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Property > Real Estate Transactions > Flashcards

Real Estate Transactions Flashcards

0
Q

Statute of Frauds

A

WETS: writing, essential terms, signature of party intended to be bound

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1
Q

Pre-Closing Issues

A

Statute of Frauds, Marketability of Title, Equitable Conversion, Duty to Disclose

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2
Q

Marketability of Title

A

Seller has full title to convey, no encumbrances on the property, no reasonable doubt.

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3
Q

Encumbrances

A

Municipal restrictions do not render unmarketable, private and public restrictions do render unmarketable

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4
Q

Risk of Loss/Equitable Conversion

A

To identify owner for liability - buyer is equitable owner of property at contract, seller is equitable owner of purchase price

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5
Q

Duty to Disclose

A

Traditionally, buyer bore risk of loss, caveat emptor, seller had no real duty to disclose unless affirmatively misrepresented condition of property, actively concealed defects, owed a fiduciary duty to buyer

Modernly, person in possession nears risk. Seller has a duty to disclose defects that materially effect the value of property and are unlikely to be discovered
Professional sellers have duty to disclose physical off-site conditions that touch and concern land

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6
Q

Closing

A

Deed, mortgage, deed of trust, installment contract

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7
Q

General Warranty Deed

A

Warrants all 6 title covenants before and after seller took possession

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8
Q

Special Warranty Deed

A

Warrants all 6 title covenants AFTER seller took possession

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9
Q

Quitclaim Deed

A

Warrants nothing

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10
Q

Title Covenants

A

Present: SRTCAE: covenant of seisin, covenant of right to convey, covenant against encumbrances

Future: WQEFA: covenant of warranty, covenant of quiet enjoyment, covenant of future assurance

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11
Q

Title Assurance

A

Types of deeds, title covenants, title opinion based on search of public records, title insurance

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12
Q

Deed Delivery

A

Does not require physical delivery, must have intent to divest oneself immediately

Actual or constructive - possession not determinative

Can deliver to third party if no reservation to recall

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13
Q

Mortgage

A

Security interest in the property

Title theory- lender holds title until paid off

Lien theory- buyer holds title, lender holds security interest

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14
Q

Judicial and Private Foreclosure

A

Property auctioned off

Excess goes to borrower

If not satisfied, lender can sue for delinquency judgment

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15
Q

Deed of Trust

A

Three parties- borrower, trusted, lender

Private foreclosure

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16
Q

Installment Contract

A

Two parties: borrower, lender

Automatic forfeiture, no transfer of title

17
Q

Covenant of Seisin

A

Covenants seller actually owns estate

18
Q

Covenant of the Right to Convey

A

Seller is rightful owner and has full title to convey - synonymous with seisin

19
Q

Covenant Against Encumbrances

A

Warrants no covenants or restrictions restrict use

20
Q

Covenant of Warranty

A

Seller will defend against claims of superior title

21
Q

Covenant of Quiet Enjoyment

A

Warranting no superior title in existence - synonymous with warranty

22
Q

Covenant of Future Assurances

A

Assures seller will take all reasonable steps to cure defects

23
Q

Recording System

A

Notice, bona fide purchasers, least cost avoiders

24
Q

Notice

A

Actual notice: direct knowledge of superior claim OR

Constructive notice - inquiry notice, record notice

25
Q

Bona Fide Purchaser

A

Purchaser who purchases for value with no notice of superior title

26
Q

Least Cost Avoider

A

Person who fails to comply with the recording system

27
Q

Searching Title

A

Grantor/Grantee Index

Tract Index: organized by parcel Nebraska, North Dakota, South Dakota, Utah, Oklahoma, Wyoming

28
Q

Recording Acts

A

Statutes to encourage compliance with recording system

Race, Notice, and Race-Notice

29
Q

Race

A

Favors first to record

30
Q

Notice

A

Favors last bona fide purchaser

31
Q

Race-Notice

A

Favors subsequent bona fide purchaser who records first

32
Q

Title Insurance

A

Gives damages in monetary compensation for title defects

33
Q

Chain of Title Problems

A

Wild Deed, Deed recorded too early, deed recorded too late, deed from a common grantor

34
Q

The Shelter Rule

A

Bona fide purchaser can transfer protection to grantee

S to B who doesn’t record
S to C who records
C to D who knows of S to B

D protected by shelter rule

35
Q

Wild Deed

A

S to B who doesn’t record
B to C who records
S to D who records

36
Q

Deed Recorded Too Late

A 
S to B who doesn't record 
S to C who knows of S to B 
C records 
B records 
C to D who records
37
Q

Deed Recorded Too Early

A

S owns Greenacre.
B conveys Greenacre to C who records
S to B who records
B to D who records

38
Q

Deed from a Common Grantor

A

S owns X and Y. S conveys X to B and gains easement to cross X to Y. B records.
S coveys Y to C who is unaware of easement. C records

39
Q

Caveat Emptor

A

Traditionally, buyer bore risk of loss for duty to disclose. Caveat emptor encourages buyer to exercise diligence in investigating condition of property

Seller only owed duty where: affirmatively misrepresented property, actively concealed defects, owes fiduciary duty to buyer

Property (3 decks)

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