Property Facts

Question 1

There is an implied covenant in every land sale contract that, at closing, the seller will provide the buyer with marketable title. Marketable title is title reasonably is title reasonably free from doubt, which generally means free from ________.

Answer 1

Encumbrances and with hood record title.

Question 2

Are easements generally considered encumbrances? If so, what is an exception, if any?

Answer 2

Yes, they are usually considered encumbrances that render title unmarketable if not identified in the contract.

There is an exception:
A majority of courts have held that a beneficial easement that is visible or known to the buyer does not constitute an encumbrance.

Question 3

Reformation is the remedy when what happens?

When is it available?

Answer 3

It is a remedy where the writing setting forth the agreement between two parties is changed to make it conform to the original intent of the parties.

Reformation may be available where there is a mutual mistake. As long as the parties were in agreement as to the terms before the contract was reduced to writing, reformation can be had regardless of whether both parties signed the contract without noticing the deviation from the oral agreement, merely in writing.

Question 4

In general, courts presume that time is not of the essence in real estate contracts. However, time will be considered of the essence only if: ________

Answer 4

1. The contract so states
2. The circumstances indicate it was the parties’ intention, or
3. One party gives the other notice that he desires to make time of the essence.

Question 5

in assignment or sublease situations, if a landlord grants consent to one transfer, the Rule of Dumpor’s case provides that she waived her right to avoid future transfers UNLESS what?

Answer 5

Unless she expressly reserves the right to do so. The reservation of this right must take place at the time of granting consent.