Post: MBE
Posted by John on 4/08/09
MyBarPrep, The Original Online Bar Review
Question
The state of Red has an adverse statutory
period of 15 years and David purchased a lot
of land in Red in 1997. Adjacent to
the lot of land David purchased was a
private easement that was three yards in width.
David was not certain of the location of
the easement when he purchased the lot and
enclosed his property with a chain-linked
fence. The fence surrounded David’s lot and
the easement. David maintained the fence until
2000 and then decided to change the entire look
of his property by removing the fence and
refurbishing his home located on the lot. David
hired Eddie to remove the fence and in 2004 decided
to sell his property. Eddie was obligated to
oversee the nuts-and-bolts aspects of David’s home
improvement project, such as hiring and
supervising workers, getting permits, making sure
inspections were done as needed and providing
insurance for work crews. David hired Sue to act as
his agent to sell the lot of land and orally
promised to give Sue six percent of the proceeds
from the sale of the lot. David and Paula entered
into a written agreement to convey the lot of land
on September 19.
The written agreement included a description that
included the easement. Paula hired a title examiner
named John to research the chain of title of the lot
of land and John discovered that Sally previously
owned the easement contained in the written
agreement. On September 19, Paula refused to pay
for the lot and David filed an action seeking
specific performance.
Will David be successful?
(a) Yes, because of the statutory period in the
state of Red.
(b) Yes, because a valid contract was formed that
was supported by consideration.
(c) No, because the title to the lot is not
marketable.
(d) No, because the criteria for adverse possession
has not been met.
The correct response is (c). In general, land sale contracts
contain an implied warranty that the
seller is conveying a marketable title to the buyer.
Unless David can show proof of an action to quiet
title, then the title is not marketable and
Paula is not obligated to purchase a potential
lawsuit.
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Posts on this thread, including this one
- MBE, 4/08/09, by John.