land sale contracts and conveyances

Question 1

land sale contract requirements

Answer 1

subject to SoF and must be:
1) in writing
2) signed by parties to be bound
3) articulate essential terms

Question 2

land sale contract SoF exception

Answer 2

partial performance

land sale K outside of the SoF is enforceable against seller if buyer does ANY two of the following:
1) pays all/part of purchase price
2) takes possession
3) makes substantial improvements

Question 3

equitable conversion

Answer 3

during escrow (after land sale K but before deed delivery), buyer owns the real property but seller owns personal property (i.e., right to proceeds of the sale)

Question 4

land sale contract risk of loss

Answer 4

if property is destroyed before closing through no fault of the parties, buyer bears the risk of loss in most jdxs

Question 5

implied promises in land sale contracts

Answer 5

1) promise to provide marketable title
2) promise to disclose and make no material false statements

Question 6

defects rendering title unmarketable

Answer 6

1) acquired by adverse possession
2) encumbered by interests; but seller has the right to satisfy outstanding mortgages/liens with sale proceeds
3) zoning ordinance violations existing at sale

can be waived by buyer but not seller

Question 7

remedy for breach of land sale contract

Answer 7

buyer must notify seller before closing and give reasonable time for seller to cure defects; if seller fails to cure, buyer can rescind, file for damages, demand specific performance, or file suit to quiet title

Question 8

requirements for an effective deed

Answer 8

1) lawfully executed
2) delivered - requires intent to be bound by the conveyance

Question 9

3 types of deeds

Answer 9

1) general warranty
2) special warranty
3) quitclaim

Question 10

general warranty deeds covenants for title

Answer 10

present:
1) seisin
2) right to convey
3) against encumbrances

future:
4) quiet enjoyment
5) warranty
6) further assurances

Question 11

seisin

Answer 11

grantor covenants that he is the rightful owner (i.e., has title, possession, etc.) and that deed covers described land

Question 12

bona fide purchaser

Answer 12

one who purchases property for value without notice of a prior conveyance or encumbrance

includes mortgagees for value; does not include donees/devisees

Question 13

notice statutes

Answer 13

subsequent BFP always prevails over a prior grantee who fails to record whether or not she recorded first

Question 14

race-notice statutes

Answer 14

first subsequent BFP to record prevails

Question 15

race statutes

Answer 15

first grantee to record prevails, regardless of whether buyer is a BFP

Question 16

Shelter Rule

Answer 16

one who takes from a BFP will prevail against any interest the transferor-BFP would have prevailed against, even if the transferee had actual notice of a prior conveyance

Question 17

wild deeds

Answer 17

a recorded deed unconnected to the chain of title in a grantor-grantee index system; record notice cannot be derived from a wild deed

Question 18

estoppel by deed

Answer 18

a grantor who conveys title to land he does not then own is estopped from subsequently acquiring the same land