Land Sale Flashcards
What are the requirements for a land sale contract?
writing
- parties
- describe the property
- purchase price
- signed by person against whom enforced
- intent to buy or sell
Would a restrictive covenant render title unmarketable?
yes
what is marketable title?
reasonably free from doubt or defects (risk of litigation)
what is the shelter rule?
protects grantees/donees who take from a BFP - would have the same priority/rights as the BFP, even if G/D had notice
what is required for land sale K?
i) Be in writing;
ii) Be signed by the party to be charged; and
iii) Contain all of the essential terms (i.e., parties, property description, terms of price and payment).
what is the remedy when a buyer or seller dies during escrow?
specific performance
what interests do the buyer and the seller hold during escrow? tile? what is the deoctrine called?
seller: property interest in the proceeds; still holds legal title
buyer: equitable title
what is marketable title?
reasonably free from doubt and defects (rsik of lit)
what can the buyer do when the sellr fails to produce marketable title?
notify and give seller time to cure
if at closing, still not can rescind, damages, SP with abatement
what covenants come with general warranty deed?
SEC AWE
○ General warranty deed: Seller warrants that no title defects were created by himself and all prior titleholders. Includes 6 covenants of title (different from real covenants): (SEC AWE)
§ Present covenants (do not run w/ land, breached at conveyance, only immediate grantee can enforce):
□ covenant of seisin (promise that he owns title and possesses estate conveyed),
□ covenant of right to convey (grantor had right as valid owner),
□ covenant against encumbrances (no easements, covenants, unpaid mortgages or liens)
§ Future covenants (run w/ land, any future grantee can enforce):
□ covenant for quiet enjoyment (promise that grantee won’t be disturbed by lawful claims of title),
□ covenant of warranty (promise to defend vs. reasonable claims of title & compensate for any losses from superior claims),
covenant for further assurances (promise to take reasonable steps to perfect defects of title)
what covenants come with special warranty ded?
no-title defects
arose during ownership
what arethe defects to marketable title?
chain of title (AP, unvested future interest),
encumbrance (mortgages, liens, restrictive covenants, easements, significant encroachments),
existing zoning violation (not restriction)
what is required for a deed?
formalties: writing and sign
delivery:
- intent: no conditions
- acceptance
where does one look for constructive notice?
tract indiex
grantor grantee index
title search
are mortagees BPFs? creditos?
yes
yes but against claims arising after recording of the judgment
what are req for BFP?
good faith
without notice
for monetary value
what is a aboslute deed?
free of liens and encumbranes and is used to transfer unrestricted title to property
when can an absolyte deed be a disguised mortgage?
what factors does the court consider?
when an obligation is attached with the transfer
granot debt or promise
debt of promise to return land after grantor’s debt is paid
amount paid to grantor is much lower than propety value
grantor’s financial distress
prior negotiations between parties
what is a deed of trust?
when a m’or gives titles to a trustee, which holds it as security for promise;
if m’or defaults, trustee can sell the property to pay the benefiaciry
if note is paid, title is returned to the m’or
what is a purchase money mortgage?
to purchase or improve property
what happens with m’or transfers property?
default - t’ee takes subject to
assn - t’ee becomes personally liable for mortgage
subject - t’ee is not personally liable but property can be FC; if deficiency remains, orginal m’or liable
