Titles (Deeds) Flashcards
What happens to a seller’s duties when a closing occurs?
Under the doctrine of merger, the seller’s duties in a contract for the sale of real property—including the duty to deliver marketable title—merge into the deed at closing. As a result, these duties are enforceable thereafter only if they are contained in the deed
What is the implied warranty of fitness/suitability? What are the damages?
Seller asserts that he used ADEQUATE MATERIALS and WORKMANSHIP for the new residence.
Covers: latent construction defects.
Buyers obligation: REASONABLE inspection
Can be brought within a reasonable time after DISCOVERY of defect.
Damages: cost of REPAIRS into compliance with the warranty.
What evidence is required to show that a transferee assumed personal liability of a mortgage?
Most Jx: don’t require writing but require some agreement (like oral).
Other jx: permit assumption when buyer pays difference between what the house was worth and the outstanding balance on the mortgage obligation.
Assume a warranty deed is transferred. The buyer successfully litigates against their neighbor’s asserted title claim. Can the buyer then sue the seller under the general warranty deed?
No. The buyer cannot assert covenant of warranty (grantor will defend and compensate grantee for lawful claims made against grantee’s title) because the neighbor did not have a lawful claim, EVIDENCED BY THE NEIGHBOR’S DEFEAT IN ACTION.
When does an unrecorded PMM have priority over a lien?
A PMM has priority over liens that arose prior to the PMM regardless of whether the PMM was recorded. But a PMM does not necessarily have priority over subsequent liens. Instead, the recording act (or, if there is no recording act, the “first in time” rule) will control.
What are two essential terms required for land sales contracts?
Price and Subject Matter.
Price is sufficiently certain and definite if there is a practicable method for the court to determine what the price should be (e.g., fair market value). Similarly, the subject matter is sufficiently certain and definite if it enables the court to determine exactly what property is being sold.
What is the Equal Dignitaries Rule?
The equal-dignities rule requires that an agent’s authority be in writing when the act performed by the agent on the principal’s behalf is subject to the statute of frauds (e.g., transfers of real-property interests).
However, this rule does not apply to persons merely acting as the grantor’s scribe by signing a specific deed at the grantor’s request.
- not acting in grantor’s place to transfer, just signing for grantor
