Land Sale Contract Flashcards
remedies for breach in land sale contract
both buyer and seller can recover expectation damages on the different between contract price & market value
Can specific performance equal a rememdy?
Buyer may be entitled to specific performance if nature of the land is unique
Under the theory of mutuality of remedies seller is also permitted to seek the same
Equitable Conversion
Equitable title passes to the buyer when they enter the contract
Seller has the right to legal title and right to possess property
When will equitable conversion not apply?
if the contract is not specifically enforeceable
What is the risk of loss while contracting for a land sale contract?
Risk is on the buyer during the time between the execution and closing
How does an option contract work with the purchase of land?
a party requires the right to purchase the property during specific time period in exchange for consideration
What is an easement
right held by one person to make specfic limited use of land owned by another
land subject to easement is servient estate
land benefits is doinant
types of easements
appurtunent (presumption that they are appurtenant, benefit transferred automatically when dominant estate is transferred)
in gross (if it was granted to benefit a particular person, transfer if commerical)
Affirmative( giving holder right to make affirmative use of property)
negative (prevents owner from using in particular way)
Creation of Easements Express
arises when it affirmatively created by the parties in writing & satisfies SOF
by grant (owner of servient estate grants another person the easement)
reservation: owner convey easement but reserves easement for their own benefit
Easement by necessity
when property is virtually useless without benefit of the easement (landlockeed)
Easement by implication
if owner had prior use
recorded plat in conveyance
Easement by prescription
use is continuous, actual, open & hostile for a specific period
Easement by estoppel
detrimental reliance on permission by servient estate
Who may negotiate a contract?
agent, Brooker, attorney anyone who has an agency relationship + legal capacity
How does payment of a real estate sell affect parties dealing with the contracts (i.e. agents or brokers)
if exclusive agency agreement: Brooke get commission only if agent procures a buyer
exclusive right to sell; Brooker gets paid regardless of who finds the buyer even if seller finds the buyer
Requirements for a land- sale contract?
must be in writing, signed by the party to be charged, and contain essential terms
What is exception to formal requirement of Lansdale contract?
If part performance is present may not need the formal requirements, 2 out of the three must be satisfied:
- takes possession
- makes payment in full or part payment
- substantially improves the land
What is the seller duty to disclose defects?
seller does not need to disclose defects that
- are not obvious
- defects that he knows or should know of them
- and the defect is serious
Seller should not actively disclose defects
What is marketable title?
title that is free from defects and is due on the day of closing
What makes a title unmarketable?
DEVA
Defect in chain of title
Encumbrances
Violation of zoning ordinance
Adverse Possession
violation of building or housing code is not unmarketable
What happens after contract is signed?
Legal and Equitable title split
Buyer has equitable title and all Risk of Loss falls on him
Seller has legal title
What must occur at closing?
Deed is executed & delivered
excited requires: id of parties, granting language, signed by seller, description of land
Delivered: intent to pass presently, presumed if in possession of GEE or person records
What is buyers recourse if there is an issue but sale has already occurred?
Buyer can only sue on the deed not the contract because merger occurs
Dependingg on the type of deed the buyer may or may not have Cause of action (quitclaim deed has no warranty vs. general warranty deed)
