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Property > Title > Flashcards

Title Flashcards

1
Q

What are the two ways to transfer land?

A

Sale (consideration) and gratuitous transfer (no consideration).

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2
Q

“Gap” period

A

The time gap of 30-90 days (on average) between the time the parties bind themselves to signing a purchase and the actual closing of the deal which allows for preparations.

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3
Q

Closing

A

A proceeding where the parties exchange executed instruments, make the required payments, and conclude the formal aspects of the transaction.

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4
Q

Closing statement

A

Is prepared prior to the final closing. Is designed to indicate any debts or credits owed to either party.

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5
Q

Post closing procedures

A

Arrange taxes and insurance, record the instrument, make one final check on the title, monetary disbursements are made, documents are given to both parties to signify completion of the transaction.

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6
Q

Statute of Frauds (property context)

A

Ensures that when one party seeks to enforce an agreement that agreement actually reflects a mutual understanding as to the essential terms of the alleged bargain. Promotes certainty, reduces ambiguity, and removes as much subjectivity as possible.

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7
Q

Estoppel

A

There must be a promise or statement made and there must be reasonable detrimental reliance.

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8
Q

Doctrine of part performance

A

Where performance of an oral agreement may be sufficient evidence to substitute a written agreement.

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9
Q

Elements of part performance

A
  1. Material act
    a. payment of all or part of the purchase price
    b. transfer of possession of the land
    c. construction of improvements
  2. Acts must be “unequivocally refutable” to the existence of the oral agreement
    a. there can be no other plausible explanation for the party’s actions
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10
Q

Elements of fraudulent concealment

A
  1. The seller is aware of the defect
  2. There is a material defect
  3. Latency of the defect
  4. Must be a residential property
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11
Q

Defect categories

A
  1. Either a physical or structural problem with the property.
  2. There is a psychological impact on the property.
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12
Q

Equitable conversion doctrine

A

Common law method for allocating the risk of loss during the gap period in real estate transactions where generally the owner of property bears the risk of loss or damage to the property.

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13
Q

Property damage during the gap period

A

If something happens during the gap period that is not under the control of the seller, the buyer is responsible for acts of god, zoning issues, and eminent domain problems.

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14
Q

When can specific performance be demanded?

A

The seller cannot demand specific performance is there are outstanding obligations on their part of the agreement.

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15
Q

Massachusetts Rule

A

Risk of loss is imposed on the seller. If the building is a material part of the contract, then the contract is no longer valid.

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16
Q

UVPRA

A
  1. Statutory reform of equitable conversion
  2. Owner of the property is whoever has TITLE or POSSESSION
  3. Follows Posner’s rule of legitimate expectations on the parts of both the buyer and the seller.
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17
Q

What quality of title must the seller provide to the buyer?

A
  1. Marketable
  2. Insurable
  3. Record
  4. Satisfactory
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18
Q

What typer of evidence of title must the seller provide to the buyer?

A
  1. Official land records
  2. Title insurance commitment
  3. Title abstract
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19
Q

What time frame does the seller have to provide evidence of the title to the buyer?

A

Typically until the closing date.

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20
Q

Installment land contract

A

Where the buyer agrees to purchase property from the seller by making monthly installment payments. Immediate possession is rendered, but no deed is executed until the price if fully paid.

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21
Q

What diminishes the value of a title?

A
  1. Quantity
  2. Quality
  3. Value
22
Q

Reasonable doubt

A

A title not subject to such reasonable doubt as would create a just apprehension of validity in the mind of a REASONABLE, PRUDENT, and INTELLIGENT person”

23
Q

4 kinda of encumbrances

A

Easements, zoning ordinances, restrictive covenants, and encroachments

24
Q

What options does a buyer have if a title search shows defects?

A
  1. Rescind the contract
  2. Seek enforcement of the contract but with a price reduction
  3. Seek to recover damages.
25
Q

Warranty deed

A

Gives the buyer a remedy against the seller if the buyer discovers a defect AFTER the closing has passed.

26
Q

Title insurance

A

A contract in which an insurance company agrees to indemnify the buyer against future losses due to later defects in the title

27
Q

Marketable record title

A

Title that is evidenced by conveyances that are duly entered into public records.

28
Q

Insurable title

A

Title that an insurance company would approve or insure. This is sometimes really strong because the insurance company insures title “unconditionally and without exception”

29
Q

Common law first in time, first in right

A

Stated that the person whose interest if first delivered prevails. The property belongs to the grantee in the first conveyance.

30
Q

servitude

A

a non possessory property interest in a possessory estate belonging to someone else.

31
Q

Policy for recording statute

A

Get people to record thus promoting clear title which in turn contribute to easy and certain alienability of land.

32
Q

3 types of recording statutes

A
  1. Pure Race
  2. Pure notice
  3. Race notice
33
Q

Pure race

A

Priority is determined by whoever recorded the instrument FIRST! Policy for this is the not allow people to sleep on their rights as property owners, which leads to creating a clean chain of title.

34
Q

Pure notice

A

Must be a BFPV (bona fide purchaser for value) which requires that you acquire land through a voluntary conveyance, there must be an exchange of tender, and you must have acted in food faith. And must not have had notice of potential other claims.

35
Q

3 kinda of notice

A
  1. actual notice = subjective knowledge
  2. inquiry notice = requires due diligence and a reasonable investigation
  3. record notice = the world is on notice because it is records in the jurisdiction and you had the means of attaining the knowledge
36
Q

Race notice

A

Majority rule

Must be the bona fide purchaser for value who records FIRST.

37
Q

Shelter principle

A

The protection applies to both the BFPV, but also to anyone who takes after them. Only applies in pure race and race notice jurisdictions.

38
Q

Seisen

A

a promise that a grantor owns the estate in the land that the deed purports to convey.

39
Q

Three types of deeds

A

General warranty deed, special warranty deed, quit claim deed

40
Q

General warranty deed

A

contains a full set of covenants warranting the land

41
Q

special warranty deed

A

contains a full set of covenants but limits the application to defects caused by the grantor himself (not third parties)

42
Q

quitclaim deed

A

provides no warranties (used when a quick transfer of land is needed)

43
Q

Calculation for breach of deed warranties

A

The grantee cannot recover for an amount greater than the purchase price paid when the warranty was made.

44
Q

Promissory note

A

a document in which the borrower agrees to repay the borrowed sums within a specified period of time at a proscribed rate of interest

45
Q

mortgage

A

an instrument that gives the lender a security interest in the real estate owned by the buyer to secure repayment of the debt

46
Q

Balloon loan

A

borrower’s regularly scheduled payments do not cover the entire amount of the loan and the buyer must make a “balloon payment” (pay remaining amount due on loan) when the loan reaches maturity.

47
Q

6 kinds of warranties

A

3 present: seisin, right to convey, against encumbrances (no 3rd party interest in the parcel)
3 future: warranty, quiet enjoyment, further assurances (states that is an issue does come up it will get fixed)

48
Q

Elements of fraud

A

material misrepresentation of fact, scienter (you lied and you knew you lied), intent to induce, and injury.

49
Q

Fraudulent concealment elements

A

Seller is aware of the defect, the defect is material, the defect was latent, and it is in a residential context.

50
Q

What is marketable title?

A

A title that is free from reasonable doubt (i.e. free from the hazard of litigation)

51
Q

What is the basic framework for priority?

A
  1. Who was first in time?
  2. Is a subsequent purchaser to the common law winner able to take advantage of the priority (recording) statute? (i.e. can somebody later in time satisfy all of the requirements of the recording statute.)

Property (2 decks)

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