ARE 306 Unit 11

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ARE 306 Unit 11

• Real Property Acquisition Disposition

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Contracts for the sale of land

• Options
• Preemptive rights
• Contracts for sale - interim
• Contracts for sale - long-term

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Options

• Must have all elements of a contract
• Optionee not bound to purchase
• Counteroffers do not extinguish option
• Record to give priority
• Must be in writing

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Preemptive rights (Right of First Refusal)

• Owner not bound to sell
• Rule against perpetuities
• Reasonable pricing mechanism

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Real estate sales contracts (interim)

• Statute of frauds
• Remedies for breach
• Parol evidence

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Real estate sales contracts (Long-term)

• Financing device
• Transfer of deed after last payment

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Deeds

• General warranty
• Special warranty
• Quitclaim (nonwarranty)

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General warranty deed

• Indefeasible estate (seisin and right to convey)
• Free from encumbrances (except those listed)
• Seller will defend title

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Special warranty

• Free from defects encumbrances that may have
  arisen since seller acquired title

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Quitclaim deed

• No warranties

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Security interests

• Mortgage
• Deed of trust

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Methods of sale

• Private agreement
• Broker/agent
• Auction
• Sealed bid

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Broker/agent

• Buyer agency
• Seller agency
• Dual agency

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Listings

• Open
• Exclusive agency
• Exclusive right-to-sell
• Multiple

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Merchantable title

• Abstract
• Defects
• Title insurance
• Lenders
• Owners