Land Transactions Overview
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Questions and Answers

What is the covenant of general warranty primarily concerned with?

  • The grantor will execute any needed documents.
  • The grantor will defend against lawful claims. (correct)
  • The grantor will not breach present covenants.
  • The grantee will not be disturbed by lawful claims.

    • Which future covenant ensures that the grantee can enjoy the property without disturbance?

  • Covenant of general warranty
  • Covenant of quiet enjoyment (correct)
  • Covenant of title assurance
  • Covenant of further assurances

    • Under which mortgage theory does the lender take title to the land?

  • Lien theory
  • Title theory (correct)
  • Agent theory
  • Equity theory

    • What happens under lien theory when a borrower defaults on a mortgage?

    <p>The mortgagee cannot take possession until foreclosure.</p> Signup and view all the answers

    What is an installment contract for land primarily characterized by?

    <p>The buyer receiving title after all payments are made.</p> Signup and view all the answers

    What does foreclosure allow the lender to do?

    <p>Force the sale of collateral property.</p> Signup and view all the answers

    What is a characteristic of constructive delivery of a deed?

    <p>It involves the intent for the deed to be effective.</p> Signup and view all the answers

    Which of the following is NOT a future covenant associated with general warranty deeds?

    <p>Covenant of maintenance</p> Signup and view all the answers

    What is a common requirement for a real property transaction to comply with the statute of frauds?

    <p>It must be in writing and signed by the party to be bound</p> Signup and view all the answers

    What is part performance in relation to the statute of frauds?

    <p>Satisfactory evidence of the contract with detrimental reliance by the injured party</p> Signup and view all the answers

    What constitutes marketable title in a real estate transaction?

    <p>It entails a title not subject to doubts that create apprehension of validity</p> Signup and view all the answers

    Which of the following is true about encumbrances and marketable title?

    <p>A zoning ordinance does not affect marketable title</p> Signup and view all the answers

    In the context of equitable conversion, who bears the risk of loss during the executory period?

    <p>The buyer is regarded as having equitable title and bears the risk of loss</p> Signup and view all the answers

    What obligation does a seller have under modern law regarding defects in property?

    <p>To disclose any latent defects or face liability for fraud</p> Signup and view all the answers

    Under common law, when does a seller have liability regarding the disclosure of defects?

    <p>If there is an affirmative misrepresentation by the seller</p> Signup and view all the answers

    What can an injured party pursue if an oral contract is violated due to reliance on the seller's agreement?

    <p>Equitable estoppel</p> Signup and view all the answers

    Under what condition is spot zoning deemed invalid?

    <p>When it only benefits a single landowner.</p> Signup and view all the answers

    What is a reason why aesthetic regulations are considered valid today?

    <p>They have a substantial relation to public safety and welfare.</p> Signup and view all the answers

    Which statement about household composition controls is accurate?

    <p>They generally limit occupancy by unrelated persons in single-family zones.</p> Signup and view all the answers

    What is a characteristic of exclusionary zoning?

    <p>It limits access to certain housing types for public safety.</p> Signup and view all the answers

    What does the Takings Clause mandate regarding eminent domain?

    <p>Private property cannot be taken without just compensation.</p> Signup and view all the answers

    Which definition best describes 'public use' under the Takings Clause?

    <p>Property that serves a public purpose or benefit.</p> Signup and view all the answers

    Which of the following is a reason that an aesthetic regulation could be deemed invalid?

    <p>It is arbitrary and capricious in nature.</p> Signup and view all the answers

    What is true about the rational basis for public use in zoning?

    <p>It should be related to the public's safety, health, and welfare.</p> Signup and view all the answers

    What must states do to enable local governments to exercise zoning power?

    <p>Delegate police power to local governments through statute</p> Signup and view all the answers

    Which of the following statements about nonconforming use is true?

    <p>Destruction eliminates nonconforming use.</p> Signup and view all the answers

    What must be demonstrated to obtain a variance?

    <p>Proof of undue hardship</p> Signup and view all the answers

    What distinguishes a special exception from a variance?

    <p>Special exceptions must be explicitly included in the zoning ordinance.</p> Signup and view all the answers

    What characterizes spot zoning?

    <p>It singles out one parcel of land for special treatment.</p> Signup and view all the answers

    Under what circumstances can a nonconforming use be continued?

    <p>If the property has not been abandoned</p> Signup and view all the answers

    Which of the following is NOT a requirement for possession in adverse possession?

    <p>Possession is temporary</p> Signup and view all the answers

    What is the primary requirement for the validity of a zoning amendment?

    <p>It must be within the police powers of the government</p> Signup and view all the answers

    What type of zoning change does a variance specifically address?

    <p>Adjustments due to undue hardship</p> Signup and view all the answers

    What is the purpose of 'tacking' in adverse possession?

    <p>To combine the possession time of successive owners</p> Signup and view all the answers

    What happens to the statute of limitations when the property owner suffers from a disability?

    <p>It is paused until the disability is removed.</p> Signup and view all the answers

    Which type of servitude specifically grants the right to use the land of another?

    <p>Easement</p> Signup and view all the answers

    Which of the following correctly defines nuisance in the context of land use?

    <p>Substantial interference caused by a person's use of their property</p> Signup and view all the answers

    What does the remedy of an injunction do in the context of nuisance?

    <p>It orders the cessation of the nuisance.</p> Signup and view all the answers

    Which of the following conditions must be met for a case of adverse possession of chattels to arise?

    <p>The injured party must discover the cause of action or should have discovered it by reasonable diligence.</p> Signup and view all the answers

    Which of the following is NOT a type of disability that can pause the statute of limitations for adverse possession?

    <p>Relocation</p> Signup and view all the answers

    What is required for a defect to be disclosed by the seller?

    <p>The defect must be material.</p> Signup and view all the answers

    Under which standard is the importance of a defect determined by its effect on the value of the property?

    <p>Subjective standard</p> Signup and view all the answers

    What happens when a buyer accepts a deed under the merger doctrine?

    <p>All contractual obligations are deemed satisfied.</p> Signup and view all the answers

    What are the general remedies available for a breach of a sales contract?

    <p>Damages, rescission, specific performance</p> Signup and view all the answers

    Which type of deed warrants title against defects arising before or after the grantor took title?

    <p>General warranty deed</p> Signup and view all the answers

    Which covenant in a general warranty deed guarantees the grantor owns the property?

    <p>Covenant of seisen</p> Signup and view all the answers

    Which type of damages compensates for the loss due to breach of contract?

    <p>Compensatory damages</p> Signup and view all the answers

    What type of deed does not provide any warranties and is offered 'as is'?

    <p>Quitclaim deed</p> Signup and view all the answers

    Study Notes

    Land Transactions

    • Statute of Frauds: Real property transactions require written contracts, signed by all parties, a description of the property, and a price.
    • Part Performance: If the statute of frauds is violated, an injured party can sue for part performance with satisfactory evidence of the contract and detrimental reliance.
    • Equitable Estoppel: An injured party can sue for equitable estoppel if the seller's actions caused the buyer to reasonably rely on the agreement, causing detriment.
    • Marketable Title: A condition of a real estate contract where the title is free from reasonable doubt regarding its validity. This assures the buyer that the seller has the right to sell and transfers the promised rights. If not, the buyer can rescind the contract.
    • Encumbrances: Any right or interest in land that diminishes its value. Encumbrances can include restrictive covenants or zoning violations. They indicate an unmarketable title, unless waived.

    Duty to Disclose Defects

    • Common Law: Under common law, the seller had no duty to disclose known defects unless there was affirmative misrepresentation.
    • Modern Rule: Sellers now have a duty to disclose latent defects not readily observable by buyers and are material (affecting value or desirability). Failure to disclose such defects constitutes fraud.

    Merger Doctrine

    • Definition: Upon a buyer accepting a deed, the contract merges into the deed; therefore, the buyer can no longer sue on the contract. This typically does not apply to collateral promises, fraud or implied warranties of quality.

    Remedies for Breach of Sales Contract

    • Damages: Measured by the loss of bargain rule (contract price minus market value at time of breach). Special damages are allowed if they were a natural and foreseeable consequence of the breach.
    • Rescission: Allows to cancel the contract, sometimes with the return of a deposit.
    • Specific Performance: Available for real estate contracts, where damages are inadequate; typically when unique land is involved.

    Deeds

    • Warranties: Different types of deeds offer varying protection. A general warranty deed warrants against all defects, a special warranty deed only against the grantor's own actions, and quitclaim deeds offer no warranties.
    • Covenants: Present covenants (seisin, right to convey, against encumbrances) are breached at the time of delivery, while future covenants (general warranty, quiet enjoyment, further assurance) can only be breached in the future.

    Delivery

    • Definition: A deed must be delivered with intent to be presently effective. Constructive delivery may also suffice.

    Financing real estate transactions

    • Mortgages: Legal interest created by an instrument, providing security for payment of the loan. There are differing theories on how mortgages work, such as title theory and lien theory.
    • Recording System: Allows individuals to record titles and interests. The key is to find out who owns the property and whether there are prior interests.

    Title Assurance

    • Recording Acts: Protect bona fide purchasers by guaranteeing they are protected from prior claims or interests. Race, notice, and race-notice are different scenarios that determine which claim takes precedence.
    • Chain of Title: A complete history of all recorded documents associated with a property. If a deed is in a chain of title, then a subsequent purchaser has notice.

    Inquiry Notice

    • Definition: Purchasers are required to take reasonable steps to inquire about possible interests or defects in property.

    Adverse Possession

    • Elements: Actual, exclusive, open and notorious, adverse (hostile), and continuous possession for a statutory period.
    • Tacking: Allows adverse possessor to add their time of possession to previous possessors provided they had privity.
    • Disability: Periods where the rightful owner has a disability can extend the time limit (e.g., minors or those with mental impairment)

    Judicial Land Use - Nuisance

    • Nuisance: Interference with another's use and enjoyment of their property either by intentional, but unreasonable conduct, or due to negligent actions.

    Private Land Use Servitudes

    • Easement (Definition and Types): A right to use someone else's land for a particular purpose, either affirmative (use of land) or negative (prohibiting certain activities). Can be created by grant, reservation, prior use, necessity, or prescription.
    • Easement Appurtenant: Benefits one piece of land (dominant estate), and burdens another (servient estate).
    • Easement in Gross: Benefits a specific person or entity, rather than a piece of land.
    • License: Permission to use land, generally revocable.

    Covenant

    • Real Covenants: Promises that run with the land at law and are enforceable against successors. Must have intent, notice, privity (horizontal and vertical), and touch and concern.
    • Equitable Servitudes: Promises that equity will enforce against successors of the burdened land. They don't necessarily require privity to be enforceable.

    Termination

    • Easements: Can be terminated by release, expiration, merger, estoppel, condemnation, prescription, or abandonment.
    • Covenants: Enforcement can be affected by changed conditions, if these render the covenant unenforceable.

    Zoning

    • Nonconforming Use: A lawful use existing at the time of zoning that is allowed to continue, but can't be expanded. There is a requirement to comply with the ordinance.
    • Variance: An exception to zoning laws granted for unique or unusual hardship that allows for a permissible deviation with restrictions.
    • Special Exception: A permitted use of property under previously established criteria, as an exception to zoning ordinances
    • Zoning Amendment: A legislative change in zoning law affecting a change of zone status or specific property use
    • Spot Zoning: A zoning change that focuses on a particular parcel or small neighborhood to change or intensify the use.

    Takings

    • Eminent Domain: Government's power to take private property for public use, but must compensate owners fairly.
    • Just Compensation: Fair payment to the property owner if their property is taken by the government.
    • Regulatory Takings: Government regulations that limit property use and significantly reduce value so that they are considered to constitute a de facto taking.

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    Description

    This quiz covers essential concepts related to land transactions, including the Statute of Frauds, Part Performance, and Equitable Estoppel. Understand the conditions for Marketable Title and the implications of Encumbrances in real estate agreements. Test your knowledge of legal frameworks that govern property transactions.

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