Land-Sales Flashcards
Land sale contracts imply
Seller will give marketable title at closing
Marketable Title
Title reasonably free doubt and under no threat of litigation
Title obtained by adverse possession
Generally unmarketable unless it has been quieted
Fraud in land-sales contracts
- One party contract knowingly or recklessly misrepresented a material fact with the intent to mislead
- Misrepresentation-induced assent
- Adversely affected party justifiably relied on misrepresentation
Contract is silent regarding quality of title
Seller conveys marketable title
Defects in Title
Covenants
Easements
Leases
Liens
Gaps in the chain of title
Boundary disputes
Existing zoning violations
Adverse possession
Order of priority for foreclosure sale proceeds
- Expenses from the sale
- Mortgage being foreclosed
- Junior liens
- Debtor
Lien priority on real property
Purchase money mortgages
First recorded liens
All other recorded liens (junior)
Unrecorded liens
Implied warranty of habitability
Builder of a new home guarantees home is habitable and fit for its intended purposes. The buyer can recover damages caused by defective construction or poor workmanship, and subsequent purchasers can recover for latent construction defects.
Under the statute of frauds, a contract for the sale of real property must
Be in writing, identify the parties and properties, and be signed by the person conveying the property
A party can succeed, another parties adverse possession title, if
The parties have privity, a mutual or successive interest in the same property right
Restrictive covenant
Promise to do or not do something on one’s land, and it has no impact on the title
An owner of the feasible fee cannot convey marketable title, because
Title will automatically terminate upon happening of specified event or condition
Covenants of warranty
Seller’s promise to protect the buyer against claims of superior title
Present covenants of titlle
These are breached at time of conveyance
Seisin
Right to convey
Against encumberances
Future covenants
Breached upon interference with possession
Warranty
Quiet enjoyment
Further assurances
Right of first refusal
First opportunity to purchase if it ever goes up for sale
Option to Purchase
Gives the exclusive right to purchase at the specified time
Option to purchase in lease agreement
Majority rule: option can’t be separately assigned
Minority rule: option can be separately assigned
