Conveyancing

Question 1

Every sale of land includes what two processes?

Answer 1

1. The land contract, the creation of which is to pass equitable title from B to S.
2. The closing, when legal title passes to the buyer.

Question 2

For a land contract to be valid, it must be…?

Answer 2

In writing

Signed

Describe the land

Consideration

Question 3

What happens if a piece of land conveyed to buyer ends up being smaller than the one sold?

Answer 3

Buyer can seek specific performance and pro rata reduction in price

Question 4

When might an oral conveyance of land be valid in equity?

Answer 4

If two or more of the following are present:

• B takes possession
• B pays all or significant part of the price
• B makes substantial improvements to land

Question 5

What is the risk of loss between the contract being exchanged and the transaction closing?

Answer 5

Apply the doctrine of equitable conversion, meaning buyer bears the loss and has to furnish the contract price if anything happens to the property between sale and closing.

Question 6

What is the implied promise of marketable title and when does the seller provide it?

Answer 6

At closing

Means that the S promises that the land is free from reasonable doubt, free from suit and the threat of litigation

Question 7

In what circumstances will a land contract contain an implied warranty of habitability?

Answer 7

Usual standard is caveat emptor. However, new residential homes contain an implied clause of fitness and workman-like construction

Question 8

If the S dies between contract exchange and closing, can the seller’s estate cancel the sale?

Answer 8

No because of the doctrine of equitable conversion.

Question 9

What does it mean for a deed to be delivered?

Answer 9

Needs to be:

In writing

Signed

Consideration NOT necessary at this stage

Contain a description of the property

Delivered

Grantor has intention to deliver

Question 10

If a grantee returns the land deed to grantor, will they be deemed to have re-conveyed the land?

Answer 10

No.

Only if recipient expressly rejects the deed will there be no deemed delivery.

Question 11

What is the order of priority in terms of describing the land?

Answer 11

1. Natural monuments
2. Artificial monuments
3. Course/angles prevail over distances
4. All of the foregoing prevail over general descriptions or quantity

Question 12

What is a quit claim deed?

Answer 12

Contains no promises about title (other than marketable title at closing only).

Question 13

What is the general warranty deed?

Answer 13

Contains 4 present covenants:

1. Right to convey
2. Covenant of Sesin (grantor owns the estate)
3. Grantor under no disability
4. No servitudes or liens on the land

Contains 3 future covenants:

1. Quiet possession
2. Covenant of warranty (grantor will defend grantee against all claims of superior title)
3. Covenant for further assurances (grantor will do all he need to perfect an imperfect title).

Question 14

What is the Statutory Special Warranty Deed?

Answer 14

This deed contains only two promises that grantor makes on behalf of himself:

1. Grantor not conveyed the property to anyone else
2. The estate is free from encumbrances made by grantor.