Pr4

Question 1

**LAND CONVEYANCING: THE PURCHASE AND SALE OF REAL ESTATE:
The Land K. must:
+ K controls until:
+CA:

[Written Listing Agt is NOT a Memo suff. to satisf. the SOF]

Answer 1

SOF: 1) WRITING 2) SIGNED by the party to be bound 3) DESCRIBES Land, 4) +states some CONSIDERATION /$
(Cf. Deed: needs no consid.)
**K controls only until CLOSING & then K “MERGES” into the Deed.
=> Discharges S of liability for expr.-implied warranties in the K re: Quality of TITLE.
CA: COVENANTS in the DEED itself.

Question 2

[Land K: Wrong PARCEL size]

Answer 2

B can get Sp. Perf. w/
pro-RATA REDUCTION in purchase $$. [=abatement]
• QUANTITY defect must be “MAT.”
• Abatement AMOUNT must be appropriate & not EXCESSIVELY DIFFERENT from the original agt.

Question 3

[
Land K: Part Perf. exception to SOF: +CA:

Cf. GRATUITOUS promise:
]

Answer 3

EQUITY (sp. perf.) will ENFORCE an otherw. INvalid ORAL K! the sale of LAND if: (Maj.) B does min. 2/3 things:
1) PAYS (part of) the purchase price
2) takes POSSESSION
3) makes SUBST. IMPROV. 2Pr
[=evid. K. exists. CA: Periodic pay =could be RENT!
Cf. If GRATUITOUS: If P DET. REL. =>only gets his $ back]

Question 4

Who bears the
**RISK of LOSS ?:

[+Death]

Answer 4

MAJ jx.=DOCTRINE OF EQUIT. CONVERSION:
By signing the K., B gets equitable TITLE! [=before closing!] =>B is equit. owner who bears RISK OF LOSS [by DESTRUCTION]. 
[+DEATH of either party: 
does NOT change K. rights 
=>Get Specific Perf.]

Question 5

Warranties by SELLER of REAL PROPERTY … +CAx2:

Answer 5

No IWH /FITness (caveat emptor).
CA1: BUILDER VENDOR:
Yes IW +for WORKMANLIKE construction.
CA2: Two IMPLIED promises by S in EVERY (!) Land K.:
1)*MARKETABLE TITLE@CLOSING
2) MADE NO FALSE STATEM. of MATERIAL fact.
[not conceal defects]

Question 6

**MARKETABLE TITLE promises that: …+CA:

{1/2” ENCROACHMENT on Airspace:
DoesNOT render title UNmarketable b/c NOT SUBSTANTIAL ENCROACHMENT}

Answer 6

@CLOSING=Gee will be free from signif. THREAT of LIT.
CA: UNmarketable if:
1) TITLE ACQUIRED by AP
b/c exposes G'ee 2 lawsuit.
2) ENCUMBRANCES: Covenants & MTGs... any RESTRICTIONS.
CA1:  S can CURE title DEFECTS @CLOSING
CA2:  B WAIVED defects
CA3: Zoning Ordinances

Question 7

MAKE NO FALSE STATEM. of mat. fact. +CCA:

Answer 7

Maj. jx: 
S is also LIABLE for failing to DISCLOSE /for CONCEALING latent MAT. DEFECTS
(by lie or omission).
Note: gen. DISCLAIMER: 
[“as is"] is NO excuse.

Question 8

Closing: LIST:

Answer 8

a) How does S CONVEY 
LEGAL title to B ?  
1) **VALID EXECUTION:
2) **DELIVERY: 
b) 3 Types of DEEDS & COVENANTS for title:
1) QUITCLAIM 
2) GEN. WARRANTY Deed 
3) SPECIAL WARRANTY D
c) Merger
d) Equit. conversion.

Question 9

How does S convey LEGAL title to B ? +CA:

CONSIDERATION?
JT FORGES signature: =>?

[Deed only refers to an unrecorded Survey]
[Note: If conflict, Pr description of Monuments prevails over Distances]

Answer 9

By 1) DELIVERY of a
2) **VALIDLY executed DEED, i.e.:
a) WRITING SIGNED by G’or
b) adeq. DESCRIBING the LAND
[=reas. certainty /unambig. Phys. descr.!]
c) Naming Buyer & Seller
CA: NO CONSID. is REQ’D to render the Deed valid (=> delivery irrevoc. [no SOF b/c no K. issue]).
**CA: FORGED signature (=VOIDS deed & severs fraudulent JT’s share only).

Question 10

[G'ee re-delivers deed to G'or]
**DELIVERY requires that ...+CA: +
• RECORDING: ...
• DELIVERY BY ESCROW:
• ORAL CONDITIONS:
[Q of fact: Delivery to an agent OK. /WORDS RELINQUISH control, even if ACTUAL right to possess. is POSTPONED or G'or keeps PHYSICAL deed.

Answer 10

• G’or manifests INTENT that Title PASSES IMMEDIATELY.
**Delivery NOT CANCELABLE once ACCEPTED [=gen. implied!]
*CA: DEAD canNOT ACCEPT=>VOID
[• RECORDING: PRESUMES ACC.&DELIV, even G’ee is UNaware. CA: G’ee REJECTS
•ESCROW: Once imposed cond. met: title AUTOM. passes 2G’ee.
•ORAL COND.: w/ FACIALLY Valid Transfer: DROP OUT (+inadmiss.) => Delivery complete.]

Question 11

QUITCLAIM:

Answer 11

contains NO COVENANTS, not even that the G’or has valid title.
[Cannot attack w/ Breach of K (based on implicit promise to provide marketable title at CLOSING) b/c then K MERGES once Deed is accepted]

Question 12

GENERAL WARRANTY Deed warrants :

[+Remedy]:

Answer 12

against ALL TITLE DEFECTS.
[Remedy: (even non-BFP) P gets Purchase price +INCIDENTAL DMG]:
includes:
3 PRESENT Covenants &
3 FUTURE Covenants

Question 13

3 PRESENT Covenants …:
[DoNOT run w/ the land,
i.e. breached at time of convey. =>ENFORCEABLE only against the IMMEDIATE G’or & SOL runs from DELIVERY !]

Answer 13

1) SEISIN =G’or Exclusively OWNS the Pr he CLAIMS to CONVEY
2) G’or has the POWER/RIGHT to CONVEY:
[G’or is not a minor /incapacitated].
3) NO ENCUMBRANCES (servitude, lien, …)

Question 14

[3P has lawful claim of title against Gee]
3 FUTURE Covenants …:
[run w/ the land!
=>ENFORCEABLE against ANY G’or & SOL runs from BREACH]

Answer 14

1) RIGHT to QUIET ENJOYM. breached if G’ee is ousted from POSSESS. of (even part) of the land.
2) =WARRANTY: G’or will DEFEND TITLE against future 3P claims [& pay 4 it]
3) FURTHER ASSURANCES: G’or will ASSIST to PERFECT Title, if necessary.

Question 15

SPECIAL WARRANTY Deed

Answer 15

is STATUTORY in many jx.
G’or ONLY PROMISES that he:

1. has not CONVEYED Pr to ANOTHER
   &
2. has not CREATED any ENCUMBRANCES to the Pr.

Question 16

THE RECORDING SYSTEM
The Recording ACT protects: +CA:

[A person who takes Pr in satisfaction of a prior debt is a “purchaser.”
A BFP who buys FROM a DONEE is still a BFP.]

Answer 16

BFPs & Mortgagees.
**BFP = 4VALUE + is W/O NOTICE @ CONVEYANCE. CUTS OFF prior interests.
1) **VALUE. CA: Donee/Heir/Devisee/ jdgmt Lienor/ NOM. value [$1] (UNprotected by recording stat. CCA: “SHELTER rule” if you take from a BFP).
2) **Notice: A/I/R
[CA: G’ee of a FORGED Deed (in chain)]

Question 17

**Notice: A/I/R

Answer 17

1) ACTUAL: Knowledge.
2) INQUIRY: Whatever a Pr INSPECTION WOULD have DISCLOSED.
[whether or not B looked, parcel appears part of the neighborhood]
3) RECORD: Restriction in CHAIN OF TITLE [e.g., searching G’or/G’ee index]

Question 18

**Recording Statutes:
[G’or loses title to AP,
then conveys to BFP
=>AP’s title is not defeated by BFP b/c G’or had nothing to convey]

Answer 18

1) NOTICE JX.:
Subseq. BFP wins over prior G’ee who fails to record 2) Race-Notice:
BFP must record first to win
3) Pure RACE: Notice irrelevant
Subseq. BFP wins over prior G’ee if he records first

Question 19

**CHAIN of TITLE Problems.
1) ESTOPPEL BY DEED: …
2) SHELTER RULE: …
3) WILD DEEDS: …
+CA:

Answer 19

1) ESTOPPEL BY DEED: If G’or conveys Pr by Warranty deed before he owns it, ownership autom. passes to Gee once G’or later acquires it.
CA: Subseq. BFP trumps G’ee.
2) SHELTER RULE: Even non-BFP T’ee acquires whatever rights T’or had. =>NON-BFP taking from a BFP prevails over prior Gee!
3) WILD DEEDS: G’or’s Deed not in direct chain of title =>NO RECORD N
=>BFPs always wins (N & R-N jx)