Conveyance

Question 1

Documents for Conveyance

Answer 1

1. Real estate contract: Under the doctrine of equitable conversion, the real estate contract conveys equitable title to the buyer and the risk of loss shifts to the buyer. The contract implies marketable title, that is the property is free of encumbrances.
2. Deed: The deed conveys legal title at the closing. The real estate contract merges into the deed.

Question 2

Warranties in warranty deeds

Answer 2

Warranty deeds contain present and future covenants.
Present covenants don’t run with land, the breach occurs at the closing, and are enforceable by buyer. Those warranties are (1) Siesen: Seller owns property; (2) Conveyance: Seller can sell property; and (3) Against encumbrances: Seller can sell the property with no strings attached
Future warranties run with the land and are enforceable by subsequent owners. Those warranties are (1) Quiet enjoyment: Nobody will disturb your title; (2) Warranty: If disturbed, seller will defend; and (3) Further assurances: After defending, will take steps to perfect title

Question 3

Types of Deeds

Answer 3

1. Quitclaim: no promises as to the condition of title.
2. General warranty: Promise that title is good forever for all owners
3. Special warranty: Promise that title good only on behalf over owner themself

Question 4

Florida deed requirements

Answer 4

Deeds must be in writing, signed by the grantor, and witnessed by two people. The deed must be delivered, which means the grantor has the present intent that title pass immediately, even if possession is postponed.

Acceptance of the deed by the buyer is presumed unless there is evidence to the contrary.

The deed must contain identifiable grantees.

The deed must also contain a legal description of the land and the price or means of determining the price.

Question 5

Duty to disclose

Answer 5

A seller may be held liable for failure to disclose defects if: (1) the seller knows or has reason to know of the defect;(2) the defect isn’t obvious or apparent and seller realizes that the buyer is unlikely to discover it by ordinary inspection; and (3) the defect is serious, and would probably cause the buyer to reconsider the purchase if it were known.

A seller is liable for active concealment if the seller took steps to conceal a defect in the property.

Question 6

Installment Land Contracts

Answer 6

In an installment landsale contract, the buyer signs a contract with the seller agreeing to make regular installment payments until the full contract price has been paid. At that time, the seller will give the buyer the deed transferring legal title. Florida does not permit forfeitures under an installment land sale contract.

Question 7

Fraudulent Misrepresentation

Answer 7

A fraudulent misrepresentation claim requires a showing that: (1) the sellers made a statement they either knew to be false or (2) knew they did not have a basis for making. The buyers will have to show (3) they relied on the statement and (4) the false statement materially affected the value of the property.