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EPISODE SUMMARY
A land sale contract must usually satisfy the Statute of Frauds through a writing signed by the party to be charged, identifying the parties, describing the land, and stating essential terms. Exceptions include part performance and equitable estoppel.
Unless the contract provides otherwise, the seller must deliver marketable title at closing. Marketable title is title reasonably free from doubt, not perfect title. Serious record defects, encumbrances, zoning violations, adverse possession claims, and other substantial problems may make title unmarketable.
Equitable conversion treats the buyer as equitable owner after a specifically enforceable land sale contract. The seller holds legal title and a right to the purchase money. This doctrine affects risk of loss, death, and remedies, though modern statutes may alter the traditional risk rule.
A deed transfers legal title. A valid deed generally identifies grantor and grantee, contains words of transfer, describes the property, is signed by the grantor, and is delivered and accepted. Delivery depends on the grantor’s intent that the deed have present legal effect.
A general warranty deed provides broad title protection. A special warranty deed protects only against defects caused by the grantor. A quitclaim deed provides no warranties and transfers only whatever interest the grantor has.
The six traditional covenants of title are seisin, right to convey, against encumbrances, quiet enjoyment, warranty, and further assurances. The first three are present covenants breached, if at all, at delivery. The last three are future covenants breached later.
Recording acts determine priority among competing claimants. Race statutes protect the first to record. Notice statutes protect subsequent bona fide purchasers who take without notice. Race-notice statutes protect subsequent bona fide purchasers who take without notice and record first. A BFP gives value and lacks actual, record, and inquiry notice. The shelter rule protects transferees from a BFP. Chain of title problems, including wild deeds and early recording, may prevent constructive notice.
The key lesson is sequence. In land transfer questions, move from contract to marketable title, equitable conversion, deed validity, covenants, recording, notice, and priority.
