Exclusive right agreement from landowner and then

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
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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
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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