ARE 306 Unit 11 Real Property Acquisition Disposition

ARE 306 Unit 11 Real Property: Acquisition & Disposition 1

Contracts for the sale of land l l Options Preemptive rights Contracts for sale - interim Contracts for sale - long-term 2

Options l l l 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 3

Preemptive rights (Right of First Refusal) l l l Owner not bound to sell Rule against perpetuities Reasonable pricing mechanism 4

Real estate sales contracts (interim) l l l Statute of frauds Remedies for breach Parol evidence 5

Real estate sales contracts (Long-term) l l Financing device Transfer of deed after last payment 6

Deeds l l l General warranty Special warranty Quitclaim (nonwarranty) 7

General warranty deed l l l Indefeasible estate (seisin and right to convey) Free from encumbrances (except those listed) Seller will defend title 8

Special warranty l Free from defects & encumbrances that may have arisen since seller acquired title 9

Quitclaim deed l No warranties 10

Security interests l l Mortgage Deed of trust 11

Methods of sale l l Private agreement Broker/agent Auction Sealed bid 12

Broker/agent l l l Buyer agency Seller agency Dual agency 13

Listings l l Open Exclusive agency Exclusive right-to-sell Multiple 14

Merchantable title l l l Abstract Defects Title insurance • Lenders • Owners 15