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39 Cards in this Set

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WHEN IS A BROKER'S COMMISSION TYPICALLY DUE?
AT CLOSING
IN TX, IS A BROKER LIABLE FOR LATENT DEFECTS WHEN THE BROKER DOES NOT HAVE ACTUAL NOTICE OF THEIR EXISTENCE?
NO
IS PREPARING DOCUMENTS LIKE CLOSING DOCS AND DEEDS AN AUTHORIZED PRACTICE OF LAW? WHAT DOES THIS MEAN?
YES--YOU WILL BE HELD LIABLE IF YOU FAIL TO MEET OF FALL BELOW THE STANDARDS OF AN ATTY OR SOMEONE WHO IS LICENSED TO PRACTICE LAW
EARNEST MONEY K/LAND SALE K
EXECUTORY K WHEREIN BUYER PUTS UP A SUM OF MONEY WHICH IS HELD BY AN ESCROW AGENT PENDING THE CLOSING--WHEN THE CLOSING TAKES PLACE, THE K MERGES WITH THE DEED SO THAT IT IS NO LONGER ENFORCEABLE AS A SEPARATE DOCUMENT
WHAT DOES THE BUYER PROMISE TO PURCHASE/SELLER PROMISE TO CONVEY IN AN EARNEST MONEY K?
MARKETABLE TITLE
EXECUTORY K FOR CONVEYANCE/K FOR DEED
K THAT IS ENTERED INTO BY BUYER AND SELLER IN WHICH SELLER SAYS THEY WILL DELIVER DEED TO BUYER AT SOME FUTURE POINT IN TIME; METHOD OF SELLER FINANCING--LEASE TO BUY
IS TX A LIEN THEORY OR TITLE THEORY STATE? WHAT DOES THIS MEAN?
LIEN THEORY; BANK HAS ONLY A SECURITY INTEREST
IN WHAT 3 CIRCUMSTANCES WILL AN ORAL AGMT TO SELL LAND BE ENFORCED IN EQUITY?
1. IF THERE IS PYMT OF CONSIDERATION
2. IF BUYER HAS TAKEN POSSESSION OF THE PROPERTY
3. IF BUYER HAS MADE VALUABLE IMPROVEMENTS
WHAT IS THE REMEDY IF A BUYER DEFAULTS BY FAILING TO MEET A CONDITION PRECEDENT SUCH AS OBTAINING FINANCING ON AN EARNEST MONEY K?
SELLER GETS TO KEEP EARNEST MONEY
MARKETABLE TITLE
TITLE THAT GIVES NO INDICATION OF SUPERIOR RIGHTS--TEHRE IS NOTHING TO SUGGEST THAT THERE IS ANY ADVERSE CLAIM OR REASON TO FEAR LITIGATION; RPP APPRISED OF THE FACTS AND THEIR LEGAL IMPLICATIONS WOULD BE WILLING TO TAKE TITLE
WHAT IS THE TX STANDARD WITH RE: TO A BUYER'S DUTY TO OBTAIN FINANCING?
BUYER MUST DILIGENTLY PURSUE THE LOAN--THIS IS IMPLIED IF NOT EXPRESS, EXCEPT IF THERE IS AN EXPRESS PROVISION AGAINST IT
IN WHAT 3 WAYS CAN A BUYER BE ASSURED THAT THE SELLER HAS GOOD TITLE?
1. EXAMINE TITLE THROUGH ABSTRACTS
2. TITLE INSURANCE
HOW IS A TITLE EXAMINATION DONE?
SELLER DELIVERS TO BUYER, BUYER TAKES TO HIS ATTY FOR AN EXAMINATION
ABSTRACT
COMPILATION OF ALL OF THE RECORDED INSTRUMENTS AFFECTING A PIECE OF PROPERTY IN A COUNTRY (FROM SOVEREIGN TO TODAY)
WHAT IS TITLE INSURANCE?
AN INSURANCE POLICY THAT GUARANTEES THAT THE SELLER'S TITLE IS GOOD SUBJECT TO MANY RESTRICTIONS--SELLER OR BUYER'S MORTGAGE CO FURNISHES BUYER WITH INSURANCE UP TO LENDED AMT
IF THE SELLER MISREPRESENTS THE TRUE BOUNDARY OF THE LAND, WHETHER INNOCENTLY OR INTENTIONALLY, CAN THE BUYER RESCIND? WHY OR WHY NOT?
YES--THE PURCHASER IS NOT REQD TO ACCEPT TITLE WHICH MIGHT REASONABLY BE EXPECTED TO BRING LITIGATION
WHERE DAMAGES ARE MEASURABLE AND THEREFORE THE REMEDY AT LAW IS ADEQUATE, IS SPECIFIC PERFORMANCE USUSALLY AWARDED?
NO
IN TX, IS SPECIFIC PERFORMANCE AVAILABLE TO SELLER AND BUYER?
YES; SELLER CAN USUALLY CHOOSE BETWEEN SP AND EM (USUALLY TAKE THE EM AND RUN--SELL TO SOMEONE ELSE)
WHAT IS THE GENERAL RULE FOR DAMAGES WHEN THE SELLER DEFAULTS
LOSS OF BARGAIN DAMAGES/AKA BENEFIT OF THE BARGAIN
LOSS OF BARGAIN DAMAGES/AKA BENEFIT OF THE BARGAIN
DIFFERENCE BETWEEN THE K PRICE AND THE CURRENT MARKET PRICE
WHAT'S THE EXCEPTION TO THE AWARDING OF LOSS OF BARGAIN DAMAGES
FLEREAU DOCTRINE: IF THE SELLER IS NOT ABLE TO DELIVER TITLE BBY NO FAULT OF THEIR OWN, DAMAGES LIMITED TO PURCHASE PRICE PLUS SPECIAL DAMAGES
DOES TX FOLLOW THE ENGLISH OR AMERICAN (MA) RULE RE: RISK OF LOSS AND INSURANCE?
BUYER MAINTAINS RISK OF LOSS, BUT IF THE SELLER RECEIVES ANY INSURANCE, THE SELLER HOLD IN TRUST AND IS REQ'D TO CREDIT THE PROCEEDS TO THE PURCHASE PRICE
DOCTRINE OF MERGER
ALL OF THE PROVISIONS IN THE K OF SALE BECOME MERGED INTO THE DEED WHEN DELIVERED AND ARE NO LONGER ENFORCEABLE
TX RESIDENTIAL CONSTRUCTION COMMISSION ACT
REPLACED IMPLIED WARRANTY IN TX
WHAT ARE THE 6 DUTIES OF THE TX RESIDENTIAL CONSTRUCTION COMMISSION ACT
1. ADOPT PROCEDURES FOR REGISTRATION OF BUILDERS AND HOMES
2. ADOPT LIMITED STATUTORY WARRANTY AND PERFORMANCE STANDARDS
3. OVERSEE STATE INSPECTION
4. PROVIDE FOR CERTIFICATION
5. MAINTAIN REGISTRY
6. OVERSEE CERTAIN TASK FORCES
WHAT IS THE COMMON LAW PRIORITY
FIRST IN TIME, FIRST IN RIGHT
GENERAL WARRANTY DEED
CODIFIED AT 5.022; d. Not only warrants title (promises title is good), it also makes the promise to buyer and subsequent owners that title is good all the way back to the sovereign
4 IMPLIED PROMISES IN THE GENERAL WARRANTY DEED
1. covenant of seisen
2. covenant against encumbrances
3. covenant of quiet enjoyment
4. covenant of warranty
covenant of seisen
seller promises buyer that they own the interest that they are purporting to convey
covenant against encumbrances
guarantee/promise that the seller makes that there are no interest in third parties other than those that are accepted from the conveyance (as of time of conveyance, property is free of liens, etc. )
covenant of quiet enjoyment
seller promises grantee will enjoy possession in peace and without being disturbed by some hostile claim (cannot be successfully evicted by a third party)
covenant of warranty
similar to covenant of quiet enjoyment; seller assures grantee will not be ousted of possession by someone with greater title
what words imply the covenant of seisen and the covenant against encumbrances?
the words “grant or convey” in a deed
what words imply the covenant of quiet enjoyment and the covenant of warranty?
the language in the deed where grantor promises to “warrant and forever defend the said premises unto grantee and successors of the grantee against any other person”
Special Warranty Deed
Conveys title to grantee and restricts extent of covenants; Limits to grantor—restricts extent of deed covenants by only warranting by implication those events that affect BA during the time I owned it)
WHAT WORDS INDICATE A SPECIAL WARRANTY DEED?
Includes phrase: “by, through, and under grantor but not otherwise”
DOES A QUITCLAIM DEED PURPORT TO CONVEY TITLED OR WARRANTIES?
NO--ITS A FORM OF RELEASE AND WILL RELEASE WHATEVER INTEREST THE GRANTOR HAS, NO MATTER WHAT IT IS
WHEN IS A QC DEED NORMALLY OBTAINED?
WHEN THERE IS A REMOTE POSSIBLITY THAT SOMEONE MAY BE ABLE TO RAISE AN ISSUE RE: TITLE
IN TX, DOES AN IRREVOCABLE LICENSE COUNT AS AN ENCUMBRANCE?
YES