Contracts

Question 1

Conveying title involves two separate documents:

Answer 1

1) Real Estate Contract
2) Deed

Question 2

Statute of Frauds:

Answer 2

1) Contracts MUST be in writing, or
2) Part Performance

Question 3

A contract can be removed from SOF by Part
Performance with 2 out of 3:

Answer 3

• Payment
• Possession
• Valuable Improvements

Question 4

Real Estate Contract Terms:

Answer 4

1) Price
2) Parties
3) Description
4) Conditions
5) Signed by party to be charged

Question 5

Equitable Conversion:

Answer 5

• Transfer of equitable title
• Risk of loss shifts to the buyer

Question 6

Legal Title:

Answer 6

• Seller does not need legal title on day of
  signing

Question 7

Marketable Title:

Answer 7

• Implied covenant to convey title free of
  encumbrances

Question 8

Time:

Answer 8

• Time is NOT of the essence, unless stated

Question 9

Merger:

Answer 9

• At closing, the CONTRACT MERGES into the
  DEED
• Can no longer sue under the contract

Question 10

Seller’s Duty to Disclose:

Answer 10

• Material defects that CANNOT be seen by
  the buyer

Examples:
Visible:
o Crack in the ceiling

Not Visible:
o Plumbing underneath the ground or inside the
walls