Conveyance Flashcards
General Warranty Deed
Present Convenants
1) Siesen
2) Right to Convey
3) Covenant against Encumbrance
General Warranty Deed
Future Covenant
1) Quite enjoyment
2) Warranty
3) Future Assurance
Recording
Notice
“… is valid against any subsequent purchaser for value without notice thereof, unless it is recorded.”
- Subsequent BFP: For value, No Notice
Recording
Race
“… is valid against any subsequent purchaser whose conveyance is first recorded.”
- grantee who recorded first wins.
Recording
Race-Notice
“… is valid against any subsequent purchaser for value without notice there of whose conveyance is first recorded.
- Subsequent BFP who records first wins: For value, no notice.
Definition of Marketable Title
Is title that reasonably Prudent Buyer would accept, which means minor defect are ok.
= No perfect
Marketable Title
Seller Must Provide Buyer
Implied Covenant
1) Proof of title
2) Title free of Encumbrances
3) Valid Legal Title as of date of closing.
General Rule
Marketable Title
Every land sale contract contains a IMPLIED COVENANT that Seller will deliver Marketable Title to Buyer at closing of escrow
Property
Conveyance
First comes the contract of sale, later at closing comes the conveyance.
Property Conveyance
SOF
1) Signed
2) Writing
3) Description
4) Names of the parties
5) Price
Conveyance
If not Marketable
Buyer must notify the seller of any defect in the arose allow seller reasonable time to cure the defect.
* even if means postpone day of closing.
Buyer Remedies for seller failure to deliver:
- Market Title
1) Recision
2) Damages <——- Breach of contract
3) Specific Performance
* Which will be coupled with a reduction in the purchase price to reflect the defect in sellers title.
Marketability
Implied Covenant
elements
1) proof of title
2) TItled free of encumbrances
GR: Seller must give buyer the free of encumbrance- that is no easement, no restrictive covenant, no mortgage, no option other than were previous told.
