Land Sale

Question 1

What are the requirements for a land sale contract?

Answer 1

writing

1. parties
2. describe the property
3. purchase price
4. signed by person against whom enforced
5. intent to buy or sell

Question 2

Would a restrictive covenant render title unmarketable?

Answer 2

yes

Question 3

what is marketable title?

Answer 3

reasonably free from doubt or defects (risk of litigation)

Question 4

what is the shelter rule?

Answer 4

protects grantees/donees who take from a BFP - would have the same priority/rights as the BFP, even if G/D had notice

Question 5

what is required for land sale K?

Answer 5

i) Be in writing;
ii) Be signed by the party to be charged; and
iii) Contain all of the essential terms (i.e., parties, property description, terms of price and payment).

Question 6

what is the remedy when a buyer or seller dies during escrow?

Answer 6

specific performance

Question 7

what interests do the buyer and the seller hold during escrow? tile? what is the deoctrine called?

Answer 7

seller: property interest in the proceeds; still holds legal title
buyer: equitable title

Question 8

what is marketable title?

Answer 8

reasonably free from doubt and defects (rsik of lit)

Question 9

what can the buyer do when the sellr fails to produce marketable title?

Answer 9

notify and give seller time to cure

if at closing, still not can rescind, damages, SP with abatement

Question 10

what covenants come with general warranty deed?

Answer 10

SEC AWE
○ General warranty deed: Seller warrants that no title defects were created by himself and all prior titleholders. Includes 6 covenants of title (different from real covenants): (SEC AWE)

§ Present covenants (do not run w/ land, breached at conveyance, only immediate grantee can enforce):
□ covenant of seisin (promise that he owns title and possesses estate conveyed),
□ covenant of right to convey (grantor had right as valid owner),
□ covenant against encumbrances (no easements, covenants, unpaid mortgages or liens)

§ Future covenants (run w/ land, any future grantee can enforce):
□ covenant for quiet enjoyment (promise that grantee won’t be disturbed by lawful claims of title),
□ covenant of warranty (promise to defend vs. reasonable claims of title & compensate for any losses from superior claims),
covenant for further assurances (promise to take reasonable steps to perfect defects of title)

Question 11

what covenants come with special warranty ded?

Answer 11

no-title defects

arose during ownership

Question 12

what arethe defects to marketable title?

Answer 12

chain of title (AP, unvested future interest),

encumbrance (mortgages, liens, restrictive covenants, easements, significant encroachments),

existing zoning violation (not restriction)

Question 13

what is required for a deed?

Answer 13

formalties: writing and sign

delivery:

1. intent: no conditions
2. acceptance

Question 14

where does one look for constructive notice?

Answer 14

tract indiex
grantor grantee index
title search

Question 15

are mortagees BPFs? creditos?

Answer 15

yes

yes but against claims arising after recording of the judgment

Question 16

what are req for BFP?

Answer 16

good faith
without notice
for monetary value

Question 17

what is a aboslute deed?

Answer 17

free of liens and encumbranes and is used to transfer unrestricted title to property

Question 18

when can an absolyte deed be a disguised mortgage?

what factors does the court consider?

Answer 18

when an obligation is attached with the transfer

granot debt or promise
debt of promise to return land after grantor’s debt is paid
amount paid to grantor is much lower than propety value
grantor’s financial distress
prior negotiations between parties

Question 19

what is a deed of trust?

Answer 19

when a m’or gives titles to a trustee, which holds it as security for promise;
if m’or defaults, trustee can sell the property to pay the benefiaciry
if note is paid, title is returned to the m’or

Question 20

what is a purchase money mortgage?

Answer 20

to purchase or improve property

Question 21

what happens with m’or transfers property?

Answer 21

default - t’ee takes subject to
assn - t’ee becomes personally liable for mortgage
subject - t’ee is not personally liable but property can be FC; if deficiency remains, orginal m’or liable