Real Property Contracts

Question 1

Statute of Frauds

Answer 1

• requires a writing for a transfer of an interest in real property
• writing must be signed by party to be charged
• Must include essential terms:
  
  • Description of the property
  • Description of the parties
  • Price; and
  • Any conditions of price or payment if agreed on

Question 2

Marketable Title

Answer 2

marketable title is title that is reasonably free from doubt in both fact and law.

All contracts for the sale of real property include an implied promise to convey marketable title

Question 3

Duty to Disclose Defects

Answer 3

Seller of residential home has a duty to disclose to a buyer material latent defects known to the seller, but not readily observable and not known to buyer

Question 4

Buyer’s Remedies for Seller’s Breach of Contract

Answer 4

Remedies at Law

1. Expectation damages
2. Foreseeable consequential damages
3. Reasonable reliance damages
4. Restitution of any down payment
5. Punitive damages

Remedies in Equity

1. Recission of the contract
2. Specific performance

Question 5

Passage of Property at Death

Answer 5

• Ifthesellerdiesaftertheexecutionofthecontractforsalebutbeforeclosing,legaltitlepassestohisheirs or devisees.
• However, they must honor the sales agreement, and the purchase money passes as personalty