Real Estate Contract & Deeds

Question 1

Real Estate Contract

Answer 1

a. Must be in writing – because statute of frauds
b. Must include parties, price, terms, etc. (contract principles)
c. Execution transfers EQUITABLE TITLE via EQUITABLE CONVERSION risk of loss shifts to the buyer
d. Marketable title implied in contract = title free of liens or encumbrances
i. Real estate contract does NOT transfer legal title
ii. Confirms intent to transfer title

Question 2

Deed Elements

Answer 2

i. Must be delivery of deed by seller – shows intent to convey
ii. Acceptance is presumed by buyer – unless the facts say otherwise
iii. Must include legal description of property
- Where the property is located so a reasonable person could find it
- “metes and bounds” description aka basic GPS location
iv. Identifiable grantees
v. Merger of real estate contract
- Contents from contract are incorporated into deed
- Have to sue on the deed if you find there’s been a breach
vi. Execution of deed conveys legal title (ownership)
- Deed must be in writing

Question 3

General Warranty Deed

Answer 3

i. Conveys clean title, promising all is okay forever
ii. Also guaranteeing that Grantor went back and checked history of land and title is okay
iii. 6 warranties apply – don’t have anything to do with physical quality

Question 4

General Warranty Deed Warranties

Answer 4

Present Warranties (if these are breached, they’re breached on day of closing)
1. I am the legal owner
2. Nobody else owns the property
3. I have the legal right to convey

Future Warranties:
1. No one else will come make a claim on the title
2. If someone does, I’ll defend
3. I’ll pay to clean it up / handle it

Question 5

Special Warranty Deed

Answer 5

Conveys clean title; promises all is okay while current owner lived there

Question 6

Quitclaim Deed

Answer 6

Conveys only what title seller has, no promises / no warranties
- Essentially: I give you whatever title I have