Property Day 3

Question 1

two steps to real estate conveyance

Answer 1

land contract

closing

Question 2

what is the operative document after closing?

Answer 2

the deed

Question 3

land contract standards to satisfy statute of frauds

Answer 3

in writing, signed by party to be bound
describe land
state consideration

Question 4

B enters into a contract to purchase a farm. Contract recites that farm is 100 acres. B’s survey reveals that the farm is actually 98 acres. What is B’s remedy?

Answer 4

specific performance with pro rata reduction

Question 5

exception to the Statute of Frauds?

Answer 5

doctrine of part performance

satisfied if 2/3 below:

• B takes possession
• B pays all/part of the price
• B makes substantial improvements

Question 6

What happens when the doctrine of part performance is satisfied?

Answer 6

equity will decree specific performance on oral contract for the sale of land, despite lack of writing

Question 7

doctrine of equitable conversion

Answer 7

equity regards as done that which should be done

Question 8

important concern that results from doctrine of equitable conversion in land contracts

Answer 8

destruction

Question 9

implication of destruction in doctrine of equitable conversion

Answer 9

if between contract and closing, Blackacre is destroyed through no fault of either party, B bears risk of loss, unless the contract says otherwise, b/c in the eyes of equity, B owns the land as soon as the contract is signed, even before closing

Question 10

two implied promises in every land contract

Answer 10

seller promises to provide marketable title (free from suits/threat of lit)

seller promises not to make any false statements of material fact (failure to disclose material defects)

Question 11

if part of a title rests on adverse possession, is the title marketable for contract?

Answer 11

no

Question 12

is a title encumbered by services or mortgages marketable for contract?

Answer 12

no, unless buyer waived them

Question 13

when Blackacre violates a zoning ordinance, is its title marketable?

Answer 13

no

Question 14

if a contract contains a general disclaimer of liability, like “sold as is,” is the seller excused from liability for fraud?

Answer 14

no

Question 15

does a land contract include an implied warranty of habitability?

Answer 15

no. caveat emptor (buyer beware)

Question 16

how does a deed pass legal title from seller to buyer?

Answer 16

must be LEAD

legally executive and delivered

Question 17

standard for lawful execution of a deed

Answer 17

in writing, signed by grantor

unambiguous description of the land

Question 18

Deed recites that O conveys “all of O’s land,” or “all of O’s land in Essex County.” Descriptions suffice?

Answer 18

Yes. Can research public records to determine the meaning of “all.”

Question 19

Deed recites that O conveys “some of O’s land,” or “some of O’s land in Essex County.” Descriptions suffice?

Answer 19

No. Can’t research public records to determine the meaning of “some.”

Question 20

legal standard for delivery of a deed?

Answer 20

present intent; does not require physical transfer of the deed itself

Question 21

what is the result of a recipient’s express rejection of a deed?

Answer 21

delivery is defeated

Question 22

Deed, absolute on its face, transferred to grantee with an oral condition. What result?

Answer 22

Oral condition drops out

Question 23

function of an escrow agent?

Answer 23

receives deed from grantor, delivers to grantee once certain conditions are met.

Question 24

what’s so great about an escrow agent?

Answer 24

title will pass to grantee once conditions are met, even if grantor dies or becomes incompetent before conditions are met

Question 25

why is a quitclaim the worst type of deed?

Answer 25

contains no covenants. grantor isn’t even promising that he has a title to convey

Question 26

why is a general warrant deed the best deed?

Answer 26

warrants against all defects in title, including those due to grantor’s predecessors

Question 27

covenant of seisin

Answer 27

grantor owns the estate

Question 28

covenant for quiet enjoyment

Answer 28

grantee won’t be disturbed in possession by third party’s lawful claim of title

Question 29

covenant of warranty

Answer 29

grantor will defend grantee against lawful title claims brought by others

Question 30

covenant for further assurances

Answer 30

grantor will do what’s needed in the future to perfect the title

Question 31

statutory special warranty deed

Answer 31

grantor makes promises on his own behalf, and no representation on behalf of his predecessors in interest:

hasn’t conveyed Blackacre to anyone other than grantee

Blakacre is free form encumbrances made by grantor