Contracts- Property

Question 1

Real Estate Contract

Answer 1

Shows intent to convey title

Contract has to be in writing

If there is no writing, then there must be:

1. Part performance, Some payment and either
2. Improvements or taking possession

Question 2

What are the terms of the real estate contract

Answer 2

1. Price
2. Parties
3. Basic description of prop
4. Any conditions and
5. Signed by the party to be charged,

Question 3

Equitable Coversion

Answer 3

The day we sign the real estate contract, I am not transferring legal title but equitable title.

• Risk of loss shifts to buyer
• Seller dont have to give legal title until the day of closing.

Question 4

Marketable Title

Answer 4

property must be free of any liens or encumbrances

Its implied that your conveying marketable title which means free of any liens or encumbrances.

o Lien, mortgage, covenant, easement or any zoning violations would all make the property unmarketable.

Question 5

Generally is time of the essence?

Answer 5

No, unless we make it so say we have to complete it by a certain date.

Question 6

Merger- real estate contracts

Answer 6

o At closing, the contract merges into the deed.

o Can no longer sue on under the contract

Question 7

Duty to disclose- real estate contracts

Answer 7

The seller has a duty to disclose material physical defects to the buyer that cannot be seen by the buyer.