Land Conveyance

Question 1

Land Contract

Answer 1

Must: be in writing, signed by bound party, describe property, state consideration.

If land is smaller than stated, plaintiff will get remedy of specific performance and a pro rata share reduction in price.

Question 2

Exception to Written Land Sale Contract

Answer 2

Buyer takes possession, Buyer remits part of all of the price, Buyer makes substantial improvements

MUST HAVE 2 out of 3

Question 3

PRE CLOSING RISK OF LOSS

Answer 3

Risk of Loss in on Buyer,

Doctrine of Equitable Conversion - Equity regards as done that which ought to be done.

Once contract signed buyer owns land, subject of course to the condition that he pay the purchase price.

If owner receives insurance proceeds for destruction of property during the time between signing of contract and closing, owner must remit those proceeds to the buyer

Question 4

Implied Warranty In Every Land Sale Contract

Answer 4

Marketable Title - Title free from reasonable doubt (free from lawsuits/threat of litigation)

Question 5

Unmarketable Title

Answer 5

Part or piece of property subject to adverse possession

Encumbrances: servitudes and mortgages render title unmarketable. UNLESS BUYER WAIVES

Zoning Violations - Title is unmarketable if property IS IN VIOLATION of zoning oridnance.

Question 6

False Statement by Seller

Answer 6

Seller is liable for material lies and material omissions.

Will hold seller liable for failure to disclose latent defects.

Disclaims such as “AS IS” will not excuse seller for fraud or failure to disclose

Question 7

Warranties Not Included in Land Sale Contracts

Answer 7

Warranties of Habitability/Fitness

Caveat Emptor = BUYER BEWARE