Land Sale Contracts

Question 1

Two main exceptions to the statute of frauds as applied to land sale contracts

Answer 1

1. Part performance
2. Detrimental reliance (estoppel)

Question 2

Partial Performance

Answer 2

Exception to the statute of frauds
Partial performance by either the seller or the buyer is treated as evidence that the contract existed

Question 3

Evidence of partial performance in a land sale contract

Answer 3

Payment of all or part of the purchase price
Possession by the purchaser
Improvements by the purchaser

Question 4

Who bears the risk of loss if there is damage or destruction of the property between the time of contract formation and closing

Answer 4

Majority rule: Buyer (they hold equitable title)
Minority rule: Seller (they hold legal title/the right to posses)

Question 5

Implied warrant of fitness or suitability

Answer 5

Applies to defects on new contstruction
Allows initial owner and subsequent purchasers to recover damages if the suit is brought within a reasonable time after discovery of the defect

Question 6

Duty to disclose defects

Answer 6

Most jurisdictions impose a duty on the seller to disclose to the buyer all known, physical and material defects
Applies to latent or hidden defects that substantially affect the value of the home, health and safety of its occupants, or desirability of the home.
General “as-is” disclaimers will not satisfy the seller’s duty

Question 7

Seller’s remedies on buyer’s breach

Answer 7

1. Damages (difference between K price and market price)
2. Rescission
3. Specific performance

Question 8

Buyer’s remedies on seller’s breach

Answer 8

1. Damages (difference between K price and market value)
2. Rescission
3. Specific performance