Estates In Land

Question 1

Purchase Agreement

Answer 1

Should be drafted by an attorney. Includes, among other things Includes name and address of buyer and seller, type of estate being transferred, Price-earnest money deposit, legal description and street address, appliance/fixtures included or not included, seller’s disclosure of defect, lead based paint disclosure, when and where closing, type of deed and title to be conveyed, financing conditions, taxes, time is of the essence, sections by buyer, cleanliness

Question 2

Time is of the essence clause

Answer 2

Title must stand or fall by that date

Question 3

Where there is not a time is of the essence clause

Answer 3

Seller has a reasonable amount of time to restore title

Question 4

What is involved in Due Diligence

Answer 4

Certified boundary survey, compare survey to buyer’s and seller’s deed, title, purchase agreement, and mortgage, site visit, prepare all documents, negotiate with lenders

Question 5

When should a buyer engage in due diligence

Answer 5

EVERY TIME. Purchase agreement=due diligence

Question 6

What does title mean in due diligence

Answer 6

This is a title search to ensure there is not recording acts issues. In other words, you are protecting yourself from prior purchasers and ensuring title is good

Question 7

Why do you get a certified boundary survey

Answer 7

To look for encroachments, set backs, and to get a legal description. Also gives you someone to sue

Question 8

True or False: to satisfy the Statute of Frauds, an interest in land cannot be transferred unless it is in writing

Answer 8

True

Question 9

2 Exceptions to the Statute of Frauds

Answer 9

1) Part Performance: acts pursuant to agreement
2) Promissory Estoppal

Question 10

Unless otherwise specified, title is

Answer 10

Presumed to be marketable

Question 11

The mere existence of [] renders title unmarketable unless agreed

Answer 11

A private restriction

Question 12

Title will not be rendered unmarketable by the mere existence of [], but will be by []

Answer 12

A municipal regulation
Violation

Question 13

Marketable title is

Answer 13

Not subject to reasonable doubt as to its validity in the mind of a reasonable, prudent person acting on the advice of competent counsel, and will be willing to pay fair value. The title will not expose the buyer to the hazards of litigation.

Question 14

[] of a private restriction, even where agreed, will make title []

Answer 14

Violation
Unmarketable

Question 15

Seller’s duty to disclose

Answer 15

Seller has a duty to disclose known material defects

Question 16

What is a material defect

Answer 16

One which a reasonable person would attach important e to, or would affect the value or desire ability of the property

Question 17

As is clause will upheld so long as

Answer 17

Defect is reasonably discoverable and there is no fraud

Question 18

Seller’s have a duty to disclose artificial conditions

Answer 18

Which they have created or perpetrated. The house is haunted as a matter of law