Conveyance of Real Estate Flashcards
(20 cards)
What are the two steps to conveying real estate?
- the land contract, and
2. the closing (deed becomes the operative doc)
What are the requirements of a standard land contract?
- in writing
- signed by the defendant
- must describe Blackacre
- must state some consideration
What happens when the amount of land described in the contract is more than the actual size of the parcel?
The buyer can get specific performance with a pro-rata reduction in the price. It does not defeat the contract.
What is the exception to the statute of frauds for a land conveyance?
If two of the following three are met:
- buyer paid all or part of the price
- buyer is in possession of the land
- buyer makes substantial improvements
Who bears the risk of loss between contract and closing?
Apply the doctrine of equitable conversion:
The buyer is considered owner the moment the contract is executed, so BUYER bears the ROL unless the contract says otherwise.
What are the two implied promises in every land contract?
Seller promises to provide MARKETABLE TITLE.
Seller promises not to make any false factual statements or omissions - seller will be liable for material lies and omissions.
What is the standard for marketable title?
Title is free from reasonable doubt (i.e. won’t be subject to lawsuit).
What three circumstances will render title unmarketable?
Adverse possession, even if part of the title.
Encumbrances: must be unencumbered fee simple.
Zoning violations
Will a general disclaimer: “as is” “with all faults” relieve seller from liability for fraud or failure to disclose material information?
No - seller is always liable for fraud or failure to disclose material information.
Does a land contract contain implied warranties of fitness and habitability?
No, but if the land has a building on it and builder is also the seller - there is an implied warranty of fitness and workmanlike construction.
When does title pass from seller to buyer?
When the deed is lawfully executed and delivered.
What are the requirements for a lawfully executed deed?
Deed is in writing and signed by the grantor and includes an unambiguous description of the land.
- passing of title does not require consideration, so no need to include consideration on the deed if it is given.
Must the deed be physically delivered to constitute valid delivery?
No - it can be, but the “present intent” to deliver is enough even if not accompanied by physical delivery. Look for the grantor’s intent to transfer.
Can be by escrow with instructions to deliver or by putting in a drawer or security vault.
Does a recipient have to accept a deed after it has been delivered?
No - a recipient can defeat delivery by expressly rejecting it.
Will evidence of an oral condition on the deed be enforceable?
No - only what is on the deed’s face will be enforceable. The oral term will drop out.
What are the three types of deeds?
- Quitclaim
- Warranty
- Statutory special warranty deed
What is a quitclaim deed?
It contains no covenants - grantor not even promising that he has title to convey. After closing, grantor will have no liability.
Only promise: Marketable title at closing
What is the warranty deed?
The grantor warrants against all defects in title, including those due to grantor’s predecessors.
(6 covenants)
What are the six covenants granted in a warranty deed?
- seisin: grantor owns the estate
- right to convey: grantor has the power to transfer
- against encumbrances: no servitudes/mortgages
- quiet enjoyment: grantee won’t be disturbed by 3P’s lawful claim of title
- warranty: grantor will defend grantee against lawful claims of title by 3Ps
- further assurances: grantor will do what is needed to perfect title.
What is a statutory special warranty deed?
Called “Bargain and Sale Deed” in NY
Two promises:
- grantor promises she has not already conveyed the property to anyone else, and
- estate is free from encumbrances made by the grantor
