Sales of land Flashcards
What is the modern trend for requiring disclosure of defects?
In most states a sellor of residential property who knows of a latent defect that substantially affects the value or desirability of the property must disclose it to the buyer.
eg - most significant physical or legal defects in the house or lot must be disclosed.
What is the brokers duty to disclose defects?
Broker representing the buyer is required to disclose known defects in the property as part of his fiduciary duty.
What is a mortgage?
The conveyance of an interest in real property as security for performance of an obligation.
What are the four basic stages of real property transactions?
- Locating the buyer 2. negotiating the contract. 3 prepairing for the closing 4. closing the transaction
What fiduciary duties does a broker owe to the principal
obligations of care, skills, diligence, loyalty, and good faith
What are the 3 requirements of the statue of frauds?
1 the essential terms of the sales contract 2 must be contrained in memorandum or other writings 3 is signed by the part against whom enforcement is sought.
What is required for the statue of frauds for esential terms?
writing must normally identify the parties, contain words showing an intent to buy or sell, state the purchase price, adequately describe the property.
What are the two main exceptions to the statue of frauds?
Part Performance and equitable estoppel.
What constitutes part performance?
requires that the buyer both 1 take possesion of the property and 2 either pay part or all of the purchase price or make improvements to the property.
When does estoppel arise?
where 1 one party has been induced by the other to substantially change prosition in justifiable reliance on an oral contract and 2 serious or irreparable injury would result from refusing enforcement of the contract.
What is marketable title
IF it isn’t an express contract condition that specifies the quality of the title the seller must deliver and the contract is silent on the issue the law fills the gap with an implied covenant that the seller must deliver marketable title.
What is implied covenant of marketable title?
Marketbale title is title free from reasonable doubt, but not every doubt.
What are the remedies for breach of contract?
Specific performance and Damages
What is a deed?
the basic document used to transer an estate or other interest in land during the owner’s lifetime. One who transfers title by deed is the grantor; one who receives title is a grantee.
What are the 3 types of deeds.
General warrant deed, speical warranty deed, quitclaim deed.
What is a general warranty deed?
contains six specific covenants of title that warrant against any defet in the grantor’s title.
What is a special warranty deed?
Contains the six specific title covenants found in the general warranty deed, but applies them only to defects caused by the acts or omissions of the grantor. Example: A having no title purports to convvey title to B, B conveys to C using special warrant deed. Because title defect was caused by A, not B, B is not liable to C.
What is a quitclaim deed?
contains no title covenants. The grantor does not warrant that she owns the title or that title is good. It’s for whatever right, title, or interest the grantor may have in the land.
