Real Property Flashcards
When is a land sale contract outside the Statute of Frauds?
A land sale contract is outside the Statute of Frauds if the buyer does any two of the following:
(1) Pays all or part of the purchase price;
(2) Takes possession; and/or
(3) Makes substantial improvements.
Can a seller disclaim their duty to disclose know, latent material defects?
A seller has a duty to disclose known, material defects, which may be disclaimed if the disclaimer is clear and specific.
Can the implied promise in a land sale contract to provide marketable title ever be waived?
The implied promise in a land sale contract to provide marketable title may be waived by the buyer only, not the seller.
If a buyer and seller close and the deed transfers, but buyer discovers after closing that title is not marketable, who is liable?
Under the doctrine of merger, if a buyer fails to notify the seller that title is not marketable before closing, then the contract merges with the deed and the seller is not liable. The buyer will be liable.
If a seller breaches an implied promise in a land sale contract, what are the buyer’s options? When must the buyer notify the seller?
If a seller breaches one of the implied promises in a land sale contract, the buyer must notify the seller before closing and give reasonable time for the seller to cure defects. If the seller fails to cure the defects, the buyer can rescind the contract, file for damages, demand specific performance, or file suit to quiet title.
What implied warranty exists in the sale of newly constructed property?
In new property the seller/builder is subject to an implied warranty of habitability and fitness/quality in the construction.
What types of defects would render title unmarketable?
Defects rendering title unmarketable are:
(1) Acquired by adverse possession;
(2) Encumbered by interests such as an easements, mortgages, liens, servitudes, use-restrictions, future interests;
(3) Land-use and zoning ordinance violations existing at sale.
What implied promises exist in land sale contracts?
(1) Promise to provide marketable title; and
(2) Promise to disclose known, latent material defects, and make no material false statements.
Do quitclaim deeds negate the implied promise to provide marketable title in a land sale contract?
A quitclaim deed does not negate the implied promise to provide marketable title in a land sale contract. Although a quitclaim deed only gives title to what the owner actually owns, the owner’s promise to deliver marketable title means the buyer can refuse to close.
Can a seller satisfy a mortgage at the closing with proceeds from the sale?
A seller has a right to satisfy the mortgage at the closing with proceeds from the sale.
Do tenants in common owe each other fiduciary duties?
Tenants in common do not owe each other fiduciary duties.
Does an adverse possessor have to be a single possessor?
No, a single possessor is not one of the requirements of adverse possession. There can be more than one possessor, meaning that title can be claimed by two or more adverse possessors simultaneously.
At common law, when and how does a lapse occur?
At common law, a lapse occurs when the beneficiary or the devisee under the will predeceases the testator, invalidating the gift. The gift would instead revert to the residuary estate or be granted under the law of intestate succession. (For anti-lapse, the gift would pass to the beneficiary or devisee’s heirs, so long as the beneficiary/devisee was related to the grantor).
