Contracts for real property

Question 1

Statute of Frauds

Answer 1

MUST HAVE WRITING for transfer of interest in land.  Must be signed by person charged (i.e. the person you are suing) and include:
description of the property
description of the parties
price
conditions, if any

Question 2

Exceptions to the SoF

Answer 2

Doctrine of Part Performance: if acts of partial performance unequivocally show existence of the contract, can enforce even if oral. Must show 2/3 of: payment, taking of possession, substantial improvement

Equitable and promissory estoppel
Equitable based on act or representation
Promissory based on promise

Question 3

Equitable conversion

Answer 3

When contract is formed, title bifurcates - legal title stays w seller til closing, but equitable title to the buyer.
Maj rule: risk of loss also goes to buyer

Question 4

Marketability of Title

Answer 4

Unless stated otherwise, land sale contracts imply covenant of marketable title. That means reasonably free from defects in fact and law. examples:
unpaid mortgage/lien
covenant or easement
currently unresolved adverse possession
zoning violation
This manifests at date of closing.
Majority rule: seller can use sale proceeds to remove defects

Question 5

Merger

Answer 5

Here, “merged” means “deleted”, unless deed contains them explicitly

Covenants in a land-sale contract merge into the deed at closing - so the contract stops being enforceable. Those covenants need to be in the deed to stay enforceable
Doesn’t apply to collateral matters - e.g. agreement to remove junk
Merger doctrine: covenant of marketable title in in the contract, and contract merges into the deed, so right to sue over marketable title disappears once deal is closed

Question 6

Quitclaim deed

Answer 6

Quitclaim deeds are as-is. No promises in the deed. You get whatever interest I have, even if I don’t know what it is

Question 7

Warranty deed

Answer 7

Warranty deeds contain covenants
General warranty deeds have all 6 covenants of title, covers period prior to sale. Seller warrants no defects anywhere in chain of title.
Special warranty deeds have some or maybe all of the 6, but only cover period of seller’s ownership. Seller warrants no defects occurred while they owned it

Question 8

Covenants of title (6)

Answer 8

Present covenants: don’t run with the land, only breachable at time of closing. Buyer’s successors unable to sue.

• Seisin: seller actually owns property
• Right to convey: seller has power to sell
• Cov. against encumbrances: no visible or invisible encumbrances on property

Future covenants: run with land, can be breached after sale

• quiet enjoyment: no third party has valid claim
• warranty: seller will defend against third party claims
• further assurances: seller will do everything reasonably necessary to perfect title

Question 9

Fitness and suitability

Answer 9

Residential homes: duty to disclose material latent defects that are known to the seller and not readily observable/known to the buyer

Implied warranty of quality: applies to new or remodeled homes. covers significant latent defects discovered w/in reasonable time