Ownership Disputes

Question 1

What are the requirements for adverse possession?

Answer 1

The person seeking to obtain property by adverse possession must have use of the property that is i) open and notorious; ii) hostile; iii) exclusive; and iv) continuous for the statutory period of time.

Question 2

What are the formalities required for a valid land sale contract?

Answer 2

Land K must be in writing (SoF), signed by the party to be charged, and contain all of the essential terms (parties, property description, terms of price/payment)

Question 3

How might a land sale that violates the statute of frauds still be valid?

Answer 3

1. Partial performance - buyer takes possession of land, buyer remits all or part of the purchase price, and/or buyer makes substantial improvements
2. Detrimental reliance - specific performance permitted if party seeking enforcement reasonably relied on K and would suffer hardship

Question 4

What is marketable title?

Answer 4

Title free from defects or unreasonable risk of litigation

Buyer can rescind/recover payments, sue for breach, or sue for specific performance with an abatement of purchase price

Question 5

What is the implied warranty of fitness for sale of land?

Answer 5

Only for new homes

Disclosure duty of known material physical defects not readily observable/known to buyer for all homes

Question 6

What is the doctrine of merger for land sale contracts?

Answer 6

Land sale K obligations merge into deed upon delivery unless obligations are collateral to/independent of the conveyance

Question 7

What are the remedies for breach of a land sale contract?

Answer 7

Damages - difference between K price and market value (limited to B’s out of pocket expenses if Seller breaches in good faith)
Specific performance - (mutuality of remedies)

Question 8

What is the doctrine of equitable conversion?

Answer 8

Once K is signed, B is owner of land subject to the condition he pay the purchase price at closing, but in interim between K and closing, B bears risk of loss if land is destroyed

Question 9

What happens to junior mortgage interest in land if a senior interest is foreclosed upon?

Answer 9

They are terminated

Question 10

What are the requirements for a valid deed?

Answer 10

1. Identified parties
2. Grantor’s signature
3. Words of transfer
4. Reasonably definite property description (extrinsic evidence is admissible)

Question 11

What is the rule for “notice” recording acts?

Answer 11

A bona fide purchaser (for value without notice of prior interest) prevails over prior grantee who failed to record
Must record against subsequent purchaser

Question 12

What is the rule for “race” recording acts?

Answer 12

First to record prevails, regardless of knowledge of prior conflicting interests

Question 13

What is the rule for “race-notice” recording acts?

Answer 13

Subsequent BFP protected only if he takes without notice AND is first to record

Question 14

What are the three types of notice for the purpose of recording acts?

Answer 14

1. Actual - actual, personal knowledge of prior interest that cannot prevail under notice or race-notice statute
2. Constructive - properly recorded and appears in chain of title
3. Inquiry - if reasonable investigation would disclose prior claims, grantee cannot prevail against them

Question 15

What are the present covenants of a general warranty deed?

Answer 15

1. Seisin (grantor owns land as described in deed)
2. Right to convey (grantor has right to sell)
3. Against encumbrances (no undeclared encumbrances against land)

Question 16

What are the future covenants of a general warranty deed?

Answer 16

1. Quiet enjoyment (grantee not disturbed in possession by third party with superior claim)
2. Warranty (grantor will defend against unlawful claims)
3. Further assurances (grantor will do whatever future acts are reasonably necessary to pass title if later determined title is imperfect)

Question 17

What is the difference between a general warranty and special warranty deed?

Answer 17

The special warranty deed has the same covenants as the general warranty deed, but only warrants against defects caused during the time grantor has title

Question 18

What is a quitclaim deed?

Answer 18

A deed for “all that the grantor has, whatever that may be”

No covenants of title

Question 19

Who has right to fixtures on real property?

Answer 19

Structures built on RP and items incorporated into structures become part of realty, but can be removed if:

1. seller reserves right to remove fixture upon sale K
2. leased property can be restored to former condition w/o damage in reasonable time