Land Sale Contracts

Question 1

Stages of a Land Sale Contract

Answer 1

Contract Stage: Occurs when the party’s have signed a contract with one another. If a seller breaches any of it’s duties, such as failure to deliver marketable title, the buyer can sue under remedies provided by the contract.

Deed Stage: Occurs when ral property ha been transferred.

Question 1

Sale of Land Contract: Requirements and Exceptions

Answer 1

A sale of land contract typically must meet the SOF requirements; writing, signed by charged party, essential terms.

EXCEPTIONS:

1) Detrimental Reliance

2) Partial Performance if buyer does two of three things: i) Payment; ii) Possession; iii) renovation or improvement on the land.

Question 2

Doctrine of Mrger

Answer 2

Under the common-law doctrine of merger, an obligation contained in the contract of sale, such as the seller’s duty to deliver marketable title or a description of the size or location of the property to be transferred, merges into the deed and cannot thereafter be enforced unless the deed contains the obligation. Likewise, the right to sue for breach of the land sale contract merges with the deed at closing.

Question 3

What is the Equal Dignities rule?

Answer 3

Under the “equal dignities” rule, when the act performed by an agent on behalf of the principal is required by law to be in writing, the agent’s authority must also be established in writing.

Consequently, when an agent signs a deed, the agent’s authority must also generally be in writing.

Applies to land sale and deed transfers!