Conveyance

Question 1

What is Adverse Possession?

Answer 1

When a person obtains title of a land taken possession of for a statutorily prescribed period.

Question 2

What are the elements to Adverse Possession?

Answer 2

Actual, exclusive, continuous (tacking permitted if non-hostile), open & notorious, hostile, running of the statute.

No AP is owner was disabled at the time the AP began!

Question 3

What is the land contract?

Answer 3

1) land contract, 2) period of time for inspection, financing, etc., and 3) the Closing

Question 4

Formalities of a Land Contract

Answer 4

Writing Required (statute of Frauds). Exception to writing include part performance.
Describe the land
Identify the parties
Specify price or other consideration.
Signed by party to be bound.

Question 5

Land Contract: Implied Promises of Seller

Answer 5

Marketable Title at the Closing, No False Statements of material fact, and no failure to disclose latent material defects

Question 6

What makes a title umarketable?

Answer 6

If any part of the land is subject to adverse possession, encumbrances, zoning violations.

Question 7

Land Contract: Implied Warranties of Fitness & Habitability

Answer 7

land K generally contains no implied warranties of fit or hab, seller not liable for condition of any building on prop. excep New Homes - implied warranty of fitness & workmanlike construction

Question 8

Land Contract: Equitable Conversion

Answer 8

purchaser of real property becomes the equitable owner of title to the property at the time K is signed and binds buyer to purchase the land at a later date.

Question 9

Land Contract: Equitable Conversion further defined

Answer 9

once the land K is signed the prop. interests of the buyer & seller have already switched

Question 10

Land Contract: Equitable Conversion

Question 11

The Closing

Answer 11

Deed becomes operative contract, deed transfer legal title to some interest in property from seller to buyer

Question 12

Requirements for the closing

Answer 12

Lawful execution of the deed -
Writing, identify the parties, describe the parties, and signed by grantor

Question 13

Closing: Delivery of deed

Answer 13

deed doesn’t effectivly transfer prop until it’s delivered by grantor.
Delivery requires words or conduct evidencing grantor intent of deed present operative effect.

Question 14

Closing: Delivery of deed, types of delivery

Answer 14

Actual delivery - physical or manual
By Escrow - deed to 3rd party (agent) w/ instructions to deliver deed to grantee …
Implied delivery - grantor has present intent (eords or actions)
Presumptions of delivery - grantor must relinquish absolute & unconditional control over prop.

Question 15

what happens to liens attached to real property passed by will?

Answer 15

modern rule: devisee of real prop takes the prop subject to any liens

Question 16

3 usual stages of land contract (real estate transaction)

Answer 16

land contract: purchase and sale agreement signed by parties
period of time: conduct inspections, financing, etc.,
closing: delivery of the deed in exchange for purchase price

Question 17

How can a buyer mitigate the risk of cost associated with any breach of the present and future warranties in a deed?

Answer 17

Title insurance - provides for the title ins. co. to indemnify any loss associated w/ a defect in title

Question 18

What constitutes effective delivery of the deed?

Answer 18

Actual (physical) delivery, delivery to a 3rd part escrow agent, or implied when present intent that the interest in real estate pass immediately

Question 19

What parties does the title recording system protect?

Answer 19

Bona Fide Purchasers (BFPs) and Mortgages

Question 20

What is equitable conversion, and how does it affect the interests of the parties?

Answer 20

buyer holds equitable title to the land during the period between signing the contract and transfer of the deed

Question 21

What happens in jurisdictions that recognize equitable conversion?

Answer 21

If fire dies after signing, buyers airs or beneficiaries It inherit the buyer’s interest in the contract as a real estate interest.
If the seller dies after signing the land contract, sellers heirs or beneficiaries inherent sellers interest in the contract as personal property.
If the property is destroyed during the executory. Virus responsible for the loss

Question 22

What is the difference between race, notice, and race - notice recording statutes?

Answer 22

Race = first to record prevails
Notice = protects any subsequent BFP or mortgagee w/o notice whether or not that subsequent BFP recorded
Race - note = protects a subsequent BFP or mortgagee w/o notice who records first.

Question 23

Listen to find the three types of notice

Answer 23

1. actual
2. inquiry
3. record notice

Question 24

what is a BFP?

Answer 24

Bona Fide Purchaser: a subsequent purchaser for valuable consideration

Question 25

What renders title unmarketable?

Answer 25

Encumbrances: mortgages, taxes, liens, assessments, adverse possession, servitudes or covenants restricting use, easements, substantial encroachments, defects in the record of title, zoning violations.

Question 26

What seller promises are implied in real estate contract?

Answer 26

deliver marketable title, not make any false statements of material fact, and (modern rule) disclose any material latent defect of which the seller is aware.

Question 27

What happens when a valid will purportsto dispose of property that is no longer part of the estate at the Testator's death?

Answer 27

When a piece of property specified in a will is no longer part of the estate, that devise is adeemed or extinguishable by ademption: the gift fails and the Devisee receives nothing

Question 28

what causes a deed to be void, and what is the result?

Answer 28

void deed: forged, not delivered, or created by fraud in factum. Void deed is set aside and has no legal effect.

Question 29

What are the three types of notice?

Answer 29

1. actual 2. inquiry 3. record

Question 30

What is a selling broker and what are that brokers duty?

Answer 30

buyers agent, fiduciary duty to the buyer and a duty to disclose.

Question 31

What causes a deed to be voidable and what is the result?

Answer 31

voidable deed: part lacked capacity, under duress or undue influence, breach of fid. duty, mistake, or due to fraud in the inducement

Question 32

What covenants are included in a special warranty need?

Answer 32

Contains less than the six general covenants, warrants only that grantor has not conveyed the same property to anyone else, and grant her has not created any encumbrances that remain on the property

Question 33

What is a lapse and what is the effect of an anti-laps statue?