Real Estate Law 101

Real Estate 101: The Statute of Frauds is a really old law that originated in England in 1677. It requires that certain transactions must be in writing, signed by the party to be charged, basically the person being sued. Real estate purchases are one of the transactions covered by the statute of frauds. In real estate transactions, the SOF further requires that the writing contain a description of the property, a description of the parties, the price, and any agreed to conditions of price or payment.

There are a few exceptions to this rule. Part Performance is when someone has paid all or part of the purchase price, taken possession, and/or made substantial improvements to the land. For example, if Bob made an oral contract with Sue to buy property, paid her a down payment of 25% of the agreed purchase price, and built a house on the land, then even though the SOF would invalidate the oral contract, Sue could argue that Bob’s partial performance proves the existence of the contract.

In addition to Part Performance, Equitable estoppel and Promissory estoppel may be used to prove an oral contract for the sale of land. Equitable estoppel is based upon an act or a representation. Promissory estoppel is based upon a promise.

Once a contract has been signed, a purchaser becomes an equitable owner of title at the time of the execution of a binding contract. Under the common law, the risk of loss is on the buyer after signing the contract for sale. In other words, if the house burns down between the signing of the contract and the closing, the risk is on the buyer. The buyer will still have to close the deal.

There are some states that have a different rule. States that have enacted the Uniform Vendor and Purchase Risk Act hold that the risk of loss is placed on the seller unless legal title or possession of the property has passed. There are a minority of states have passed this statute. So, in a majority of states, the risk of loss is on the buyer.

Surprisingly, its quite common for people to make oral contracts to sell parts of their property, not realizing it must be in writing. Later, when the buyer fails to pay, the seller is at a loss at how to proceed. An attorney familiar with the nuances of real estate law can help with this.

 

Related Articles

8 Tips to Find a Reliable UK Immigration Lawyer

8 Tips to Find a Reliable UK Immigration Lawyer It can be difficult to find a trustworthy UK immigration lawyer. These are our top tips...

Reddit Legal Advice: 3 Tips for Evaluating Online Legal Advice

Reddit Legal Advice: 3 Tips for Evaluating Online Legal Advice Although it's possible to find the exact answer to your legal questions on the internet,...

Truck Accident Lawyers

Truck accidents are one of the most devastating events that happen to people, and when you're involved in one, you need the best legal...

What is Legal Information?

What is Legal Information? Any person who is familiar with the law can give legal information. This is different from legal advice. It's simply a...

High Conflict Divorce & Family Law

High Conflict Divorce & Family Law Alberta's legal system and judicial system have made significant progress in encouraging parties and their families to choose Alternative...

Here are some tips to help you choose the best criminal defense lawyer

If you are arrested or accused of a crime, hiring a criminal federal defense lawyer is the best decision you can make. You might...

A Certified Intimacy Coach and Educator offers advice on how to get your partner to sex after divorce

A Certified Intimacy Coach and Educator offers advice on how to get your partner to sex after divorce Some people are eager to get back...

New York Personal Injury Lawyer

Personal Injury Lawyer We are here to assist you in resolving your matter Uncertainties are part of life as everyone is susceptible to an accident...

Personal Injury Lawyer LI – Get the Most Help

What Is a Personal Injury Lawyer? It is important to realize the process of making claims against an individual or an entity. These parties have...

Follow Us

1,000FansLike
1,000FollowersFollow
1,000FollowersFollow

What is Legal Information?

What is Legal Information? Any person who is familiar with the law can give legal...

Ask a lawyer: Can Bankruptcy Clear Judgments in Lawsuits?

Chapter 7 bankruptcy or Chapter 13 bankruptcy can help you to eliminate or reorganize...

Selecting your area of law

Law schools do not expect you to know the type of law you wish...

Your Wellness and “Beauty Master”

Despite our busy lives, most people manage to find some time to care for...

High Conflict Divorce & Family Law

High Conflict Divorce & Family Law Alberta's legal system and judicial system have made significant...

What Happens When A Victim Recants?

Not all criminal cases have a victim; however, in those that do, the alleged...

Subscribe ⇘

spot_img
error: Content is protected !!