Real Property
Question # 1 – What were Birdwell’s options on July 5?
Doctrine of Equitable Conversion – once a contract is signed, equity regards the buyer as the owner of the property. The seller’s interest is looked at as personal property. The legal title of the property remains with the seller and is considered to in trust and the risk is on the seller. The right of possession follows the legal title; the seller is entitled to possession until closing. Risk of Loss – there is a split of authority on risk of loss when a contract is signed, equity is passed to buyer through escrow and the risk of loss is on buyer. If property is destroyed before closing, the majority rule places the risk on the buyer. If the property is damaged or destroyed, the seller is to credit any monies from the insurance against the purchase price the buyer is required to pay.
Because Birdwell did not rescind the contract he will be required to pay the $90,000 because he did not consult an attorney and because the real estate agent put a new price on the property of $50,000. However, since the contract was silent at risk, the Uniform Vender and Purchaser Risk Act, Birdwell could request this option. However, neither party had insurance on the property.
Here, no one had insurance on the property. If property is destroyed and the seller has insurance, the seller will be required to reduce the sale price by the amount of damage. Because there was no insurance on the property, and the agreement was silent, the risk of loss would be on the buyer and Birdwell’s option would have to be under contract law or marketable title.
Statute of Frauds (SOF)– The terms of a land contract must be in writing and signed by the parties, including full names of the parties, words showing intent, a meeting of the minds for the transaction to buy or sell property, the price, and sufficient description of the property.
Astor and Birdwell entered into a contract for the sale of
Doctrine of Equitable Conversion – once a contract is signed, equity regards the buyer as the owner of the property. The seller’s interest is looked at as personal property. The legal title of the property remains with the seller and is considered to in trust and the risk is on the seller. The right of possession follows the legal title; the seller is entitled to possession until closing. Risk of Loss – there is a split of authority on risk of loss when a contract is signed, equity is passed to buyer through escrow and the risk of loss is on buyer. If property is destroyed before closing, the majority rule places the risk on the buyer. If the property is damaged or destroyed, the seller is to credit any monies from the insurance against the purchase price the buyer is required to pay.
Because Birdwell did not rescind the contract he will be required to pay the $90,000 because he did not consult an attorney and because the real estate agent put a new price on the property of $50,000. However, since the contract was silent at risk, the Uniform Vender and Purchaser Risk Act, Birdwell could request this option. However, neither party had insurance on the property.
Here, no one had insurance on the property. If property is destroyed and the seller has insurance, the seller will be required to reduce the sale price by the amount of damage. Because there was no insurance on the property, and the agreement was silent, the risk of loss would be on the buyer and Birdwell’s option would have to be under contract law or marketable title.
Statute of Frauds (SOF)– The terms of a land contract must be in writing and signed by the parties, including full names of the parties, words showing intent, a meeting of the minds for the transaction to buy or sell property, the price, and sufficient description of the property.
Astor and Birdwell entered into a contract for the sale of