i. Property Outline
II. THE LAND TRANSACTION
a.
Parties Enter into Land Sale Contract
→Letter of intent (commercial) or EMK
→K must be in writing
→Presumption that time is not of the essence, unless so stated.
→Implied warranty of marketability arises
Pre-Closing
→Title Exam. If defective, Buyer must notify Seller and allow time to cure.
→Survey
→Inspections
→Financing Commitment
→During this time, risk of loss is on Buyer.
Closing
→Title passes if valid.
→Valid execution requires writing signed by grantor containing an adequate description of land.
→Valid delivery requires intent by grantor to immediately part with control.
→payment
→possession delivered (keys, etc.)
→Land sale K and implied warranty of marketability merge into deed.
→Only basis for suit by Buyer after this is under an express covenant.
Recording
→Buyer records deed for protection from subsequent BFP’s.
→Usually done by title insurance company
Negotiations
New Occupancy or Management
Timeline of the Sale of Land
b. Terms
i. Mortgage – the security for the land and not the loan the devise by which the person conveys property right back to the bank.
ii. Deed – the instrument by which title is conveyed
iii. Conveyances of real estate we are looking at deeds
iv. Contingency – a condition upon performance, conditional upon satisfaction of the contingency
1. Appraisal, inspection
v. Closings – the occasion at which the Tx is completed
vi. Escrow – an individual with fiduciary responsibilities where the buyer and seller places their obligation to the deal.
vii. MLS – only licensed brokers are the only ones who may access.
viii. Inspection – An expert who comes out to view the property and assures the property is habitable.
III. STEPS TO BUYING AND SELLING LAND
a. Seller lists property with real estate agent
i. Traditional broker arrangements (Seller Brokers)
1. Broker pg 463
a. Hired by s
e broker they risk loosing their license and financial liability.
ii. Alternatives brokerage arrangements pg 467
1. The majority of states adhere to traditional views of broker duties to sellers but have led to alternative arrangements
a. Buyer brokers
i. Buyers hire to conduct their search for real estate.
ii. Buyer brokers are not in privity with listing brokers or the seller, therefore listing brokers are not compelled to share their commission with the buyer broker.
iii. Owe fiduciary duties to the buyer act in their best interest
b. Dual Agents
i. Brokers for the buyer and the seller
ii. They owe both a Fiduciary duty of loyalty and good faith, however he can not be completely loyal to both
iii. Many states permit dual agents on the condition that the agent reveals his dual agency to both early and they must approve.
c. Transaction Brokers
i. Typically escrow agents
d. Disclosure requirements
i. Some states require brokers to disclose to buyers in writing that they are the sellers agent and not the buyer’s
e. Note
i. Brokers and their clients must have privity of K and privity of fiduciary duties.
