Land Sale Contracts Flashcards
***X: Which of the following does NOT state the standard for implied covenant of marketable title?
Title a reasonable jury found the covenantor to hold.
Marketable title is title reasonably free from doubt i.e. title a reasonably prudent buyer would be willing to accept.
***P0049: What will the court likely do when a seller refuses to convey land pursuant to an oral land sale contract?
Award the buyer specific performance if the buyer has paid the purchase price and has taken possession of the land.
Oral - doctrine of part performance (meet 2 of 3) 1. possession 2. Substantial improvements 3. Paid all or part
***P0049A: May a buyer obtain specific performance of an oral sale contract?
Yes, if the buyer has taken possession of and made substantial improvements to the land.
P0060A: What is NOT the purpose of title insurance policy?
To protect the policy holder and those to whom she sells the land.
Protects the owner of the policy. Does not extend to subsequent purchasers.
***P0062B: How does a seller avoid liability for some property defects?
Include in the land sale contract a clause identifying the specific defects and disclaiming liability for them.
***P0048: What is not an essential term of a land sale contract under the Statute of Frauds?
A closing date is not an essential term.
- Must have a description of the property.
- Must identify the parties to the contract.
- Must have a price and manner of payment, if agreed upon.
Must be in writing and signed by the party to be charged.
*** XX: Absent and agreement to the contrary, what happens if the buyer of land does not tender the purchase price until after the closing?
Whether the buyer is in breach depends on whether the seller has tendered a conveyance of title.
***P0054B: Does a restrictive covenant that limits development on the land render title unmarketable?
No, if the buyer waives title defects in the land sale contract.
***P0051A: What happens if a real estate contract states that time is of the essence, and a party fails to tender performance on the closing date?
It is a total breach and she loses her right to enforce the contract.
***P0054: What would not make title to land unmarketable?
A zoning ordinance that restricts the use of the land.
***P0058: Who is generally entitled to specific performance of a real estate contract?
Both the buyer and the seller
***XXX: Is the buyer entitled to specific performance, if the seller is in breach of a land sale contract at closing?
Yes, if he tenders the purchase price.
