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exclusive right agreement from landowner, and then places that listing in the local MLS The ContractoEarnest Money When making an offer to buy or when entering the contract itself, the buyer often makes a depositIf breached the buyer loses the deposit oMust almost always be in writing oElementsThe names of the seller and buyer and an indication of their interest to bebound57
A description of the property sufficient to identify it The PriceTitle ExaminationoAn 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 oInsurance is purchased from the title company to insure compensation for the buyer for any loss if title is ultimately defectiveSurvey oTo make sure that described boundaries are correct and no buildings lie on boundary line Financing oPermitting the buyer to pay the purchase price in installments, transfers title and secures mortgageContract for deedoBuyer pays in installments and title will not be transferred until full price is paidClosing oThe meeting where the transfer of ownership is attended by interested partiesEscrow AgentoUsually title insurance company that collects deed and payment and distributesthe itemsGeneral Warranty Deed oMost desirable deed from buyer’s view oImplied warranties that the title is goodoThe seller guarantees that he has a good title to the land conveyedoThe 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 deedThis breaches the warranty even if the buyer knows about it when receiving the deed unless deed states the encumbranceoThe guarantor guarantees that the grantee will not be evicted or disturbed by a person having a better title or lien Special Warranty DeedoThere is a warranty only that the title has not been diminished in any way by a personal act of grantor 58
If seller doesn’t disclose a previously executed mortgage then seller is liableImplied Warranty of Habitability oApplies to major defects that affect buyer’s use of property as a residence oDamages for repairs Quitclaim deedoThe grantor doesn’t really purport to convey any title at all to the granteeoActs as a release for any previous claims on propertyDeed of Bargain and SaleoPurports to convey title but doesn’t contain any warrantiesoConveys same type as quitclaim Requirements for a valid deed:oA deed does not require considerationoA sale contract must be supported by considerationoA promise to make a gift of land is generally not enforceable, but a delivery of a deed is validoMust be notarized to be validoRecital 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 tooThe deed must contain words of conveyance such as ‘grant, sell, or