land sale contracts and conveyances Flashcards
land sale contract requirements
subject to SoF and must be:
1) in writing
2) signed by parties to be bound
3) articulate essential terms
land sale contract SoF exception
partial performance
land sale K outside of the SoF is enforceable against seller if buyer does ANY two of the following:
1) pays all/part of purchase price
2) takes possession
3) makes substantial improvements
equitable conversion
during escrow (after land sale K but before deed delivery), buyer owns the real property but seller owns personal property (i.e., right to proceeds of the sale)
land sale contract risk of loss
if property is destroyed before closing through no fault of the parties, buyer bears the risk of loss in most jdxs
implied promises in land sale contracts
1) promise to provide marketable title
2) promise to disclose and make no material false statements
defects rendering title unmarketable
1) acquired by adverse possession
2) encumbered by interests; but seller has the right to satisfy outstanding mortgages/liens with sale proceeds
3) zoning ordinance violations existing at sale
can be waived by buyer but not seller
remedy for breach of land sale contract
buyer must notify seller before closing and give reasonable time for seller to cure defects; if seller fails to cure, buyer can rescind, file for damages, demand specific performance, or file suit to quiet title
requirements for an effective deed
1) lawfully executed
2) delivered - requires intent to be bound by the conveyance
3 types of deeds
1) general warranty
2) special warranty
3) quitclaim
general warranty deeds covenants for title
present:
1) seisin
2) right to convey
3) against encumbrances
future:
4) quiet enjoyment
5) warranty
6) further assurances
seisin
grantor covenants that he is the rightful owner (i.e., has title, possession, etc.) and that deed covers described land
bona fide purchaser
one who purchases property for value without notice of a prior conveyance or encumbrance
includes mortgagees for value; does not include donees/devisees
notice statutes
subsequent BFP always prevails over a prior grantee who fails to record whether or not she recorded first
race-notice statutes
first subsequent BFP to record prevails
race statutes
first grantee to record prevails, regardless of whether buyer is a BFP