Real Property 46-60 Flashcards
What are the elements of a valid Land Sale Contract?
The contract must:
Be in writing;
Describe the property;
Identify the parties involved;
Contain the purchase price; AND
Be signed by the grantor/grantee (depending on who the contract will be enforced against).
Priority: Medium
When can a seller revoke a land sale contract?
Once the contract is signed, they CANNOT revoke as the buyer is already considered the owner.
However, if the land is conveyed through a deed, the seller may revoke before the deed is effectively delivered.
Priority: Low
What is Marketable Title?
A title that is FREE from any cloud or subject to any adverse claims.
Title is unmarketable when it contains a substantial defect (such as encumbrances, mortgages, liens, etc.).
Priority: Medium
What is the Equitable Conversion Doctrine?
It splits ownership between the buyer and the seller. The buyer has equitable title, while the seller has legal title and holds the property in trust for the buyer.
*The buyer’s ownership is considered real property, while the seller’s is considered personal property.
Priority: N/A
What does a “time is of the essence” clause ensure?
It ensures that the buyer MUST perform on the closing date.
If the buyer fails to perform, it will be deemed a material breach and the seller may keep the buyer’s down payment as liquidated damages.
Priority: N/A
When is Specific Performance appropriate?
When monetary damages will not fully remedy a party’s complaint.
Real property is ALWAYS considered unique, and specific performance is ALWAYS an appropriate remedy.
Priority: N/A
What is a Home Builder’s Implied Warranty?
A warranty that protects a purchaser of a newly constructed home against latent defects, AND warrants that the building is safe and fit for human habitation at the time of sale.
Priority: N/A
What are the requirements of a valid Deed?
A valid Deed must:
Be in writing;
Be signed by the grantor;
Identify the grantor and grantee;
Describe the property; AND
Indicate the grantor’s present intent to convey the land.
Priority: Medium
When may land be conveyed without a contract?
When there is:
Intent by the grantor to convey the property to the grantee;
Delivery of a valid deed; AND
Acceptance by the grantee.
Priority: Medium
What are the six covenants of a General Warranty Deed?
The three presentcovenants are:
Seisin;
Right to convey;
Against encumbrances.
The three future covenants are:
Warranty;
Quiet enjoyment;
Further assurances.
Priority: Medium
When does a constructive conveyance of a deed occur?
When the grantor gives the deed to a third-party who is an agent of the grantee.
Priority: Low
What is a Special Warranty Deed?
It ONLY warrants that the seller has not breached the covenants of title during his period of ownership (that the seller hasn’t previously conveyed the property and there are no encumbrances against the title).
Priority: Medium
What is a Quitclaim Deed?
A deed that DOES NOT contain any covenants or promises to the buyer. It’s an “AS IS” deed leaving the buyer with NO rights to sue.
Priority: Medium
What happens if a land transfer is NOT recorded?
It is considered a “wild” deed and is effectivebetween the parties, but will NOT put subsequent purchasers on constructive notice because it’s outside the chain of title.
Priority: N/A
What are the three types of Recording Statutes?
Notice statute – a subsequent bona fide purchaser will prevail over prior grantee that failed to record.
Race statute – whomever records first prevails.
Race-notice statute – a subsequent bona fide purchaser is protected ONLY IF he records before the prior grantee.
