The Land Sale Contract Flashcards
What are the remedies available for a breach of a land-sale contract?
Damages
- Expectation damages
- Liquidated damages
- Some states: out of pocket only
Specific performance
- Mutuality of remedies: Buyer is entitled to force sale and seller is entitled to force buy.
For a land-sale contract, what is the implied covenant of marketable title?
Title is free from unreasonable risk of litigation.
No defects
- Future interest that do not agree
- Adverse possession
- Private encumbrance (mortgage)
- Violation of zoning ordinance
- Physical defect
Must be delivered at closing
Can use sale proceeds for mortgage.
How can a land-sale contract meet the SoF?
Be in writing
Signed by party to be charged
Essential terms
- Parties
- Price/payment terms
- Property description
Exceptions: Detrimental reliance, part performance (payment, improvements, possession) or full performance.
What is the affect of a time is of the essence clause?
Without one, strict adherence to the closing date not needed. Thus, failure to perform not grounds for recession.
However, still a breach and damages may be sought for incidental loss.
When is a broker entitled to a commission?
If listing agreement is silent, broker’s efforts must be the procuring cause of purchase.
Most listing agreements provide payment when broker finds a buyer who is ready, willing, and able.
For the land-sale contract, what is the doctrine of merger?
Obligations not in the deed, but in original contract cannot be enforced.
Contract merges into deed.
What are the different types of real estate broker agents?
Seller’s Agent
Buyer’s Agent
Dual Agent
Non-Agent - Transaction Broker
What is the duty to disclose for the land-sale contract?
Seller has a duty to disclose all known, material defects to the buyer.
Material = value of residence, health or resident or desirability.
