Property Day 3 Flashcards
two steps to real estate conveyance
land contract
closing
what is the operative document after closing?
the deed
land contract standards to satisfy statute of frauds
in writing, signed by party to be bound
describe land
state consideration
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?
specific performance with pro rata reduction
exception to the Statute of Frauds?
doctrine of part performance
satisfied if 2/3 below:
- B takes possession
- B pays all/part of the price
- B makes substantial improvements
What happens when the doctrine of part performance is satisfied?
equity will decree specific performance on oral contract for the sale of land, despite lack of writing
doctrine of equitable conversion
equity regards as done that which should be done
important concern that results from doctrine of equitable conversion in land contracts
destruction
implication of destruction in doctrine of equitable conversion
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
two implied promises in every land contract
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)
if part of a title rests on adverse possession, is the title marketable for contract?
no
is a title encumbered by services or mortgages marketable for contract?
no, unless buyer waived them
when Blackacre violates a zoning ordinance, is its title marketable?
no
if a contract contains a general disclaimer of liability, like “sold as is,” is the seller excused from liability for fraud?
no
does a land contract include an implied warranty of habitability?
no. caveat emptor (buyer beware)
how does a deed pass legal title from seller to buyer?
must be LEAD
legally executive and delivered
standard for lawful execution of a deed
in writing, signed by grantor
unambiguous description of the land
Deed recites that O conveys “all of O’s land,” or “all of O’s land in Essex County.” Descriptions suffice?
Yes. Can research public records to determine the meaning of “all.”
Deed recites that O conveys “some of O’s land,” or “some of O’s land in Essex County.” Descriptions suffice?
No. Can’t research public records to determine the meaning of “some.”
legal standard for delivery of a deed?
present intent; does not require physical transfer of the deed itself
what is the result of a recipient’s express rejection of a deed?
delivery is defeated
Deed, absolute on its face, transferred to grantee with an oral condition. What result?
Oral condition drops out
function of an escrow agent?
receives deed from grantor, delivers to grantee once certain conditions are met.
what’s so great about an escrow agent?
title will pass to grantee once conditions are met, even if grantor dies or becomes incompetent before conditions are met
