Land Conveying: The Purchase & Sale of Real Estate

Question 1

Every Conveyance of Real Estate Consists of a 2-Step Process

Answer 1

(1) The Land K, which endures until Step 2

(2) The Closing, where the deed becomes our operative Doc.

Question 2

The Land K & SOF

Answer 2

Land K MUST be in writing

Signed by the Party to be bound (∆)

MUST described Blackacre

State Some Consideration

ONE EXCEPTION to SOF IF 2 out of 3:

• B takes possession
• B pays all or part of the price &/or
• B makes substantial improvements

2 Implied promises: (1) Seller Promises to provide marketable title AT THE CLOSING (2) Seller promises NOT to make any false statements of material fact

Question 3

The Closing

Answer 3

Our controlling doc is now: THE DEED

How does the deed pass legal title from seller to buyer?
-It MUST LEAD (Lawfully Executed & Delivered)

(1) Lawful Execution:
- Deed MUST be in writing signed by Grantor
- Description of the Land unambiguous

(2) Delivery:
- Does NOT necessarily require physical transfer of deed itself (it’s a LEGAL STANDARD)

Question 4

Covenants for Title & 3 Types of Deed

Answer 4

(1) Quitclaim: Contains NO covenants.
- Grantor isn’t even promising that he has title to convey (worst & Shaggy)

(2) General Warranty: Warrants against ALL defects in title including due to Grantor’s Predecessors (Mother Theresa)
- Covenant of Seisin = Grantor OWNS THIS estate
- Covenant of Right to Convey = Grantor has the Power to Transfer
- Covenant Against Encumbrances = No servitudes or mortgages on Blackacre

Question 5

Future Covenants

Answer 5

AKA: A future covenant is NOT breached, if ever, until grantee is disturbed in possession. Thus, Statute of limitations for breach of future covenant will not begin to run until that future date

(4) Covenant for Quiet Enjoyment:
- Grantee wont’ be disturbed in possession by a 3rd Party’s claim of title (Not a double dealer)
(5) Covenant of Warranty
- Grantor will defend Grantee against any lawful title claims asserted by others (just in case)
(6) Covenant for Further Assurances
- Grantor will do whatever is needed in the future to perfect the title, IF it turns out to be imperfect (more ministral promise)

Question 6

The Statutory Special Warranty Deed

Answer 6

This deed contains 2 promises that grantor makes ONLY ON BEHALF of HIMSELF:

(1) Grantor promises he has NOT conveyed Blackacre to anyone other than Grantee AND
(2) Blackacre is free from encumbrances made by Grantor