Property II Outline
I.            Transfer of Land
a.        Land Transaction
                                                             i.     Contract of Sale
1.     Statute of Frauds
a.      To be enforceable, a K to convey real property must be in writing and signed by the party against whom enforcement is sought
b.     Exceptions occur when part performance or equitable estoppels applies
c.      POLICY: Avoid confusion, evidentiary/reliance purposes, assure parties understand K.
2.     Marketable Title – implied duty to deliver to buyer
a.      If not express or denied, it is implied in the sales contract
b.     Reasonably free of doubt that there are any rival claimants to title
c.      Not marketable if it exposes the party holding title to the hazard of lititgation
d.     Encumberances that make title unmarketable – restrictive covenants, easements, mortgages
                                                                                                                                     i.     Not ENCUMB – zoning ord, latent violation of stat, or others regs.
3.     Duty to Disclose Defects
a.      Sellers are obligated by law to disclose known defects
b.     Common law: duty to refrain from intentional misrepresentation of a known defect, unless
                                                                                                                                     i.     Seller has a fiduciary duty to the buyer or,
                                                                                                                                   ii.     Has created hidden conditions that materially impair PV
4.     Implied Warranty of Quality
a.      Runs to both initial buyer and also to subsequent purchasers for a reasonable period of time – long enough for latent defects to appear
5.     Remedies for Breach of K
a.      Specific performance
b.     Rescission
c.      Damages
                                                           ii.     The Deed
1.     Warranties of Title
a.      General Warranty Deed
                                                                                                                                     i.     Contains six covenants of title
1.     Covenant of seisin—the grantor promises that he owns what he is selling
2.     Covenant of right to convey—the grantor promises that he has the authority to convey the property
3.     Covenant against encumbrances—the grantor promises that there are no liens or encumbrances upon title other than those excepted in the deed
4.     Covenant of general warranty—the grantor promises that he will defend against lawful claims of superior title in the property.
5.     Covenant of quiet enjoyment—the grantor promises the grantee will not be disturbed in the possession or enjoyment by someone with better title.
6.     Covenant of further assurances—the grantor promises to do whatever is reasonably necessary to perfect the conveyed title.
b.     Special Warranty of Deed
                                                                                                                                     i.     Deed contains same six covenants but grantor makes these promises only with respect to defects of title that arose during the time the grantor held title
c.      Quitclaim Deed
                                                                                                                                     i.     Contains no warranties of title; simply conveys whatever the grantor owns
d.     Breach of Covenants of Title
                                                                                                                                     i.     Present Covenants—(seisin, right to convey, and encumbrances) benefit is generally assignable. SOL runs from when deed is delivered.
                                                                                                                                   ii.     Future Covenants—(General warranty, quiet enjoyment, and further assurances) breached only when grantee is actually or constructively evicted.
2.     Delivery
a.      A deed must be delivered in order to be effective.
                                                                                                                                     i.     Delivery—actions demonstrating intent to transfer immediately
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                                                                                                                i.     Possession of the property by someone else
                                                                                                                                   ii.     Record reference to unrecorded instrument
                                                                                                                                 iii.     Deeds of common grantor
                                                                                                                                 iv.     The character of the neighborhood (possibility of implied reciprocal covenant)
6.     Marketable Title Acts
a.      Statutes determine how far back in the record one must look
                                                                                                                                     i.     Even good chain of titles that extend farther back will not be enforced.
                                                                                                                                   ii.     Dead hand control v. Restraint Alienability similarity
                                                         iii.     Registration of Title
1.     Title registration is a substitute for recording – Torrens System
a.      Certificate of title is the title, not just evidence of the title, not used much
                                                         iv.     Title Insurance
1.     Insurance against the existence of title defects in the public record
a.      Against interests that are in the record but can’t be found in a search
2.     Doesn’t insure against; AP, unrecorded instruments; condition of the property;
