Sale of Land

Question 1

Land Sale Contract

Answer 1

1. Must be in writing (Statute of Frauds)
2. Sufficient Memo - Description of Land, Identification of parties, Price, Payment, Signed by Party to be Charged.
3. Partial Payment, Possession or Valuable improvements. Majority require 2.

Question 2

Marketable Title

Answer 2

Implied warranty that the title is reasonably free from title defects.

Except Quitclaim Deed or Adverse Possession

If seller cannot deliver title free from defects the buyer can rescind.

Buyer has a duty to inform Seller of any known defects and give reasonable time to cure.

Question 3

Defects Which Render a Title Unmarketable

Answer 3

1. Encumbrances
2. Mortgages
3. Assessments
4. Dower
5. Easements
6. Covenants currently in breach
7. Zoning - Seller knows buyers reason for purchase violates ordinance.

Question 4

Doctrine of Equitable Conversion

Answer 4

At time of contract seller has vested interest in money and buyer has vested interest in the land. Interest will pass to heirs.

Question 5

Risk of Loss

Answer 5

Majority - Risk of loss falls to buyer.
Minority - Risk of loss falls to seller
CA - If buyer takes title or possession he assumes risk, not risk remains with seller.

Question 6

Insurance Interests

Answer 6

Seller cannot collect both insurance proceeds and sale price.

Question 7

Mortgage

Answer 7

A device to secure repayment of a debt by the buyer. Upon default the bank can sell the property by judicial foreclosure to satisfy the debt from the proceeds.

Subject to the Mortgage - If buyer transfers interest subject to the mortgage, new transferee is not liable for the mortgage but property can be sold by the bank to satisfy the mortgage.

If silent, Subject to Mortgage is assumed.

Assumes the Mortgage - New transferee is liable. Original borrower is also liable unless novation.