exclusive right agreement from landowner and then places that listing in the

Exclusive right agreement from landowner and then

This preview shows page 57 - 60 out of 63 pages.

exclusive right agreement from landowner, and then places that listing in the local MLS The Contract o Earnest Money When making an offer to buy or when entering the contract itself, the buyer often makes a deposit If breached the buyer loses the deposit o Must almost always be in writing o Elements The names of the seller and buyer and an indication of their interest to be bound 57
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A description of the property sufficient to identify it The Price Title Examination o An examination of all officially recorded documents concerning the property “cerificate of title” = an attorney’s personal opinion to the validity of seller’s title Title Insurance o Insurance is purchased from the title company to insure compensation for the buyer for any loss if title is ultimately defective Survey o To make sure that described boundaries are correct and no buildings lie on boundary line Financing o Permitting the buyer to pay the purchase price in installments, transfers title and secures mortgage Contract for deed o Buyer pays in installments and title will not be transferred until full price is paid Closing o The meeting where the transfer of ownership is attended by interested parties Escrow Agent o Usually title insurance company that collects deed and payment and distributes the items General Warranty Deed o Most desirable deed from buyer’s view o Implied warranties that the title is good o The seller guarantees that he has a good title to the land conveyed o The Grantor guarantees that there are no encumbrances (any type of lien or easement held by third party) on the land except as stated in the deed This breaches the warranty even if the buyer knows about it when receiving the deed unless deed states the encumbrance o The guarantor guarantees that the grantee will not be evicted or disturbed by a person having a better title or lien Special Warranty Deed o There is a warranty only that the title has not been diminished in any way by a personal act of grantor 58
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If seller doesn’t disclose a previously executed mortgage then seller is liable Implied Warranty of Habitability o Applies to major defects that affect buyer’s use of property as a residence o Damages for repairs Quitclaim deed o The grantor doesn’t really purport to convey any title at all to the grantee o Acts as a release for any previous claims on property Deed of Bargain and Sale o Purports to convey title but doesn’t contain any warranties o Conveys same type as quitclaim Requirements for a valid deed: o A deed does not require consideration o A sale contract must be supported by consideration o A promise to make a gift of land is generally not enforceable, but a delivery of a deed is valid o Must be notarized to be valid o Recital of Consideration = a statement of what consideration is being by the grantee for a gift (usually $10) The deed must name a grantor and grantee. The grantor must have legal capacity. If the grantor is married it is desirable to have her name too The deed must contain words of conveyance such as ‘grant, sell, or
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