9503967
Description
Flashcards by Erika Lopez, updated more than 1 year ago
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Created by Erika Lopez
over 7 years ago
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| Question | Answer |
| Land Sale Contract Requirements | 1. Memorialized in writing 2. Contains signature of party to be charged 3. Essential terms (price, party, description of land) |
| Doctrine of Equitable Conversion | Once a K is signed- equity views 1. buyer as the owner of the REAL PROPERTY 2. seller's interest (right to proceeds of sale) is PERSONAL PROPERTY |
| Risk of Loss | If property is destroyed (w/o fault of either party) before closing --> Majority Rule= ROL is on the buyer |
| Marketable Title | Every K contains implied covenant that seller will provide marketable title=reasonable free from doubt. Must be free of Q's the present unreasonable risk of litigation. |
| Defects in Record Chain of Title | 1. Defect in chain of title ex: variation in land description, defectively executed deed, the previous grantor lacked capacity 2. Adverse Possession 3. Future Interests Held By Unborn or Unascertained Parties 4. Encumbrances: Generally mortgages, liens, recovered covenants, easements & significant encroachments render title marketable |
| Remedy if Title Not Marketable | Buyer must notify the seller that title is unmarketable & give him reasonable time to cure the defects. If seller fails to cure then buyer can (1) Rescind (2) Seek Damages (3) Specific Performance with Abatement (4) Quiet Title Suit |
| Exception to Buyer's Remedy if Title was Marketable | If closing occurs, the K & deed merge & seller's liability on the implied contractual covenant ends. BUT quit-claim deed ≠ affect implied covenant to provide marketable title |
| Time of Essence in a K required | Time is of the essence in the K if (i) the circumstances indicate it (ii) circumstances indicate that was the parties' intent (iii) one party gives the other party notice that time is of the essence |
| Party's Tender is Excused When... | (i) if the other party has REPUDIATED the K OR (ii) It is IMPOSSiBLE (unmarketable title that party can't perform) |
| Remedies for Breach Of Sale | 1. Nonbreaching party is entitled to damages (diff btw K price & mkt value on date of the breach + incidental costs) OR 2. Specific performance (b/c land=unique) --> can seek an abatement |
| Seller's Liabilities for Defective Property | (i) Warranty of Fitness or Quality- New Construction only (ii) Negligence of Builder (iii) Sale of Existing Land & Buildings- Liability for Defects (iv) Misrepresentation (Fraud) (v) Active Concealment (vi) Failure to Disclose |
| Liability for New Construction (Texas Specific) | 1. Warranty of good workmanship= disclaimer is only valid if builder EXPRESSLy warrants the quality of construction 2. No disclaimer or waiver available for warranty of habitability |
| Liability of Seller of Existing Land & Buildings (Resale) | 1. No implied warranties regarding the physical condition 2. Doesn't prohibit liability based on other theories 2. BUT seller must (i) disclose serious defects that the seller knows & not obvious to the buyer (ii) can't actively conceal defects (iii) cannot make a false statement regarding a condition on the property |
| Statutory Disclosure Form (Texas Specific) | §5.008 of the Texas Property Code provides a statutory seller's disclosure form that must be completed HONESTLY by seller & provided to the buyer before entering into sales K fo residential. |
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