Land Conveyance

Question 1

Every conveyance of real estate consists of two step:

Answer 1

1) The land contract, which endures until…

2) The closing, when the deed becomes the operative document.

Question 2

The Land Contract, standard/requirements:

Answer 2

The land contract must be in writing, signed by the party to be bound. it must describe blackacre, and state some consideration.

Question 3

Exception to the Land Contract’s writing requirement:

Answer 3

If two of the following three conditions are met, equity will decree specific performance of an oral contract for the sale of land:
1) B takes possession; 2) B pays all or part of the price; 3) B makes substantial improvements.

Question 4

Equity regards as done

Answer 4

that which out to be done

Question 5

In equity, once a contract is signed,

Answer 5

Buyer owns the land, subject to the condition that he pay the purchase price at closing.

Question 6

If, in the interim between contract and closing, the property is destroyed through no fault of either party,

Answer 6

Buyer bears the risk of loss, unless contract says otherwise.

Question 7

Two implied promises in every land contract:

Answer 7

1) Seller promises to provide marketable title at the closing.
2) Seller promises not to make any false statements of material fact.

Question 8

The promise of Marketable Title is a guarantee of

Answer 8

title free from reasonable doubt, free from lawsuits, and free from the threat of litigation.

Question 9

Title will be unmarketable if:

Answer 9

1) Adverse Possession is on the property.
2) Encumbrances exist on the title.
3) Zoning Violations are occurring.

Question 10

A seller’s promise not to make any false statements of material fact includes:

Answer 10

failure to disclose latent material defects, liability for material lies, liability for material omissions.

Question 11

How does the deed pass legal title from seller to buyer? LEAD:

Answer 11

Lawfully Executed and Delivered

Question 12

Lawful Execution of a Deed requires:

Answer 12

The deed must be in writing, signed by the grantor, and an unambiguous (but not perfect) description of the land.

Question 13

Delivery requires

Answer 13

1) The grantor physically transfers the deed to the grantee. OR
2) Present intent to be bound.

Question 14

The recipient’s express rejection of the deed

Answer 14

defeats delivery.

Question 15

The three types of deed are:

Answer 15

1) Quitclaim Deed; 2) General Warranty Deed; 3) Statutory Special Warranty Deed.

Question 16

A quitclaim deed contains

Answer 16

no covenants at all. Grantor isn’t even promising a right to convey the title or ownership of the title.

Question 17

The general warranty deed warrants against

Answer 17

all defects in title, including those due to grantor’s predecessors.

Question 18

The Statutory Special Warranty Deed contains two promises:

Answer 18

1) Grantor promises they haven’t conveyed land to anyone other than grantee.
2) The land is free from encumbrances made by the Grantor.

Question 19

The General Warranty Deed contains six covenants. They are:

Answer 19

1) Covenant of Seisin - Promise of Ownership
2) Covenant of Right to Convey - Promise that the Grantor has the power to transfer, with no temporary restraints on alienation or disabilities.
3) Covenant Against Encumbrances - Promise that there are no servitudes or mortgages on the land.
4) Covenant for Quiet Enjoyment - Future Covenant, promise that grantee wont be disturbed in possession by third party LAWFUL claims of title.
5) Covenant of Warranty - Future Covenant, promise that grantor will defend grantee against lawful title claims
6) Covenant for Further Assurances - Future Covenant, Grantor promises to do whatever is needed in the future to perfect title.