Practice Set 3 Flashcards
What is the warranty of fitness and suitability?
Implied that a builder of new homes warrants that it was built properly and suitable for habitation
What is the residential property exception?
Exemption from due-on-sale clause enforcement in transfers such as (1) the automatic joint tenancy interest transfer upon the death of the borrower, (2) a transfer by will or intestacy to a relative, (3) a transfer to the spouse or child of the borrower, (4) a transfer to an ex-spouse due to a divorce, and (5) a transfer to the borrower’s living trust
How can an express easement be terminated?
By (1) an express written release, (2) merger into title of sub estate, (3) severance by conveyance, (4) abandonment by affirmative act, (5) end of necessity, (6) prescription by failing to protect from trespasser, or (7) estoppel where sub estate relies on dom saying abandoned
What is the doctrine of attornment?
The tenant is bound to honor any covenant in his lease that has been assigned by the landlord to a third party, if the covenant touches and concerns the land
What happens when a fee simple is conveyed with a statement limiting its purpose not worded conditionally?
This is the same as conveying a regular fee simple if the purpose is not a defeasing condition
What is a wild deed?
Deed recorded outside the chain of title, typically when the first grantee is unrecorded but the second is not which would make it ineffective against a third grantee directly obtained from grantor
What is warranted in a general warranty deed?
Present Covenants - (1) seisin - seller owns land, (2) right to convey, (3) covenant against encumbrances
Future Covenants - (1) quiet enjoyment, (2) warranty - grantor will defend lawful claim, (3) further assurance - grantor will do anything necessary to perfect title
What is required in a duty to disclose by the seller of a residence?
Seller must disclose all known material physical defects not readily observable
What is considered a material defect when determining whether a seller has a duty to disclose to a prospective buyer?
- The defect must substantially affect the value of the residence,
- Impact the health or safety of a resident, OR
- Affect the desirability of the residence to the buyer
What are remedies for buyers if the seller breaches its duty to disclose?
The buyer may rescind the sale or seek damages
Even if there is no affirmative disclosure requirement, buyer can sue the seller for misrepresentation or fraudulent concealment
What happens when a note that came with a mortgage is assigned to a third party?
The mortgage will follow the note
The note will not follow the mortgage unless the buyer assumes personal liability
What happens to the seller’s interest in the property after the execution of a land sales contract?
The seller merely holds legal title, which it is required to convey at closing
Creditors can no longer reach the property after the contract
What are defects to marketable title?
- Unquieted title by adverse possession
- Future interests holders who have not agreed to the transfer
- Private encumbrance
- Violation of a zoning ordinance; OR
- Significant physical defect
How can intent to transfer a real property interest to grantee be implied without a delivery of deed?
From words and conduct of grantor, such as signing and notarizing deed
What happens when a deed is granted to a non-existent grantee?
- The conveyance is void as to the non-existent grantee
2. The original owner retains the voided conveyance
