Transfers of Land

Question 1

Contract of Sale-Gen Rule

Answer 1

The land K must be in writing signed by the party against whom enforcement is sought. It must describe the land and state some consideration.

Question 2

Contract of sale-NC Stat

Answer 2

all leases exceeding 3 years is void unless put in writing and signed by party

Question 3

Exceptions to SOF

Answer 3

Part performance and Detrimental reliance

Question 4

Part performance elements

Answer 4

1. buyer has taken possession; AND 2. Either paid all or part of purchase part-or has made improvement to the property

Question 5

Detrimental reliance elements

Answer 5

1. Either: Seller admits the oral K or the K clearly established 2. buyer acts in reasonable reliance on the seller’s promise before seller repudiates. 3. circumstances are such that restitution would be inadequate

Question 6

Contract of sale-NC

Answer 6

Has to be in writing! Can only get Quantum meruit-Value of services

Question 7

Stages of transfer of land

Answer 7

1. The K of sale 2. Executory stage 3. Closing

Question 8

Marketable title-what is it?

Answer 8

Implied promise in the K. Parties are freee to negotiate it away.

Question 9

Marketable title-Definition

Answer 9

Title that is free from reasonable doubt and free from lawsuits and threats of litigation

Question 10

When is marketable title doubtful and not marketable?

Answer 10

If it exposes the holder of that title to the risk of litigation

Question 11

Marketable title-Gen Rule

Answer 11

Absent and express provision to the contrary in a K for the sale of land, the seller has an implied duty to provide the buyer with marketable title.

Question 12

Circumstances that render title unmarketable

Answer 12

Adverse possession, restrictive covenants, breach of zoning ordinance and encumbrances

Question 13

Restrictive covenant-definition

Answer 13

A private agreement that restricts how the property can be used

Question 14

Restrictive covenant-Majority view

Answer 14

Because a restrictive covenant limits the use a property owner may make of his property, the mere existence of a restrictive covenant is an encumbrance on the property that renders title unmarketable

Question 15

Restrictive covenant-even if included in K of sale

Answer 15

Even if K or sale is expressly subject to all restrictions of record, seller’s title is unmarketable if the restrictive covenants are breached

Question 16

Zoning ordinance-Maj view

Answer 16

Mere existence of a zoning ordinance does not render title unmarketable. Breach would render title unmarketable.

Question 17

Encumbrances-Def

Answer 17

claim or liability attached to property that may lessen its value

Question 18

Encumbrances includes….

Answer 18

easements, mortgage, judgment lien

Question 19

Recorded sewer or utility easement-Maj rule

Answer 19

Any type of easement, including sewer and utility easements, violate the implied condition of marketable title, rendering the K of sale unenforceable.

Question 20

Recorded sewer or utility easement-Min rule

Answer 20

Sewer and utility easements are still considered encumbrances, but will not render the seller’s title unmarketable if the buyer knew or should have known about the easement before entering the K of sale

Question 21

Landlocked and hazardous waste-Marketable?

Answer 21

Would not make land unmarketable

Question 22

Types of deeds

Answer 22

1. warranty deeds 2. quitclaim deed

Question 23

Quitclaim deed

Answer 23

don’t contain any covenants or promises regarding title, nor do they purport to transfer any particular interest in the land

Question 24

Express warranties

Answer 24

Covenants of seisin, right to convey, against encumbrances, warranty, and quiet enjoyment

Question 24

What are the present covenants

Answer 24

Seisin, right to convey, and against encumbrances

Question 25

What are the future covenants

Answer 25

general warranty, special warranty, and quiet enjoyment

Question 26

Difference in present and future covenants

Answer 26

Present covenants run with the land and do not extend to remote grantees. Future covenants that do run with land

Question 27

Covenant of seisin

Answer 27

warrants that the grantor has the estate that he purports to convey

Question 28

Covenant of right to convey

Answer 28

Grantor warrants that he had the right to convey

Question 29

Covenant against encumbrances

Answer 29

Grantor warrants that there are no encumbrances against the property at the time of the conveyance

Question 29

Covenant against encumbrances-Gen rule

Answer 29

The existence of an encumbrance constitutes a breach of the covenant against encumbrances

Question 30

Land use statute or regulation-breach of covenant against encumbrances?

Answer 30

No

Question 31

Violation of a building code-breach of covenant against encumbrances?

Answer 31

No (Maj view)

Question 32

When is a present covenant breached?

Answer 32

At the time the deed is delivered

Question 33

When can grantee sue for breach of present covenant?

Answer 33

Only if his own grantor made the covenant

Question 33

When does SOL begin to run for present covenant?

Answer 33

begins to run as soon as the breach occurs-when the deed is delivered.

Question 33

NC SOL for breach of covenant

Answer 33

Action must be brought within 10 years an action upon a sealed instrument of conveyance of an interest in real property

Question 33

Covenant of general warranty

Answer 33

Grantor promises to warrant and defend grantee’s title against the lawful claims and demands of all persons whomsoever

Question 34

Covenant of special warranty

Answer 34

Grantor limits his promise to defend grantee’s title against claims and demands of persons claiming an interest in the property

Question 35

Covenant of quiet enjoyment

Answer 35

Grantor warrants that the grantee will not be disturbed in his possession and enjoyment of the property by persons with superior title

Question 36

When is a future covenant breached?

Answer 36

When the grantee is evicted from the property actually or constructively; or buys out a paramount claim when it is asserted

Question 37

When can grantee sue for breach of future covenant?

Answer 37

Grantee may sue any grantor in his chain of title provided that the future covenant was included in the grantors deed transferring title, and the SOL has not run

Question 37

When does SOL begin to run for future covenant

Answer 37

Cause of action accrues and begins to run when the grantee is evicted (actual) or is forced to buy out a valid paramount claim (constructive).

Question 37

Express warranties

Answer 37

Covenants of seisin, right to convey, against encumbrances, warranty, and quiet enjoyment