1 ARE 306 Unit 11 Real Property: Acquisition & Disposition

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

3 Options l Must have all elements of a contract l Optionee not bound to purchase l Counteroffers do not extinguish option l Record to give priority l Must be in writing

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

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

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

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

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

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

10 Quitclaim deed l No warranties

11 Security interests l Mortgage l Deed of trust

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

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

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

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