Real Estate Transactions Part IV: Physical Condition Issues; Seller Disclosures; Statute of Frauds, Etc. - Asynchronous Flashcards
What is nonfeasance? (Q)
Inaction or an omission that causes harm. One is only liable for nonfeasance if he or she owes a duty of care to the victim of harm.
What is misfeasance? (Q)
Affirmative conduct that causes harm. One may be liable for misfeasance if he or she breaches a duty of care owed to another.
What is a representation real estate clause? (Property Outline)
Statement of current facts.
What is a warranty real estate clause? (Property Outline)
Statement of promise of a future fact.
What is a covenant real estate clause? (Property Outline)
Promise of future act.
What is a indemnity real estate clause? (Property Outline)
Promise to make the other party whole in the event that a representation or warranty proves to be untrue or a covenant is not performed.
What is an implied warranty of quality? (Property Outline)
Promises that construction will be completed in a competent and skillful manner consistent with professional standards.
When are warranties of quality implied? (Property Outline)
Only implied against sellers who are “merchants of housing” / residential construction.
What is equitable conversion? (Property Outline)
Buyer becomes equitable owner of property once the K is signed. Buyer bears the risk of loss.
When will a buyer not have a cause of action against the seller or the agent for either or both of the seller or buyer? (Barros)
(1) material defects to the property disclosed to the buyer prior to the signing of an agreement of transfer by the seller and buyer;
(2) material defects that develop after the signing of the agreement of transfer by the seller and buyer; or
(3) material defects that occur after final settlement [i.e., closing]. (471)
What do the seller disclosure laws do? (Barros)
First, they create liability for the seller for nondisclosure of material defects. Second, they mandate the creation and use of seller disclosure forms. (472)
What is a percolation test? (Barros)
A percolation test, or perc test for short, is used to determine whether the land is suitable for an on-site septic system. (472)
What are latent defects? (E&E)
Latent defects are those defects known to the broker and not discoverable by the prospective purchaser upon reasonable inspection. (352)
What are patent defects? (E&E)
Patent defects are those defects not hidden which can be discovered upon reasonable, nonexpert inspection. (352)
What is caveat emptor? (E&E)
Caveat emptor (buyer beware) is the doctrine that the broker (and selling landowner) owed no duty to purchasers to disclose defects. (352)
