Conveyance of Land Flashcards
What is required for a land sale contract to be enforceable?
- It must satisfy SOF (in writing + signed against party against whom enforcement is sought)
- Writing must identify the parties;
- describe the property; and
- include the price or means of determining the price
Under the doctrine of part performance:
An oral land sale contract will be enforced if two of three are met: (1) payment; (2) possession; and/or (3) buyer has made substantial improvements
Under the Doctrine of Equitable Conversion:
- Buyer becomes owner in equity of the property, but does not have legal title until closing
- Risk of loss shifts to the buyer under doctrine of equitable conversion
What are the two implied promises included in every land sale contract?
(1) marketable title; and (2) seller won’t make false statements of material fact
What is the covenant of marketable title?
- seller promises he will convey marketable title on closing date
- title is not marketable if: (1) there is an existing zoning violation; (2) there is an encumbrance on the land; or (3) defects in chain of title (I.e. the whole or portion of the title has been adversely possessed)
What is the remedy for breach of marketable title?
- Buyer has to give seller notice and time to cure defects
- if seller fails to cure buyer can rescind, seek damages, or get specific performance
What is the implied promise that seller will not make false statements?
-buyer may be liable after closing for defects if buyer knowingly made false statements that the buyer relied on, actively concealed the defects; or failed to disclose known defects
What three elements must be met for buyer to be liable for failure to disclose?
- buyer knew or had reason to know of the defect
- defect is one buyer is unlikely to discover; and
- defect is so serious that buyer would reconsider the purchase
Is there an implied warranty of fitness for habitability?
No, unless it is the sale of a new home by the builder
What are the remedies for breach of sales contract?
(1) contract price-FMV on date of breach+incidental costs; or (2) specific performance (With abatement if title is not marketable)
What is the effect of delivery and execution of a deed on the date of closing?
The land sale contract ceases to exist and buyer can no longer sue on it
What are the two requirements of a valid deed?
(1) execution; and (2) delivery
Execution of a deed requires:
(1) writing signed by grantor; (2) unambiguous description of land; (3) parties names; (4) words of intent to transfer
How is the delivery requirement satisfied?
- the grantor intends to pass title NOW
- acceptance will be presumed
When is delivery presumed?
(1) grantee is in possession of the deed; (2) deed is recorded; (3) deed was acknowledged by grantor in front of a notary
General warranty deed:
- warrants against all defects in title
- three present covenants: (1) seisin; (2) right to convey; (3) against encumbrance
- Three future covenants: (4) quiet enjoyment; (5) warranty; (6) further assurances
Special Warranty deed:
-Grantor promises same warranties as warranty deed BUT only on behalf of grantor and not grantor’s predecessors
What kinds of deeds are void?
(1) dead or nonexistent grantee; (2) grantor didn’t know they were executing a deed; (3) no delivery or exception; (4) forged deed
Are there any covenants included in a QCD?
No
What does the covenant of quiet enjoyment guarantee?
grantor is guarantees that grantee will not be disturbed in possession or enjoyment of property by a third party’s lawful claim of title
What does the covenant of warranty promise?
grantor will defend on grantee’s behalf against reasonable claims of title by third party + compensate
What does the covenant of seisin guarantee?
-grantor is promising he owns/ has interest in the property he purports to convey
What does the warranty of further assurances guarantee?
That grantor will take whatever steps reasonably necessary to perfect title if it turns out title is imperfect
