Land Conveyance Flashcards
Every conveyance of real estate consists of two step:
1) The land contract, which endures until…
2) The closing, when the deed becomes the operative document.
The Land Contract, standard/requirements:
The land contract must be in writing, signed by the party to be bound. it must describe blackacre, and state some consideration.
Exception to the Land Contract’s writing requirement:
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.
Equity regards as done
that which out to be done
In equity, once a contract is signed,
Buyer owns the land, subject to the condition that he pay the purchase price at closing.
If, in the interim between contract and closing, the property is destroyed through no fault of either party,
Buyer bears the risk of loss, unless contract says otherwise.
Two implied promises in every land contract:
1) Seller promises to provide marketable title at the closing.
2) Seller promises not to make any false statements of material fact.
The promise of Marketable Title is a guarantee of
title free from reasonable doubt, free from lawsuits, and free from the threat of litigation.
Title will be unmarketable if:
1) Adverse Possession is on the property.
2) Encumbrances exist on the title.
3) Zoning Violations are occurring.
A seller’s promise not to make any false statements of material fact includes:
failure to disclose latent material defects, liability for material lies, liability for material omissions.
How does the deed pass legal title from seller to buyer? LEAD:
Lawfully Executed and Delivered
Lawful Execution of a Deed requires:
The deed must be in writing, signed by the grantor, and an unambiguous (but not perfect) description of the land.
Delivery requires
1) The grantor physically transfers the deed to the grantee. OR
2) Present intent to be bound.
The recipient’s express rejection of the deed
defeats delivery.
The three types of deed are:
1) Quitclaim Deed; 2) General Warranty Deed; 3) Statutory Special Warranty Deed.
A quitclaim deed contains
no covenants at all. Grantor isn’t even promising a right to convey the title or ownership of the title.
The general warranty deed warrants against
all defects in title, including those due to grantor’s predecessors.
The Statutory Special Warranty Deed contains two promises:
1) Grantor promises they haven’t conveyed land to anyone other than grantee.
2) The land is free from encumbrances made by the Grantor.
The General Warranty Deed contains six covenants. They are:
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.
