Property - Land Conveyance: Purchase and Sale of Real Estate

Question 1

Requirements for the Land Contract and the Statute of Fraud

Answer 1

In General:

(i) must be in writing
(ii) signed by the parties to be bound
(ii) Must describe the land
(iv) Must state some consideration

If amount of land stated is more than actual size: aggrieved party can get specific performance with pro-rate reduction in price.

Question 2

Exception to SoF for Land Contracts - Doctrine of Part Performance

Answer 2

Doctrine satisfied if two of the following three occur:

(a) Buyer takes possesion
(b) Buyer pays all or part of the price
(c) Buyer makes substantial improvements

MA –> ALL THREE MUST BE SATISFIED

Question 3

Risk of Loss from Desturction (MBE/MA)

Answer 3

MBE: Buyer bares risk of loss once contract is signed unless the contract states otherwise.

MA: Party in possession pre-closing bears risk of loss.

Question 4

Two Implied Promises in Every Land Contract

Answer 4

1. Seller promises to provide marketable title. Title free of reasonable doubt of lawsuits & Threats of litigation

Three circumstances of unmarketable title:

(a) Adverse Possession
(b) Encumbrances (unless buyer waived them)
(c) Zoning violation - Title is unmarketable if blackacre violates a zoning ordinance.

2. Seller promises not to make any false statement of material fact. (Majority –> includes omissions)

General disclaimer of liability will not relieve seller from liability for fraud or failure to disclose.

No implied warranties of habitability However, builder implies warranty of workmanlike construction.

Question 5

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

Answer 5

(1) Lawful execution of a deed
(a) must be signed in writing by grantor
(b) Must “adequately describe” the land.

MA also requires that deed recite the consideration.

(2) Deed must be delivered.

Physical delivery is more than enough. Standard is a legal standard. Has grantor expressed an intent to be bound. Delivery by escrow is OK.

Delivery defeated if recipient rejects.

Oral conditions drop out/void if deed delivered.

In MA - recording of a deed raises a presumption of delivery.

Question 6

Three Types of Deeds

Answer 6

(1) Quitclaim [MA - Release Deed]
(2) General Warranty Deed (Same in MA)
(3) Statutory Special Warranty Deed [MA - Quitclaim]

Question 7

Quitclaim Deed [MA - Release Deed]

Answer 7

Deed contains no covenants. Not even a covenant that grantor has title to convey.

Question 8

General Warranty Deed

Answer 8

Best deed for buyer - Warrants against all defects in title including those due to grantor’s predecessors.

Contains Six Covenants

(a) Covenant of Seisin: Grantor promises that he owns the estate.
(b) Covenant of right to convey: Grantor has the power to transfer
(c) Covenant against encumbrances

**SoL runs from moment of delivery for first three present covenants

(d) Covenant for quiet enjoyment - Grantee won’t be disturbed in possession by a 3P’s lawful claim of title.
(e) Covenant of Warranty: Grantor will defend grantee agaisnt any lawful claims of title brought by other
(f) Further Assuances - Grantor will do whats need in future to protect tile

SoL runs when covenant breached.

Question 9

Statutory Special Warranty Deed

Answer 9

Available in Many States

1. Grantor promises that he hasn’t conveyed blackacre to anyone other than the grantee
2. Blackacree is free of encumbrances made by grantor

Grantor makes no representations on behalf of predecessors.