Chpt. 8 Selling Real Property

Question 1

marketable title

Answer 1

title reasonably free from doubt as to its validity

Question 2

title unmarketable if:

Answer 2

• seller’s property interest is less than the one she purports to sell
• seller’s title is subject to an encumrbance

Question 3

equitable conversion

Answer 3

when a purchase K is signed, risk of loss moves to purchaser and ownership automatically changes

Question 4

duty to disclose

Answer 4

• defects materially affecting the property

- and not known or readily discoverable by buyer

Question 5

3 methods of title assurance

Answer 5

title covenants, title opinion based on search of public record, title insurance

Question 6

title covenants

Answer 6

promises buyer that there is a marketable title

Question 7

quitclaim deed

Answer 7

grantor makes no warranties about title, so grantee receives only what grantor has, if anything

Question 8

6 standard covenants

Answer 8

seisen
against encumberance
right to convey
quiet enjoyment
further assistance
warranty

Question 9

seisen

Answer 9

promise that grantor owns what he purports to convey

Question 10

right to convey

Answer 10

promise that grantor has right to convey title

Question 11

against encumbrances

Answer 11

promise that there are no encumbrances on land

Question 12

quiet enjoymet

Answer 12

grantee’s possession will not be disturbed by anyone w/ superior title

Question 13

further assistance

Answer 13

promise that grantor will take all future steps reasonably necessary to cure title defects that existed at closing

Question 14

warranty

Answer 14

grantor will defend against any claim of superior title

Question 15

title opinion based on search of public records

Answer 15

opinion by an attorney that the title is free

Question 16

recording system

Answer 16

if deed unrecorded, protection to bona fide purchaser who requires her title w/o notice of adverse claim and pays consideration

Question 17

race-notice jx

Answer 17

protects subsequent bona fide purchaser who BOTH takes w/o notice and records first

Question 18

race jx

Answer 18

purchaser who records 1st has priority

Question 19

notice jx

Answer 19

a subsequent, bona fide purchaser has priority

Question 20

record notice

Answer 20

notice of any prior interest that would be discovered by standard search of public land record

Question 21

inquiry notice

Answer 21

notice of any prior interest that would have been obtained by investigating suspicious circumstances

Question 22

constructive notice

Answer 22

record notice and inquiry notice

not actually notified

Question 23

title insurance

Answer 23

Best protection

protects if title is not what seller purported to transfer