Property Rules 3

Continuous

• Seasonal fine
• Tacking allowed
• Doesn't count against disabled owners

Actual, open, notorious

Hostile

Exclusive - no sharing with true owner

For required amount of time - 10 years in NY, tacking allowed

• In writing
• Signed by party to be charged
• Contain all essential terms (parties, property description, terms of price and payment)

All or part of purchase price paid + purchaser in possession OR purchaser improvement to property = specific performance without writing.

Contract in fact - parties' actions show agreement

Estoppel - detrimental reliance on contract

Deliver marketable title

• No adverse possession that has not been quieted
• No private encumbrance (mortgage, easement, etc - in NY, a possibility of reverter is a defect)
• No violation of zoning law
• No significant physical defect

Implied warranty of habitability

Implied warranty of workmanship

• In NY, buyer's at foreclosure sales are owed these same dutues, but are still expected to have constructive and inquiry notice of recorded defects.

NY law requires sellers of 1- to 4-family residential dwellings to provide completed statutory disclosure forms before signing contracts. Not for condos, co-ops, or new construction.

If seller not at fault:

• recover purchase money paid
• recover expenses from title examination
• recover nominal damages

Damages - difference btwn contract part and market price on date of performance.

Specific performance - includes abatement for any defects of title.

Lender may seek payment from both the orginal debtor or the buyer, unless there has been a modification of the obligation after the assumption, in which case only buyer is liable.

Buyer is not personally liable upon default, although absent a novation, the original debtor is personally liable.

Delivery of valid deed + intent to make present transfer of title to grantee + acceptance of deed by grantee

Gifts, transfer to escrow with conditional instructions to transfer, etc. do not count since there is not present intent.

NY: usury is a defense if mortgagor is not a corp. Remedy is discharge without payment of principal or interest.

Parties (specifically named, not "to my neighbors")

Signature of grantor (does not need grantee's)

Words of transfer

Description of property

A purchaser need only purchase without notice of the prior interest to prevail under a notice statute

Bona fide purchaser need not record in order to prevail over a prior interest in a notice jurisdiction, but must record to prevail against a subsequent purchaser.

Creditors are protected only against claims that arise after a judgment lien against the debtor is recorded.

B purchased Blackacre from A, but does not record the deed. C, a creditor of A, not knowing of the deed to B, then recorded a judgment lien against Blackacre. A judicial sale of Blackacre was scheduled. A then sold Blackacre to D, who promptly recorded the deed.

• C is protected against D’s claim because D purchased after C recorded the judgment lien.
• C is not protected against B’s unrecorded interest.

NY: Judgment liens on real property last 10 years and can be extended; money judgments are effective for 20 years.

General warranty - present covenants (owns land, can convey it, covenants against encumbrances) + future covenants (protection against subsequent claims of title) + help in defending against claims of encumbrance

Special warranty ("Bargain and sale deed" in NY) - warranty against defects arising during time granto had title

Quitclaim