Transfers of Land

Question 1

Contract for Sale

Answer 1

Contains price, description of the property which all must be in writing. A deposit also usually needs to be secured

Question 2

Closing

Answer 2

Exchange of all documents - checks, title, etc.

- lawyers are required for this on the east coast

Question 3

Statute of Frauds Requirements for Contract of Sale

Answer 3

Contract must be in writing and signed by the party to be bound. SOF requires that the writing contain all “essential terms” of the contract:

1. Description of the property
2. Identification of the parties to the contract
3. Some mention of price in some way and the manner of payment

Question 4

Two Court exceptions to SOF

Answer 4

1. Specific Performance

2. Estoppel - court will look to see if its unfair to enforce the contract

Question 5

Hickey v. Green

Answer 5

Green orally agreed to sell vacant lot to Hickey. Hickey wanted to move quickly on the sale so that he could sell his old house.

Hickey’s gave Green check for $500 - the made payable line was blank - but it was signed by Hickey’s (buyer)
Put party to be bound is the seller here, not the buyer
Green’s name was not on the check
On the back of check Hickey wrote: “the lot on Massasoit Ave”

Rule: A contract for the transfer of a interest in land may be specifically enforced notwithstanding failure to comply with the SOF if it is established that the party seeking enforcement, in reasonable reliance on the contract and on the continuing assent of the party against whom enforcement is sought, has so changed his position that injustice can be avoided only by specific performance

Question 6

Marketable Title

Answer 6

In every contract of sale, there is an implied condition that the sale involves a marketable title to the land

Marketable title must at least mean:

• the seller must own the property
• And a title that is subject to liens, easements or other encumbrances is not marketable

Question 7

Lohmeyer v. Bower

Answer 7

A marketable title to real estate is one which is free from reasonable doubt, and a title is doubtful and unmarketable if it exposes the party holding it to the hazard of litigation

Lohmeyer - buyer
Bower - Seller

L bought signed contract of sale but want to rescind bc:

1. Abstract of title forbade building any structure that was not 2 stories tall
2. Zoning requirement - 3 feet away from house next door

House was 1 story and 18 inches away.

Contract of sale said “subject to all restrictions and easements of record”

Court: In general, zoning ordinances and other private covenants governing land use do not render a title unmarketable. Here, however, the sale property included a house which violated two distinct land use restrictions. These violations would have exposed Lohmeyer to the risk of litigation. Therefore, the title was unmarketable, and the sale therefore subject to rescission.