Land Sale Contracts

Question 1

A buyer can enforce an oral contract by specific performance. T/F

If so, need to show:

Answer 1

True. Need to show, 1) oral contract was certain and clear, and 2) acts prove existence of contract

Question 2

Part performance: acts proving the existence of an oral contract can be shown by 2/3rds of the following:

Answer 2

Buyer took possession
Buyer paid purchase price or significant portion of it
Buyer made substantial improvements

Question 3

If land is destroyed in the interim between contract and closing, the [seller/buyer] bears the risk of loss. (Unless…)

Answer 3

Buyer

Unless the contract states otherwise

Question 4

Marketable title is:

Answer 4

Title free from reasonable doubt. This is a seller’s implied promise

Question 5

If a part of the title rests on adverse possession, it’s still marketable. T/F

Answer 5

False. Seller needs to provide good record title for marketability

Question 6

Encumbrances render title unmarketable unless the buyer has waived them. T/F

Answer 6

True

Question 7

Seller is [liable/not liable] for failure to disclose latent material defects.

Answer 7

Liable. Can’t disclaim by saying “buyer takes property as-is” BUT can make specific disclaimers

Question 8

Buyer beware except when ___.

Answer 8

Sale is by builder of the particular home