Secured Transactions

Question 1

Conveyances

Secured Transactions

Answer 1

The purchase and sale of real estate executed through a land sale contract conveying equitable title.

Question 2

Enforcement of Land Sale Contracts

Secured Transactions

Answer 2

(1) Writing. The contract must be in writing
(2) Signature. The contract must be signed by the party against whom enforcement is sought.

Question 3

SOF Writing Requirements

Answer 3

The land contract must include essential, material terms.
(1) Description. The description of the land.
(2) Parties. The identification of the parties.
(3) Price and Payment. The purchase price and method of payment.

Formal contracts are NOT REQUIRED.

Question 4

Exceptions to Writing Requirement

Under certain circumstances, courts will enforce oral contracts.

Answer 4

Part Performance

Question 5

Doctrine of Part Performance

Answer 5

Equitable doctrine ordering specific performance of an oral contract if either party has partially performed.
(1) Possession. Taking possession of the land.
(2) Payment. Making full or substantial payment.
(3) Substantial Improvement. Making substantial improvements on the land.

Question 6

Evidentiary Theory

Theories to Support Doctrine of Part Performance

Answer 6

The acts of part performance can only be explained by reference to an agreement and unequivocally establish the existence of an oral contract.

BUYER & SELLER CAN ASSERT

Question 7

Hardship or Estoppel Theory

Theories to Support Doctrine of Part Performance

Answer 7

The acts of part performance would result in hardship, constituting fraud on the performing party, and the non-performing party is estopped from asserting a SOF defense.

BUYER CAN ASSERT

Question 8

Doctrine of Equitable Conversion

Answer 8

Upon valid execution of a land contract:
* Buyer’s Interest [Equitable Title] = Owner of real property
* Seller’s Interest [Legal Title] = Owner of personal property (sale proceeds)