Fichas
Real Property- Conveyancing
Fichas del conjunto (14)
- 1Land Sale Contract Requirements1. Memorialized in writing
2. Contains signature of party to be charged
3. Essential terms (price, party, description of land) - 2Doctrine of Equitable ConversionOnce 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 - 3Risk of LossIf property is destroyed (w/o fault of either party) before closing --> Majority Rule= ROL is on the buyer
- 4Marketable TitleEvery 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.
- 5Defects in Record Chain of Title1. 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 - 6Remedy if Title Not MarketableBuyer 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 - 7Exception to Buyer's Remedy if Title was MarketableIf 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
- 8Time of Essence in a K requiredTime 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 - 9Party'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) - 10Remedies for Breach Of Sale1. 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 - 11Seller'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 - 12Liability 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 - 13Liability 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 - 14Statutory 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.