Conveyancing Flashcards
SOF Requirements for Land Sale Ks
Writing must be signed by the party to be charged and must contain all essential terms of the K, including: (i) description of the prop, (ii) identification of the parties to the K, (iii) price and manner of payment
Part Performance
A court may give specific performance of a K despite the absence of a writing if two of the following are met: 1) possession of the land by the purchaser, 2) substantial improvements made by the purchaser, or 3) payment of all or part of the purchase price by the purchaser
Equitable Conversion
Equity regards as done that which ought to be done; Buyer owns land once K is signed.
If the land is destroyed before closing, buyer bears risk of loss unless K states otherwise. If seller dies, bare legal title passes to takers of real property, who must give up the title to the buyer upon closing. If buyer dies, takers of real prop can demand a convetance of the land at the closing and takers of personal property must pay the purchase price
Implied Promises in Every Land K (2)
(1) Seller will provide marketable title; (2) Seller will not make false statements of material fact
Marketable Title
Title reasonably free from doubt; title that a reasonably prudent buyer would be willing to accept (no unreasonable risk of litigation). An unencumbered fee simple with good record title (no AP, no zoning violations, no signif encroachments, no easements/mortgages unless buyer has waived them)
Remedies for Breach of Sales K
Damages (diff between K price and market value of land on date of breach + incidentals); specific performance; return of buyer’s deposit if title is unmarketable and seller acted in GF
Seller’s Liability for Defects on Prop
No implied warranties of quality or fitness unless it’s a new house by the builder
Maj of states hold sellers liable for failing to disclose defects that the seller knows or should know about, that are not obvious, and that are serious and would cause the buyer to reconsider the purchase
As is clauses will not allow seller to avoid liability
Deed
Transfer of title to an interest in real property that is in writing and signed by the grantor, unambiguously identifies the land AND parties, and contains words of intent (no consideration necessary)
Void v. Voidable Deed
Void deed will be set aside by court even if prop has passed to a BFP; voidable deed will be set aside only if the property has not passed to a BFP
Delivery
Deed is not effective unless it is delivered; grantor’s present intent to be bound immediately regardless of whether the physical deed is handed over
Parol Evidence w/r/to delivery
Parol evidence is admissible to show grantor’s intent to delvier but NOT to show that delivery was conditional
Grantor Gives Deed to 3P
Conditional delivery permissible; Say O –> A naming B as grantee and instructs A to give it to B (this is a delviery)
Acceptance of a Deed
Usually presumed and usually relates back to the date of delivery of the deed in escrow unless it defeats the right of an intervening 3P; grantee can reject though
Quitclaim Deed
No promises (grantor still promises marketable title at closing though)
General Warranty Deed
Contains three present covenants (seisin, right to convey, against encumbrances) and three future covenants (quiet enjoyment, warranty, further assurances)
Present Covenants (breached at time of conveyance)
Seisin: Grantor owns the estate
Right to Convey: Grantor has right to transfer
Against Encumbrances: There are no servitudes or liens on the estate
Future Covenants (breached upon interference w/possession)
Quiet Enjoyment: Grantee will not be distrubed in possession by 3P’s claim to lawful title
Warranty: Grantor will defend grantee against superior title deeds
Further Assurances: Grantor promises to do what’s needed to perfect the title
Statutory Special Warranty Deed
Grantor promises she hasn’t conveyed prop to anyone besides grantee and estate is free from encumbrances made by the grantor (grantor is NOT saying that previous owners havent done this)
Estoppel by Deed
If grantor purports to convey an estate in prop that she doesnt own, her subsequent acquisition of title to the prop will automatically inure to the benefit of the grantee (against the grantor, not subsequent BFPs tho)
Recording Acts: Notice Jx
Last BFP wins
Recording Acts: Race-Notice Jx
First BFP to record wins
Recording Acts: Race Jx
Whoever records first wins regardless of whether they’re a BFP
BFP
Person who is a purchaser, mortgagee, or creditor who takes without actual, constructive, or inquiry notice of the prior instrument and pays valuable consideration
Who recording acts protect
Protects BFPs, creditors/mortgagees, and those protected by Shelter Rule
Doesn’t protect donees, heirs, and devisees cuz they gave no value
Shelter Rule
A person who takes from a BFP will prevail against any interest that the transferor-BFP would’ve prevailed against, even if transferee had actual knowledge of prior unrecorded interest (we allow the BFP to convey the land)
Wild Deed
Recorded deed that is not connected to the chain of title; gives no constructive notice because a subsequent BFP couldn’t feasibly find it
