Listing Agreement - Formalities - Earned Conditions for Commission Content / when!, i.e.

Answer 4

- Gral rule: when broker provides seller with buyer that is ready/willing/able

• specific terms: conditions (inspection, financing, conveying clear title), set time period/date

Question 5

Listing Agreements - Types (2)

Answer 5

1) Non-exclusive/Open
2) Exclusive: only 1 broker:
a) Broker exclusive: no liability if owner sell himself to buyer not provided by broker
b) Exclusive Right to sell: liable for commission to broker if sell by himself.

Question 6

Land Sale Contract - Gral/ what, when, how

Answer 6

• Agreement on the price and terms for transfer of piece of property
• Precedes formal deed at closing
• Unless otherwise established :
• conveyance marketable title implied at time of closing of escrow

Question 7

Marketable title - concept

Answer 7

Free of unreasonable encumbrances (without likelihood of claims on the property from another party)

Question 8

Land Sale Contract - Essential Terms LIPP

Answer 8

• Legal description: reasonable certainty by specific ID
• ID closing entity + method of delivery of title
• Price: currency + method of payment
• Parties: ID + possible assignment to 3rd party

Question 9

Land Sale Contract - LIPP - Legal Description/ accuracy, i.e. description, mistake, common boundari

Answer 9

• Accuracy critical to obtain specific performance
• Reasonable precision: i.e
• nr/st/city/state
• Metes + bounds: make sure they close
• Mistakes: Reformation available only if scrivener’s error or mutual mistake
• When boundary apparent and established by common grantor enforceable even if different from legal description

Question 10

Land Sale Contract - LIPP - Legal Description - Personal Property Rule

Answer 10

Gral rule: Not included in sale of commercial property unless deed so specifies

• if silence: basic residential fixtures required.

Question 11

Land Sale Contract - LIPP - Price - Deposits rule

Answer 11

• earnest money deposit conditions specified in land sale contract
• Return: if no closing bc of the seller’s non-performance
• Forfeiture: accepted as remedy when breach by the buyer (as liquidated dx)

Question 12

Land Sale Contract - Financing

Answer 12

Identify in contract type of financing + contingencies

-i.e. conventional, VA, FHA, seller

Question 13

Land Sale Contract - Financing Contingencies

Answer 13

• Parties might desire to approve them before closing within certain time limit (reasonable):
• i.e. obtain loan, inspection.

Question 14

Land Sale Contract - Financing Contingencies- Balloon Obligations- Acceleration Clauses

Answer 14

• Ballon: extra sum paid on particular date/occurrence of event
• Acceleration clause: unpaid balance on certain date

Question 15

Seller Remedies for breach/non-performance of land sale contracts(3)

Answer 15

1) Compensatory DX = difference btwn contract price and current market price
2) Liquidated dx: usually use of earnest money deposit as long as reasonable to the probable loss
3) Specific performance: lest likely but possible when no compensatory/liquidates dx possible

Question 16

Buyer Remedies for breach/non-performance of land sale contracts (3)

Answer 16

1) Specific Performance: when land deemed unique
2) Damages: when specific performance not possible.

• If not fault of seller buyer entitled to return of deposit + interest.
• If seller’s fault: compensatory dx (burden of proof on buyer)

3) Rescission: when defective property

Question 17

Quiet title action - gral/ what for, additional uses

Answer 17

Used to clear chain of a title to a described real property parcel

• i.e. liens, resolve claimant’s priority, remove encumbrances
• Might be required to secure marketable title