Land Sale Contracts & Conveyancing

Question 1

Land Sale Contract/Promises(2)

Answer 1

Every land sale contract contains an implied promise to provide marketable title and promise to make no material false statement and disclose. A title is rendered unmarketable if acquired by adverse possession, has encumbrances (such as mortgages, servitudes, or future interests), violate a zoning ordinance.

Question 2

Land Sale Contract/Description of Land

Answer 2

In a land sale contract, the description of land must accurately identify the property. However, a description with errors is acceptable as long as it is clear what property is the subject of the contract.

Question 3

Land Sale Contract/Technicalities

Answer 3

Equity does not like forfeitures because of technicalities.

Question 4

Land Sale Contract/Seller Title Obligation

Answer 4

A seller is obligated to transfer a clear title, a title free of encumbrances.

Question 5

Land Sale Contract/Encumbrance

Answer 5

A mortgage qualifies as an encumbrance as well as servitudes and future interests.

Question 6

Land Sale Contract/Seller Proceeds Right

Answer 6

A seller may use proceeds paid by the buyer at closing to pay off mortgages, as long as the amount due from the buyer is enough to pay off the note.

Question 7

Marketable Title/Adverse Possessor

Answer 7

To make title marketable, an adverse possessor must quiet title in a court action.

Question 8

Notice Statutes

Answer 8

Under a notice statute, a subsequent bonafide purchaser will prevail over a prior grantee who fails to record before the bonafide purchaser’s purchase.

Question 9

Notice Statutes/Shelter Rule

Answer 9

Under the shelter rule, a person who takes from the bonafide purchaser will prevail against any interest that the bonafide purchaser would have prevailed against, even if the person had actual notice of a prior conveyance (or encumbrance).