Selling Real Property Flashcards
What are the four steps of a real property transaction?
Pre-Contract, Purchase contract, Closing, Title Protection
What are the three elements under the Statute of Frauds?
- Essential Terms
The essential terms of the contract (usually the identity of the parties, the price and the property description) must be set forth in a writing - Writing
The writing can be a formal contract or an informal memorandum. Generally an oral agreement is not enforceable - Signature
The writing must be signed by the party sought to be bound
What are the two exceptions to the Statute of Frauds that we learned?
Part performance and estoppel
Under part performance, what three elements must be met for an oral agreement to be enforced?
- They buyer takes possession
- Pays at least part of the purchase price
- Make improvements to the property
When is estoppel enforced? (2 elements)
Oral contract may be enforced if:
1. One party acts to his detriment in reasonable reliance on another’s oral promise
2. And serious injury would result if enforcement were refused
What is the court’s holding in Hickey v Green?
Even though the Hickey’s did not comply with the Statute of Frauds, Ms Greens oral agreement to sell her property to them should be enforced because they reasonably relied on her promise to their detriment by selling their home.
Why does the Statute of Frauds require written agreements?
- Written agreements are more certain than oral ones
- They are not as open to misinterpretation
- Only written agreements can take advantage of certain other statutes and legal rules
- The discipline of a writing requires the parties to think through their agreements
- The ceremony of a writing encourages the parties to take their undertaking seriousl
What is the equal dignities rule?
An agent’s authority to bind a party to a contract for the purchase of real property must be set forth in a writing duly signed by that party
