Land conveyances Flashcards
Land Contract requirements
SOF requires writing unless 2/3: possession; payment; substantial improvement.
If K > actual size- specific performance w/ pro rata reduction in price.
NC:
Writing, signed by the party or authorized agent to be charged and essential terms.
-if buyer seeking enforce K then price need not be in writing and can be established by parol evidence.
-Cash is presumed for payment , if writing indicates sale is on credit, failure to state that can be fatal to the sale
NC does not have an exemption for part performance. However, party may be estopped from asserting SOF as a defense if he has accepted the benefits under the K.
Risk of loss for land sale
Risk of loss: b owns land when K is signed so buyer bears risk.
Implied promises in land sale K
Marketable title at closing free from adverse possession, encumbrances, zoning violations.
No false statement of material fact, including failure to disclose latent, material defects.
No implied promise of fitness or habitability unless new home builder (promise of workman like construction).
Time is of the essence
Untimely performance: time not of the essence unless stated in the K. Performance rendered w/in reasonable time after closing date is ok.
Deed
Replaces the K as controlling doc.
Requires: LEAD
Lawfully: writing signed by grantor, G comports w/ statutory requirement (no consideration needed, good lead description)
Executed and
Delivered: G must have present intent to be immediately bound. Recipient’s express rejection defeats delivery.
NC: grantor must part w/ possession of the deed for transfer of title.
Parol evidence may be used to establish that an apparently absolute deed is actually subject to a condition.
A recorded deed will not give notice if the deed is not witnessed or acknowledged.
To record must have acknowledgement (public official) or attestation (3rd party witness) to be recorded.
General warranty deed
General warranty deed: Sad, Crying Elvis Wants Queen Anne:
Seisin: G owns estate he’s conveying;
Right to Convey: has power to convey w/out restraints
Against Encumbrances: no servitudes or mortgages
Warranty: promise to defend against lawful claims by others
Quiet enjoyment: no disturbance by 3rd parties lawful claim of title;
Further Assurances: do whatever necessary to perfect title
Quitclaim deed
Quitclaim: no covenants
Statutory special warranty deed
Promises G makes on behalf of himself that he won’t convey to anyone else and property is free from encumbrances made by G.
NC Implied Covenant of Marketable Title
If person can show chain of custody for 30 years, all conflicting claims based on title tx prior to that are extinguished.
Except mineral rights, deeds of trust and mortgages.
Implied warranty of fitness and suitability
Applies to all recently constructed dwelling
The test for determining recent construction is reasonableness: age, use, maintenance, nature of defects and expectations of the parties.
Doesn’t extend to defects the purchaser had actual notice or or visible to a reasonably prudent person on inspection.
The standard is the prevailing standard of workman like quality.
Can only be waived by clear, unambiguous language
NC Required disclosures
A seller of residential RP consisting of nor more than 4 units must disclose defects regarding:
Water supply
Sewage
Structural components (roof, chimney, etc.)
Plumbing
Termite infestation
Restrictive covenants
Contaminations
If owner makes no representation of a poor characteristic the purchaser can cancel the K.
No duty to disclose
No duty to disclose, but can’t lie:
Previous occupant died, seriour illness or convicted or crime requiring registration or resides near property
Uniform Vendor and Purchaser and Risk Act
Applies when any part of the property is destroyed. Keeps risk of loss w/ seller while sale is pending, until buyer takes possession or title is transferred.
Recording a gift of real property
In NC a gift of RP must be recorded w/in 2 years of its making. If not then it’s void and reverts to grantor. The gift is considreed complete when the deed is executed and delivered.
Leases of land for less than 3 years
Do not need to be recorded.
Recording protects against subsequent oral lease by giving a superior claim to the owner of the recorded lease.
