Real Property 2 Quiz 3

Deeds have to be in writing per Contract Law (SOF is 1yr)

• True

• False

John was given permission to live in the house and wants to live in the house until he dies (life estate) but the estate is trying to sell the house. He also says the estate can buy his life estate out. Can John do this?

• No

• Yes

Answer explanation

John is trying to be slick! This does not work b/c He loses and gets kicked out

In re O’Neil’s Will page 981 (THIS IS A CLASSIC CASE OF SOMEBODY TRYING TO BE SLICK)

Someone files a partition suit to sell the property b/c the family is not getting along. Everybody has an interest in this property so they would need to know the percentage of ownership in the property (to determine how the money gets split during a partition). 

• True

• False

In real estate contracts, the _______ refers to the transfer of ownership of a property and any accompanying restrictions. Because the clause begins with the phrase, "To have and to hold," the habendum clause is sometimes called the "to have and to hold clause."

• habendum clause

• granting clause

• constructing clause

• resulting clause

The clause in the deed that lists the grantor and the grantee and states that the property is being transferred between the parties.

• habendum clause

• granting clause

• constructive clause

• resulting clause

What is true about a granting clause? Choose all that apply.

• • At CL if there is no granting clause, you are out of luck

• • At CL you have to have a granting clause, names of the grantor and grantee, consideration, description of the land, habendum clause

• • The Modern Trend is you just have to pick out the parties OR the land if one is not there

 in AL the habendum clause cannot take the place of the granting clause

• True

• False

What is true about oral contracts?

• no writing gets you to the SOF in Real Property EVERYTIME!

• Oral contracts in property deals always create major problems; its an uphill fight every time

• if the other side did not want to sign the contract it is going to be hard to enforce; you will have to prove some type of estoppel or detrimental reliance.

What factors do Courts look at when dealing with Oral Contracts

• 1. The SOF does not render the oral contract void. It is valid for all purposes except that of a suit

• Since the contract is one which cannot be enforced, no action for damages will lie for its breach

• The SOF was enacted to prevent fraud and injustice, not to foster or encourage it, and courts will, so far as possible, refuse to allow it to e used as a shield to protect fraud and as a means to enable one to take advantage of his own wrong

• 1. Where it is sought to enforce an oral contract for the sale of an interest in real estate on the grounds that it has been performed by the party seeking to enforce it, it must appear that a failure to enforce would amount to a fraud against the party

What factors does the Court look at concerning oral contracts

• 1. Absent compelling equitable considerations an oral contract within the SOF will not be specifically enforced

• 1. Part performance of an oral contract will not take the case out of the statute where the performing party can be compensated in money (Important!)

• 1. Payment of the purchase price alone is not sufficient part performance to take a case out of the SOF. Since the money can be recovered back by action, no fraud will be accomplished if the oral contract is not enforced.

• 1. Delivery of possession of the land alone w/o the making of improvements is not sufficient to take a case out of the application of the SOF.