real estate law Westmont College Real Estate Law Course Discussion My teacher gave me a really really poor grade on one of my previous assignments in my Real Estate Law course. She said I have to re-do it IMMEDIATELY and make some amazing changes to it. Otherwise I will be in danger of failing the course.I have attached the assignment below.I will provide the teachers comments and other important information once a tutor is selected. Real Property Law 1
REAL PROPERTY LAW ASSIGNMENT 3
by Nate Dowdy
Professor Valerie Green
University of Baltimore
Response to Chapter Six Questions
Real Property Law 2
Q.1. Contract Requirements
A contract works as a legal agreement that develops a sense of obligation to foster the
desired change according to the interest of the public and the preference of the property
owner. For example, property owners contract construction companies. Specific terms that
are particular to the preference of the owner and the other key stakeholders of interest.
Notably, the legal provisions on contracts vary among states.
The requirements that validate a contract include mutual consent, consideration, legal
purpose, and offer and acceptance. Mutual consent enables contracted deeds to take place
based on a shared agreement between two or more involved parties. Offer and acceptance
restrict a contract-based agreement within the bounds of a voluntarily involved initiative
(Hinkel, 2012). Consideration is the focus on influential factors amid the preparation and
agreement on a contract. The legal purpose is a sense of ensuring a contract agreement is
legal and enforceable due to its compliance with the law of the land and public policies.
Q2. Requirements for a Valid Real Estate Contract
Contract agreements in the real estate industry involve either brokers or salespersons.
According to the Texas State Law, a valid real estate contract must reflect the inclusion of
specific requirements that can validate such brokerage and sales contracts. First, contract
applicants must satisfy a benchmarked level of education and must pass a test by the Texas
Real Estate Commission (TREC) for licensing. Further, salespersons can only be allowed to
work under a TREC licensed real estate broker (Hinkel, 2012). Therefore, the TREC has the
mandate to adopt rules in favor of the public interest and adoption of a licensed contract form
as prepared by the Texas Real Estate Broker-Lawyer Committee (Hinkel, 2012). As a result,
the license holder is eligible for use through exchange, sale, option, or lease of an interest in
Real Property Law 3
real estate property whereby the contract form must be addressed as prepared by the owner or
developed by the attorney and required for use by the owner of the property.
Q.3. Contract of a Mental Incompetent
When a person does not understand the nature and consequences of a contract, they
are considered mentally incapacitated. Therefore, the mentally incompetent lack the legal
capacity to enter into a contract with others. Such a person is not fit due to the inability to
consent to a contract on the grounds of the inability to understand the obligations and impacts
that are associated with the contract. The court helps in adjudicating the incompetent.
However, if the mental incompetent is not adjudicated in a court of law, the contract is
deemed voidable by them. Therefore, the person can declare the contract void and
unenforceable. Key to note, contracted individuals are allowed to ratify the contract upon
recovery enough to consent and comply accordingly.
Q.4. Remedies available for the Breach of a Real Estate Contract
After signing a contract to signify a mutual agreement between parties, failure to
deliver per the expectations in time is a typical example of a breached contract. As a result, it
is prudent to institute a set of working remedies that befit the managerial requirements of real
estate contracts. Equitable remedies are fit for leveraging the contract-based claims in equity
(Hinkel, 2012). Such that, when lawsuits are equitable, there is a demand for remedies rather
than monetary benefits. For example, one party of the breached contract could ask the court
to enforce the exact terms and conditions of the contract. This approach could apply by
directing a party to permit access to a particular property for inspection or sign a deed.
Equitable actions could also involve injunctions whereby a party is ordered to halt from
causing specified damages before closing.
Real Property Law 4
Another remedy for real estate contract breaches is monetary damages. For example,
when a business incurs losses amid the undelivered contract, it is entitled to suing for the lost
money. For example, when a building is sold at $120,000, and the purchaser breaches the
contract through failure to close, allowing the seller to fetch only $100,000 from the next
buyer, the $20,000 difference could be recovered as contractual damage.
Also, self-help remedies can be fostered without bringing an action for a contractual
breach. The parties have the mandate to solve the issue leading to nonadherence to the
obligations of a contract through self-help initiatives such as security enforcement, retention
of title clauses, payment withholding, and rights against the goods involved.
Response to Chapter Seven Questions
Q.5. Methods of Payment for Real Property
There are several methods of payments that are used in the real estate industry. Cash
is the most prominent method. Such that, down payments and deferred payments are often
accomplished through cash payment. However, advancements and complexities in monetary
logistics are continually limiting the use of the cash method to make real estate payments.
Checks are also used conveniently to make payments in the real estate realm. Conventionally,
checks have been a preference for stretched-down payments and the balance payables. It is
preferred for reservations, such as during the property viewing time. It takes up to three
banking days to clear. However, advancements in the application of electronic techniques
pave the way for a one-day check clearing.
Other methods of payment include bank transfer and wire transfer, which are
commonly used for payment when it comes to the dealings and activities in the real estate
realm. Auto debit and credit are also common payment methods for property in the real estate
industry. While auto-debit is a preferred method, especially for those who are not physically
Real Property Law 5
available, credit is a less preferred method in the real estate industry due to the value of the
property that is highly volatile over time.
Q.6. Time is Essence in Real Estate
Time is essence refers to the time value of money and property in the real estate
industry. Such that there is a high degree of volatility in the value of the property. A buyer
who purchases real estate property anticipates to sell it at a higher price in the future due to
the growing demand. Technically, the ‘time is essence’ doctrine is fit for depicting the impact
of the ever-increasing population on the scarcity of the available resources. This doctrine
makes it prudent for timely debt payment to curb legal and ethical conundrums.
Q.7. Difference between Marketable Title and Insurable Title
A marketable title refers to when the chain of ownership of a piece of property is clear
and not defective. Such that, the owner could declare the property for sale without the buyers
having to direct extra efforts toward marketing the property. On the other hand, an insurable
title is known to have defects in the chain of ownership. Such that, an insurance agency in
question could be entitled to taking care of the defects. However, the state of the property
makes it difficult to market it for sale.
Q.8.Warranties Required by Purchasers in a Real Estate Contract
The selling of real estate property requires at least one warranty. This is a documented
assurance guaranteeing the state of the property being bought. One of the warranties a buyer
requires in a real estate contract is the buyer’s home warranty. It is a form of guarantee for
the protection limiting the out-of-pocket expenses that could be incurred by the purchaser
while taking care of the errors via replacements and repairs.
Q.9. Warranties Required by sellers in a real Estate Contract
Real Property Law 6
A warranty deed is a clearly definitive document in real estate. It elaborates on the
fact that the seller guarantees to hold a clear title to a piece of real estate with a right to sell it
to the buyer. The warranty deed works in contrast to the quitclaim deed, which infers that the
seller is not permitted to hold a title of ownership to the piece of real estate property. The
warranty is a form of assurance for ownership and the right to use the piece of real estate
property that is in question.
Q.10. Short Sale
A short sale refers to the selling of an asset that does not belong to the seller. It can be
summarily described as a transaction whereby investors sell securities that are borrowed with
an expectation of lower prices. The seller is required to return an equal number of shares
later. Such that, the seller can only own the security of stock in a prolonged position.
Response to Chapter Eight Questions
Q.11. A General Warranty Deed Entails
The answer is c) Against encumbrances, seisin, right to convey, further assurance,
quiet enjoyment, warranty.
Q.12. Presumptions Regarding Delivery of a Deed
The answer is e) All of the above.
Q.13. The Difference between a General Warranty Deed and a Limited Warranty Deed
The answer is f) All of the above.
Q.14. A State’s Law that Will Control the Legal Requirements for a Deed
Real Property Law 7
Vital to note, every state in the USA has a different state law that supplements the
local and federal laws when it comes to enforcing a rule. For instance, In Texas, the law finds
a deed superfluous for witnessing, swearing or acknowledging to guarantee validity.
However, for recording in the property records, the deed must be acknowledged or sworn in.
Thus, the Texas Property Code § 12.001 controls the legal requirements for a deed (Hinkel,
2012). Such that, the instruments regarding real property can only be recorded as real or
personal property when sworn to the right jurat, acknowledged, or legally proven. Also, when
the instrument conveys real property, it may not be recorded until it is acknowledged, sworn
to, or signed by the grantor when at least two subscribing witnesses are present or before and
under the certification of an authorized officer for agreements and oaths.
Hinkel, D.F., 2012. Essentials of Practical Real Estate Law. Cengage Learning. Retrieved
Purchase answer to see full