Real Property MEE Rule Statements

Question 1

What is the implied contract of marketable title?

Answer 1

At closing, the seller will provide the buyer with a title that is (1) reasonably free from doubt; (2) free from questions that present an unreasonable risk of litigation. Typically this will be an unencumbered fee simple absolute with good title.

Question 2

What is the remedy if the buyer determines that the seller’s title is unmarketable?

Answer 2

The buyer must notify the seller and give reasonable time to cure the defects. If the seller fails to cure the defects, the buyer may (1) rescind; (2) sue for damages; or (3) get specific performance. If the seller fails to cure, the seller may not sue for damages or specific performance.

Question 3

Remedy for breach of a real estate sales contract?

Answer 3

Contract Price - Market Value of the Land on the date of the breach

Question 4

When may a seller retain an earnest money deposit?

Answer 4

The seller may retain the deposit if the buyer defaults in performance.

Question 5

Statute of Frauds: Part Performance Exception

Answer 5

A court may give specific performance of a contract despite the absence of a writing if 2/3 of the following acts are present: (1) the purchaser is in possession of the house; (2) the purchaser has made substantial improvements to the land; and (3) the purchaser has paid all of part of the purchase price.

Question 6

Effect of a divorce on a tenancy by the entirety

Answer 6

In Virginia, a divorce decree extinguishes all contingent rights of either spouse and converts the estate into a tenancy in common.