Real Property MEE Rule Statements Flashcards
What is the implied contract of marketable title?
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.
What is the remedy if the buyer determines that the seller’s title is unmarketable?
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.
Remedy for breach of a real estate sales contract?
Contract Price - Market Value of the Land on the date of the breach
When may a seller retain an earnest money deposit?
The seller may retain the deposit if the buyer defaults in performance.
Statute of Frauds: Part Performance Exception
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.
Effect of a divorce on a tenancy by the entirety
In Virginia, a divorce decree extinguishes all contingent rights of either spouse and converts the estate into a tenancy in common.